Business history and work experience
I am an engineer. I graduated from the Ivanovo’s engineering institute. About 20 years I worked in the “Bentonite” company. More than 15 years I was the director of the company. Starting 1996 I have my own business. The business produces construction materials.
Description of Business Idea
I am going to establish production of condensed feed. It will be used as a feed in the poultry and animal breeding spheres.
Market Analysis and market share
The condensed feed will be mainly sold in Tavush marz. In this marz there are 33283 horned animal, 15903 sheep and about 8834 pigs. It is necessary feed for all of them. Monthly about 150 ton of condensed feed is being used here. 100 ton of them are debris from flour production. This product is usually imported from other regions of Armenia. The other 50 ton is husk. The grain used in this production is usually cultivated in our region for this purpose by the local farmers. The price of 1 kg husk is 80 – 100 AMD in the market. The total of demand for condensed feed is 100 ton monthly in Tavush.
In 2010 I will have 12, 5 % market share selling about 150 ton feed annually.
For organizing the selling process for my production, I will
• send them to local shops.
• send them to farms
• organize selling process directly from the company
The self cost for 1 kg condensed feed is 65 AMD.
The selling price for 1 kg condensed feed is 90 AMD.
In Tavush marz there are not any condensed feed producers. My competitors are about 10 companies in other regions that produce and export condensed feed to Tavush. As a big advantage for me I should note that my production is 70% more nourishing than husk. The next advantage is the selling price. My selling price is lower by 10 %. At the same time I am near the customers and I will not do big transportation costs.
As a disadvantage I can note that I am a beginner in this sphere.