4. Cost structure, revenue, profit and break-even point
Expense Total initial construction cost 336,750,000 Include: Fixed costs: 112,250,000 Fixed costs after depreciation: 12,722,619 Annual variable costs: 214,500,000 Total cost for one year of production: 227,222,691 | Revenue, profit and points break even - Revenue: 360,000,000 - Profit: 132,777,309 - Break-even point: 3.156/kg |
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Table 3.3 Fixed cost table
STT
Device Name | Quantity | Unit of measure | Unit price (1000 VND) | Total amount ( 1000) | Number of years of depreciation | After depreciation (1000) | |
1 | Greenhouse | 1 | female | 10,000 | 10,000 | 10 | 1000 |
2 | Net house | 1 | female | 5,000 | 5,000 | 8 | 625 |
3 | Tractor | 1 | piece | 12,000 | 12,000 | 10 | 1200 |
4 | Pump | 1 | piece | 5,000 | 5,000 | 7 | 714,285 |
5 | Water pipe | 5 | roll | 150 | 750 | 3 | 250 |
6 | Sprinkler automatic | 4 | female | 100 | 4,000 | 4 | 1,000 |
7 | Truck | 1 | piece | 80,000 | 80,000 | 10 | 8,000 |
8 | Tray alike | 100 | piece | 25 | 2,500 | 3 | 833,334 |
9 | Bin plastic | 40 | The | 125 | 5,000 | 4 | 1,250 |
10 | Total | 120,650 | 14,872.62 |
Through table 3.3, the expected fixed cost is 120,650,000 VND and the annual depreciation cost is 14,872,620 VND.
Table 3.4 Annual variable costs
STT
Device Name | Quantity | Unit calculate | Unit price (1000 VND) | Total amount ( 1000) | |
1 | Labor | 12 | month | 5,000 | 60,000 |
2 | Land | 1 | ha | 10,000 | 10,000 |
3 | Seeds | 5 | package | 100 | 500 |
4 | Fertilizer | 12 | ton | 3,000 | 36,000 |
5 | Tarpaulin | 10,000 | m2 | 7 | 70,000 |
6 | Gasoline, oil, electricity, water | 6 | month | 2,000 | 12,000 |
7 | Preservatives Plant | 30 | jar | 200 | 6,000 |
8 | Other costs | 20,000 | |||
Total | 214,500 |
The total expected variable cost for one year of production is 214,500,000 VND, of which the cost of plastic tarpaulin and labor cost are the largest, at 70 and 60 million VND, respectively.
Table 3.5 Revenue
STT
Object | Unit | Quantity | Unit price | Total amount | |
1 | Cabbage | Kg | 72,000 | 5,000 | 360,000,000 |
2 | Total revenue | 360,000,000 |
- With an area of 1 hectare, growing 1 crop/year, the estimated output is 72,000 kg with a selling price of 5,000 VND, the expected revenue is 360,000,000.
+ , Yield: On 1ha of production area, the distance between rows is 30cm, the surface area of the bed is 70cm, the height of the bed is 25cm, so with a width of 100m, there are 70 beds. On the surface of the bed, plant two rows. The planting method is 50cm between plants and every 25m there is a drainage bed, so the yield is
The expected number of trees to be planted is 180 x 200 = 36,000 trees/ha. The success rate is 80% so the finished product is 28,800 trees/ha.
The average weight of a tree is about 2.5kg/tree, so the yield per hectare is 72,000kg. The planting method is to plant every 10 days.
Table 3.6 Economic efficiency of production year
STT
Target | Unit of measure | Value | |
1 | Production value (GO) | Copper | 360,000,000 |
2 | Variable Cost (IC) | Copper | 214,500,000 |
3 | Asset depreciation expense | Copper | 14,872,620 |
4 | Value Added VA | Copper | 145,500,000 |
5 | Total cost | Copper | 229,372,620 |
6 | Profit | Copper | 130,627,380 |
7 | GO/IC | Copper | 1,678 |
8 | VA/IC | Copper | 0.678 |
9 | Break-even point | VND/kg | 3,186 |
Through table 3.6 we can see that the total expected revenue is 360,000,000 VND.
After deducting total costs, the expected profit is 130,672,380 VND.
With an investment of one dong in variable costs, the production value will be 1,678 dong, and if one dong in variable costs is spent, the added value will be 0.678 dong.
The break-even point with a total output of 72,000 kg and a total cost for one year of 229,372,620, only needs to be sold at a price of about 3,186 VND to break even, so 1 kg of product can bring in 1,814 VND.
5. Strengths, weaknesses, opportunities and threats (SWOT) analysis
analysis):
Strengths | Weaknesses |
Clean and safe agricultural products are increasingly of interest to consumers. Using Japanese technology and manufacturing standards to ensure product quality. Abundant, young human resources enthusiastic, experienced, Convenient transportation and irrigation systems for travel, transportation and product consumption. | Lack of investment capital The product has never been produced locally. Lack of information about market needs. |
Opportunities | Threats |
The State focuses on investing in developing clean agricultural models. The demand for food safety is increasing. | The product is not yet known to many people. The output market is unstable. Competition of products products from elsewhere. |
6. Potential risks when implementing ideas/projects and measures to minimize risks
- Price risk: Unreliable output market, unstable prices.
- Technical risk: New model, new technology, new standard, untested
- Risks in production: Due to pests and diseases, reducing crop productivity and yield.
- Competitors: competition from competitors from other regions affects product prices and designs.
Risk mitigation measures:
- Search for output markets, closely link with supermarkets for consumption
product.
- Learn and improve your expertise in technical processes of planting and caring for products. Follow the discipline in using medicine according to Japanese procedures. Visit other agricultural models to learn and gain more knowledge.
- Buy agricultural insurance to limit possible risks.
- Need to create trust for customers about your products to show the difference of the products, especially in product quality.
7. Recommendations to support the implementation of the idea This is a pilot model of agricultural production applying Japanese technology and quality standards in the area, lacking a lot of experience. and knowledge, hope to receive much support from investors. |
8. Plan to implement startup ideas
STT | Time | Job Description |
1 | From August to mid September | Borrowing capital and finding a production location: Borrowing capital according to the state's startup policy, then rent and collect land into a production area. |
2 | Mid September to October | Basic construction: building greenhouses, net houses, near the house for easy care. Then improve the soil, spread a tarp and proceed to incubate the seeds. |
3 | From October to mid-December | Planting and care: plant in turn with an area of 1ha, divide into 4 plantings. Take care of vegetables, regularly visit the garden to check the growth rate, check for pests and diseases to have timely measures. Record the use of each type of vegetable. medicine. |
4 | From mid-December to February | Harvesting and selling: because of planting in turn, it is possible to harvest gradually and sell during the period from mid-December to May. Cut vegetables to sell in markets as well as to traders, and at the same time Time to promote products through social networks. |
- Search for output market:
Before production, we will survey the market in supermarkets and wholesale markets to know about the demand for the product, whether the product is already on the market or not, helping to assess the supply and demand of the market for the new product to have a plan. Once produced, we will sell directly at the markets and gradually approach the demanding markets.
- The difference of the idea of "Japanese standard cabbage growing model" is the difference in the quality of vegetables with the applied technical process that will create clean and safe vegetable products for consumers, solving concerns about food safety.
- Through the process of studying and working in Japan, some technical processes can be applied as follows.
Table 3.7 Technical comparison of idea and Japan
Content
Idea | Japan | |
Land preparation, fertilization | Tillage with small tractor Application of organic and inorganic fertilizers without soil analysis | tillage with high-powered tractors Organic and inorganic fertilizers base after soil analysis |
Create beds, spread canvas, and sow seeds | Create a manually spread bed with a large bed surface of 70cm that can be planted in 2 rows and nursed in a greenhouse. glasses | Create machine-made tarpaulin beds with small bed sizes that can only be planted in one row and also need to be raised in the nursery. greenhouse net house page |
Look and care squirrel | Planting and care according to standards Japanese standard | Plant and care according to Japanese standard |
Harvest and export vegetables | Harvested, put into plastic bins without classification and sold to consumers | Harvested, put into plastic ropes and cartons with size classification and exported. cooperative |
Garden cleaning | Clean the garden and maybe leave it behind. tarpaulin for next crop | Clean the garden and go to bed handle |
- The comparison table shows that in Vietnam, 60-70% of the stages can be applied, the biggest difference is in the investment in machinery and equipment.
Technically, it is almost possible to do everything and the quality of the vegetables can be almost the same.
- Vision of the idea: Initially, it is possible to only produce vegetables for direct sale in the early stages. In the future, it is possible to process vegetables to diversify products such as cabbage for kimchi, dried cabbage, etc. Currently, the planting location is located in the tourist area of "Dong Van Stone Plateau" tourist area. With such advantages, in the future, it is possible to combine agricultural tourism to diversify forms, contributing to promoting good products, increasing consumption capacity and bringing products to more consumers.
PART 4 CONCLUSION
4.1. Conclusion of internship at Yoshio Takamizawa farm
Through the process of learning and practicing at Yoshio Takamizawa farm No. 215 Azusayama, Kawakami, Minamisaku-gun, Nagano, Japan. I have some comments about the farm as follows:
1. Yoshio Takamizawa Farm is a 2.3ha farm mainly producing lettuce and cabbage. The farm has been growing steadily over the past years.
2. The farm has over 30 years of experience in the field of cultivation.
With the enthusiastic support and assistance from the government's policies and the Kawakami Agricultural Development Research Center, the farm is growing and expanding in scale.
The farm has all the necessary equipment to meet the requirements of concentrated cultivation, along with highly skilled agricultural experts, so the quality of lettuce and cabbage is always guaranteed.
3. Each year the farm earns a profit of 2,409,291,078.6 VND. Creating stable income for the farm. Creating jobs and stable income for farm workers.
4. Through the process of studying and working, I have learned many things from Japan as well as at work about language, culture, sense of responsibility and especially about vegetable growing techniques, which partly helped me orient my startup idea.
4.2 Conclusion of startup ideas
Producing cabbage according to Japanese standards is of great significance in creating agricultural products that meet the needs of clean products for consumers.
The idea of producing cabbage according to Japanese standards has an initial investment of 335,150,000 VND.