Do you want to start a sugar production company? If YES, here is a detailed sample sugar production business plan template & FREE feasibility report. If you are certain that you have a winning formula when it comes to producing sugar, then you should consider launching your own sugar production company. It is a business that is still open for investors. Below is a sample sugar production company business plan that will help you launch your own business.

A Sample Sugar Production Business Plan Template

1. Industry Overview

Sugar is one commodity that is consumed in all parts of the world and those that are in the business of producing sugar are known to generate sales year in year out if the business is well managed. The Sugar Processing industry is made up of businesses that manufacture raw sugar, liquid sugar and refined sugar from sugarcane, raw cane sugar and sugar beets.

This industry acquires its raw material from sugarcane growers. Sugar refiners also buy raw sugar from millers. This raw material is processed into a range of sugar products for industrial and consumer use. A recent report released by IBISWorld shows that the united states Sugar Processing industry is in decline, exhibiting falling revenue and industry value added (IVA).

Over the five years through 2010, IBISWorld forecasts that revenue will decrease at an average annual rate of 2.5 percent. Several factors determine the industry’s decline, including volatile prices and production in upstream supply industries, changing consumer tastes and demand, and increasing international trade. However, the industry is highly assisted.

Industry participants enjoy several levels of protection, including non-recourse loans, marketing allotments and tariff rate quotas. In the five years through 2010, these government policies will act as internal price supports for the industry, allowing operators to earn high profit margins by passing on increasing input costs to their downstream markets.

In the last five years, the industry has experienced a slight decline in revenue primarily driven by decrease in input prices. The price of raw sugar most significantly affects industry revenue. Industry operators typically benefit from higher input prices because they can pass the costs to consumers in the form of higher prices. Consumers typically purchase these goods regardless of price hikes since sugar products are a staple of the average American diet.

The Sugar Processing industry is a thriving sector of the economy of the United States of America and they generate over $10 billion annually from more than 97 registered and licensed sugar production companies scattered all around the United States of America.

The industry is responsible for the employment of over 13,879 people. Experts projected the Sugar Processing industry to grow at 0.6 percent annual rate within 2014 and 2019. Louis-Dreyfus Company B.V., American Crystal Sugar Company and Florida Crystals Corporation are the market leaders in the Sugar Processing industry.

Despite the fact that there are big corporations who are into the production of sugar, the fact remains that starting a small – scale sugar production business has minimal barriers to entry, with relative minimal startup capital.

Some of the factors that encourage aspiring entrepreneurs to start a sugar production company is the fact that the market for sugar cuts across people of all races, culture, financial status and age. That makes it easier for entrepreneur who are interested in the business to come into the industry at any time they desire.

The sugar processing industry is a profitable industry and it is open for any aspiring entrepreneur to come in and establish his or her business; you can choose to start on a small scale servicing a community or you can choose to start on a large scale with distribution network and several outlets in key cities all around the United States of America.

2. Executive Summary

St. Vicarage® Sugar Production Co, LLC is a licensed sugar production company that will be located around one of the largest sugarcane plantations in Rio Rancho – New Mexico. We have been able to secure a long – term lease for a facility in a strategic location with an option of a long – term renewal on terms and conditions that are favorable to us.

The facility has government approval for the kind of production business we want to run and the facility is easily accessible. St. Vicarage® Sugar Production Co, LLC is in the Sugar Processing industry to manufacture raw sugar, liquid sugar and refined sugar from sugarcane and sugar beets. We are also in business to make profits at the same to give our customers value for their money.

We are aware that there are several sugar production companies around the United States, which is why we spent time and resources to conduct our feasibility studies and market survey. We ensured that our facility is easy to locate and we have mapped out plans to develop a far – reaching distribution network for wholesalers of sugar products all around Rio Rancho – New Mexico and throughout the United States of America.

Beyond producing quality, sugars, our customer care is going to be second to none. We know that our customers are the reason why we are in business which is why we will go the extra mile to get them satisfied when they purchase our sugar.

St. Vicarage® Sugar Production Co, LLC is family business that will be owned by Moses Pablo and her immediate family members. Mr. Moses Pablo who is the Chief Executive Officer of the Company is Graduate of Biochemistry and he holds a Master’s Degree in Business Management (MBA). He has over 15 years’ experience working in related industry as a senior manager prior to starting St. Vicarage® Sugar Production Co, LLC.

3. Our Products and Services

St. Vicarage® Sugar Production Co, LLC is going to run a standard sugar production company whose products will not only be sold in Rio Rancho – New Mexico but also throughout the United States of America and Canada. We are in the Sugar Processing industry to make profits and also to give our customers value for their money.

These are some of the products that we will be offering;

  • Raw sugar
  • Liquid sugar
  • Cane sugar
  • Crystal sugar
  • Beet sugar

4. Our Mission and Vision Statement

  • Our vision is to establish standard sugar production Company whose products will be not only be sold in Rio Rancho – New Mexico, but also throughout the United States of America and Canada.
  • Our mission is to establish a standard and world class sugar production Company that in our own capacity will favorably compete with leaders in the industry.
  • We want to build a business that will be listed amongst the top 20 sugar brands in the United States of America and Canada.

Our Business Structure

St. Vicarage® Sugar Production Co, LLC is established with the aim of competing favorably with other leading sugar brands in the industry. This is why we will ensure that we put the right structures in place that will support the kind of growth that we have in mind while setting up the business.

We will ensure that we only hire people that are qualified, honest, hardworking, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders.

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of ten years or more depending how fast we meet our set target. In view of that, we have decided to hire qualified and competent hands to occupy the following positions;

  • Chief Executive Officer (Owner)
  • Plant Manager
  • Human Resources and Admin Manager
  • Merchandize Manager
  • Sales and Marketing Manager
  • Machine Operators
  • Accountants / Cashiers
  • Distribution Truck Drivers

5. Job Roles and Responsibilities

Chief Executive Officer – CEO (Owner):

  • Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
  • Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
  • Responsible for fixing prices and signing business deals
  • Responsible for providing direction for the business
  • Responsible for signing checks and documents on behalf of the company
  • Evaluates the success of the organization.

Plant Manager

  • Responsible for overseeing the smooth running of the sugar production plant
  • Part of the team that determines the quantity and quality of sugar products that are to be produced
  • Map out strategies that will lead to efficiency amongst workers in the plant
  • Responsible for training, evaluation and assessment of plant workers
  • Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
  • Ensures that the plant meets the expected safety and health standard at all times.

Human Resources and Admin Manager

  • Responsible for overseeing the smooth running of HR and administrative tasks for the organization
  • Defining job positions for recruitment and managing interviewing process
  • Carrying out staff induction for new team members
  • Responsible for training, evaluation and assessment of employees
  • Oversee the smooth running of the daily office and factory activities.

Merchandize Manager

  • Manage vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
  • Responsible for the purchase of raw sugarcane, raw cane sugar and sugar beets directly from sugarcane plantations and farms
  • Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors

Sales and Marketing Manager

  • Manage external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
  • Model demographic information and analyze the volumes of transactional data generated by customer purchases
  • Identify, prioritize, and reach out to new partners, and business opportunities et al
  • Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
  • Document all customer contact and information
  • Represent the company in strategic meetings
  • Help increase sales and growth for the company

Accountant/Cashier

  • Responsible for preparing financial reports, budgets, and financial statements for the organization
  • Provides managements with financial analyses, development budgets, and accounting reports
  • Responsible for financial forecasting and risks analysis.
  • Performs cash management, general ledger accounting, and financial reporting
  • Responsible for developing and managing financial systems and policies
  • Responsible for administering payrolls
  • Ensuring compliance with taxation legislation
  • Handles all financial transactions for the organization
  • Serves as internal auditor for the organization

Client Service Executive

  • Welcomes guests and clients by greeting them in person or on the telephone; answering or directing inquiries.
  • Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
  • Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
  • Manages administrative duties assigned by the manager in an effective and timely manner
  • Consistently stays abreast of any new information on the company’s products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients
  • Receives parcels / documents for the company
  • Distribute mails in the organization
  • Handles any other duties as assigned by the line manager

Production Workers/Machine Operators:

  • Operate machines such as pasteurizers, evaporating machine/steamer, sugar extractor, stirring tank, and packaging machines et al.
  • Assist in packaging and loading sugar products into distribution trucks

Distribution Truck Drivers

  • Assist in loading and unloading sugar products
  • Maintain a logbook of their driving activities to ensure compliance with federal regulations governing the rest and work periods for operators.
  • Keep a record of vehicle inspections and make sure the truck is equipped with safety equipment
  • Assist the transport and logistics manager in planning their route according to a delivery schedule.
  • Transport finished goods and raw materials over land to and from manufacturing plants or retail and distribution centers
  • Inspect vehicles for mechanical items and safety issues and perform preventative maintenance
  • Comply with truck driving rules and regulations (size, weight, route designations, parking, break periods etc.) as well as with company policies and procedures
  • Report defects, accidents or violations

6. SWOT Analysis

We are quite aware that there are several sugar manufacturing companies in the United States of America which is why we are following the due process of establishing a business. We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be equipped to confront our threats.

St. Vicarage® Sugar Production Co, LLC employed the services of an expert HR and Business Analyst with bias in startup business to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives. This is the summary of the SWOT analysis that was conducted for St. Vicarage® Sugar Production Co, LLC;

  • Strength:

Part of what is going to count as positives for St. Vicarage® Sugar Production Co, LLC is the vast experience of our management team, we have people on board who understand how to grow a business from the scratch to becoming a national phenomenon.

So also, our closeness to sugarcane plantations and beet farms, large national distribution network and of course our excellent customer service culture will definitely count as a strong strength for the business.

  • Weakness:

A major weakness that may count against us is the fact that we are a new sugar production company and we don’t have our own sugarcane plantation and beet farm hence we will initially depend on suppliers of raw sugarcane, raw cane sugar and sugar beets from farmers.

  • Opportunities:

The trade-weighted index (TWI) measures the strength of the US dollar relative to the currencies of US trading partners. As the dollar appreciates, downstream industries can purchase sugar produced abroad at a lower cost, hurting industry revenue.

However, the US government highly regulates the level of sugar imports, reducing the influence of the TWI. The TWI is expected to increase gradually in the coming year. However, expected depreciation of the US dollar moving forward presents a potential opportunity for the industry.

  • Threat:

Sugar processors in the United States produce raw sugar and refined sugar to sell. A rise in the price of sugar enables operators to sell sugar at a higher price and thus increases industry revenue. The US Department of Agriculture assists the industry through a series of policies aimed at keeping the price of sugar steady. The price of sugar is expected to increase in the coming year, yet its price volatility poses a potential threat to the industry.

7. MARKET ANALYSIS

  • Market Trends

A recent trend shows that industry players have been able to use health concerns to their advantage. In the last five years, research findings have suggested that the use of high fructose corn syrup (HFCS) in place of sugar increases the risk of obesity and insulin resistance. Sugar companies have used the information to market their product to the health-conscious consumer.

However, the volume of imports is expected to continue growing over the five years through 2010 even though the United States government imposes heavy tariffs on sugar imports. Falling revenues over the last five years have pushed many industry participants to consolidate and vertically integrate in order to cut costs.

Operators are taking advantage of economies of scale and economies of scope, increasing their capacities and producing more for a lower per-unit cost in order to battle the declining industry. As a result, the number of establishments is expected fall in the five years to 2010.

Similarly, industry players have cut back on labor costs, with employment also falling. Lastly, the industry’s adoption of eco-friendly practices will likely persuade environmentally conscious consumers to buy its products, while increasing operators’ efficiency.

8. Our Target Market

When it comes to selling sugar, there is indeed a wide range of available customers. In essence, our target market can’t be restricted to just a group of people, but all those who reside in our target market locations.

In view of that, we have conducted our market research and we have ideas of what our target market would be expecting from us. We are in business to engage in wholesale distribution and to retail our sugar to the following groups of people;

  • Bakeries, cakes makers and confectioneries manufacturer
  • Households
  • Soda drinks manufacturers
  • Snacks manufacturers
  • Ice Cream makers
  • Pharmaceutical production companies
  • Everybody in our target market location

Our competitive advantage

A quick of the Sugar Processing industry reveals that the market has become much more intensely competitive over the last decade. As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in this industry.

We are aware of the stiff competition and we are well prepared to compete favorably with other sugar production companies in Rio Rancho – New Mexico and throughout the United States and Canada. Part of what is going to count as competitive advantage for St. Vicarage® Sugar Production Co, LLC is the vast experience of our management team.

So also, closeness to some of the largest sugarcane plantations and beet farms, our large and far reaching national distribution network and of course our excellent customer service culture will definitely count as a strong strength for the business.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the Sugar Processing industry, meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives. We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.

9. SALES AND MARKETING STRATEGY

  • Sources of Income

St. Vicarage® Sugar Production Co, LLC is established with the aim of maximizing profits in the sugar processing industry in both the United States of America and we are going to ensure that we do all it takes to sell our sugar to a wide range of customers.

We will generate income by selling;

  • Raw sugar
  • Liquid sugar
  • Cane sugar
  • Crystal sugar
  • Beet sugar

10. Sales Forecast

One thing is certain when it comes to sugar production company, if your products are well – packaged and branded and if your production plant is centrally positioned and easily accessible, you will always attract customers cum sales and that will sure translate to increase in revenue for the business.

We are well positioned to take on the available market in Rio Rancho – New Mexico and every city where our sugar will be sold and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six months of operation and grow the business and our clientele base.

We have been able to critically examine the sugar processing industry and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast.

Below are the sales projections for St. Vicarage® Sugar Production Co, LLC, it is based on the location of our business and other factors as it relates to small scale and medium scale sugar production company startups in the United States;

  • First Fiscal Year (FY1): $350,000
  • Second Fiscal Year (FY2): $550,000
  • Third Fiscal Year (FY3): $950,000

N.B: This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same products as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

  • Marketing Strategy and Sales Strategy

Before choosing a location to start St. Vicarage® Sugar Production Co, LLC and also the kind of sugar products we produce, we conducted a thorough market survey and feasibility studies in order for us to penetrate the available market in our target market locations.

We have detailed information and data that we were able to utilize to structure our business to attract the number of customers we want to attract per time and also for our products to favorable compete with other leading sugar brands in the United States of America.

We hired experts who have good understanding of the sugar processing industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Rio Rancho – New Mexico.

In summary, St. Vicarage® Sugar Production Co, LLC will adopt the following sales and marketing approach to sell our sugar;

  • Open our sugar production company with a party so as to capture the attention of residents who are our first targets
  • Engage in roadshow in targeted communities from time to time to sell our products
  • Advertise our products in community – based newspapers, local TV and radio stations
  • List our business and products on yellow pages ads (local directories)
  • Leverage on the internet to promote our sugar brands
  • Engage in direct marketing and sales
  • Encourage the use of Word of mouth marketing (referrals)

11. Publicity and Advertising Strategy

St. Vicarage® Sugar Production Co, LLC has a long – term plan of distributing our sugar in various locations all around the United States of America and Canada which is why we will deliberately build our brand to be well accepted first in Rio Rancho – New Mexico before venturing out.

Here are the platforms we intend leveraging on to promote and advertise St. Vicarage® Sugar Production Co, LLC;

  • Place adverts on both print (community – based newspapers and magazines) and electronic media platforms
  • Sponsor relevant community programs
  • Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, et al to promote our sugar brand
  • Engage in roadshow from time to time in targeted communities
  • Distribute our fliers and handbills in target areas
  • Position our Flexi Banners at strategic positions in the location where we intend getting customers to start patronizing our products.
  • Ensure that our products are well branded and that all our staff members wear our customized clothes, and all our official cars and distribution vans are customized and well branded.

12. Our Pricing Strategy

Our prices will conform to what is obtainable in the industry but will ensure that within the first 6 to 12 months our products are sold a little bit below the average prices of various sugar brands in the United States of America. We have put in place business strategies that will help us run on low profits for a period of 6 months; it is a way of encouraging people to buy into our sugar brand.

  • Payment Options

The payment policy adopted by St. Vicarage® Sugar Production Co, LLC is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that St. Vicarage® Sugar Production Co, LLC will make available to her clients;

  • Payment via bank transfer
  • Payment with cash
  • Payment via credit cards
  • Payment via online bank transfer
  • Payment via check
  • Payment via mobile money transfer
  • Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our client make payment for sugar purchase without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.

13. Startup Expenditure (Budget)

Starting a standard sugar production company is indeed a capital – intensive business because the amount required in setting up a sugar production plant is not a pocket money. The bulk of the startup capital will be spent on leasing or acquiring a facility and also in purchasing pasteurizers, evaporating machine / steamer, sugar extractor, stirring tank, crystalizing machines, a mini lab and good drainage system.

You are also expected to purchase distribution trucks, purchase raw materials, pay your employees and utility bills. These are the key areas where we will spend our startup capital;

  • The Total Fee for Registering the Business in the United States of America – $750.
  • Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $1,300.
  • Marketing promotion expenses for the grand opening of St. Vicarage® Sugar Production Co, LLC in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of – $3,580.
  • The cost for hiring Business Consultant – $2,500.
  • The cost for insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
  • The cost for payment of rent for 12 months at $1.76 per square feet in the total amount of $105,600.
  • The cost for construction of a standard sugar production plant – $100,000.
  • Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).
  • Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $100,000
  • The cost for Start-up inventory (refrigerated tank trucks, pasteurizers, evaporating machine / steamer, sugar extractor, stirring tank, crystalizing machines, a mini lab and good drainage system, supply of raw sugar, and packaging materials et al) – $80,000
  • The cost for store equipment (cash register, security, ventilation, signage) – $13,750
  • The cost of purchase of distribution vans – $60,000
  • The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, Fax Machines, tables and chairs et al) – $4,000.
  • The cost of launching a website – $600
  • The cost for our opening party – $10,000
  • Miscellaneous – $10,000

We would need an estimate of four hundred and fifty thousand dollars ($450,000) to successfully set up our sugar production plant in Rio Rancho – New Mexico. P

Generating Funds / Startup Capital for St. Vicarage® Sugar Production Co, LLC

St. Vicarage® Sugar Production Co, LLC is a family business that is owned and financed by Moses Pablo and his immediate family members. They do not intend to welcome any external business partner which is why he has decided to restrict the sourcing of the startup capital to 3 major sources.

  • Generate part of the start – up capital from personal savings and sell of stocks
  • Source for soft loans from family members and friends
  • Apply for loan from my Bank

N.B: We have been able to generate about $200,000 (Personal savings $150,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $250,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

Part of the plans we have in place to sustain St. Vicarage® Sugar Production Co, LLC is to ensure that we continue to make available a wide range of sugar, deliver quality services, improvise on how to do things faster and cheaper. We are not going to relent in providing conducive environment for our workers and also the required trainings that will help them deliver excellent services at all times.

We are quite aware that our customers are key component to the growth and survival of our business hence we are going to continuously engage them to give us ideas on how to serve them better and the products they want to see in our store.

We will not waste time in adopting new technology, best practices and diversifying our services. St. Vicarage® Sugar Production Co, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of.

Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

  • Business Name Availability Check: Completed
  • Business Registration: Completed
  • Opening of Corporate Bank Accounts: Completed
  • Securing Point of Sales (POS) Machines: Completed
  • Opening Mobile Money Accounts: Completed
  • Opening Online Payment Platforms: Completed
  • Application and Obtaining Tax Payer’s ID: In Progress
  • Application for business license and permit: Completed
  • Purchase of Insurance for the Business: Completed
  • Leasing of facility and construction of standard sugar production plant: In Progress
  • Conducting Feasibility Studies: Completed
  • Generating capital from family members and friends: Completed
  • Applications for Loan from the bank: In Progress
  • writing of business plan: Completed
  • Drafting of Employee’s Handbook: Completed
  • Drafting of Contract Documents and other relevant Legal Documents: In Progress
  • Design of the Company’s Logo: Completed
  • Printing of Packaging and Promotional Materials: In Progress
  • Recruitment of employees: In Progress
  • Purchase of the needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
  • Creating Official Website for the Company: In Progress
  • Creating Awareness for the business both online and around the community: In Progress
  • Health and Safety and Fire Safety Arrangement (License): Secured
  • Opening party/launching party planning: In Progress
  • Establishing business relationship with vendors – wholesalers, sugarcane plantations, beet farmers, suppliers and merchants of sugar: In Progress
Solomon. O'Chucks