Fertilizer business model

Fertilizer business model
An example of profitable small scale business in Myanmar

Aung Ko Ko Thet

As described by Uncle U Zaw Aung,

Myanmar export on agriculture is increasing to US$4bllion per year.

Import of various fertilizer also almost 0.5 billions usd.

Factory setup in Myanmar with raw material import

Marketing (how to sell)

One example of SME business in Yangon

U Tin Tun Myine
BSc (Chemistry) Yangon Myanmar– 1959
Certificate of 25 Moths Study (University of
Hawaii, USA) – 1961-1963
Certificate IARI, New Delhi, India-1980

Brief History
He has started working as an assistant chemist in Laboratory Land
Department, Yangon Myanmar in 1957, also worked as a farm manager in
various research farms in Myanmar, became a general manager in Nawarat Co-
op after his retirement from government service in 1990 to work on
Compound Fertilizers. Left Nawarat after 1999, and started his own business of
agricultural consulting and aslo started working on the development of foliar
fertilizer with the brand called Target in Nyaung Lay Bin Test Market.

Let’s have a brief look at the numbers

UNIT COST- 900 Ks per 300cc Bottle
And assume that selling price is 2200

SUBJECTS UNITS COSTS VALUE REMARK
Ks Ks
Sale 10000 2200 22000000
Less Discount 10000 440 (4400000)
rate(20%)
Finish Goods 10000 900 (9000000)
Admin costs 10000 (1760000) 4 months
Marketing and 10000 (690000)
Distribution

NET PROFIT 6150000

The figures here are supposed to be used as a general idea of the profitability of Foliar Fertilizer Business Model.
Market price might increase or decrease due to the presence of competition, maturity of the market segment and
other factors affecting the pricing strategy

Let’s have a brief look at the numbers

CALCULATING FOR CONTRIBUTION (1 BOTTLE)

SUBJECTS KYATS
SALE 1760
LESS FINISH GOODS (900)
DISTRIBUTION (60)
= CONTRIBUTION = 800

Break-Even Point
Break-Even point (Bottles) = Fixed costs / Contribution per unit
= 1760000Ks + 234000Ks / 800 Ks per unit
=2500 bottles

Source: http://usb-extremebeans.com/input/foliar-fertilization/
0.6 bu (bushel) ~ 0.016329196603527 Tonnes for soybean
http://en.wikipedia.org/wiki/Bushel

Why foliar fertilizer sales is possible..

Source: Myanmar Presentation.pdf by
Avree International Pte Ltd

If you are interested,
we can share you the following in more details…

1. Our a fertilizer business model (Every detail)

2. How to manufacture foliar fertilizer (you don’t need
to be an expert like my father)

A Simple
Automated System
Liquid
Estimate 2000 SGD
Fertilizer
unskilled labor

But, please take note that the manufacturing process and every details in the
business model will be under GNU General Public License, as it is a simple profit
making business model, competition should be fair right? Please work with us on
the detailed licensing process

Why am I sharing this?
This is one of the items I am working on for the Myanmar SME Portal project, a web
based system to host “Myanmar SME Ecosystem”. The web portal is going to host the
open projects like this to promote Communities of Practices, Crow Sourcing, and Crow
Funding activities

Building a web portal to host Myanmar Business
Ecosystem www.myanmarsme.com

Segments: Entrepreneurs, SME Owners, Start ups and Professionals
who have entrepreneurial mindset, Supporting Incubator funds, NGO
& Government programmes, and International buyers

Concept 1: Concept 2: Concept 3:
More socially connected Better Market A higher level of co-
Opportunities on Internet ordination, collaboration
and corporation to tackle
A higher level of skill sets , bigger challenges to have
for better quality and better impact or profit with
productivity (Co-opetition) low overheads
by “Market Pull Strategy”

Fertilizer business model

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