Idea and Innovation

1. Describe clearly your product or service.

Product: Livestock (Cow). We will provide high quality organic cow. The cow we decide to purchase is from Kedah Kelantan origin. This cow immune system is strong to defense against animal infection. It is easy to grow up with minimal supervisory.

2. State specific needs and wants or problems which your products will satisfy or solve.

Meat Supply in Malaysia is insufficient because the demand is high.

3. What customer value will the product give to the buyer?

The value that the customer will have is the fresh and organic meat that supply from us.

4. State the benefits that you plan to offer to customers who buys your products.

Organics and reasonable price

5. Who are your target customers?

We will provide livestock to Malay festival Hari Raya Korban, Butcher, Restaurants, Hypermarket, Federal Agricultural Marketing Authority (FAMA) and others.

6. Will there be a demand for your product?

Yes, there will be a huge demand in Malaysia with 1.28% increase demand of meat is growing every year.

Potential Market

1. Is your potential market local, nation, region or global?

The potential market has compromise local, nation and region. Starting of this business, we will start to fulfill the high demand in locally, then when our company has expands to higher stage to produce more quality livestock we will export through region.

2. State how you plan to reach your customers

From starting of the business, we will advertise through banner, listing on the website, and make sales through sales man. Most business will contribute by sales man.

3. Estimate the potential market size in term of sales per year or unit per year.(research)

The most striking feature is the steady increase in meat consumption, which has more than triple in the last 10 years. Below is consumer meat consumption data that take from Federal Agricultural Marketing Authority (FAMA).

The meat market price continue to grow in Malaysia from year 1997 to 2002, this show that the demand of meat is increasing.

Market Price (RM/KG)

4. Is this market growing?

Yes.

Research: The trend of meat consumption in Malaysia has shown a significantly growth in this 21^st century. The highest growths of meat were chicken and beef which have increase 99.15% and 60% from 1990 to 2009. With the current trend increase dramatically, Malaysia supply can’t cope with the huge demand of meat consumption. Every year, 85% of its meat is imported from Pakistan, India, Australia and others major meat producer in the world.

Below is the chart for import of livestock and livestock products from 2000 to 2001.

Malaysia has totally imported 1,524,967 cattle for breeding while 202,962 cattle for slaughter. Malaysia is able to produce only 81,313 cattle, this result indicate that Malaysia highly depends on imported cattle.

5. What is your planned profit margin?

Gross Profit

Cattle Sales

350kgxRM3.30x20 RM 23,100

-Expenditure

Cattle 200kgxRM3x20 RM12, 000

Manpower RM 6000

Mineral RM 100

Utilities (Water, Electric) RM 100

Net Profit RM 4900

Competitor Analysis

1. Are there any existing products in the market which satisfies similar needs and wants or problem as your product?

Yes there have a similar product which satisfies similar needs but as our research shown before, Malaysia meat production rate is at 10% only, while 90% is imported. The market size is big and profitable.

3. Is there any weakness in the competitor product offered?

There are weaknesses in the product offered by competitor such as the price offer is too expensive, livestock quality is poor, cattle easily get disease and others.

4. Perform a product competitor analysis

Financial Issues

1. Try and identify resources required to launch your business.

2. Estimate the cost of this resource?

Land- Rental- RM 500

Office Equipment Stationery-RM 100

Furniture- Rm 500

Computer-Rm 1,500

Cash-RM3000

Wooden House- Rm8000

Utilities Deposit (water, electricity, telephone)-RM 500

Advertisement and Promotion- Rm 500

Cattle- RM 12,000

Legal Fee- RM 1000

Total Cost: RM 27,100

12 Month Financial Projection

(This business can’t generate income for the first 12 month, so all monthly expenditure will calculate in advance)

Expenditures

2 Labour- RM 1000x12= RM12,000

Utilities Charges- RM 100= RM 1200

The capital for this business is Rm 40,000. We can start this business from as low as Rm 5,000 with difference setup. Although the business capital is Rm 5,000, this plan is safe for people who first time venture into livestock business. The business profit estimation growth will be 50% per year depending livestock condition.

3. Where do you plan to get the capital start this business?

After starting from small capital, We can apply subsidize and loan from Selangor Veterinary Department or Federal Agricultural Marketing Authority (FAMA).

Yap.Y

Business Opportunity Development Center