Presentation -Tobago Fish Processing Porject 1[1]
-
Upload
marcia-dorman-joseph -
Category
Documents
-
view
130 -
download
7
Transcript of Presentation -Tobago Fish Processing Porject 1[1]
EMBA COHORT 1BUAD 6085 MACROECONOMICS & THE GLOBAL BUSINESS
ENVIRONMENT
LECTURER: RAMESH RAMDEEN
PRESENTED BY: SYNERGY CONSULTING INC. DIRECTORS ~ Glennis Best-Pitt ~ Joanne Bourne-Sheppard ~ Joseph Frederick ~ Marcia Dorman-Joseph
SYNERGY CONSULTANTS
INC.
The Fish Processing Company of Tobago (FIPCOT) was established in 2009
It is a Government Special Purpose Company
Offices located at Glen Road, Scarborough , Tobago
Interview conducted on Monday July, 4th 2011 with
- Mr. Carlisle Jordan – Chairman - Mr. Cloyd Blackman - Director
Company Objectives Diversify the economy away from Tourism
Add value to the Fishing Industry and the Community
Company Structure – Traditional
Staff Compliment: 20 15 sailors/ crew members Five office staff s
A 65 foot long line vessel was purchased by the Tobago House of Assembly (THA) to facilitate the operations of the Company.
The vessel is highly equipped for deep sea fishing with features such as :
- 200 Gallon live bait well - A desalination plant - Radar - Fish Finder - Full Communication system onboard
Products Marketed; Yellow Fin Tuna (Primary)
Exported in its Raw Form approximately 10,000 lbs per month
Price per lbs is USD 5.00 To USD 6.50
By Catch (Secondary) Included are Red snapper, Kingfish & Flying Fish Sold on the Local Market Price per lbs is USD 0.90 to USD 2.00
Company generates revenues of approximately $630,000.00 USD per annum.
$600,000.00 from exports
$30,000 from by-catch sold on the local market
This is approximately $3,600,000.00 TTD annually (www.world fishing.net)
The Company is considered a Born Global entity since it began exporting soon after it commenced operations. This is so because the market for the product at home is too small for the quantity produced.
FIPCOT prides itself in their ability to adhere
to their commitment to the local fishing community on the island by not competing in the domestic market.
The by-catch is sold to the local fishermen
at a reduced price.
FIPCOT took advantage of a suggestion from the Testing Facility in Trinidad, that given the high quality of the Tuna sent to them for testing, that there was an opportunity for entry into the US market .
Grade of Tuna was determined to be Grade A THE HIGHEST QUALITY TUNA ON THE
INTERNATIONAL MARKET
The style of butchering used to prepare the fish for export prompted the Testing facility to recommend that Tuna be Exported to the United States Market
Price of one of these dishes range from US$35 to US$50
Competitors Other Caribbean Islands
Grenada Barbados Jamaica Etc
Japan China Kenya
Status of the Market Policy Problems in the United States because of
Dolphin Conservation Fish Stock Worldwide is depleting Rising demand for Raw Fish Loin for immediate
Consumption Time limit exist between Catch and Delivery to
Restaurant (48 hrs) in the USA Type of Tuna required by customers is Fresh Fish
The Involvement of the Company in the international Trade
In the Market Segment for Yellow Fin Tuna US imports for Tuna is 19,300 tonnes Market for Yellow Fin Tuna is 15,000 tonnes Trinidad and Tobago is among the Top Five
Suppliers of Tuna to the United States
Recommendation of Quality Assurance Company
Profits Margin very high
Accidental entry strategy employed Pull Factor : Ready International Market Market was recommended to company
Company is presently expanding into fish processing Key competencies of company were knowledge,
skills, sensitivity and values Company does not have a Research and
Development arm
Company’s products were suitable for the international market
Product had a great market potential There was a High Demand for Product, yet supply
was very low No screening was done to identify market
size and demographics Generally because it was a young
organisation with Governmental Support, the team believes it had the support base necessary to go international
Company plans to engage in Fish Processing
This suggests that the Company plans to diversify its operations. ( This measure is being used by the company to create a niche market locally)
No innovation being employed in maintaining a stable supply of Grade A Tuna
Company not yet safe guarding its raw materials base
For Grade A Yellow Fin Tuna, there exists no need for value added as it relates to the Target market.
Alternative use of by-catch - Seafood products may also be canned, cured (salted, smoked or salted and smoked) or prepared as delicatessen products.
Trade restrictions instituted by various trading blocs eg. European Union
Readiness of the firm to expand its international market base
The present nature of the local Fishing Industry.
It is not highly competitive Few Fishermen fish at that level (300m)
Company does not have a Research and Development arm
No screening was done to identify market size and demographics
There are two main categories of Macroeconomic Variables affecting the Company;
Endogenous Variables Business Fluctuation Raw Materials Availability
Exogenous Variables Inflation Employment Rate in Import Country Political Policy in Host Country Relationship between Host Country and Importer
Country
Company should consider Privatisation
Company Needs to Diversify Into Restaurant Operations
Establishing a Caribbean Cuisine Restaurant to Capitalise on the Value-Added in the Sushi Market
Company Needs to Evaluate present available fish stock
They need to know how long they can continue supplying their market
Seek assistance from Ministry of Trade and Industry to negotiate entry into the lucrative European market
Sustainability through Aqua Culture. Opportunity for company to expand business in this area and at the same time meet its growing demand for fish.
Develop a Brand – Instrument used to differentiate product from that of the competitors. Strong brand=value, image, reputation
The company has a competitive edge in their handling and preparation techniques as identified by the Testing facility.
This skill-set can be leveraged in the Region by training fishermen to attain HACCP standards as well as the adaptation of sound butchering techniques in fish processing.
The Fish Processing Company of Tobago (FIPCOT) has great potential for growth and sustainability. This is supported by the fact that it exists in a niche industry and has the necessary resources and support. However, management needs to be mindful of the change in the global environment.
WE THANK YOU FOR YOUR ATTENTION!