Are you about starting a tomato processing plant? If YES, here is a complete sample tomato processing business plan template & feasibility report you can use for FREE.
Okay, so we have considered all the requirements for starting a tomato processing business. We also took it further by analyzing and drafting a sample tomato processing business marketing plan template backed up by actionable guerrilla marketing ideas for tomato processing businesses. So let’s proceed to the business planning section.
Why Start a Tomato Processing Plant?
It is a known fact that tomatoes are used all over the world and it is a cheap and affordable staple for all classes of people. We have been told that tomatoes are rich in fiber, they contain healthy vitamins and have no trace of cholesterol. Tomatoes are also known to contain disease fighting photo-chemicals. Most people like to consume tomato in its raw state as fruit, or after it have been processed in foods and juices.
These precious fruits are also used for the preparation of various menu like; salads, drinks, pizza, tomato soups and sauces et al. Residing in a country where tomatoes are produced in large quantities actually means that you can establish your own tomato processing plant and build it to become a world class business.
When starting a tomato processing plant, you would require a huge start-up capital, but the good news is that the market for processed tomato products is very huge and profitable. One of the numerous advantages of starting a tomato processing plant is that you can build your plant in any part of the world where you can get tomato plants easily and with cheaper labour and then sell them to the world. Without much waste of time, the sole end products from an ideal tomato processing plant are the popular ketchup, tomato juice, diced tomatoes, tomato powder, tomato paste, tomato pulp, strained tomatoes, partially dehydrated tomatoes et al; which are very much needed in our world.
Here is a sample business plan template for you to go through.
A Sample Tomato Processing Plant Business Plan Template
- Business Overview
Just as we stated above, tomato processing plants produce tomato paste, puree, ketchup, juice and sauce. It is important to note that the manufacturing process is made up of the most modern technology of vacuum evaporation through the use of forced circulation evaporators/scrapped surface evaporators.
Also evaporation plants are versatile in nature and can concentrate other juices also. These awesome fruits are used in very huge quantities in the fresh state, as canned tomatoes, and in the form of canned juice, puree, paste, ketchup and sauce. Tomato ketchup and sauce have got a mixed taste of sweet and sour.
They can also be very refreshing and help in increasing appetite. Tomatoes are very good source of vitamin C for our body needs. We all know that the demand for tomato products is increasing day by day. This shows a glowing future for new entrepreneurs and as well as existing manufacturers.
Tomato Processing Plant Business Plan – Executive Summary
First Inland Plants, FIF is a Limited Liability Company based in Fresno, California. It is a business set up with a clear, dedicated and committed vision, to excel and grow into one of the best Agro based industries in California which has taken advantage of the abundant raw materials produced to create goods for export. FIF has its Head office at 3419 Brown Avenue Fresno, a 100 acre site where the proposed plant will be built.
We also have acquired recently a 50,000 hectares plant land in the same region for cultivating of tomato and orange. Our processing plant we believe will be run by a team of experts that include Mr. Jeffery Madeleine as the General Manager. It is also important to note that FIF is registered with an authorized share of 100,000 with a value of $1.67 per share.
We at FIF believe that our plant will have tomato processing capacity of about 1,500 tons per day between the months of October and April of the year 2018. We at FIF plan to make arrangements for skilled, semi-skilled and unskilled manpower, raw materials and plant housing as necessary for the success of our business.
We also believe that our interested partner will provide funding for machinery, skilled manpower, take-off capital, among other things. Our management will jointly organise for marketing of manufactured tomato paste.
This business is the sole dream and arrangement of four friends who have enjoyed immeasurable connection and success in the agro processing industry. These individuals, Jeffrey Madeleine, Constance Kiki, Wilfred Carlos and Steve Cornwall have been friends for at least 23 years and they are bringing their different experiences into this unique business.
- Our Products and Services
We at FIF believe that we will produce quality canned Tomato paste, Tomato Ketchup and orange juice for local consumption and for export. It is our hope at FIF to provide excellent customer service for its customers and suppliers.
FIF will also produce these products, and export 70% of the products directly from the United States, to our neighbouring countries. We believe that the United States will also gain from foreign exchange earnings and added value for its rotten produce which would have gone to waste. Listed below are the products we wish to provide at FIF;
- Tomato Paste
- Tomato Ketchup
- Tomato juice and sauce
- Dried tomatoes
- Tomato powder
- Orange juice
Our Vision Statement
Our vision at FIF is to become one of the leading ventures in the Agro Processing industry in the whole world, starting from the United States.
- Our Mission Statement
We at FIF have decided to provide a wide variety of processed tomato products to United States citizens. We understand that the customer service we provide is extremely important, because we want each customer to have a pleasant experience with our goods, and it is the intention of our staff to answer questions with expertise and to offer advice when we feel it is needed.
- Our Business Structure
FIF has been a long-time dream of our four founding partners, and has been a project in the making for nine years. We at FIF hope that our opening date will be within next year March, and we dream of making our plant the leading figure in the industry. We also plan to focus on providing quality tomato and orange products, which will give nutrients and serve the various needs of our customers, who will cut across different phases of life.
Outlined below are the portfolios we wish to start FIF with:
- Chief Executive Officer
- HR and administrative Executive
- Plant Manager
- Plant worker(s)
- greenhouse worker
- Marketing and Sales Manager
- Security guard
Roles and Responsibilities
Chief Executive Officer
- His in charge of overseeing all other executives and staff within the organization.
- He is tasked with board of directors and other executives to determine if the company is in accordance with set goals and policies.
- Charged with encouraging business investment.
- He also promotes economic development within communities.
- His in charge of directing the organization’s financial goals, objectives and budgets.
- Implement the organization’s guidelines on a day-to-day basis.
- Preside over quality control.
- In charge of hiring, training, and terminating employees.
- In charge of developing and implementing strategies and set the overall direction of a certain area of the company or organization.
- Provide visionary and strategic leadership for the organization.
- Collaborate with the board of directors to develop the policies and direction of the organization.
- He makes sure that the members of the Board of Directors have the information necessary to perform their fiduciary duties and other governance responsibilities.
- He also provides adequate and timely information to the Board to enable it to effectively execute its oversight role.
- Direct staff, including organizational structure, professional development, motivation, performance evaluation, discipline, compensation, personnel policies, and procedures.
HR and administrative Executive
- In charge of overseeing the running of HR and administrative tasks for FIF.
- Monitor office supplies by checking stocks; placing and expediting orders; evaluating new products.
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Stay updated on job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
- Builds the ventures reputation by accepting ownership for accomplishing new and different requests; exploring opportunities to add value to job accomplishments.
- State job positions for recruitment and managing interviewing process.
- Organise staff induction for new team members.
- In charge of training, evaluation and assessment of employees.
- In charge of arranging travel, meetings and appointments.
- Oversee the smooth running of the daily office activities.
- In charge of preparing financial reports, budgets, and financial statements for the organization.
- In charge of financial forecasting and risks analysis.
- In charge of developing and managing financial systems and policies.
- In charge of administering payrolls.
- Ensures compliance with taxation legislation.
- Handles all financial transactions for the company.
- Serves as internal auditor for the company.
- Will plan, organize, direct and run optimum day-to-day operations to exceed our customers’ expectations.
- Tasked with increasing production, assets capacity and flexibility while minimizing unnecessary costs and maintaining current quality standards.
- In charge of production output, product quality and on-time shipping.
- Allocate resources effectively and fully utilize assets to produce optimal results.
- Will be responsible for implementing strategies in alignment with strategic initiatives and provide a clear sense of direction and focus.
- Will monitor operations and trigger corrective actions.
- Share a trusting relationship with work-group and recruit, manage and develop plant staff.
- Will have to collect and analyse data to find places of waste or overtime.
- Will commit to plant safety procedures.
- In charge of developing systems and processes that track and optimize productivity and standards, metrics and performance targets to ensure effective return on assets.
- Will have to address employees’ issues or grievances and administer collective bargaining agreements.
- Influence and learn from below.
- Stay up to date with latest production management best practices and concepts.
- Checking and controlling the equipment that make the food.
- Checking instruments, for example temperature gauges, at customary intervals.
- Keeping machines dirt free at all times.
- When problems happen with the production procedure, he would discontinue the machine and report the fault to a manager or engineer.
- Making sure the production line has a regular supply of raw materials or components.
- Adjusting the momentum of the conveyor belt if required.
- Graft plants.
- Inspect facilities and equipment for signs of disrepair, and perform necessary maintenance work.
- Negotiate contracts such as those for land leases or tree purchases.
- Position and regulate plant irrigation systems, and program environmental and irrigation control computers.
- Prepare soil for planting, or to transplant seeds, bulbs, and cuttings.
- Provide information to customers on the care of trees, shrubs, flowers, plants, and lawns.
- Assign work schedules and duties to nursery or greenhouse staff, and supervise their work.
- Determine plant growing conditions, such as greenhouses, hydroponics, or natural settings, and set planting and care schedules.
- Determine types and quantities of horticultural plants to be grown, based on budgets, projected sales volumes, and/or executive directives.
- Identify plants as well as problems such as diseases, weeds, and insect pests.
- Manage nurseries that grow horticultural plants for sale to trade or retail customers, for display or exhibition, or for research.
- Select and purchase seeds, plant nutrients, disease control chemicals, and garden and lawn care equipment.
- Tour work areas to observe work being done, to inspect crops, and to evaluate plant and soil conditions.
- Apply pesticides and fertilizers to plants.
- Confer with horticultural personnel in order to plan facility renovations or additions.
- Construct structures and accessories such as greenhouses and benches.
Marketing and Sales Manager
- In charge of identifying, prioritizing, and reaching out to new markets for our agricultural produce, processed food, new partners, and business opportunities within the agro – allied industry.
- In charge of developing, executing and evaluating new plans for expanding sales of all our agriculture produce and processed foods.
- Tasked with documenting all customer contact and information.
- Represents the company in strategic meetings.
- Aids to increase sales and growth for the company.
- In charge of protecting the plant and its environs
- Controls traffic and organize parking
- Tasked with giving security tips when necessary
- Patrols around the plant on a 24 hours basis
- Presents security reports weekly
Tomato Processing Plant Business Plan – SWOT Analysis
It is important to note that FIF is a standard Tomato processing plant that was set up to be great and not as a trial and error, which is why conducting a proper SWOT Analysis became a necessity and a must for us at FIF. We actually believe that getting our things right from the start would mean that we have succeeded in laying the foundation that will help us create a sustainable tomato processing plant.
We at FIF have plans of offering a large number of products and services to the people of California, we have no plans for failure but a well situated plan that will help us to maximize our strength and opportunities and also make our threat and weakness an advantage for us. Properly explained below is a summary of the result of the SWOT analysis for FIF.
According to our SWOT Analysis, the strength of FIF rests on the fact that we have created and built a well based rapport with a handful of major players (agriculture merchants) in the agro – allied industry; both suppliers and buyers within and outside of the United States. Our management have also purchased some of the latest modern machines, tools and equipment that will helps us manage our tomato processing plant. We also have the best hands for the business in the whole industry.
The SWOT Analysis noted that the time it will take to gain customers and boost our brand will be our major weakness at FIF. It explained the unimaginable competitive industry and how industry players are keen on their advertising strategies.
The opportunities that we at FIF have are the amount of people from the different walks of life that will need our products in their daily lives and activities.
One of the threats that was perceived during the SWOT Analysis is the probability of a global economic downturn that will affect us negatively, bad weather cum natural disasters (droughts, epidemics), unfavourable government policies, a new competitor in our location and faulty machines.
Tomato Processing Plant Business Plan – MARKET ANALYSIS
- Market Trends
It’s a known fact in the industry that fresh tomato consumption overall has been stagnant since mid-2000s. But interesting things are happening in the industry, both hothouse and field-grown, across all North American markets. Farms in the United States, Canada and Mexico are getting ready and arranging up their strengths to produce a variety of tomatoes to meet consumer demand for flavour, convenience, interesting colours, sizes and shapes.
It is also important to note that the U.S. per capita consumption of tomatoes increased 5 pounds from 1985 to 2013, which can be accredited to increasing availability of hothouse tomatoes in the industry.
Even though the hothouse tomato industry rose significantly for some time, more recent producers have reported facing market saturation. Hothouse round tomatoes and TOV [tomatoes on the vine] have matured, and all the growth is coming in the snacking category. Estimate in the industry has shown a decline in the total quantity (lbs) of tomatoes sold between 2009 and 2015.
But we believe there have been major changes in the product mix of tomatoes. One specie eating up the revenues of another has been the major story instead of the new varieties causing higher consumption of tomatoes overall. It is also believed that tomato growers may also have opportunities as the food-service industry has been pressured to add more non-animal proteins to their menus. These are round tomatoes which are prized for their firmness and easy slicing attributes.
- Our Target Market
We at FIF believe that our target market strategy will rest on making our business an attractive choice for residents and retail outlets owners in the city of Fresno, California. We believe that the target markets we are going to be chasing are the residential consumers hoping to use our products for the organization consumption needs. We also believe that the retail stores in the city will be attracted by our competitive prices and a diverse inventory.
We at FIF know that individuals will want to shop at our location because of the superior customer service we hope to provide, and we will love to experience a five to ten percent increase in customers annually, and the profile of our customer consists of the following demographic information:
- Male and Female.
- Married and Single.
- Combined annual income in excess of $50,000.
- Age range of 25 to 80 years, with a median age of 40.
- Retail outlets
- Vegetable export markets
Our Competitive Advantage
Our strategy at FIF is to profitably and efficiently make use of present and future agricultural technology in the processing of tomatoes. We hope to build a profitable tomato processing plant with all the necessary custom-innovated equipment, that will gain a significant industry advantage. Our other competitive advantages include;
- Efficient production and utilizing greenhouses.
- No existing projects of this magnitude in Fresno, California
- Our founding members have or can boast of a unique experience in the vegetable industry that goes back to 1998.
Tomato Processing Plant Business Plan – SALES AND MARKETING STRATEGY
- Marketing and Sales strategy
We at FIF will market and supply our unique products to our connected outlets aggressively, focusing at first on local markets, and then on export options. We plan to emphasize the reliable year-round output of our processing plant and hardworking workforce as well as our ability to produce independent tomato products.
We at FIF understand how important marketing is in our industry. We understand the need to reach our prospective customers and leverage all available sources, which is why we will also eventually develop a website and advertise on the internet, although these future marketing avenues are not included in this plan.
Tomato Processing Plant Business Plan – Publicity and Advertising strategies
We at FIF hope that our marketing strategy will be based on giving the people the products they need for the right price. Our management at FIF plan to maintain an extensive marketing campaign that will ensure maximum visibility for the business in our targeted market. Below is an overview of the publicity and advertising strategies for FIF:
- Establish relationships with landscape contractors within the target market.
- We hope to place adverts on both print (community based newspapers and magazines) and electronic media platforms; we will also advertise FIF Consultants on financial magazines, real estate and other relevant financial programs on radio and TV.
- FIF will also sponsor relevant community based events/programs.
- We also plan to make use of various online platforms to promote the business. Which will make it easier for people to enter our website with just a click of the mouse. We will take advantage of the internet and social media platforms such as; Instagram, Facebook , twitter, YouTube, Google + et al to promote our brand.
- We also plan to mount our Bill Boards on strategic locations all around Fresno, California.
- We at FIF also plan to engage in road show from time to time.
- We also plan to distribute our fliers and handbills in target areas all around Fresno.
- We plan to make sure that all our workers wear our branded shirts and all our official vehicles are well branded with our company’s logo et al.
Sources of Income
Just like we stated above in the product and service section, we will produce quality canned tomato paste, tomato ketchup and orange juice, for local consumption and for export. We hope to raise substantial income from the sales of products that we produce. FIF will also produce these products, and export 70% of the product directly from the United States, to our neighbouring countries. We believe that the United States will also gain from foreign Exchange earnings. Listed below are the products we wish to gain income from at FIF;
- Tomato Paste
- Tomato Ketchup
- Tomato juice and sauce
- Dried tomatoes
- Tomato powder
- Orange juice
We at FIF expect to have exceptional sales in the first year of operation. We believe that our direct unit costs include the costs for the agricultural supply force who will produce the tomatoes and oranges we process in our plant. These costs we believe are roughly 35% of all direct costs each month. Our sales projections at FIF was analysed from two main revenue streams: the general public, and the retail outlets.
We believe that our sales projections for the second year of operation will be based on a modest growth rate for sales. We at FIF being a new tomato processing plant are projecting a growth rate of 20%, believing our advertising will bring in new customers daily. Outlined below is the sales projections of FIF:
- First Year-: $550,000
- Second Year-: $1,400,000
- Third Year-: $3,000,000
Note: it is worthwhile to note just like we stated above that this forecast was done based on what is obtainable in the industry and with the believe that none of the threats we mentioned above will be a hindrance or may likely appear.
- Our Pricing Strategy
Our pricing strategy at FIF will be based on offering our customers expert service and product knowledge, to build our marketing plan to reach diverse individuals and retailers, while also maximizing profits. FIF believe that to get the right pricing for our products, we need to make sure that we choose a good location for our plant, choose our suppliers wisely, reduce the cost of running our plant to the barest minimum and make sure we attract buyers to our business, as against taking our products to the market to source for buyers; with this, we would have successfully removed the cost of transporting the goods to the market and other logistics from the equation.
- Payment Options
We at FIF after our extensive research and thorough discussion understand that different customers prefer different payment options as it suits them at different times. We plan to make sure that we provide them with payment options that will make their transactions less stressful and very open.
Listed below are the payment options we at FIF plan to make available to our customers;
- Payment via bank transfer
- Payment with cash
- Payment via online bank transfer
- Payment via check
- Payment via bank draft
- Payment via POS
We have also chosen to partner with a known bank in the United States in order to give our customers the best they can ever get in the agricultural sector of the United States.
Tomato Processing Business Plan – Financial Projections and Costing
We at FIF hope to maintain an average gross margin at or above 50%, generate an average of $1,000 of sales each business day of each month, and realize an annual growth rate of 10% in Year 2. Our unique management believe that these objectives and goals are very much reachable, which is the main reason why we are being very detailed about all information penned down in our business plan. We have also decided on the possible factors to spend our start up capital and they include:
- The price for incorporating our farm in United States of America – $750.
- Our budget for key insurance policies, permits and business license – $4,000
- The cost of acquiring/leasing our facility and land – $55,000
- The budget for preparing our plant– $25,000
- The price for acquiring the required working tools and equipment/machines/tractors et al– $600,000
- The price of launching an official Website – $600
- The budget for paying our workers for 1 year – $500,000
- Other business requirements (Business cards, Signage, Adverts and Promotions et al) – $2,000
- Miscellaneous – $5,000
From our detailed cost analysis above, we will need $1,192,350 to start FIF and make our processing plant ready to serve the needs of our customers. Here also are the few equipment we believe are necessary in starting FIF :
- TOMATO processing lines
- Equipment for tomato paste production
- Machinery for whole peeled tomatoes production
- Equipment for diced/pulp production
- Machinery for pasta/tomato sauces production
- Equipment for ketchup production
- Machinery for drinkable tomato juice production
- FRUIT processing lines
- VEGETABLES/FRESH CUT/EASYCUBE
- Twist SPIRAL solutions
- FLUID and SPIRAL FREEZING solutions
- JAM, MARMALADE, CANDYING/ BLENDING and FORMULATING
Generating Funding/Start-up Capital for FIF
We at FIF understand that having the required finance for your business will go a long way to make sure you achieve your desired goal. Our management also understand that funds are basically very crucial factors when it comes to building any business, and building a successful business is not a one day job but a continuous job that requires consistency and hard work.
FIF is a business owned by four partners and they hope to keep it that way with the funding and decision making. Which is why they have decided to leave the means of generating funds for the business in these following ways till further notice.
- Raising part of the start – up capital from personal savings
- Raising part of the start – up capital from family members and friends (soft loans and gifts et al)
- Raising a larger chunk of the start-up capital from banks (loan facility).
Tomato Processing Plant Business Plan – Sustainability and Expansion Strategy
FIF, just as we have stated above will be a partnership of successful businessmen developing a small vision into a highly productive tomato processing plant. We at FIF plan to be growing our own tomatoes in high-tech, multi-span greenhouses. We hope to grow them in 15L bags with a medium used to support the root system. The plants will automatically be fed nutrients through irrigation systems.
The plants will be grown in the best suitable growing conditions which allows each plant to produce the maximum fruit possible. We will also plan to extend its time into a turf . The turf will be irrigated via overhead spray units, using the run-off fertilizer from the multispan tunnels.
This fertilizer is highly effective and will provide all the requirements the instant turf will require. The turf will be cut and sold by the square meter, and is harvested with a sod cutter. We plan to concentrate on the production of tomatoes, but will grow to peppers and cucumbers with time.
- Business Name Availability Check: Completed
- Business Incorporation: Completed
- Opening of Corporate Bank Accounts various banks in the United States: Completed
- Opening Online Payment Platforms: Completed
- Application and obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of all form of Insurance for the Business: Completed
- Conducting Feasibility Studies: Completed
- Leasing, renovating and equipping our facility: Completed
- Generating part of the start–up capital from the founder: Completed
- Applications for Loan from our Bankers: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents: In Progress
- Design of The Company’s Logo: Completed
- Graphic Designs and Printing of Packaging Marketing/Promotional Materials: Completed
- Recruitment of employees: In Progress
- Purchase of the needed software applications, furniture, office equipment, electronic appliances and facility facelift: In progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business (Business PR): In Progress
- Health and Safety and Fire Safety Arrangement: In Progress
- Establishing business relationship with banks, financial lending institutions, vendors and key players in the industry: In Progress