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Abstract

Objective: To develop a business plan aimed to create a processing plant in Delicias, Chihuahua, considering that local farmers obtain a low price for their sweet potato harvest, although the cultivation of this tubercle in the state has increased in recent years.Design/Methodology/Approach: A market study was carried out in three municipalities. The Malhotra methodology was used to determine market segmentation, while the FIRCO guide was employed to analyze financial indicators.Results: The market study showed that 77% of the sampled population consumes the tubercle in question. Out of this percentage, 85% is willing to consume the products offered by the company, particularly jamoncillo (candy) (24%), followed by candied sweet potato (20%) and chips (18%). A 5-year projection (with a 12% update rate) establish the profitability of the net present value (NPV) of $1,610,875.34, an internal rate of return (IRR) of 79%, and benefit-cost relation (BCR) of $1.16. The initial investment is recovered with a positive f low after the third year, with a $463,079.91 Mexican pesos profit.Study Limitations/Implications: Obtaining the full amount of the initial credit for the business would be a limitation. The owners would pay the fixed and variable costs.Findings/Conclusions: The producer can establish his factory with an initial investment of $422,472 pesos, increasing his profits, adding value to the crop, and eliminating middlemen.

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