Feasibility of Exportation of Frozen Prawns to South Korea

       The feasibility project aims to establish a small scale export company that produces and exports frozen prawns in the South Korea market.

      

        The proponents have studied the buying behavior of the South Korea market, the production process of producing frozen prawns, the demand for such product in South Korea, the supply needed by the company available in the Philippines and the financial aspect needed for the success of the company. The feasibility will only cover the producing of frozen prawns. Produce of other seafood is not included in the study.

            The company’s target population will be ages 21-64 years old, male and female who compromise the workforce of South Korea. The population’s lifestyle matches the attributions and benefits of the frozen prawns. The company will penetrate the market of Seoul, which occupies 22% of the total population of South Korea. 

             

             The average production of the company for five years will be 70,399 units of frozen prawns. The company will produce 60,000; 64,800; 69,984; 75,583 and 81,629 units of the products from year one to five year respectively. The production will increase every year.

              The prawns will be sourced from various suppliers in Bulacan. All other raw materials will be bought in Manila.

 

              All machineries and equipment will be bought in manila. This includes blast freezers and sealing machines needed for production.

            In 2000, South Korea has reached just over 47.2 million. Its population has a growth rate of 31.40% per annum. It is one of heavily populated nations in the world. Hence, there is a larger market base. Thus, highly consumable products will find available markets in South Korea.

          

The middle-aged group in South Korea is usually the wealthiest; this middle aged group will be covered by the target market of the company.   

            There are a number of factors that will contribute to increased demand for healthy and convenient food in South Korea. These are the high density and longevity of the South Korea population, the wealthy middle aged group, the large percentage of working people, the shifting lifestyles of the South Korea people towards health and their selectivity in markets where they buy foods and the increasing consumer expenditure on prawns rather than meats.

        

               Lack of food manufacturing firms in South Korea, globalization abundance or resources and research and development all play significant roles in the supply of frozen prawns in South Korea.

               Based from the computed financial projections by the proponents, the project is expected to be liquid, efficient, stable and profitable in the next five years operation. The payback and discounted payback period will be 2.18 and 2.47 years respectively.   The internal rate of return will be 189.12%.