Fruit Processing Plant Business Plan [Sample Template]

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Are you about starting a fruit processing business? If YES, here is a complete sample fruit processing business plan template & feasibility report you can use for FREE.

Okay, so we have considered all the requirements for starting a fruit processing business. We also took it further by analyzing and drafting a sample fruit processing marketing plan template backed up by actionable guerrilla marketing ideas for fruit processing companies. So let’s proceed to the business planning section.

As an aspiring entrepreneur, if you have the required startup capital and perhaps the required experience, then you should consider starting your own fruit processing plant because of the needs of the society.

It should be noted that fruit processing is one business that can’t go out of fashion because people utilize processed fruits in different forms on a daily basis. Depending on the scale you want to start, the startup capital for this type of business can range from moderate to high.

A Sample Fruit Processing Plant Business Plan Template

1. Industry Overview

The global fruit and vegetable processing industry is made up of companies that process and package fruits and vegetables into canned, bottled, frozen, dried (except sun-dried) or otherwise processed or preserved food products for human consumption.

Players in this industry also blend salt, sugar, preservatives and other ingredients with the fruits and vegetables to make it taste better and last longer.

A recent report published by IBISWorld shows that the global fruit and vegetable processing industry has experienced consistent demand over the five years to 2017, as economies of every size continue to consume processed fruits and vegetable products.

Demand has grown particularly fast in developing economies, as industrial growth has translated into greater urbanization, higher per capita income and expansion in the size of the middle class. As the global middle class has grown, it has demanded larger quantities of higher quality and more diverse food.

Over the five years to 2022, industry revenue is expected to expand. Industry demand is expected to increase as producers focus on nutritious ingredients and less invasive processing techniques to keep products as organic as possible.

The report further revealed that the production of processed fruits and vegetables occur in all regions of the globe. In particular, low-tech fruit and vegetable processors such as fruit driers, exist in almost every country in the world.

However, high-tech, large-scale fruit and vegetable processing operations are concentrated primarily in Europe and Asia. These continents dominate the Global Fruit and Vegetable Processing industry due to the fact that industry operations have been established in these areas for a very long time.

The Global Fruit and Vegetable Processing Industry is indeed a very large industry and pretty much thriving in all parts of the world especially in developed countries such as United States of America, Canada, United Kingdom, Germany, Australia and Italy et al.

Statistics has it that in the world, there are about 32,123 licensed and registered fruit and vegetable processing companies directly responsible for employing about 507,446 employees. The industry rakes in a whooping sum of $290 billion annually with an annual growth rate projected at -0.1 percent.

It is important to state that Kraft Heinz is the establishment with a lion share of the available market in this industry. Lastly, if you are looking towards leveraging on the food processing industry to generate huge income, then one of your best bet is to start a fruit processing plant company.

One thing is certain about starting your fruit processing plant business, if you are able to conduct your market research and feasibility studies, you are likely not going to struggle to sell your products because there are consumers out there who are ready to buy from you.

2. Executive Summary

Fritz Fusion® Fruit Processing Company is a licensed fruit and vegetable processing company that will be based in the outskirts of Santa Fe, New Mexico.

We have done our detailed market research and feasibility studies and we were able to secure a hundred hectares of land to start our fruit processing plant. Our fruit processing plant is going to be of standard hence will be involved in cultivating fruits, processing and marketing processed fruits to the United States’ market and other countries of the world.

We are in the fruits and vegetable processing industry because we want to leverage on the vast opportunities available in the industry, to contribute our quota in growing the U.S. economy, in national food production, and also to export processed fruits to other countries and to make profit.

Fritz Fusion® Fruit Processing Company is well positioned to become one of the leading fruit processing companies in the united states of America, which is why we have been able to source for the best hands and machines to run the company with. We have put process and strategies in place that will help us employ best practices when it comes to fruit processing.

At Fritz Fusion® Fruit Processing Company, our customer’s best interest will always come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.

Fritz Fusion® Fruit Processing Company is a registered fruit processing company that is owned by Mr. Fritz Allenton and his immediate family members. The company will be fully financed by the owner – Mr. Fritz Allenton and his immediate family members at least for a period of time.

Before starting Fritz Fusion® Fruit Processing Company, Mr. Fritz Allenton worked with some of the leading food processing companies in the United States of America. He has over 15 years’ experience in the industry and a Degree in Food Science Technology from Illinois Institute of Technology.

3. Our Products and Services

Fritz Fusion® Fruit Processing Company is a standard fruits and vegetable processing company that is committed to producing well processed and packaged fruits and vegetable products for both the United States’ and the global market.

We are in the industry to make profit and we are going to do all we can to achieve our business goals, aims and objectives. Here are some of our products;

Canned fruits and vegetables
Fruit and vegetable juices
Ketchup and other tomato-based sauces
Soups, stews and bouillon
Dried and dehydrated fruits and vegetables (used as fruit flavors)
Pickled products
Jams and jellies

4. Our Mission and Vision Statement

Our vision is to become one of the leading fruit and vegetable processing company not just in the United States of America but also on the global stage.
Fritz Fusion® Fruit Processing Company is committed to cultivating and processing fruits and vegetable for both the United States’ market and the global market. We want our processed and packaged fruits and vegetable products to flood the nooks and crannies of the United States and other countries of the world.

Our Business Structure

Fritz Fusion® Fruit Processing Company is a privately owned business that intends starting small in Santa Fe – New Mexico, but hopes to grow big in order to compete with leading processing companies in the industry both in the United States and on a global stage.

We are aware of the importance of building a solid business structure that can support the picture of the kind of world class business we want to own, which is why we are committed to only hire the best hands within our area of operation.

At Fritz Fusion® Fruit Processing Company, we will ensure that we hire people that are qualified, hardworking, creative, result driven, customer centric and are ready to work to help us build a prosperous business that will benefit all our 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 as agreed by the board of trustees of the company. In view of the above, we have decided to hire qualified and competent hands to occupy the following positions;

Chief Operating Officer
Fruits and Vegetable Processing Plant Manager
Human Resources and Admin Manager
Accountant/Cashier
Sales and Marketing Executive
Plant Workers/Field Workers
Front Desk Officer

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

Responsible for increasing 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; developing incentives; developing a climate for offering information and opinions.
Responsible for 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 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 signing checks and documents on behalf of the company
Evaluates the success of the organization

Fruits and Vegetable Processing Plant Manager

Responsible for overseeing the smooth running of the fruits and vegetable processing plant
Part of the team that determines the quantity of products that are to be produced
Maps out strategy that will lead to efficiency amongst workers in the plant
Responsible for training, evaluation and assessment of plant workers
Ensures the steady flow of fruits and vegetables to the plant and easy flow of finished products through wholesale distributors to the market
Ensures operation of equipment by completing preventive maintenance and calling for repairs.
Ensures that the plant meets the expected safety and health standard at all times.
Responsible for carrying out risk assessment in the plant
Using IT systems and software to keep track of people and progress of the growth of the organization
Responsible for overseeing the accounting, costing and sale of processed products
Represent the organization’s interest at various stakeholders’ meetings
Ensures that organizations’ goals and desired result is achieved, the most efficient resources (manpower, equipment, tools and chemicals et al) are utilized and different interests involved are satisfied

Human Resources and Admin Manager

Responsible for overseeing the smooth running of HR and administrative tasks for the organization
Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
Defining job positions for recruitment and managing interviewing process
Carrying out induction for new team members
Responsible for training, evaluation and assessment of employees
Responsible for arranging travel, meetings and appointments
Oversee the smooth running of the daily office activities

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 for one or more properties.
Responsible for developing and managing financial systems and policies
Responsible for administering payrolls
Ensuring compliance with taxation legislation
Handles all financial transactions for the company
Serves as internal auditor for the company

Sales and Marketing Manager

Manages external research and coordinates 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
Identifies development opportunities; follows up on development leads and contacts
Writing winning proposal documents, negotiate fees and rates in line with organizations’ policy
Responsible for handling business research, market surveys and feasibility studies for clients
Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
Develop, execute and evaluate new plans for expanding increase sales
Create new markets cum businesses for the organization
Empower and motivate the sales team to meet and surpass agreed targets

Field Workers

Responsible for operating fruits and vegetable processing machines
Responsible for harvesting fruits and vegetables as instructed by the supervisor
Carries out task in line with the stated job description
Assist in packaging and loading processed products into distribution trucks

Front Desk/Customer’s Service Officer

Welcomes 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

6. SWOT Analysis

Fritz Fusion® Fruit Processing Company does not intend to launch out with trial and error hence the need to conduct proper SWOT analysis. We know that if we get it right from the onset, we would have succeeded in creating the foundation that will help us build a standard fruit and vegetable processing company that will favorably compete with leading companies in the United States of America.

We engaged the services of a professional in the area of business consulting and structuring to assist our organization in building a well – structured processing company that can favorably compete in the highly competitive fruit and vegetable processing industry in the United States.

What the business consultant did was to work with the management of our organization in conducting a SWOT analysis for Fritz Fusion® Fruit Processing Company. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Fritz Fusion® Fruit Processing Company;

Strength:

Our strength as a fruit and vegetable processing company is the fact that we have healthy relationships with loads of major players (processed fruits and vegetable merchants) in the industry within and outside of the United States of America.

We have some of the latest processing equipment and commercial farm tools that will help us cultivate, process and package fruits and vegetables. Aside from our relationship and equipment, we can confidently boast that we have some the most experienced hands in the fruits and vegetable processing industry in the whole of Santa Fe – New Mexico in our payroll.

Weakness:

Our weakness could be that we are a new fruit and vegetable processing company in the United States, and perhaps it might take us time to attract big time customers in the industry. We are aware of this and from our projection; we will overcome this weakness with time and turn it to a major advantage for us.

Opportunities:

The opportunities that are available to us as a standard fruit and vegetable processing company with a standard farm cannot be quantified, we know that there are loads of households and businesses that can’t do without a daily supply of processed fruits and vegetables. We are well positioned to take advantage of this opportunity.

Threat:

While competition from fresh produce poses a threat, demand for industry staples will continue to grow across the global market.

Some of the threats and challenges that we are likely going to face when we start our own fruits and vegetable processing company are global economic downturn that can impact negatively on household spending, bad weather cum natural disasters, unfavorable government policies and the arrival of a competitor within same location. There is hardly anything you can do as regards these threats other than to be optimistic that things will continue to work for our good.

7. MARKET ANALYSIS

Market Trends

If you are conversant with the food industry, you will notice that the different food consumption patterns have had varied effects in different countries. Fruits and vegetable processing companies have introduced healthier organic products to fight competition.

Canned fruit and vegetable producers are more insulated from agricultural price swings and organic food sales have posed a significant competitive challenge to many industry players.

The fruits and vegetable industry has grown steadily over the last five years as fruits and vegetable processing companies have adapted to the rapidly changing consumer preferences and lifestyle. As a matter of fact, entrepreneurs who own big plantations/farms find it easier to open a processing plant within their farms. With this, it is easier for them to maximize profits and of course stamp their feet in the industry.

8. Our Target Market

Naturally, the end consumers of processed fruits and vegetables and also those who benefit from the business’ value chain is all encompassing; it is far – reaching. North America is the largest market for processed fruit and vegetable products.

Loads of households consume processed fruits and vegetables. In essence, a fruit and vegetable processing company should be able to sell its products to as many people as possible.

In view of that, we have positioned our business to attract consumers of processed fruits and vegetables not just in the United States of America alone but also other parts of the world. We have conducted our market research and we will ensure that we meet and surpass the expectations we set for the business.

Below is a list of the people and businesses that we will market our processed fruits and vegetables to;

Groceries stores
Households
Individuals
Hotels
Restaurants
Fast food eateries
Processed fruits and vegetable merchants

Our Competitive Advantage

A close study of the fruits and vegetables 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 competition and we are prepared to compete favorably with other processing companies in Santa Fe – New Mexico and throughout the United States.

Part of what is going to count as competitive advantage for Fritz Fusion® Fruit Processing Company is our access to high quality inputs, attractive product presentation, economies of scale and of course the vast experience of our management team, we have people on board who are highly experienced and understand how to grow a business from the scratch to profitability.

So also, we have healthy relationships with loads of major players in the industry within and outside of the United States of America. We have some of the latest processing equipment and farm tools that will help us cultivate and also process fruits and vegetable. Aside from our relationship (network) and equipment, we can confidently boast that we have some the most experienced hands in Santa Fe – New Mexico in our payroll.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry, meaning that they will be more than willing to build the business with us and help deliver our set goals 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

Fritz Fusion® Fruit Processing Company is in the business for the purpose of maximizing profits hence we have decided to explore all the available opportunities within the industry to achieve our corporate goals and objectives. Below are the sources we intend exploring to generate income;

Canned fruits and vegetables
Fruit and vegetable juices
Ketchup and other tomato-based sauces
Soup, stews and bouillon
Dried and dehydrated fruits and vegetables (used as fruit flavors)
Pickled products
Jams and jellies

10. Sales Forecast

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

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

We have been able to examine the fruits and vegetable processing industry, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to startups in Santa Fe – New Mexico.

First Fiscal Year: $250,000
Second Fiscal Year: $550,000
Third Fiscal Year: $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

We are quite aware that the reason why some fruits and vegetables processing companies hardly make good profits is their inability to sell off their products as at when due. Our sales and marketing team will be recruited based on their vast experience in the m processing industry and they will be trained on a regular basis so as to be equipped to meet their targets and the overall business goal of Fritz Fusion® Fruit Processing Company.

We have perfected our sale and marketing strategies first by networking with grocery stores, hotels, restaurants and other key stakeholders who are likely to become our customers. In summary, Fritz Fusion® Fruit Processing Company will adopt the following strategies in marketing our processed fruits and vegetables;

Introduce our business by sending introductory letters alongside our brochure to stake holders in the industry, households, hotels and restaurants et al.
Advertise our business in food related magazines and websites
List our business on yellow pages ads (local directory)
Attend related expos, seminars, and business fairs et al
Open our company with a party so as to capture the attention of residents who are our first targets
Engage in roadshows in targeted communities from time to time to sell our products
Leverage on the internet to promote our business
Engage in direct marketing
Encourage the use of Word of mouth marketing (referrals)
Join local chambers of commerce and industry with the aim of networking and marketing our products

11. Publicity and Advertising Strategy

Any business that wants to grow beyond the corner of the street or the city they are operating from must be ready to utilize every available means to advertise and promote the business. We know that it is important to create strategies that will help us boost our brand awareness and to create a corporate identity for our fruits and vegetable processing plant business.

Below are the platforms we will leverage on to boost our fruits and vegetable processing brand and to promote and advertise our business;

Place adverts on community based newspapers, radio and TV stations
Encourage the use of word of mouth publicity from our loyal customers
Leverage on the internet and social media platforms like YouTube, Instagram, Facebook, Twitter, LinkedIn, Snapchat, Badoo, Google+ and other platforms to promote our business.
Ensure that our we position our banners and billboards in strategic positions all around Santa Fe – New Mexico
Distribute our fliers and handbills in target areas in and around our neighborhood
Advertise our business in our official website and employ strategies that will help us pull traffic to the site
Brand all our official cars and trucks and ensure that all our staff members wear our branded shirt or cap at regular intervals.

12. Our Pricing Strategy

We are aware of the pricing trend in the fruits and vegetable processing industry which is why we have decided to produce various sizes of packaged fruits and vegetables.

In view of that, 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 industry prices. 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 brand.

Payment Options

The payment policy adopted by Fritz Fusion® Fruit Processing Company 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 Fritz Fusion® Fruit Processing Company will make available to her clients;

Payment with cash
Payment via credit cards/Point of Sale Machines (POS Machines)
Payment via online bank transfer
Payment via check
Payment via mobile money transfer

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

13. Startup Expenditure (Budget)

When it comes to calculating the cost of starting a fruit and vegetable processing plant business, there are some key factors that should serve as a guide. The source of the fruits and vegetables (especially if the company is not going to own a fruit and vegetable farm) and the size of the business determines the total cost of setting up the business.

Besides, in setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting / leasing a big facility, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be productive.

The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked. As for the detailed cost analysis for starting a fruits and vegetable processing plant business; it might differ in other countries due to the value of their money.

Below are some of the basic areas we will spend our startup capital in setting up our fruits and vegetable processing plant and farm;

The total fee for registering the business in the United States of America – $750.
Legal expenses for obtaining licenses and permits (Health department license and business license) and permits (Fire department permit, Air and water pollution control permit, and Sign permit et al) as well as accounting services (CRM software, Payroll software, P.O.S machines and other software) – $15,300.
Marketing promotion expenses for the grand opening of our plant in the amount of $3,500 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 (including writing business plan) – $2,500.
The cost for insurance (general liability, theft, workers’ compensation and property casualty) coverage at a total premium – $30,400.
The cost for leasing a large farm land – $200,000
The cost for constructing a standard fruit and vegetable processing plant and farm facility with the right fencing – $300,000.
Other start-up expenses including stationery ($500) and phone and utility (gas, sewer, water and electric) deposits ($6,500).
The operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
The amount required for the purchase of the first set of fruit seedlings – $60,000
The cost for acquiring the required working tools and equipment/machines – $200,000
The cost for store equipment (cash register, security, ventilation, signage) – $13,750
The cost of purchase and installation of CCTVs – $5,000
The cost for building and hosting a website – $600
The cost for our opening party – $8,000
Miscellaneous – $5,000

Going by the report from detailed research and feasibility studies conducted, we will need an estimate of seven hundred and fifty thousand dollars ($750,000) to start our plant with a fruit and vegetable farm.

Generating Startup Capital for Fritz Fusion® Fruit Processing Company

No matter how fantastic your business idea might be, if you don’t have the required money to finance the business, the business might not become a reality. Finance is a very important factor when it comes to starting a business.

Fritz Fusion® Fruit Processing Company is a family business that is solely financed by Fritz Allenton and his immediate family members. They do not intend to welcome any external business partners which is why he has decided to restrict the sourcing of the startup capital to 3 major sources.

These are the areas we intend generating our startup capital;

Generate part of the startup capital from personal savings
Source soft loans from family members and friends
Apply for loan from the bank

N.B: We have been able to generate about $250,000 (Personal savings $200,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $500,000 from our bank. All the papers and document shave 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

The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and business structure. If all of these factors are missing from a business, then it won’t be too long before the business closes shop.

One of our major goals of starting Fritz Fusion® Fruit Processing Company is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to retail our well – processed and well – packaged fruits and vegetable products a little bit cheaper than what is obtainable in the market and we are prepared to survive on lower profit margin for a while.

Fritz Fusion® Fruit Processing Company 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 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 land and building of standard fruit and vegetable processing plant: In Progress
Conducting Feasibility Studies: Completed
Generating capital from family members: 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 fruits and vegetable processing machines, 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 planning: In Progress
Establishing business relationship with vendors – key players in the industry: In Progress