Feasibility Study Meat Processing Factory in Bahrain

 

Executive Summary

Management of [xxx company] is looking to enter the meat processing business in Bahrain. The rationale of its important business action is the fact that the meat industry in Bahrain is growing supported by the average Bahrain-based household which is forecasted to spend 12.9% on food by 2025. This figure is relatively low by international standards, driven by the country's rapidly developing food services and growing disposable incomes over twenty-year period, meaning that consumers are increasingly prioritizing spending on non-essential products and services.

We have performed market assessment and the result shows that there is a significant potential to serve the processed meat industry in Bahrain, thus enhance the market competitiveness which is fragmented. The Total Addressable Market (TAM) of meat industry in Bahrain is estimated about USD 440 million in year 2023 and is projected to reach USD 525 million in 2028. The Serviceable Available Market (SAM) – as the company is targeting processed meat segment is about USD 137 million in 2023 and projected to reach USD 147 million in 2028.

In addition, there is also significant upside potential to expand to other GCC countries like Saudi Arabia, UAE and Qatar with estimate TAM of about USD 5.6, 5.2 and 1.5 billion respectively.

Based on our internal financial projection, after five years operation the company will be able to generate around USD 8.4 million revenue or equal to about 5.7% total meat processed market size segment in 2028.

The economic indicator of the project is summarized in the table below.

IRR	32.50%
NPV	$4,061,836
Undiscounted NCF	$10,008,958
Pay Back (Construction)	3.74
Pay Back (Production)	2.74

 

Key Success Factor

·       Market research and analysis: This is essential to understand the demand for processed meat products in the company’s target market. The company needs to know what types of products are popular, what price points are acceptable, and where company’s competitors are.

·       Product development: The company needs to develop a range of processed meat products that are appealing to the company’s target market. This includes developing recipes, sourcing ingredients, and conducting taste tests.

·       Sourcing: The company needs to source high-quality meat and other ingredients from reliable suppliers. It also needs to ensure that all suppliers can meet production demands.

·       Manufacturing: The company needs to have a well-designed and efficient manufacturing facility. The facility should be able to produce processed meat products at a high volume and consistent quality.

·       Quality control: The company needs to have a robust quality control system in place to ensure that processed meat products meet all safety and quality standards.

·       Marketing and sales: The company needs to develop a marketing and sales strategy to reach the target market. This includes creating a brand identity, developing marketing materials, and establishing distribution channels.

·       Financial planning: The company needs to have a sound financial plan in place to cover the costs of setting up and running the processed meat factory. This includes but not limited to the cost of equipment, facilities, labor, and marketing.

In addition to these key success factors, the company also needs to have a strong team in place with the necessary skills and experience. The company needs to be able to manage it resources effectively and adapt to change as the market demands.

Three aspects need to focus on:

1.     Focus on quality: Quality is essential in the processed meat industry. The company needs to produce products that meet all safety and quality standards.

2.     Be innovative: The processed meat industry is constantly evolving. The company needs to be able to innovate and develop new products to stay ahead of the competition.

3.     Be sustainable: Consumers are increasingly concerned about sustainability. The company needs to be able to produce processed meat products in a sustainable way.

Study Objectives

Based on our understanding, the key objective of the study is:

1.     Assess whether there is market demand for processed meat in Bahrain and if so, what would be the estimated market size.

2.     Conduct economic analysis to establish the proposed new meat processing facility.

3.     To provide recommendations on whether to go or not go with the project.

Figure 3.  Market Size of Meat in Bahrain

(Source: Statista)

Figure 4. Meat Average Revenue per capita in Bahrain

(Source: Statista)