EXECUTIVE SUMMARY: Bangladesh is now experiencing a huge growth in the agro-based meat processing industry due to its vibrant

and far-sighted entrepreneurial business innovations. The high demand meat products are being supplied to the local consumers and are also being exported to countries abroad, mainly in the middle-east. According to Bangladesh Bureau of Statistics (1995), the livestock population of Bangladesh consists of 26.54 million cows (cattle) and 15.35 million goats; and the remaining are 0.85 million buffaloes, 15.35 million goats, 5.6 million sheep, 128.4 million poultry and 13.3 million ducks. The Bangladesh agro-based businesses are more concentrated towards poultry as it has the largest population in the country, and are easy to feed and produce compared to cattle and goat. According to the United Nations' Food and Agricultural Organization (FAO), Bangladesh has a population of 25.35 million cattle and buffaloes and 38.16 million sheep and goats. About 10,000 cows are producing about 1000 tons of meat and 40,000 goats producing about 300 tons are slaughtered everyday in the country. The consumption and demand for meat can be easily deduced if local meat processing plants and consumption pattern in hotels are properly studied. Local meat processing plants have a 20 tons turnover in production in only an eight hour shift. The export of processed meat has also been a tremendous contributor to the foreign currency reserves for the economy of Bangladesh since 2006. The country has a population growth rate of 1.292% (2009 est), having 47.9% literacy rate and increasing standard of living. It is a developing country whose people are now gradually shifting towards more conscious buying habits, especially for food, as they are now more concerned about hygiene. According to Bangladesh Board of Investment, frozen food is the second largest export sector of the economy with an average annual growth of 28%. Exports are generally made towards Middle Eastern nations like UAE, Saudi Arabia, and Kuwait. In 2009, the Global economic downturn had hit Dubai hard, resulting in a fall in demand for our goat meat. A ton of processed mutton was exported to Dubai per day. But it had been suspended for three months. In spite of all this the export of processed meat has trebled from local processed meat suppliers with export revenues almost reaching $200 million. In 2011, 1000 tons of meat was exported and by the year 2012, the industry expects to shoot it sales by 5000 tons. The Bangladesh government has moved to form a high-profile committee to recommend ways to establish a board for certification for halal foods after repeated appeals from processed food exporters. The traders have set a target to grab a portion of the $660 billion global market for halal products. In the last six months, around a dozen processed food traders received about $250 million of export orders on condition that the products must be accredited with an authorized halal certification body.

Commerce Secretary Md Ghulam Hussain said various Muslim and non-Muslim countries are now increasingly demanding halal products from Bangladesh. Meat processing can act as a highly conducive variable for Bangladeshs BOP. A country that has been resilient during the global recession, the chances of curing up its position in the international arena are indeed very probable if the meat processing industries are left to work properly. Through this hybrid of micro-financing service and meat processing, we are not only creating new job opportunities, but also reducing poverty by providing financial assistance as well as an opportunity to get fair returns on their investment. The biggest strength of the industry lies in its superior value chain. The whole meat processing activity starts with the development of rural Bangladesh. As our company will lend cattle plus micro-finance, it will hopefully convert the thousands of unemployed into farmers. It must also be stated that cattle rearing comes with a host of other benefits too.

The Principles of our Social Business: The main objective of Desh Meat Products is to overcome poverty and serve the consumers needs by providing such products and services that is beneficial for the country and its economy. We are hopeful that our social business will be successful in providing job opportunities to the poor and serve the local markets with the highin-demand quality meat products. Our goal is not to maximize profits, but earnings as reinvestment will expand our business, and thus, we will be able to provide more job opportunities which would lead towards reducing poverty. Meat and mutton products are high demand food products in Bangladesh. There are also export opportunities. From statistics, we found out that there is a huge demand for such products, but a massive portion of the market is still not being served. A huge amount of money is required to finance such a social business. Therefore, we have four investors who are willing to invest an amount of overall Tk. 10,000,000 which is sufficient enough to start up the business. It is also economically sustainable as the demand increases with time according to statistics. It will take the business approximately two to four years to recover the investment capital and generate positive cash flows in the long run. The investors will be investing an overall amount of ten million taka for the development of the social business. When the business is self-sufficient, the investors will be given back their invested capital only. They will not receive any profits or dividends from their invested capital. The profit will be reinvested for expansion of the business. Our business is very environmentally responsible. We wont have any wastes from our production, as we will try to make best use of the by-products and generate more revenues. We will promote the concept of how to keep our environment clean and safe to each and every single person involved with our social business. The social business will provide its employees and on-field workers, who will be running the day to day operations, with fair wage and salary. We will also provide bonus to the hard workers as an incentive to promote efficiency. We will also ensure good working conditions for our workers as their safety is one of our major concerns. Establishing and developing our social business, Desh Meat Products, is like dream. Our motive is not profits, but to have the amazing feeling of helping out others that money cant buy. We believe that our social business will be successful in reducing poverty and economically sustainable.

Type of Organization: Desh Meat Products is a limited company with four shareholders. The paid in capital of the business is Tk. 10,000,000 with a par value of Tk. 100 per share. The invested capital was equally shared by each investor. The business will be initially operated by the individual entrepreneurs as they have the experience of running businesses successfully. The sector of our social business is food and nutrition. The main objective of our business is to provide job opportunities, reduce poverty and elevate the standard of living. Investment Payback Strategy: We will raise an investment capital of Tk. 10,000,000 from our shareholders, and invest that money in our social business. As our social business grows and begins to generate positive cash flows in later years, and becomes self-sufficient, we will start to pay back our shareholders their invested capital. There will be no adjustments for inflation, risk or opportunity cost. They will only get back the money they have initially invested. Later, the surplus amount, that is the retained earnings, will be recycled for expansion of the plant, production and distribution. Type of Business: Desh Meat Products is a Type - I business. Type - I businesses are those, which have socially beneficial products and services. We believe that our products for the consumers and our services to the poor are highly beneficial for them. Our business is of social benefit because we are offering quality food products to the consumers and financing services to the poor for reducing poverty. It will be generating surplus cash in the long run which will be reinvested for providing further social benefit. The operations will cover the daily operation expenses and no dividends will be paid to the investors.

INDUSTRY ANALYSIS
Meat processing in Bangladesh has gained momentum, especially through the creation of super stores like Agora, Nandan, PQS etc and meat processing plants which are bent on providing goods at the best possible quality and at a price somewhat higher than the local meat suppliers in different areas of Bangladesh. Bangladesh has the 7th largest cattle population in the world. According to the United Nations' Food and Agricultural Organization (FAO), Bangladesh has a population of 25.35 million cattle and buffaloes and 38.16 million sheep and goats. About 10,000 cows are producing about 1000 tons of meat and 40,000 goats producing about 300 tons are slaughtered everyday in the country. The consumption and demand for meat can be easily deduced if local meat processing plants and consumption pattern in hotels are properly studied. Local meat processing plants have a 20 tons turnover in production in only an eight hour shift. The export of processed meat has also been a tremendous contributor to the foreign currency reserves for the economy of Bangladesh since 2006. The government is also backing such ventures. Abdul Mannan Bhuiyan said Bangladesh needs to diversify its commodities to increase export and start exporting non-traditional items. The per capita meat consumption is bound to increase as the per capita income increases. Developed countries like Australia and New Zealand have turned around their economy by harvesting the huge potential of their dairy farm sector, which also can be a prospective industry for Bangladesh too by having the right attitude towards the sector. Mazharul Islam, managing director of Bengal Meat said, The economy of Bangladesh is based on agriculture and cattle raising. People now just have to learn the process of raising quality cattle and policy to make the sector commercially viable. The global Halal meat industry is worth $660 billion. The problems that this industry faces are regarding the fact that farmers nowadays dont have the proper know-how of rearing good quality cattle. There is lack of technology. Majority of the rural areas in Bangladesh still contain cattle that are weak. Fodder costs in the capital areas of Bangladesh have had some gain too. Traceability -- the origin, how and where a cow is raised -- is the number one issue for export of beef. But unfortunately our farmers don't have proper idea about the issue. In addition to training on traceability, the farmers do not have a manual on the use of anti-biotic for food and mouth disease, which causes deadly Mad Cow disease among humans. Future Outlook and Trends of Agro-Based Business: More than 3.5 million cattle are slaughtered every year in Bangladesh of which 40% are imported, and over 15 million goats are slaughtered mostly from local origin. Therefore, there is an increasing demand of high quality meat production as it has a huge income generating potential. Bangladesh is now experiencing a huge growth in the agro-based meat processing industry due to its vibrant and far-sighted entrepreneurial business innovations. The high demand meat products are being supplied to the local consumers and are also being exported to countries abroad, mainly in the middle-east. 5

Demographic factors are influencing the growth of meat production. The country has a population growth rate of 1.292% (2009 est), having 47.9% literacy rate and increasing standard of living. It is a developing country whose people are now gradually shifting towards more conscious buying habits, especially for food, as they are now more concerned about hygiene. Economic factors are also influencing the production of meat. According to Bangladesh Board of Investment, frozen food is the second largest export sector of the economy with an average annual growth of 28%. This sector is very attractive for investors as Bangladesh has massive natural resources available to serve the demands of domestic as well as international markets. The factors that are also accelerating the growth prospects of meat processing are improved cattle breeding, extensive training programs for meat processing workers by LEIC and stricter government control acts (2008). The Bangladesh Government has relaxed regulations on agro-business which is attracting more investors. Therefore, such demographic and economic factors indicate that there is a huge demand for quality meat in local and international markets, and the government is in favor of agro-based businesses. Analysis of Competitors: In the agro-based industry of meat production (beef and mutton), our core competitor is Bengal Meat Processing Industries Limited. The other companies in the relevant industry are our indirect competitors as they produce substitute products. The substitute producers are BRAC, Aftab Bahumukhi Farms Limited, Kazi Farms, CP Bangladesh, Paragon and Nourish. Bengal Meat is the only export oriented meat company in Bangladesh. The company regularly exports to the middle-east and also supply to five star hotels like Radisson, The Westin and Pan Pacific Sonargaon in Dhaka. Its factory has been built in Santhia Pabna, which was designed and equipped by a leading Australian company in food processing meet world export standards and other crucial benchmarks like HACCP, ISO and HALAL. Its production capacity is 20 tons of meat per eight hour shift. It has its own veterinarians present at the processing factory to ensure high quality of meat. The other competitors are producers of substitutes, such as meat produced from poultry and sheep. They may not be producing beef or mutton products, but we consider them as strong competitors as they are from the same industry. According to Bangladesh Bureau of Statistics (1995), the livestock population of Bangladesh consists of 26.54 million cows (cattle) and 15.35 million goats; and the remaining are 0.85 million buffaloes, 15.35 million goats, 5.6 million sheep, 128.4 million poultry and 13.3 million ducks. The Bangladesh agro-based businesses are more concentrated towards poultry as it has the largest population in the country, and are easy to feed and produce compared to cattle and goat.

Market Segmentation Meat and protein diet are the daily requirement of almost every single general people. Except for the deprived with lower income levels, meat consumption is almost a regular practice for people with good standard of living. People are gradually becoming aware of their nutritional needs and wants hygienic food products, even at a higher price. Keeping in mind the demand and affordability of meat products, the market in segmented into two parts: demographically and geographically. The meat products consumers are usually well off, with an income level of Taka 20,000 or above and mostly live in urban areas. The target market are the fast food shops, restaurants, lounges, hotels, and mega shops like Agora, Nandan and Meena Bazar as they have a huge demand for frozen beef products to cater the never ending demand of their customers. The beef products are used for items like noodles, hotdogs, pizzas, burgers, soup, sandwiches, kebabs, etc. Technological advancements and globalization also has a huge impact on the meat processing industry. The packaged meat products are being exported to the middleeast countries and Europe as well. There is a big opportunity to export in developed counties as their majoritys standard of living is high. Industry and Market Forecasts The opportunities in the meat market industry of Bangladesh are quite promising. The projection of demand for and supply of meat during by Planning Commissions Sixth Five Year Plan (2011-2015) period is given below: Projected Demand Growth Benchmark (base) Low 1.87 Medium 1.87 High 1.87 Projected Supply 1.11 1.16 1.22 1.28 -1.65 -1.78 -1.91 1.34 -2.09 -2.3 -2.52 1.41 -2.64 -2.96 -3.31 7.52 -9.44 -10.19 -10.99 Projected Supply-Demand Gap Low -0.76 -1.01 -1.29 Medium -0.76 -1.03 -1.36 High -0.76 -1.06 -1.43 Source: Planning Commission/BIDS 2009. 2011 2.17 2.19 2.22 2012 2.51 2.58 2.65 2013 2.93 3.06 3.19 2014 3.43 3.64 3.86 2015 4.05 4.37 4.72 Total 16.96 17.71 18.51

The projection considered population growth, urbanization, and growth in real income. It shows that there would be a deficit of 0.76 million tons of meat in 2010. The deficit would further increase at the end of Sixth Five Year Plan period (2015).

From the table above, the supply of meat is projected to be lower than required with a deficit of around 9.44 to 10.99 million tons. Therefore the industry has a lot of growth incentives as well as the potential. So far the most prominent company in such business is the Bengal meat processing industries that are having profound success. We now export 1000 tons meat a year and our target is to make 5000 tons by 2012," Mazharul Islam, managing director of Bengal Meat, told in an interview. He said they exported processed meat worth Tk. 200 million last year. The export market is confined to a few Middle Eastern countries like Kuwait, UAE and Saudi Arabia for the last seven years, mainly targeting expatriate Bangladeshis and other ethnic Muslims in those countries, only adding Malaysia to the list this year. From their operations and experience, we can see that the industry has huge export opportunities today and even more in the future. Political, Legal and Environmental Factors Exports are generally made towards Middle Eastern nations like UAE, Saudi Arabia, and Kuwait. In 2009, the Global economic downturn had hit Dubai hard, resulting in a fall in demand for our goat meat. A ton of processed mutton was exported to Dubai per day. But it had been suspended for three months. In spite of all this the export of processed meat has trebled from local processed meat suppliers with export revenues almost reaching $200 million. In 2011, 1000 tons of meat was exported and by the year 2012, the industry expects to shoot it sales by 5000 tons! Its big business! But legal regulations are strict. Our company will have to ensure the importing countries that the meat being exported does not contain any hazardous elements and germs; given the level of corruption prevalent within the country. It requires an international testing lab. As establishment of such a lab is very costly, the government should help entrepreneurs in this regard. Experts need to be present in times of slaughter to check the mortem of cattle in order to monitor proper dissemination of cattle. The United Arab Emirates and Kuwait are the export destinations of processed meat. There is huge potential for grabbing market share in the Middle East and South East Asia but legal barriers are creeping up now and then. In the year 2008, a local processed meat manufacturer had to sign an agreement with The Local Enterprise Investment Centre (LEIC). Under this agreement, LEIC will assist the meat processing industry to conduct an extensive training program for two months, to increase its existing export of processed meat to UAE and Kuwait. The training would also help to address production management and quality assurance issues, and various social, environmental and HR compliances required for the international market. This will create a pool of trained human resources, ready to explore export opportunities in Malaysia, Kingdom of Saudi Arabia, Indonesia and other countries. LEIC, a private sector development project funded by the Canadian International Development Agency (CIDA) and managed by IDLC Finance Limited, is working with a special focus to facilitate inter-company long-term alliances. Obtaining certification from any importing country is mandatory for an exporting country, as the country concerned is to satisfy the importer that the product exported does not contain any hazardous elements and germs. The vice chairman of Export Promotion Bureau will head the committee, with representations

from the ministries of fisheries and livestock and religious affairs, Bangladesh Islamic Foundation, Bangladesh Standards and Testing Institute, Bangladesh Council for Scientific and Industrial Research, Bengal Meat and Meghna Condensed Milk. This body will take necessary steps to form a halal certification board. Its main task will be to monitor and issue certificates ensuring safe, genuinely certified and diversified halal products. Halal meat processing control boards are on the cards. The fisheries and livestock ministry has already prepared a guideline on such certification and sent it to the Islamic Foundation for its examination. The Foundation now awaits the opinion from the religious affairs ministry on the issue, according to a high official. The Bangladesh government has moved to form a high-profile committee to recommend ways to establish a board for certification for halal foods after repeated appeals from processed food exporters. The traders have set a target to grab a portion of the $660 billion global market for halal products. In the last six months, around a dozen processed food traders received about $250 million of export orders on condition that the products must be accredited with an authorized halal certification body. Despite all the constraints, the food processing industry is considered as one of the most attractive element for the economy of Bangladesh. The main reason as to why the Government of Bangladesh is trying to increase the exports of processed food is to create an investor friendly environment. The government support in this field is quite healthy.

Economic Factors Domestic demand for red meat is another factor that can affect the industry. Foreign meat demand continues to be important for the industry. Although Bangladeshs major markets, particularly for beef, are mainly in developed countries, developing country markets are becoming more important as incomes and populations in these markets increase. Exchange rate fluctuations influence the red meat sector because a large proportion of Bangladeshs processed red meat is exported (80%). A stronger Bangladeshi taka translates into relatively more expensive Bangladeshi exports in other countries, reducing the quantity the quantity of processed meat being exported. While devaluation increases exports, a sudden revaluation may put a halt it. In the global market there are barriers to trade in beef and sheep meat that affect red meat industry. Such barriers, for example, include country specific EU import quotas on sheep meat and beef, and the Japanese tariff on imported beef.

A brief overview of the export and import trend has been shown below: Fiscal year Total Export ($billions) 14.41 15.56 16.7 22 Total import ($billions) 25.205 22.00b+ $24 N/A Foreign Remittance Earnings ($billions) 8.9 9.68 10.87 N/A

2007-2008 2008-2009 2009-2010 2010-2011

The economy has grown 5-6% per year since 1996 despite political instability, poor infrastructure, corruption, insufficient power supplies, and slow implementation of economic reforms. The economy of Bangladesh is a rapidly developing marketbased economy. Its per capita income in 2010 was est. US$1,700 (adjusted by purchasing power parity). According to the International Monetary Fund, Bangladesh ranked as the 47th largest economy in the world in 2010, among the Next Eleven or N-11 of Goldman Sachs and D-8 economies, with a gross domestic product of US$269.3 billion. The economy has grown at the rate of 6-7% p.a. over the past few years. More than half of the GDP ($269.3) belongs to the service sector; a major number of nearly half of Bangladeshis are employed in the agriculture sector, with RMG, textiles, leather, jute, fish, vegetables, leather and leather goods, ceramics, fruits as other important produce. Inflation rate remains at 5.4%. This will ensure that money is circulating within the economy. Borrowing costs are low and more investors will be willing to put in their money into newer businesses. In Bangladesh, prior to the Wage Board's announcement of its recommended minimum wage of $24, Tk1,604, in 2006, the rate had remained unchanged at Tk950, about $15, for more than 12 years. Although the government may allow up to three years for the new wage to be implemented, and inevitably there will be compliance issues as manufacturers drag their feet, it seemed politically untenable for wages to remain at those levels given the unprecedented industrial unrest. In response to the Wage Board's initial draft recommendation of a minimum wage of Tk 1,604 to be increased to Tk 1,800 after eight months, the BGMEA declared over 50 per cent of factories would be ruined within three months. While this claim is no doubt an exaggeration, the capacity of Bangladesh's textile industry to absorb a significant wage hike as margins become tighter is a key question which hangs over the future of the industry. Bangladesh's textile sector is concentrated in export processing zones in Dhaka and Chittagong. These zones, which are administered by the Bangladesh Export Processing Zone Authority, aim to offer "a congenial investment climate, free from cumbersome procedures" according to Bangladesh Export Promotion Bureau's website. Given all the above factors, meat processing can act as a highly conducive variable for Bangladeshs BOP. A country that has been resilient during the global recession, the chances of curing up its position in the international arena are indeed very probable if the meat processing industries are let to work properly.

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Social Factors Halal foods are foods that are allowed under Islamic dietary guidelines. Commerce Secretary Md Ghulam Hussain said various Muslim and non-Muslim countries are now increasingly demanding halal products from Bangladesh. Consumption in Bangladesh has always been high. Although in many parts of Bangladesh lifestyles are on the move; for example places like Gulshan, Banani, Baridhara etc are increasingly becoming youth dominated. Nevertheless, meat consumption has changed dimensions- fast food shops like KFC have changed the pattern of meat consumption from the traditional to the American junky. Moreover, traditional lifestyles are being swept away by the mass media culture for which people aspire for well paid jobs, have a fast paced life and are more on the move. The traffic problem is a tremendous setback for many. People dont have much time to go back to their residents in order to have meals with their families and therefore fast food serves as a very quick medium of food supply. Local restaurants also provide their customers with items containing meat in the menu. Majority of the locals working outdoors have made these mini-sized restaurants hubs of meat consumption. The concept of Halal is a big factor for the Muslim majority. Processed meat will never outperform the Halal processed meat. The way in which halal meat is prepared also has a religio-scientific appeal! The way in which cattle is slaughtered makes sure that the meat remains fresher for a longer period of time. Everything said and done, processed red meat also has drawbacks. Researchers found that among 35,372 women, between the ages of 35 and 69 years old, who were followed for 8 years, those who ate the largest amount of meat were more likely than non-meat eaters to develop breast cancer before or after menopause. Meat intake remained linked to breast cancer risk even after the researchers factored in the women's overall diet content and quantity, age, weight, exercise habits and smoking. There are a number of reasons that heavy meat consumption could theoretically contribute to breast cancer, according to experts. One possibility is saturated fat, which research suggests may promote the growth of tumor cells. Another explanation may be certain compounds produced when meat is grilled heterocyclic amines and polycyclic aromatic hydrocarbons - that have been shown to promote tumors in animals, and possibly in humans. While studies have come to conflicting conclusions over the connection between meat and breast cancer, the current findings suggest that it's best for women to have their burgers in moderation, according to the American Institute for Cancer Research (AICR).

Technological Factors Bangladesh aspires to become DIGITAL. The present Awami League government has stressed hard on the fact that Bangladesh needs to pick up on the IT sector. In the last 15-20 years or so, the patterns of living have changed in many areas of Bangladesh. The corporate sector has brought in newer dimensions to the 11

workplaces. It is almost unimaginable to work without having a computer. Traditional meat processing, though it may have met the regional demand, hasnt been able to ensure quality. After several epidemics have swept across Bangladesh, the quality consciousness has galloped! Traditional butcher stores are seen without cattle meat. Rather, many have gone out of their way to sell chicken in order to sustain their businesses! Local stores like Agora, Nandon, PQS, Big Bazaar have added newer horizons to quality shopping for consumers. Frozen meat is easily available. Meat processing plants have also brought in newer technology in order to satisfy International quality standards. Experts are always present in and after slaughters take place. But, Bangladesh still lacks sufficient investments in the R&D sector. If quality needs to be ensured, full access to improved technology is an imperative. Diversified food industries can actually help in bringing newer and faster technology and get the country move fast towards improving its international standards by exporting more. The company will have to ensure the importing countries that the meat being exported does not contain any hazardous elements and germs; given the level of corruption prevalent within the country. It requires an international testing lab. As establishment of such a lab is very costly, the government should help entrepreneurs in this regard. Experts need to be present in times of slaughter to check the mortem of cattle in order to monitor proper dissemination of cattle.

The Porters Five Forces Analysis: Very high= 5 High=4 Moderate=3 Low=2 Very Low= 1 Bargaining Power of Suppliers: 2 In house supplier Verbal commitment towards us Will get fair market value for their cattle

Bargaining Power of Customers: 2 Few market players Convenient and hygiene products

Threat of New Entrants: 3 High capital cost involve Still untapped market available

Threat of Substitutes: 3 More indirect competition rather direct competition Price sensitive customers may still go the local butchers.

Competitive Rivalry between Existing Players: 4

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Established players are already there Might be enjoying economies of scale

SWOT Analysis Strength: The idea of introducing social business should itself act as a touchstone as the whole meat processing activity starts with the development of rural Bangladesh. However, the biggest strength of the industry lies in its superior value chain, which will keep providing benefits throughout. As our company will lend cattle plus finance, it will hopefully convert the thousands of unemployed into farmers. It must also be stated that cattle rearing comes with a host of other benefits. They include the following: Ploughing of the barren fields. It can act as a good source of milk production which will eventually bring in other modes of businesses together. Examples may include dairy products like sweets, butter, ghee etc. The extra milk will also act as a subsidiary source of income for the farmers. Living standards in the rural areas will improve. Government will back this project because it will create employment in the rural areas of Bangladesh as well as it will improve the countrys level of exports to a great extent. The image of the country will improve globally.

Weakness: Supply of meat cannot be made over night. Orders need time to be met up. Technology may stand as a barrier given the countrys crisis in the energy sector. Bangladesh stands at no. 97 in the technology index. Corruption in the public sector is pretty high. Other weaknesses of the industry include:

Sustainability in the long and short run can become a challenge if technology is not regularly updated. Bangladesh has only one recognized, ISO certified meat processing company. Technology needs to be state of the art. Lack of awareness regarding protein consumption domestically. Bangladesh has the 7th largest cattle population in the world; it has one of the lowest per capita meat consumption. Generally, a person should intake 100 to 110 gm of protein but in Bangladesh, the per capita meat consumption is 12 gm. Lack of advertisement and therefore lack of awareness is present regarding the position of halal processed meat in the minds of the general populace. There is a huge domestic market that can generate immense revenue.

Opportunity: The global meat processing industry is worth $660 billion. A small percentage share of it will bring in newer scope for the company to expand. There is immense room for expansion as the market is growing- domestically and locally. Although Bangladesh is the 7th largest cattle producer in Bangladesh, statistics indicate that its poor in terms of meat consumption. Internationally and locally, there

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is a market that needs focus. Domestic demand can be met by informing more people about the benefits of consuming halal meat. Threat: Diseases that are unavoidable such as the Mad Cow Disease and others such as different epidemics and flus that affect cattle. Besides all this, the competition is fierce, so a constant pressure on keeping the quality of the product high remains a top priority. The threats are as follows:

Dealing with cattle means dealing headlong with diseases. Cattle bring in loads of diseases that can turn into catastrophes. Examples can be madcow, death of cattle, bruises etc. These can turn up the costs of the business into a pretty large amount. Rising fodder costs can cause profit levels to plunge deep down. Keeping up with the competition can be really tough. Existing meat processing plants are gigantic and competition is soaring globally, as more and more meat processing firms turn up in order to get a share of the $660 billion halal meat processing industry. Difficult to ensure safety while packaging as corruption is a part and parcel of Bangladeshi economy. Meat intake remained linked to breast cancer risk even after the researchers factored in the women's overall diet content and quantity, age, weight, exercise habits and smoking.

ABELLS Framework The customers need circles around good quality meat at affordable prices. It can be fulfilled via meeting the regulatory standards that ensure consistent quality. Our organization can fulfill this need by meeting those regulatory standards with superior value chain programming that is even socially conducive, by using state of the art technology, keeping up with the intense competition, one-to-one correspondence with the customers, providing the cattle rearers the skills needed to raise cattle in the approved manner. The heart of any business strategy is market definition. The market can be defined in many ways, including in terms of product characteristics, type of brand sales, by specific regions, or by sales target. The size of the market will vary considerably depending on its definition. Traditionally, market boundaries have been defined in terms of product-market space. In recent years, it has been considered inadequate to perceive market definition as simply that of a choice of a product for chosen markets. Instead, the product can be considered a physical manifestation of a particular technology to a particular customer function for a particular customer group. Market boundaries are then determined by choices made along these three dimensions. Five sets of environmental influences will affect market boundaries. These are: technological change, market-oriented product development, price changes and supply constraints, social, legal, or government trends; and international trade competition. The adoption and diffusion process underlies the penetration of new customer groups. A process of systemization results in the

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operation of products to serve combinations of functions. Finally, the technology substitution process underlies change on the technology dimension. ABELLs business definition proposes fundamental principles: customer groups, customer needs, and technology and distinctive competencies. This approach strongly puts emphasis on understanding the customers and not the industry. This approach formulates that a business can be analyzed through the study of its competitive scope and competitive differentiation. Customer groups: The list contains diverse groups based on income, education, hygiene etc. Basically the there is demand that needs to be fulfilled globally and domestically as well. In the midst of all this, it should be pointed out that the whole idea of meat processing has its root planted in social business. Our customers are the Improving the state of the local community, bringing a vibrant image to it internationally, increasing the power of the workforce, giving opportunities to those wanting to diversify their businesses etc are all that this business strives to excel at. We work for others. Customer needs: High quality service that combines both social and material needs. There is a growing demand for halal meat throughout the country perhaps due to the fact that food adulteration is on its rise. Quality has to be ensured. Honesty is a prime factor here and it needs emphasis. Customers need to feel that what their consuming doesnt come from faulty sources. Distinctive competencies: The combination of social+business (why were they separate in the first place?) is its major competence. However, the strength lies in its value chain. It keeps on making scope for employment as the cattle and micro-finance enter into the hands of the farmer and all come out in the form of employment, improved living standards, newer business opportunities and finally into processed meat. The idea is itself is unique.

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DESCRIPTION OF VENTURES
Services: Our institution will provide micro financing facilities to the rural people for their upbringing in their standard of living and make them financially more stable and sound. Our idea is based on the fact that poor people especially in the rural region have great potentials and skills in the agricultural sector. The only reason that they are lacking behind in their potentials is because of lack of capital or availability of loans at nominal interest rates. As a result we will follow as family based credit approach which utilizes the family pressure within the members of the family to ensure the loan which we will be providing at zero interest rates are utilized properly with strict discipline, with repayments at agreed time and allow the borrower to develop good credit standing. Its our belief that charity is not an answer to poverty. It only helps poverty to continue as it creates dependency and takes away individual's initiative to break through the cycle of poverty, whereas loans offer people the opportunity to take initiatives in business or agriculture, providing earnings and enabling them to pay off the debt. The services which will we providing is ongoing process. At first we will target very few selected rural areas of the country, where micro financing will be provided, when people of that area becomes financially independent ,it will definitely have an positive impact on society at large thus might even result in the development of that area. Once we see, an target region is changing in in terms of development and financial stability then we would move to other areas of the country and want to make an impact in the economic growth of the country. Product: When we will be micro financing the families, they will be required to invest the money in cattle farming in the form of domestic cows, goats and sheep etc. After a certain point in time, expected 3 years, when they feel they need to sell the decedents of the cows, goats and sheep they would sell it to us at fair market value. This actually would help the poor family because they do not have to worry to whom to sell or the fear of getting deprived from the fair value of its cattle. Once we have enough cattle in our hand we would go to the next step of processing packed beef, meat etc. Our processed meat can be developed into sausages, salami, meant loafs, meat balls, tikka, kebab, nuggets, etc. We would make sure that through our products we are able to set market hygienic and halal meat at home and abroad

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Source: A article by Ahmed Sharif regarding meat production in Bangladesh

In the above diagram we can see that there is a big difference between protein consumption of rural areas and urban areas. This difference lies mainly because of income. As a result we have a objective to reduce this gap by making people more financially stable through this social business program. Size of the business: It is to be hoped that the business will grow from a medium enterprise to a large sized entity. The main struggle will be to keep the business running and to help it stay sustainable during it initial periods. For this reason, the business will have to be started on a medium scale and to slowly expand into wider areas of the country in the form of ensuring constant supply of cattle

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Office equipment and personnel: We will go with standard office equipment and would make sure that, unnecessary cost does not involve regarding this matter. However, as time goes and when we will be more established in this industry then better quality office equipment might be procured. Background of entrepreneurs: Fahd Bin Ramiz Marketing North South University Majedul Huq Accounting & Finance North South University Rayan Faruk International Business North South University Wael Ahmed Human Resource North South University

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PRODUCTION PLAN
Manufacturing Process: The manufacturing process of our business will start after 2 years from the first operation. We will collect and stored the cattle from the people who have taken loans from us or even buy from different people if we there is a shortage of cattle in the form of primary raw materials.

Source: Nearby village areas

Cattle 0
Days

Processing 15

Packagi ng 16 17

Final Product

We have estimated that around 15 days will be required to acquire the cattle from the nearby village area. The production in the form of processing does not take much of time usually 1 day producing an estimated figure of 10 tons and requires additional 1 day for packaging.

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Physical Plant: The land will be rented from somewhere around the North Bengal Region area where it will be cheaper. The size of the land will be around 3 bigha, which is approximately 52000 square feet. So the operations building size will be around 270 feet by 195 feet.

Production layout

Worktable

Worktable

Worktable

Raw materials

Finished goods

Production area

Open Space

Administrative Room

Store Room

Cattle
Shaded Region

270 feet

20

195 feet

Worktable

Machinery and equipment Meat processing will need various type of equipments, small and large, manual and automated to make the whole process quick and easy. There will be small instruments like knives and other common utensils and also larger automated machines imported from abroad.

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Stunning: Stunning Cage For Cattle - The stunning cage for cattle, is appropriate designed and constructed for use in slaughterhouses in order to achieve the best results in cattles stunning. Skinning: Skinning Machine for Cattle - Skinning machine for cattle is appropriate designed and constructed to ensure the full remove of the skin from the cattle without leaving residues. The skinning begins from the rear feet toward the head. The skin is rolled around the rotated skinning drum without spot the carcass and automatically unrolls when the skinning finishes. If the detachment of skin is difficult, the machine stops automatically to avoid skins damage- and activates the pneumatic operation system so as not to cut meat with skin.

Stunning Machine Skinning Machine

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Processing: Pneumatic Lifter for Cattle HeadsThe pneumatic lifter for cattle heads is made of heat-galvanized steel. Its purpose is to place the heads from the received cabin to cattle line for heads. Pneumatic Limb Expander for CattlesThe limb expander is used at cattle & pig slaughter lines. It has easy foundation on the metal construction of the slaughterhouse, moves with a pneumatic cylinder. Its purpose is to expand the animals rear limbs in order to facilitate the splitting & viscera removing process. Thereby, it accelerates the time-consuming process of splitting and viscera removing.

Pneumatic lifting platform for viscera removing able to be raised, appropriate designed and constructed for use in slaughterhouses in order to facilitate and accelerate the cattles viscera.

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Others: Automatic RailwayThe electric operated railway is used for the automatic movement of carcasses. Possibility to be placed in different places in a slaughterhouse e.g. pre-cooling chambers and gives the advantage of automatic movement of carcass without labor cost and simultaneously stable time for pre-cooling which is a very important for the meats good quality. The installation of automatic railway to the slaughter & process area gives stable flow of the producing process without waste of labor performance as well as continuous & easy control of the operation. Hooks and KnivesCommon necessary objects for slaughterhouse.

Sources of Suppliers: Our suppliers will mainly be the families to whom we have micro financed for the raising of the cattles. However if we find that we are not getting enough cattle then we will also look in the nearby areas or even to different district for procuring our primary raw materials.

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OPERATIONAL PLAN
In this section, we will discuss how we will operate our business in the short-term to reach long-term goals, and become sustainable. Our business not only produces and sells products, but also have financing services for the poor which we consider to be a vital tool for reducing poverty. Therefore it not only reduces unemployment, but also poverty. Description of Companys Operations: At the initial investment stage, alongside developing our factory, we will finance the local villagers to buy cattle and goats for our production. The amount of fianc provided to them will depend on fixed assets which they are willing to keep as collateral. Once our factory is ready for production, we will buy back a portion of their cattle and goats at fair value, which will also help them to repay the financed amount. The repayment period and interest rates will vary depending on the amount financed which we will discuss later in our financial plan section. In the next stage, we will start the production process. Later, the finished goods will be sold to our target markets and the revenues will be reinvested in the business. Our budget for financing the deprived will increase as our sales increases. Through this hybrid of micro-financing service and meat processing, we are not only creating new job opportunities, but also reducing poverty by providing financial assistance as well as an opportunity to get fair returns on their investment. Flow of Orders for Goods and Services: We will be an NGO and government inspected meat processing facility. Our plant will be open from Sunday through Thursday for regular operations and processing. We plan a Saturday morning open period for product pick-up and retail and wholesale sales. The plant will process 25 to 30 tons of meat per week initially. There will be some process exchange scheduling between beef and mutton as needed each week.

Shops/ Mega Shops

Cowherd/ Goatherd

Factory

Lounges/ Fast Food

Consumer Finance Dept.

Hotels/ Restaurants

Export

Investor

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The diagram shows the stages of how the business operates. At the very first stage, the investor gives money to the finance department, which then provides microfinancing to the poor to buy cattle and goats in exchange of a collateral; and it also engages in financing for the development of the factory. While the factory is ready for production, the cowherds and/or goatherds sell a portion of their cattle or goats to us, which are then sent for production. Meanwhile, they also repay their loan amount to the finance department from that money. We will hire professionals to run the business, good pharmacists to ensure quality of our products, and part time workers for meat production. We will consider the cowherds and/or goatherds as our valuable customers and suppliers. When the production is complete and the meat products are ready for sale, they are sent to the clients by our pickup vehicle. Depending on the terms with our clients, the sales revenue goes straight back to the finance department for further financing and investing activities in the business. This ongoing chain of transaction will make the business more massive and sustainable, and the investors will be paid off in the long run, while their efforts of reducing poverty and unemployment will pay off as well. Technology Utilization: In the age of Globalization, we will adapt new technologies and design a website for foreign buyers which will help them gather detailed information regarding our business. Orders can also be processed online, which will also minimize our inventory levels. Modern equipments and technologies will be used for communication and meat processing.

MARKETING PLAN:
In this section, we have included the pricing, distribution, and promotion strategies; as well as specified our target markets and market segments, and sales projections of our social business. Our overall marketing strategy for the next three years is to make it a sustainable social business by improving the slaughter and meat processing, while expanding the retail and wholesale parts of the business. We will be maintaining high standards by inspecting the quality of the meat being processed, so the number of prospective customers will be significantly higher as they seek for hygiene. PRICING We will be following value based pricing as the people today are more health conscious and would pay a premium to ensure the quality of a product. Therefore, as our core competitor Bengal Meat is already charging a higher price in the market for their quality, we will price our products a little lower comparatively to encourage trial for the existing meat consumers and attract the uncovered segments. This is because we compete on the quality of services and products, flexibility, and the availability of specialty, value added products.

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We would provide flexibility to our customers by customizing their orders based on their preferences and provide up to 5% discount as well on regular purchase. We will price our packet beef products at Tk. 279/kg and packet mutton products at Tk. 469/kg. Bengal meat is currently selling their beef and mutton products for Tk. 295/kg and Tk. 495/kg. The wet markets are currently selling meat and mutton for Tk. 250/kg and mutton Tk. 300/kg. DISTRIBUTION Primary distribution of our meat products will be through our retail counter in Dhaka and from the production plant. Secondary distribution of wholesale specialty meat products will be through local deliveries. As we will be providing flexibility to our customers, they can place their orders and collect the finished cuts and further processed packet meat or mutton products from either of the two places as mentioned earlier. For our regular customers, we will have our own vehicle to transport it to their local and regional restaurants, lounges, wholesale, and retail establishments. Our products will also be available at super stores like Agora, Nandan, PQS, Meena Bazar, Lavender, etc. As we are selling quality packet meat products and our target market are the people with fair income who wouldnt compromise on hygiene, we wont be distributing to the wet markets. As our sales start accelerating, we will be exporting our products, mainly to the countries in the Middle East as they have huge demand for such products. The future developments and growth in our business will increase our social business opportunities and will also help in reducing poverty. PROMOTION We will promote our products and services to the customers through: a. Print Media: We will promote our products through advertisements in the leading English newspaper, The Daily Star. Our very first advertisement will go on the front page and another issue on the inner page to save advertising costs. We will place our first advertisement at the beginning right after we start our distribution to create awareness of our brand. Later, we will use couponing through print media to draw out response from the readers. They would cut out that portion of the newspaper and present it to a super-store check-out counter to avail of a discount. This would give us a good feedback on the response of our target market. b. Public Relations: We will be having press conferences which will have massive coverage, and will have our investors and celebrities as speakers, sharing the mission and vision of our social business, and their opinions as well. The good cause may help boost up sales and may attract the customers of our competitors towards our brand. c. Personal Selling: For our product, personal selling could be the most effective technique because it would facilitate a concentrated interaction

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between our customers and us. We would only go to the local and regional restaurants, lounges, wholesale, and retail establishments for personal selling. We can listen to and determine their needs by asking questions and receiving feedback instantly. Such an activity can generate long-lasting friendships that may generate many repeat purchases. d. Websites: We would also promote our products online to find international buyers. We will use websites like Alibaba.com and other similar websites to promote our products and services to the interested customers. We will also have our social network profile where we would update the followers on how our social business is helping the poor. Their stories will be featured in our articles. PRODUCT FORECASTS As we have realized that there is a huge demand for quality meat products in Bangladesh and abroad, we will be expanding our business with time. We will start selling when the facility is ready for operations and fully stocked. Sales forecasts, presented in the following table, are based on experiences of similar retail expansions of meat processors in small towns in other countries with similar demographics and competition and may be considered conservative. Sales Forecast: Year Meat Products By-Products Total Sales CONTROLS: After proper execution of the marketing plan, having total control over it is the bottom line. The performance of sales will be monitored every month. The impact of promotion, pricing and distribution strategies on sales will be evaluated quarterly. If any flaws are encountered, actions will be taken immediately to resolve the problem. 2012 Tk. 20,000,000 Tk. 500,000 Tk. 20,500,000 2013 Tk. 30,000,000 Tk. 750,000 Tk. 30,750,000 2014 Tk. 50,000,000 Tk. 1,250,000 Tk. 51,250,000

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ORGANIZATIONAL PLAN
FORM OF OWNERSHIP Partnership: A social business in the form partnership set up and run by the Partnership Agreement. 1. The company shall not issue any invitation to public for any sort of shares or debentures of the company. 2. The right to transfer of shares shall be restricted in the manner and to the extent here in after appearing. 3. The number of members of the company shall not exceed fifty, but for the purpose of this provision when two or more persons holding one or more shares jointly shall be treated as single member. Classification of the partners ownership. 1 share = Tk 100 Name, Address, Nationality of partners: 1. 2. 3. 4. Majedul Huq Tajmahal Road Mohammadpur , Dhaka. Bangladeshi Wael Ahmed Road: 31, Dhanmondi, Dhaka. Bangladeshi Fahd Bin Ramiz Segunbagicha, Ramna, Dhaka. Bangladeshi Ryan Faruk Waari, Dhaka. Bangladeshi No. of shares: 25,000 25,000 25,000 25,000

IDENTIFICATION OF PARTNERS AUTHORITY OF PRICIPALS The following persons shall be present Partners of the company until and otherwise becomes disqualified Majedul Huq Tajmahal Road Mohammadpur , Dhaka. Contact No.01614843832 Wael Ahmed Road: 31, Dhanmondi, Dhaka. Contact No.01717602019 Fahd Bin Ramiz Segunbagicha, Ramna, Dhaka. Contact No.01717097002 Ryan Faruk Waari, Dhaka. Contact No.0194068459 29

under the provisions of Section 108 (1) of the Act, 1994 or voluntarily resigns or causing death. i. Ryan Faruk ii. Wael Ahmed iii. Fahd Bin Ramiz iv. Majedul Huq o Until or otherwise decided by the agreement, Majedul Huq shall be the first Managing Partner of the Company for the period of five years and the remuneration of both MD as well as the Partners shall be decided by the partners from time to time. The qualification of a Partner shall be holding at least 30,000 shares in his/her own name or the company they represent. The Partner will have power at any time to appoint any other person to be Partner of the company either to fill up any casual vacancy or as an addition to the board; maximum quota must not be exceeded. Each Partner may not nominate an Alternate Partner, to serve in his power. In the absence of Partner or his alternate, a Partner may nominate as a proxy holder to serve in his place.

o o

o o

ROLES AND RESPONSIBILITIES OF MEMBER OF ORGANIZATION The business of the company shall be managed by the Partners, who may pay up all expenses incurred in setting up the business and may exercise all such powers of the company as are not, by the Partnership Agreement or statutory modification thereof for the time being in force or by these article, required to be exercised. The Partners may from time to time appoint one or more of their body to the office of the Managing Partner for such terms and at such remuneration and allowances as they think fit. The Managing Partner has got the following powers that may be delegated by the partners from time to time. a. Can hire and fire officers, staffs, clerks and pay their remuneration, salary accordingly for the betterment of the company. b. Borrow, loans, overdraft etc for the company with the help of guarantee from the other partners. c. Demand to recover and realize any dues, claim damages and compensation act, due and payable to the company and to take any legal step on behalf.

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d. Purchase and sale of any sort of assets in favor of the company from time to time for the betterment of the company. e. Open branch office in any part of Bangladesh or even in foreign land and also to close the same. f. Authority to sign any check, bills, vouchers etc. g. Settle compound, arbitration compromise and withdraw any action, accounts claims etc from any legal proceedings or not. h. Grant any power of attorney to any Partner. i. Invest the reserve fund in case of expansion j. To give donations and subscription to any charitable organizations. MANAGEMENT TEAM BACKGROUND As mentioned earlier, Majedul Huq would be holding the post of Managing Partner as per the decision of the partners, and the other three Partners would be serving in different parts of the company as per requirement from time to time. Initially it has been designed according to the following description Name: Designation Job Description Majedul Huq Managing Partner Business executive in charge. Taking care of the day to day Fahd Bin Ramiz Ryan Faruk Wael Ahmed Partner Partner Partner running of the business. Taking care of communication with the city contacts. Taking care of the production unit. Transportation and logistics requirements.

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ORGANIZATION STRUCTURE

ASSESSMENT OF RISK
EVALUATE WEAKNESSES OF BUSINESS Processed foods now account for some 80% of global food sales estimated at US$4 trillion in 2002. Packaged food corresponds to only one third or less of total food expenditure in developing countries but their retail sales are from 3 to 10 times faster than in developed countries where growth has stagnated. Analysis of the UNIDO Industrial Statistics Database 2005 show that food processing in developing countries is an important component of the manufacturing sector, growing as a percentage of GDP as income increases, although with a proportionate declining share in total manufacturing. Data on food processing in developing countries is, however, incomplete and the importance of the informal sector can vary from 20% to 70% of the food industry depending on product category and country. Ten per cent of processed food products are traded globally and trade growth has stalled since the middle 90s. The share of processed foods as a proportion of total agricultural exports has increased sharply for all developing countries. On the other hand, since the 90s most, least developing countries (LDC) have become net food importers, with the majority of these imports corresponding to processed foods. Global sales of food were estimated at US$4 trillion in 2002, around 80 percent of which corresponding to processed food (US$3.2 trillion) with over 40 percent accounted for by the foodservice sector. In the case of the retail sector US$531 billion of food sales correspond to fresh products, while US$1.7 trillion correspond to processed foodstuffs about US$1.1 trillion of which packaged food and US$641 billion beverages (Gehlhar and Regmi 2005). According to the FAO Statistical Yearbook 2004 food consumption in high-income countries in 2002 represented 29 percent of the world consumption in terms of calories of food items and, following Gehlhar and Regmi`s (2005) calculations based on the Euromonitor (2003), accounted for over 60 32

percent of packaged food sales worldwide and half of total food expenditures. While the annual per capita retail sales of packaged foods in high-income countries (henceforth HICs) corresponded to almost US$1.000 in 2002, in upper-middleincome countries (UMICs) it was estimated at less than US$300, in lower middleincome countries (LMICs), at about US$143 and in low-income countries at This can be complemented by modeling exercises such as those used by Euromonitor (2003) for estimating trends in a number of least developed country US$63. Packaged food accounts for only a third or less of total food expenditures in most developing countries. The importance of the agri-processing sector for developing countries is currently being reassessed in the light of two distinct although inter-related trends. On the one hand, important changes have been observed in global food trade where processed products now predominate, which is the case also for both developing country exports and imports. Equally significant has been the change in the composition of food exports from developing countries, where what have become known as nontraditional exports lead the way. Various authors have identified these exports as providing new opportunities for development strategies. The same period, however, has experienced a historic crisis in traditional commodity exports, locked into primary production with minimal upgrading towards processing. Least developed countries (LDCs), for their part, have shifted from being net food exporters to net importers predominantly of processed products. Demographic trends, on the other hand, indicate that almost all net, population growth is now concentrated in developing countries. In addition, this is occurring in the context of rapid urbanization in all continents, albeit at different stages. Urbanization of itself demands a different organization of the food system in which the preservation of foodstuffs becomes strategic. In middle-income developing countries, urbanization is also accompanied by a dietary transition stimulating new food categories, and by the demand for convenience foods. The importance and roles attached respectively to trade and to foreign investment (FDI) when discussing the food-processing sector in developing countries is influenced by the relative weight attributed to each of these two overall trends. The food-processing sector itself has acquired an increasingly elastic connotation and straddles most activities involving the integrity of the agricultural product between the farm gate and the supermarket shelf. In addition to the traditional categories semi processed and processed, new categories have emerged to capture value-adding activities, which are more concerned with preserving than transforming the agricultural product. In such cases, a reorganization of agricultural activities is intrinsic to the new processing sector. This category extension is consequently often captured in expressions such as non-traditional food exports, high value foods or even dynamic agricultural products. Official statistics, in addition to exhibiting important differences of definition depending on the source, are often unable to capture or clearly discriminate the full range of post-harvest valueadding activities. Statistical analysis needs therefore to be complemented by casestudy research if a clearer appreciation of income, employment and growth implications is to be possible.

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Dato Tan Lian Hoe, deputy minister for trade of Malaysia, welcomed the Bangladeshi meat processing company, which has achieved the certification of her country during the opening ceremony of a three-day Malaysian trade fair in the city. Bengal Meat Processing Industries, an internationally certified meat producer and exporter, expects to ring up taka 400 million in overseas sales this year by doubling its halal meat export. But there are problems related to every business; and the meat industry is going nowhere. The weaknesses of the industry include:

Dealing with cattle means dealing headlong with diseases. Cattle bring in loads of diseases that can turn into catastrophes. Examples can be madcow, death of cattle, bruises etc. These can turn up the costs of the business into a pretty large amount. Fodder costs have become extremely high. Existing meat processing plants are big and competition is soaring globally, as more and more meat processing firms turn up in order to get a share of the $660 billion halal meat processing industry. Sustainability in the long and short run can become a challenge if technology is not regularly up-to-date. Bangladesh has only one recognized, ISO certified meat processing company. Technology needs to be state of the art. Lack of awareness regarding protein consumption domestically. Bangladesh
has the 7th largest cattle population in the world; it has one of the lowest per capita meat consumption. Generally, a person should intake 100 to 110 gm of protein but in Bangladesh, the per capita meat consumption is 12 gm. Difficult to ensure safety while packaging as corruption is a part and parcel of Bangladeshi economy.

NEW TECHNOLOGY Meat processing comes with maintaining a lot of technological and safety standards. Bangladesh, even after being the 7th largest cattle producer in the world, stands at the risk of market failure due to poor reputation in the international community as a corrupt nation. Safety standards have to be met properly in this case, especially due to the fact of it being related to food. The technological aspects that need attention are: Heavy technology comes with a lot of benefits as well as cons. Regular maintenance can shoot up costs by a large amount especially if the repairing cannot be made by local engineers. Usage of automation can cut employment- bringing a bad reputation for the company as nationwide CSR activities are soaring.

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The halal meat processing company is worth $660 billion, which means that lots of international players would be eyeing to grab a share of the market. Competition is on the rise. It would indeed be difficult for a country like Bangladesh to sustain heavy meat production if there is no government backing. There is energy crisis in Bangladesh. Introduction of newer technology calls for increased redundancies. Workers have to be trained now and again so that they can use the newer processes required for meat processing. There will be unemployment, employment setback; NGOs eyeing the company in order to ensure safety standards etc. The company needs ISO certification to get international recognition. Only one such company now operates in Bangladesh and that is the Bengal Meat Processing Company.

In order to meet international quality standards, the factory needs to ensure that it will work by abiding with the international quality control standards. Discipline is a must if quality has to be maximized CONTINGENCY PLANS Contingency plans are usually considered to be the plan B, if plan A does not work. In our evaluation of weakness part of our discussion we found might have a moderate level of risk and uncertainty. As a result to that, there has to be some alternative plans if these do not go as intended. The worst thing that could happen to us is that not getting the loans that we provided to the different families. To ensure repayment, we might ask for some collateral as a part of securities. If the meat processing plant fails completely then we might go for poultry or even fishing business with a same or similar set of ideas. This is because we believe that if Bangladesh needs to develop agricultural is the sector that needs the primary attention and investments.

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FINANCIAL PLAN:
The following are the assumptions behind the forward-looking cash flow statements and our pro-forma financial statements. We have lower profitability in early years because we have to pay off our investors as it is a social business, and also due to increases in labor expenditure and facility to take on expanded business. If not for these costs, profitability would have increased. ASSUMPTIONS: Sales increases are based on sales figures of similar facilities located in Bangladesh. Negative cash flow in the months of April and May are due to the seasonal nature of meat processing. Payments are made to investors Unit variable costs increase proportional to sales Because a new facility with new equipment is considerably more efficient, only 40 percent increases for utilities, wages, and other expenses are projected. Repairs and maintenance will be static because equipment and facility are new. Officer wages are static; they are flexible depending on the needs of the business.

PRO FORMA INCOME STATEMENT Net Sales COGS Gross Income Operating Expenses Wages and Salaries Depreciation Other Operating Expenses EBIT Interest Tax (15%) Net Income 2012 Tk. 20,500,000 3,000,000 17,500,000 600,000 550,000 7,500,000 8,850,000 0 1,327,500 Tk. 7,522,500 2013 Tk. 30,750,000 4,500,000 26,250,000 840,000 550,000 10,500,000 14,360,000 0 2,154,000 Tk. 12,206,000 2014 Tk. 51,250,000 7,500,000 43,750,000 1,176,000 550,000 14,700,000 27,324,000 0 4,098,600 Tk. 23,225,400

*Other operating expenses include contract labor, office supplies, office expense, repairs and maintenance, rent expense, supplies, advertising and promotion, transportation expense, telephone expense, vehicle expense, bank service charges, and other miscellaneous expense.

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CASH FLOW PROJECTIONS Cash Flow from Operating Activities Net Income Depreciations: Increase in Current Assets Increase in Current Liabilities Net Cash Flow from Operating Activity Cash Flows from Investment Activity Purchase of Machinery Purchase of Vehicle Net Cash Flow from Investment Activity Cash Flows from Financing activity Increase/decrease in borrowings Net Cash Flow from Financing activity Net change in cash Opening Balance Closing Balance 2012 Tk. 7,522,500 550,000 -3,000,000 800,000 5,872,500 2013 Tk. 12,206,000 550,000 -4,500,000 1,120,000 9,376,000 2014 Tk. 23,225,400 550,000 -6,750,000 1,568,000 18,593,400

-7,500,000 -2,000,000 -9,500,000

-2,000,000 -2,000,000

-1,000,000 -1,000,000

0 0 -13,127,500 0 Tk.-13,127,500

0 0 5,376,000 -13,127,500 Tk.-7,751,500

-5,000,000 -5,000,000 11,593,400 -7,751,500 Tk.3,841,900

PRO FORMA BALANCE SHEET 2012 Assets Current Assets Fixed Assets (Plant and Equipments) Accumulated Depreciation Total Assets Liabilities Current Liabilities Long-term Liabilities Equity Total Liabilities & Equity Tk. 4,500,000 8,250,000 550,000 12,200,000 2013 Tk. 6,500,000 7,700,000 550,000 13,650,000 2014 Tk. 9,000,000 7,150,000 550,000 15,600,000

2,200,000 0 10,000,000 Tk. 12,200,000

4,401,500 0 9,248,500 Tk. 13,650,000

1,758,100 0 13,841,900 Tk. 15,600,000

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BREAK-EVEN ANALYSIS Assuming, it takes Tk. 175 to produce 1 kg of meat, and on average we will produce 5000 kilograms of meat per month. The overall production cost is: Tk. 150x 5,000 = Tk. 750,000. If we sell out meat products at Tk. 280, then the break-even point is: Tk. 750,000 / Tk. 280 = 2,679 kilograms Therefore, to recover our production cost, we will have to sell around 2,700 kg of meat products to our customers. SOURCES AND APPLICATION OF FUNDS: The initial investment capital for our social business would be Tk. 10,000,000. Four entrepreneurs will be financing the investment capital required for the social business. This fund will be used to set up the meat processing facility and a portion of it will be used to buy cattle and goats. We will buy the rest of the animals on credit, and this money will be paid after it has been processed and sold to our customers. Our social business will be sustainable enough to start paying back its investors from the year 2014. The business will be in good shape, and in later years, we will be able to expand our facility and accommodate larger production processes, which would help more poor people to get involved with the business.

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REFERENCES:
Roy, A. K., Haruni, A. K. O., & Akhtaruzzaman, A. F. M (2009). Livestock in Livelihoods: Ways to Break the Poverty Circle [PDF Document]. Retrieved from Intercooperation Bangladesh Web site: http://www.intercooperation-bd.org/PDF/joint%20publication%20-%20livestock%20in %20livelihoods%20-%20June%202009.pdf The Opportunity for Frozen Beef Products in Agro-based Industry [PDF Document]. Retrieved on June 13, 2011 from: http://www.scribd.com/doc/51822046/Agro-based Raihan, S. & Mahmud, N. (2008). Trade and Poverty Linkages: A Case Study of the Poultry Industry in Bangladesh [PDF Document]. Retrieved on June 15, 2011 from CUTS International Web site: http://www.cuts-citee.org/pdf/WP08-06.pdf Department of Livestock Services (2010). Growth and Development Potential of Livestock and Fisheries in Bangladesh [PDF Document]. Retrieved on June 13, 2011 from: http:// www.dls.gov.bd/files/Livestock_Policy_Final.pdf Tareque, A. M. M. & Chowdhury, Z. H. (2010). Agricultural Research Priority: Vision- 2030 and beyond [PDF Document]. Retrieved on June 12, 2011 from Bangladesh Agricultural Research Council Web site: http://www.barc.gov.bd/documents/Final-Prof.Tareque.pdf The Daily Star (2006, April 1). Local firm set to market hygienic, halal meat, Business. Retrieved on June 13, 2011 from: http://www.thedailystar.net/2006/04/01/d60401050158.htm The Financial Express (2011, June 16). Bengal Meat basks in halal boom, Trade and Market. Retrieved on June 16, 2011 from: http://www.thefinancialexpress-bd.com/more.php?news_id=139410 &date=2011-06-16 Bangladesh Economic News (2008, May 13). LEIC contributes to processed meat export from Bangladesh, Business Report. Retrieved on June 15, 2011 from: http://bangladesheconomy.wordpress.com/2008/05/13/leiccontributes-to-processed-meat-export-from-bangladesh/ Khan, J. (2010, October 11). Halal food certification board on cards, The Daily Star. Retrieved on June 13, 2011 from: http://www.thedailystar.net/newDesign/news-details.php?nid=157951

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