Selling potatoes: is it a profitable business? Business plan for growing potatoes.

Potatoes are one of the main products on the Russian table. Everyone eats potatoes and everyone buys them. Even those who grow this vegetable in their summer cottage can very rarely provide themselves with it in full. Therefore, potatoes have always been and will always be in demand among the population. It follows that the potato growing business is a profitable business. At the same time, growing potatoes is not very difficult; it grows well in most regions of our country.

What does it take to grow and sell a good crop of potatoes? Of course, the first thing you need is land. In addition, seed material, agricultural machinery, fertilizers and labor are needed. Well, before you take decisive action to acquire all these components, you need to draw up a business plan.

Stages of growing potatoes

Growing potatoes is a business with a quick payback. Only four months pass from the moment of planting to the moment of sale of the finished product. Growing potatoes includes the following steps:

1. Planting material preparation.
2. Soil preparation.
3. Landing.
4. Hilling.
5. Fertilizer.
6. Pest control.
7. Cleaning.
8. Storage.
9. Package.
10. Sale.

planting material

Preparation of planting material takes place in the fall. To do this, the grown potatoes are sorted out and small, clean, without signs of disease and spoilage of potatoes are selected. Potatoes selected for planting must be “greened”, that is, placed in the light for about twenty days. Direct sunlight is not suitable for this, the lighting should be diffused. This procedure improves the seed quality of potatoes and prevents rotting.

After sprouting, potatoes are stored in a room without access to light, with a temperature of 1 to 3 degrees and a humidity of 80-90%.

A month before sowing, the potatoes are moved to a bright and warm room. Here he should sprout. The size of the sprout before planting potatoes should be at least 1 cm.

If large potatoes were selected for planting (some varieties have tubers up to 400 g), it must be divided into parts. The potatoes are cut into halves or quarters, it should be borne in mind that each part should have at least two or three eyes. Cut the potatoes before germination or two weeks after the start of germination. It is useful to cover the cuts with wood ash to protect the tubers from diseases. In addition, ash is an excellent fertilizer.

Soil preparation and planting potatoes

Potatoes are planted in May - in central Russia. In the south, it can land in March-April. In the north of the country - in June. The main indicator is soil temperature. At a depth of 10-12 cm, the soil should warm up to 8 degrees.

Before planting, the land is cleared of weeds and loosened. They dig up the earth with shovels, a simpler option - with pitchforks, or using equipment: a plow and a walk-behind tractor or a tractor. By modern standards, the soil does not need to be turned over, while swapping the top and bottom layers. It just needs to be loosened well.

Potatoes are planted in rows, while the distance in the rows from bush to bush should be at least a meter. The distance in the rows is about thirty centimeters. This is enough for the normal development of the bush and processing with the help of technology.

The depth of planting potatoes should not be large - only 5-8 cm. But a ridge of earth is formed over the planted potato with the help of agricultural implements. The height of the comb when landing is 10 cm.

potato care

Approximately two weeks after planting, weeding and hilling are carried out. The ridge of soil above the potatoes after this procedure should increase by another 10 cm. The soil should be loose and soft. In this crest, potatoes will grow and develop.

When the potato bushes begin to bloom, they are sprayed with solutions of Colorado potato beetles, which can cause significant damage to the crop.

Potatoes can be watered two to three times a week in the absence of rain. In severe drought, watering can be daily. In cloudy weather and high humidity, the amount of watering can be reduced.

The best organic fertilizer for growing potatoes is cow or horse manure. It is introduced into the ground before planting and mixed with the soil. You can generally do without chemical fertilizers if there are organic ones and the soil is not depleted. And in order to maintain the fertility of the soil, after harvesting it should be sown with any green manure - sunflower, corn, clover, etc. They will not only act as a fertilizer, but will protect the soil from depletion, disease and the reproduction of harmful weeds. This will guarantee a good next harvest.

Potatoes should be harvested immediately after ripening, in which case they will retain all their useful qualities and will be stored longer. It must be stored in dry, specially equipped rooms.

Legal registration of agricultural business

If the land on which you grow potatoes in small quantities is owned by you and falls into the category of private household plots (personal subsidiary plots), then you can not register in any way and simply sell the products on the market.

But in order to expand your sales channels and become a businessman legally growing and selling your products, you will need to. In accordance with, your encoding is A. 01.13.21 - agricultural production. You will pay a single agricultural tax (). It is 6% of net income and is considered the most beneficial of business taxes.

Business plan for growing potatoes

Consider a specific example of a business plan for a private farm growing potatoes.

The area of ​​the cultivated area is 30 acres, is owned by the owner of the farm. First of all, it is planned to purchase the equipment necessary for work:

• Mini-tractor (or walk-behind tractor) - 35,000 rubles.
• Plow for a mini-tractor - 2,000.
• Hiller for a mini-tractor - 2,000.
• Body for the transport of goods using a mini-tractor - 20,000.
• Device for digging potatoes (attached to a mini-tractor) - 3,000.
• Total - 62,000 is necessary for the purchase of equipment.

Note that the equipment is purchased only once, that is, these are the costs of the first year of operation. In the future, expenses for repair and replacement of equipment are possible, but they will be much less.

In addition, after the harvest, there will be transportation costs to transport it to the buyer. They will amount to about 5,000 rubles. Hiring employees is not provided. All work is carried out by the family of the owners of the farm. There are no expenses for the purchase of seeds either, there are potatoes for planting in the personal household.

It is planned to spend about 3,000 rubles on fertilizers and the fight against Colorado potato beetles. That is, the total cost will be 70,000 rubles.

About 250 kg of potatoes are harvested from one hundred square meters of land. This means that the planned harvest will be about 7500 kg. With a potato price of 20 rubles per kg (it is planned to sell to wholesalers), the income from the enterprise will be 150,000 rubles.

Potato packaging

Selected clean and packaged potatoes cost about twice as much as dirty potatoes in ordinary bags. Therefore, it is advisable to pack the potatoes yourself before selling them to customers.

This can be done on a small farm and on your own. The equipment that will be needed to prepare and pack potatoes is easy to find or purchase. In order to establish a small business for packing grown potatoes, you will need:

• Large containers for washing potatoes (bath).
• Uninterrupted access of water in large quantities.
• Room for drying potatoes (a canopy or barn with a slatted floor is suitable).
• Scales.
• Packing bags. The most common size is 25x40 cm. The material is dense porous polyethylene.
• Stapler for sealing bags.
• Brackets for stapler.
• A strip of cardboard measuring 25x4 cm
• Label 25x8 cm

The process of packing potatoes takes place in several stages:

• The crop is moved, and all damaged potatoes must be removed.
• Selected potatoes are soaked in a container of water.
• After an hour, the water is drained, a new one is poured. The procedure is repeated 2-3 times.
• After the last drain, the peeled potatoes are laid out to dry.
• Dried potatoes are laid out in bags, weighed, adjusted to a given weight. Usually the weight of a package with potatoes is from 2 to 4 kg.
• The upper, free part of the packaging bag is wrapped several times around the carton. This is done for rigidity.
• A label is applied over the wrapped cardboard and stapled in two or three places.
• A package with selected beautiful potatoes is ready.

Sales of finished products

Potatoes can be sold in several ways:

If you are growing potatoes in large volumes, then you should take care of oral and written agreements with wholesalers in advance. The agreement, which will spell out the terms, prices and other conditions of your cooperation, will allow you to focus on agricultural work and not worry about selling the grown crop.

The potato farming business has a profitable income. Many people make money growing it. However, to build a successful, sustainable potato business, you need to have sufficient knowledge of how to grow potatoes efficiently. This article shows you how to write a ready-made potato growing business plan from scratch. Recommendations are also given for management skills.

First of all, good potato production starts with good land selection. The product can be grown in various types of soil. However, alkaline soils and saline soils are not suitable for this. The earth must also have the correct structure. A good structure ensures good water penetration into the soil and drainage, gas exchange, optimal root development.

Loose soils are good for the potato growing business because they offer the least resistance to tuber expansion. The most suitable types are loamy and sandy soils, rich in organic matter, with good drainage and aeration.

Another factor to consider is soil pH, as it should ideally be in the 5.2-6.4 range for optimal growth. You will have problems with common scab if you plant potatoes in high pH soils. If grown in soils with a lower pH value than the recommended range, potatoes will produce poor quality strawberries and have abnormal growth. So, before you make a step by step potato growing business plan, you need to check if the soil is suitable for farming or not.

Moreover, growing potatoes also requires extensive soil preparation. Potatoes need to be harrowed until they are completely free of weed roots. Your business plan for growing and selling potatoes should consider the cost of buying or renting land.

Machinery and equipment

The machinery and equipment you need for your potato growing business will depend on the scale of your operation. You can take.

Potato business may involve:

• tractors;
• harvesters;
• sprayers;
• fertilizer spreading equipment;
• irrigation machines;
• excavators;
• scales;
• bunkers, etc.

Most farmers usually hire large machines such as tractors when they want to use them rather than buying them because they are expensive. Mesh for irrigation systems may also be required. Entrepreneurs, especially in rural areas who do not have modern agricultural equipment, use livestock equipment for potato production.

The more mechanized your potato farm is, the more efficient the operations and the profitability of your potato growing business. A business plan for growing potatoes at home should include the costs of acquiring and renting various machinery and equipment. Some entrepreneurs manage to win. In this case, personal equipment costs are significantly reduced.

Agricultural inputs

First of all, growing potatoes for sale requires a variety of agricultural materials. One obvious requirement is seeds. There are many varieties of varieties that are used in different regions. They differ in color, shape, yield, texture and ripening time. Your choice will be determined by seed availability, yield, disease resistance and target market. It is important that you buy potato seeds from certified suppliers. If you buy poor quality seeds, the product will not grow to its full potential and you will have a low yield. Potato cultivation takes 14-20 weeks to mature depending on its type.

Other agricultural inputs include herbicides to effectively control weeds on your farm. Pesticides and fungicides are essential to protect plants from insects and fungi. Fertilizers serve to support efficient growth by providing all the nutrients the potatoes need. The cost of acquiring all of these materials should be included in the .

Hiring workers

When you are in the potato business, you will need to hire part-time workers.

First of all, it is necessary to do:

• line marking;
• weed shoots;
• plowing;
• landing;
• sorting and packing;
• treatment with herbicides and pesticides.

Part-time wages will be paid based on the number of days worked. You can also hire a farm manager, accountant and logistics staff depending on the scale of your potato growing business. The wages of your workers should be included in your potato farming business plan.

Market analysis

The potato growing market is very large and constantly growing. And this has a lot of advantages. The annual global demand is 390 million tons. It's a lot! Moreover, you can sell your potatoes to individual households, schools, restaurants, hotels, companies, supermarkets, organizations, etc. The business plan must also include the right marketing strategy. It is better to plan your sales in advance than to make them spontaneous or from time to time.

The purpose of this business plan is to draw the attention of investors, creditors to investing in the development of one of the areas of activity of the agro-industrial complex - potato processing.

This business plan is aimed at organizing the deep processing of raw materials, the production of high quality products, and the optimization of commodity flows into and out of the region.

The task of the business is to process potatoes using waste-free production technology.

AgroPromTechnologies LLC will achieve success among its potential customers due to its advantages over competitors:

• high quality of the products provided;
• the use of only environmentally friendly products in the production technology;
• a wide range of products of the presented type;
• the ability to keep prices lower than those of competitors by maintaining a clear financial strategy in pricing.

Potato processing is carried out according to a flexible, easily adjustable technology. The equipment is completed according to the block-modular type and is increased as the technology is developed and sales are expanded.

Current state of the project:

• the required time for preparing production facilities is from 10 to 15 days;
• equipment delivery time does not exceed 90 days;
• terms of installation and installation of equipment no more than 30 calendar days;
• the supply of the necessary raw materials does not require additional time costs, since the already existing market for raw materials will be used;
• as sales markets, you can use the existing retail outlets of the city, since the products planned for release do not overlap the existing range, but complement it;
• certification of production and products is carried out directly during the deployment of production and test launches;
• high-tech production of potato products is based on the use of modern imported equipment with a capacity of 1,500 kg of crispy potatoes per shift;
• the payback of the project is 2.3 years (28 months).

Investments required for the implementation of the project at the expense of the loan - 41,020,000 rubles.

The source of loan repayment is the profit from the sale of potato products.

The borrower's guarantee is the image of agro-industrial complexes and urban enterprises that are participants in potato processing. Participants are wealthy farms, repeatedly showing the ability to repay loans on time.

2. Description of the business, product or service

Potato products are second-line food products, which does not belittle their dignity and importance.

The importance of potatoes in nutrition is due to the high content of starch, minerals (potassium, calcium, iron, etc.), the presence of valuable proteins, vitamins (for the population of many regions of our country, potatoes are an important source of vitamin C).

Deep processing of potatoes allows:

• get a high rate of return;
• the company to repay the loan.

The attractiveness of the project is expressed in the following theses:

• there is a necessary market demand for this product;
• there is little competition in this niche market.

The importance of the project under study lies in the fact that the implementation of the business plan will solve the following tasks:

• meet the needs of the market for these products;
• ensure the utilization of production capacities.

In the future, it is planned to expand the range of products: to produce french fries, starch, potato flour, potato flakes and grits, dried semi-finished products.

The production process for the production of crispy potatoes and a number of other potato products consists of three stages: preparatory, processing and final.

The preparatory stage is mechanized and includes the following stages: washing and removal of defective potatoes.

At the processing stage of the production process, the product takes on a finished form by peeling the potatoes, slicing, removing starch, drying, roasting, processing with spices.

The final stage involves the packaging and packaging of potato products.

Food production is a basic sector of the economy that requires constant investment. Both before the reforms and after, many types of products continue to enter our market from outside, so the finances of the city and its surrounding areas continue to work and develop foreign territories. Of particular interest is, in particular, the production of potato products. The main types of potato products: crispy potatoes, chips, frozen fries, flour, grits and mashed potatoes, semi-finished chips, dried potatoes, starch, sugar syrup, alcohol, drinks, meatballs, sulphated potatoes.

The processing of potatoes into a potato product has become widespread in world practice. So in the USA 50% of the gross potato harvest is processed for food, in the UK - 40%. The potato processing industry is widely developed in Denmark, Sweden, and Finland. In England, more than 20% of grown potatoes are processed, with 30% of this volume being processed into crisp potatoes, 13.5% into dry potatoes, and 56.4% into frozen products. The popularity of potato products and semi-finished products from potatoes is mainly due to the reduction of labor in preparing dishes at home, which is of decisive importance when women are engaged in social work. Today, only 1% of the gross potato harvest is processed in Russia, and yet potato products are becoming increasingly popular in Russia, especially crispy potatoes, chips, frozen french fries, semolina and mashed potatoes.

At present, the South Ural region has potato varieties that have several advantages at the same time: high yield, great adaptability to different environmental conditions, early ripeness and, at the same time, excellent commercial qualities.

3. Description of the market

The conducted marketing research on the offered products testify to the existence of a significant volume of demand for potato products.

Consider the segmentation of consumers of these products by gender and age. When conducting marketing research, 100 respondents were interviewed, of which 58% were women and 42% were men.

Product range

The number of purchased potato products

It can be concluded that with segmentation by gender, and given that the first category is the most significant, the assortment of potato products is mainly focused on the female part of the population. Although there is a significant influence of men. Therefore, in general, we can say that potato products are popular with both women and men with a slight preponderance of the “weaker” sex. This allows us to conclude that for a more complete analysis, it is necessary to segment the market according to the age of all respondents.

The assortment of potato products is aimed at both the female part of the population and the male part under the age of 16. Although an important role is played by consumers from 16 to 45 years old with an average income.

After segmenting the market, we will focus on the analysis of competitors of AgroPromTekhnologii LLC.

Competitor analysis

In the current situation, it may be expedient to more strictly focus on measures that have a significant effect in a fairly short period of time, not going beyond the medium term. On the one hand, there are significant reserves for increasing profitability in this area. On the other hand, apparently, a significant part of the problems with the quality of products can be solved in 3-5 years.

4. Sales and Marketing

5. Production plan

The process of manufacturing (roasting) chips is quite simple and the quality of the final product is more than 80% as pellets. So, raw materials for pellets (potato flour, granules and mashed potatoes are mainly supplied from Finland by Nordio, L.AGRO (manufacturer - RAISIO Nordic), from Italy "KNORR", "HELL MANNS" (manufacturer - JSC "SI-PI -SI Foods Company Ltd.), USA - "ORSINI M.R.", "Unkle Bens", Germany "Gold Pure" (suppliers - "Sevtorgimport", "Parity", "Degot"), "MAGGI", "ELENA", " NORDIC", "INVITE" (supplied by "Best Foods").

The technological process of the production of crispy potatoes at the enterprise

In the production of french fries, the heat treatment is the blanching of the potato, and the subsequent process after blanching and cooling is the freezing of the product. Frozen french fries are fed into a refrigerated packaging room, where they are packaged in pre-formed bags from a film sleeve.

The packaging of bags in trade boxes, the formation and sealing of the boxes, as well as their installation on pallets, is done manually.

An intermediate product - starch obtained in the process of washing cut potatoes into slices, bars, is squeezed out of water, dried, crushed, transferred for packing and packaging, transported to a finished product warehouse and then delivered to the consumer as a finished product.

The pulp products associated with the production of crispy potatoes and french fries, obtained in the process of peeling potatoes, are dried, packed in containers and delivered to livestock or poultry farms.

The vegetable oil used in the fryer is cleaned of mechanical impurities in an oil regeneration unit, packed in a container, transported to a warehouse for finished products and transferred as a raw material to the consumer of the soap industry, or to the production of drying oil, fatty acids, glycerin, varnishes and other materials.

As the sales of products expand, the equipment is completed with additional modules that allow you to expand both the volume and the range of finished potato products.

Suppliers: Perfi-Amerix Joint Venture; Eastern Continental Investments LTD; Grimm Jandmaschinenfabrik Gmbh & Co.KG; Industrial production company TAURAS all of them supply potato processing equipment, transport it and put the potato crisp production lines into operation on a turnkey basis.

Potential suppliers of high quality vegetable oil: the cities of Voronezh, Moscow, St. Petersburg, Krasnodar Territory.

Production program of the enterprise

The table below shows the capital assets and their costs required to successfully process raw potatoes into finished product crisps or french fries. At the time of the decline in the sale of potato products, this equipment allows you to switch to the production of frozen vegetable mixtures. Frozen vegetable mixes are ready-to-eat products that, after defrosting, are served on the table as side dishes for meat and fish dishes, or used in vegetable soups.

Need for fixed assets

Fixed assets	Total need, thousand rubles
1. Buildings, industrial facilities
2.Working machines and equipment
3.Vehicles
TOTAL:

The amount of depreciation deductions in the amount of 4703.25 thousand rubles. calculated on the basis of the depreciation rate for the full restoration of fixed assets in the amount of 11.8% for working machinery and equipment, in the amount of 14.3% for vehicles with a carrying capacity of up to 2 tons and in the amount of 12% for other fixed assets in accordance with the unified depreciation rates for the full restoration of fixed assets.

The rent for production premises is calculated from the area of ​​premises and rental rates for 1 sq. m of production premises 450 rubles in accordance with a preliminary agreement with the landlord, who is the founder of the enterprise for the production and processing of vegetables.

The cost of electricity for technological purposes is calculated based on the amount of electricity consumed per year - 341,280 kW in accordance with the technical characteristics of the block modules and the tariff rate for 1 kW - 0.64 rubles.

The cost of water consumption and wastewater disposal for technological needs was determined on the basis of a fixed cost approved by the Decree of the Regional Energy Commission of the Chelyabinsk Region No. 18 dated February 23, 2001. for 1 m / cu. respectively 8.52; RUB 7.05 multiplied by the volume of water consumed in accordance with the technical characteristics of the equipment.

An important aspect of this section is the precise determination of the cost of a manufacturing product.

Crispy Potato Equipment is a versatile line. This line consists of block modules, which makes it possible to increase production volumes due to additional blocks, as well as switch to the production of a different range of products, with an increase in sales of products. The above property of the equipment allows not only to plan and control costs, but also to analyze the impact of indicators on a unit of production in each individual section of it.

Cost calculation

Name of cost items	Unit rev.	Price. rub.	For 1 ton		For an annual production of 1006.7 tons.
			Qty	Amount, rub.	Qty	Amount, thousand rubles.
Vegetable oil
Potato
2. Packing material
Cardboard boxes
Polyethylene
3. Energy costs
Drainage
Electricity
4. Salary
6. Depreciation of the main funds
8. Other costs
Total costs				32 385,14		32 602,12

Thus, the cost of 1 kg of products is 32.4 rubles.

In general, it can be noted that the main share of costs belongs to raw materials: potatoes and vegetable oil, depreciation and other costs are in second place.

Potato processing refers to capital-intensive industries, since along with expensive imported equipment, high-tech storage is required, which is associated with the seasonality of the supply of the main raw material (potatoes).

Today, the city has a storage facility that meets the required indicators of potato storage and a room for processing potatoes. Both farms and agro-industrial complexes are interested in the production (growing) of profitable potatoes. Therefore, it is of interest to combine these urban and agricultural factors into a single whole, which will bring the sales market closer to the production of potato processing and reduce the cost of production in terms of the cost of shipping finished products.

6. Organizational structure

The management of the enterprise will be carried out in accordance with the charter of AgroPromTekhnologii LLC, which will outline the conditions for the composition and competence of the management bodies and the procedure for making decisions by them.

In the process of implementing the business plan, the organizational structure of the enterprise will be formed, aimed at establishing clear relationships between its individual divisions: mutual subordination, size and organizational structure of service and management divisions (marketing, material support, sales, etc.), as well as administration .

Organizational management chart

Production managers responsible for the implementation of the business plan are people with higher education, professional specialists, with at least 5 years of experience in their field, aged from 27 to 40 years.

The director manages AgroPromTekhnologii LLC, resolves all financial issues related to the permanent operation of the organization.

The main functions of the manager are: development of strategies for the development of the organization; analysis of the external environment (control of the raw materials market, competitors, new technologies).

The accountant maintains the company's accounting records and prepares financial reports.

From the beginning of the potato processing project, there will be costs for maintenance personnel and expenses for the management of the enterprise.

The main form of exercising the powers of the labor collective will be the general meeting, which decides the issues of concluding a collective agreement and the procedure for granting social benefits to production workers.

7. Financial plan

For the correct accounting of sources of funds, their distribution, determining the sufficiency of funds for the implementation of a normal uninterrupted production process in the enterprise, a financial plan is drawn up.

Calculate the prices for the main and auxiliary products:

• the price of crispy potatoes - 42 rubles. * 1.3=54.6 rubles/kg.
• starch price - 18 * 1.3 = 23.4 rubles / kg.
• the price of the pulp - 37 * 1.3 = 48.1 rubles.

Sales forecast

Name of product	1 year			2 year
	price, rub.	Quantity, t.	Amount, thousand rubles	price, rub.	Quantity, t.	Amount, thousand rubles
Crisp
Total:			47489,95			52357,67

From Table. 2.8 it can be seen that there is a dynamics of an increase in the volume of production both in physical terms and in monetary terms. So the total number of products in 2010 will be 1006.53 tons, and in 2011 1056.86 tons, which is 5.0003% more than in the previous one. The situation is similar for groups, which allows us to say that all types of products influence the overall positive dynamics.

The financial plan for the first year of potato crisp production is presented by the income statement, distribution of net profit (Appendix 4) and the balance of expenses and income.

The income statement shows the operations of the crispy potato business during the first year by quarter and the second. The data of the report show that, starting from the first year of production, there is an annual increase in net profit, which is a positive side of the project.

Distribution of net profit (planning of savings and consumption funds), thousand rubles

Indicators	First year	Indicators	First year
accumulation fund		consumption fund
Net profit		Net profit
Sources of formation of the fund's resources
Fund balances at the beginning of the planning period*		Balances of the consumption fund at the beginning of the planning period (clause 6 of the previous period)
Depreciation deductions		Deductions from net profit
Deductions from net profit		Other supply
Growth of sustainable liabilities		payment fund
Long-term bank loan
Total sources		Total sources
Directions for using the funds of the accumulation fund
Payment of interest for use. credit		Salary
Cost of acquisition of fixed assets		Equity participation in the construction of a residential building for employees
Capital gains costs		Social and labor payments to employees
Repayment of a long-term bank loan		Bonus
Total cost		Total cost
Surplus funds*		Surplus funds
Lack of funds		Lack of funds

The distribution of net profit characterizes the formation and outflow of cash, as well as the cash balances of the enterprise planned for the beginning of the next year.

It should also be noted that the level of profit in the first year made it possible to deduct an amount to the consumption fund that fully covered the wage arrears, and it also became possible to receive social and bonus payments at the enterprise. In addition, from Table. 4.2 it can be seen that the share distribution of net profit is in the ratio of 70% of the accumulation fund and 30% of the consumption fund. This structure provides financial and economic needs in the first year of production.

The planned financial plan (balance of income and expenses), presented in the appendix, shows the state of the enterprise at the end of the third year of potato production.

The calculation of the break-even and financial strength indicators of the activities of AgroPromTekhnologii LLC makes it possible to determine the volume of production at which the enterprise does not incur any losses and does not receive profit.

The margin of financial safety is defined as the difference between the planned amount of revenue and the amount of threshold revenue and reflects to what extent it is possible to reduce the volume of production and not incur losses.

Break even point calculation

Index	1 year	2 year
Sales volume, thousand rubles
Conditionally - fixed costs, thousand rubles.
Variable unit costs products, rub.
Breakeven point, i.e.
Margin of financial strength, thousand rubles.

Thus, the break-even point (profitability threshold) in 1 year of operation is 245.16 tons of products; in year 2 - 229.68 tons (i.e., the volume of production must be at least the indicated values, respectively).

We also observe an increase in the margin of financial strength from 35,923.32 thousand rubles. in the first year of operation up to 40,978.99 thousand rubles. - in the second year.

From all of the above, we can conclude that AgroPromTekhnologii LLC has good technical, economic and financial performance.

Technical and economic indicators

Indicators	Unit	Value
1. Volume of production, including:
Crisp
Starch
2. Sales volume
3. Number of employees including:
4. Investment costs
5. Annual running costs	thousand rubles/year
7. Current costs per 1 ton
8. Net flow of real money
9. Net present value (15%)
10. Payback period

The financial strategy of AgroPromTekhnologii LLC is to accelerate economic growth. Full financial stabilization is achieved only when the company provides a stable reduction in the cost of capital used and a constant increase in its market value. This task requires accelerating the pace of economic development on the basis of making certain adjustments to the financial strategy of the enterprise. This problem is solved by investing, first of all, the company's own funds.

When conducting a financial and economic assessment of the project, the following main assumptions were used: the life of the project is at least 10 years with the duration of each planning interval - 1 year;

The first year of operation of the enterprise was taken as the base period.

As planned sources of income from the production of potato processing are considered: the sale of crispy potatoes; sale of starch; pulp realization.

It is assumed that:

• Crispy potatoes will be sold in packages weighing 0.25 kg. In this case, the average cost of one such package will be 13.65 rubles. at wholesale. Physical volume of sales - 242 510 pack. per month;
• the sale of starch will be carried out in a package weighing 0.5 kg. In this case, the average cost of one such package will be 11.7 rubles. Physical volume of sales - 38 145 pack. per month;
• the sale of pulp will be carried out in a package weighing 1 kg. In this case, the average cost of one package will be 48.1 rubles. Physical volume of sales - 8 355 pack. per month.

The size of the planned income from sales

The following conditions are included in the calculation of income from potato processing: working hours - 60 shifts per month, 1 shift is equal to 12 hours, equipment loading - 11 hours per shift.

Current costs for the production of potato products in the context of the year will amount to 32,602,12 thousand rubles.

Estimated current costs

When generating revenue within the framework of the project under consideration, an approach was used in which the allowable cost of one package of products was determined, which, with the planned value of annual current costs and the number of sales, will allow this enterprise to achieve a break-even level when sales of potato products reach 245.16 tons per year and maintain its activities with a margin of "financial strength" 35,923.32 thousand rubles.

Thus, based on the accepted size of the annual income from sales and the total amount of annual operating costs, the net profit from sales will be 12,038.43 thousand rubles.

As noted earlier, starting a potato processing production process requires investments both for the purchase of equipment and for maintaining the project from the beginning until the production reaches its design capacity.

Conditions and initial parameters for investment in potato processing

	The name of indicators	Unit measurements	Meaning of indicators
	Initial conditions:
	Total financial resources needed
	Time to reach production at design capacity from the start of the project
	Initial data for calculation:
	Potato processing volume per shift
	Output of finished products
	Number of work shifts per month
	Total number of work shifts per year
	Initial production costs:
	Equipment (imported)
	Delivery, installation, commissioning
	Initial working capital
	Certification of production and finished products
	Unforeseen and other expenses
	Motor transport (4 units)
	Refrigeration equipment

Profitability indicators

Cash flow

Name of articles	1 year of work
	1 quarter	2 quarter	3 quarter	4 quarter
1 option
1. Inflow of funds, thousand rubles
Revenue from the sale of products with VAT
Depreciation
Inflow, thousand rubles
2. Outflow of funds, thousand rubles.
1). total cost
2). Investment costs
3) Income taxes
Outflow, thousand rubles
Option 2
Inflow, thousand rubles
Costs
2). Investment costs
3) 15% of income
Outflow, thousand rubles
Net flow of real money, thousand rubles
Cumulative cash flow, thousand rubles
Net present value (15%), thousand rubles
The same cumulative total, thousand rubles.

Investment evaluation indicators

Index	1 option	Option 2
NPV, thousand rubles

8. Risk factors

Since the project under consideration covers several stages, it is advisable to carry out risk assessment on them, i.e. according to the preparatory and stage of functioning.

In the process of business design, a list of primary risks was compiled for all stages of the project, for which each approach for assessing the probability of risks was applied, guided by the following rating system:

0 - the risk is considered insignificant;

25 - the risk is most likely not realized;

50 - nothing definite can be said about the occurrence of the event;

75 - the risk is likely to manifest itself;

100 - a very high probability of risk realization.

Three estimates are summarized in the average, which is used in further calculations.

In column 6 of the table. 8.1 shows priority ratings that reflect the importance of each individual event for the entire project. After determining the probabilities for simple risks, an integral risk assessment was carried out in two successive stages: first, the risk assessment for each of the stages was determined, after preliminary calculating the risks for substages (compositions), the stage of functioning - financial and economic, technological, social and environmental. After that, you can work with the combined risks and give an assessment of the risk of the entire project based on the risk assessments of the individual stages. A weighting procedure was used to obtain an estimate of the pooled risks. The procedure for determining the weight with which each simple risk is included in the overall risk of the project was carried out according to the following rules:

• all simple risks can be ranked in order of importance (prioritized);
• the risks of the first priority have more weight than the risks of the second, etc.;
• all risks with the same priority have equal weights;
• the sum of the weights is equal to one, the weights are positive numbers, in the range from 0 to 1.

The definition of priorities is directly related to the socio-economic situation in the country. Since it is significantly related to non-payments, all the risks associated with the settlement system were given first priority. The second priority was given to social factors. All other factors received the third priority.

The total risk of the project is 49.07 points and can be characterized as medium. The preparatory stage and financial and economic factors of functioning have the highest level of risk. The risk of the preparatory stage is associated primarily with possible currency risk and unforeseen costs. Of particular danger are unforeseen costs, which may reduce the overall profitability of the project. From the results of the calculation of financial and economic risks, it follows that the risk is 59% of the total risk indicator of the project, and the dominant reasons for this are a possible decrease in demand and unforeseen price cuts by competitors, as well as consumer insolvency and rising product prices. The level of social risks is 4.48 (9.12%), and their overwhelming part is due to possible difficulties with the recruitment of personnel and their qualifications.

Simple risk assessment

	Simple Risks	An approach			Medium	Priority Pi	Wi weight	Grade II
Preparatory stage
	Unforeseen costs
	Currency risk
	Late delivery of components
	Untimely preparation of equipment
	Contractor dishonesty
Functioning
Financial and economic:
	Demand volatility
	The emergence of an alternative product
	Price cuts by competitors
	Tax increase
	Consumer insolvency
	Rising prices for products
	Dependency on suppliers
	Lack of working capital
Social:
	Difficulties in recruiting skilled labor
	Strike Threat
	Attitude of local authorities
	Insufficient wages
	Personnel qualification
Technical:
	Instability of product quality
	Novelty of technology
	Insufficient reliability of technology
	Lack of stock
Total project risk

The project under consideration is not associated with significant technical and environmental risks. The risk of the project, as a rule, is primarily associated with a small number of especially dangerous factors.

The most significant project risks

In addition, there are two factors that were not considered in the tables.

Environment, this risk is not observed. There is no threat of extreme natural events (floods, earthquakes, etc.). Also legal risk. The legal documents of the "company" must be brought into proper condition, in accordance with the current legislation of the Russian Federation and registered with the relevant state authorities. In the Charter of the "company" in the types of activities, it is necessary to indicate the provision of various services to the population and enterprises.

The intentions of the company are of great importance in the development of the market for potato products in the Ural region, this may also affect the increase in business activity of entrepreneurship and the efficiency of the industry. The success of AgroPromTechnology LLC, as well as other commercial structures, will largely depend on the policy of the central government and local authorities. The current government, in general, provides a favorable regime for the development of private business and the implementation of investment programs.

The following measures can be recommended as conditions for risk prevention:

• insurance of property and liability of employees of the company, conclusion of contracts with fixed amounts, detailed study of the preparatory stage of the project in order to reduce the risk of unforeseen costs;
• conclusion of long-term contracts with suppliers with clear conditions and penalties;

Measures to reduce social risks:

• active participation of founders in interaction with power structures;
• giving the company the status of a city-scale enterprise.

Legal risks. They are connected with the imperfection of the legislation, unclearly executed documents, double interpretations of the legislation, delays in the timing of deliveries by suppliers.

Risk Mitigation Measures:

• clear and unambiguous wording of relevant articles in documents;
• attracting specialists with practical experience in this field to draw up documents.

Production risks. Associated with the complexity of equipment maintenance, rapidly moving technical progress in the field of production technologies, insufficiently high quality of services provided.

Risk Mitigation Measures:

• selection of professional personnel;
• constant encouragement (moral and material) for the improvement of the qualifications of employees;
• 1 Is it profitable to grow potatoes for sale?
• 2 Potato growing technology
• 3 Growing potatoes as a business
  • 3.1 Land acquisition
  • 3.2 Business registration
  • 3.3 Selection of premises
  • 3.4 Procurement of equipment
  • 3.5 Purchase of planting material
  • 3.6 Formation of a team of workers
• 4 Potato Growing Business Plan
• 5 Frequently Asked Questions
  • 5.1 What is the demand for potatoes today?
  • 5.2 Where to look for marketing channels for potatoes?
  • 5.3 What documents need to be issued for potatoes?
  • 5.4 Is it possible to build a business on the resale of potatoes?

One of the most profitable business niches is growing and selling potatoes. Today it is difficult to imagine the diet of most Russians without this root crop, so such an agricultural crop will always be in great consumer demand. Growing potatoes is a promising and long-term activity, moreover, there are no problems with the sale of products. To successfully develop in this direction, an entrepreneur needs to competently organize his own business.

First, it is recommended to analyze the situation on the market, determine the profitability of activities, as well as calculate the amount of investments and possible income. To date, farmers cannot fully satisfy the needs of buyers, so growing potatoes for sale is very profitable. Despite the large number of manufacturers, the business is not afraid of competition and is highly profitable.

Is it profitable to grow potatoes for sale?

What is useful to know for a novice entrepreneur who decides to grow potatoes for sale? This type of activity is highly profitable, besides, today modern technologies are used that allow growing root crops in greenhouses all year round and harvesting several crops per season. The business of growing and selling potatoes has its positive and negative sides. The pluses should include:

• the possibility of growing root crops even on a small plot of land;
• fast return on investment;
• high consumer demand for potatoes, regardless of seasonality;
• the possibility of combining business with other activities;
• relative ease of care.

If a person has a garden, he can also grow potatoes and earn decent money from it. There is no tax to pay for this type of home business. Fertilizers are inexpensive, and there are many people in the countryside who want to earn money (it doesn’t hurt to hire them to weed the land and care for potatoes). The costs will be negligible.

Growing potatoes is not only able to bring profit all year round, but also saves on fertilizers, since the tops are used to form humus on the site. If you install greenhouses on the ground, you can harvest 3 crops in 1 year. Investments usually pay off after 4 months from the beginning of the first planting.

This business is not without flaws, and every entrepreneur who is interested in profitable work for himself should know about them. First of all, there is a great dependence of the quality of the crop on weather conditions. If there is intense heat in the region, the plants need to be protected with irrigation systems. Potatoes have a lot of enemies among insects. To combat them, various chemicals are successfully used today, which allow saving the crop. Therefore, these disadvantages should be considered rather as additional precautions.

To understand how profitable it is to grow potatoes for sale yourself, let's give a simple example. Let's say a businessman rented (or owns) 30 acres of land. From every 100 sq. m, you can collect about 280 kg of potatoes, and from the entire area - 8.4 thousand kg. If you sell it in bulk at a price of 20 rubles, you can get revenue of 168 thousand rubles.

To cultivate the land, you will need to buy a walk-behind tractor (mini-tractor) with a body, as well as a hiller, a mounted plow and a device for digging up root crops. Still need to purchase fertilizer for the site. Investments for these purposes will amount to about 80 thousand rubles. The benefits of this type of activity are obvious. If you install greenhouses and grow plants all year round, profits will increase significantly.

Potato growing technology

There are many different ways to grow potatoes, allowing you to get a fairly good harvest. Let us dwell on the Dutch method, since it does not require large expenses and allows plants to develop in natural conditions (without the use of greenhouses).

A feature of this technology is the minimum mechanical processing of the land and the potato itself. The method involves the use of ground aeration, which provides effective ventilation of soil layers by mixing them with atmospheric air. To implement it, the soil is first loosened, after which the planting material is placed in the formed earthen ridges, while it is necessary to ensure that the distance between the planting rows is large enough.

Growing potatoes according to this method makes it possible to collect up to 1.8-2 kg of root crops from one bush, while the potato itself can be stored for a long time under certain conditions. When selecting planting material, pay attention to the tubers: each of them should have about 5-6 eyes in order to get a good harvest.

Immediately before planting, root crops should be warmed up in spacious, bright areas. Then they are placed in the ground until sprouts form, while the material should be in a room where it is recommended to maintain 6-8 ° heat. Ready seedlings must be sent for further growth in natural conditions in well-warmed soil.

Up to 600 potato bushes are allowed to be planted on one hundred square meters of land, while it is better to arrange them in such a way as to provide good lighting. The beds are formed from north to south with an interval between rows of up to 0.75 m. As for watering potatoes, this should be done no more than 3 times over the entire period of the crop's life. The first is carried out when sprouts appear, then before flowering begins, and after it ends.

Important: to protect potatoes from the Colorado potato beetle and other pests, it is recommended to treat the tops with pesticides even before the onset of the flowering period.

Growing potatoes as a business

Consider the main stages of business development.

Land Acquisition

An important step in organizing a potato growing business is the acquisition of land. On average, one hundred square meters will have to pay 5 thousand rubles, and about 0.25-0.3 hectares will be required for planting. Thus, the minimum investment for the purchase will be 75 thousand rubles.

A person can organize a small business in the country, in which case his income will be small, but he will not have to spend money on buying a land plot. As for the lease of land, its cost can reach several thousand rubles per hundred square meters, so it is more expedient to invest in your own land. Before buying a plot, you should consult with a lawyer who will inform you about all the intricacies of land registration and assist in filling out the documents.

Business registration

To start entrepreneurial activity, a businessman needs to contact the Federal Tax Service at the place of residence and register a peasant farm or individual entrepreneur. Often such a business is organized simultaneously by several partners. In this case, to register an enterprise, it is worth submitting an appropriate contract indicating the contact details of each of the co-owners of the business. In addition, the contract should specify the rights and obligations of each of the partners, as well as the procedure for exiting the business of each of them. If necessary, a specialist in the department of the Federal Tax Service can learn how to correctly calculate the land tax and agree on the frequency of payment.

When registering an enterprise, it is necessary to indicate OKVED codes. For growing potatoes, you can choose:

• 01.1 - "Growing annual crops";
• 01.13 - "Growing vegetables, root crops, gourds and tubers, mushrooms and truffles";
• 01.13.1 - "Growing vegetables";
• 01.13.12 - "Cultivation of protected ground vegetables".

Novice entrepreneurs who want to make money growing and selling vegetables and fruits do not know which form of taxation is better to choose. For this type of activity, the best option would be to pay a single agricultural tax, the rate of which is only 6%.

Selection of premises

A businessman should take care of the proper storage of the crop, so you need to find the appropriate storage facilities equipped with:

• ventilation;
• lighting;
• heating system.

Storage areas must be dry, free of moisture and mold. Root crops should be dried before being placed in storage, and also sorted so that there are no rotten tubers among the crop. Illiquid potatoes can be handed over to farms specializing in growing turkeys at home and other livestock, which will accept them as feed for a small price. As for the cost of renting storage facilities, it varies between 30-40 thousand rubles for 1 month.

Purchase of equipment

For the operation of a farm for growing potatoes, it is necessary to purchase the appropriate equipment. If you have to use a large amount of planting material, you should buy a potato planter. This machine allows you to perform large amounts of work in a short time and greatly simplifies the work of people.

In addition, it is desirable to acquire special harvesters for harvesting root crops. They allow you to automate harvesting, moreover, such equipment practically does not damage potato tubers. You can’t do without a potato digger on the field. Such a machine is needed for sampling root crops from the ground. You will also need a line for sorting the harvested crop on the farm, and it can also be used for onions. It allows you to easily select vegetables by size, for which the design provides for the possibility of installing gratings with the appropriate fractions.

Without fail, a small tractor will be required, with the help of which weeding work will be carried out, as well as the transportation of the crop. The minimum set of equipment for farming will be:

• tractor with trailer - 250 thousand rubles;
• automated line for sorting root crops - 200 thousand rubles;
• potato digger - 150 thousand rubles;
• harvester - 300 thousand rubles;
• potato planter - 70 thousand rubles.

Total - the cost of purchasing equipment will amount to 970 thousand rubles. Most entrepreneurs do not have the opportunity to invest such an amount of money to buy the necessary equipment for the economy. For this reason, equipment can be rented or leased before harvesting.

Purchase of planting material

Another item in the cost item will be the purchase of seed and organic fertilizers, which are necessary for the full growth of the crop. About 30 thousand rubles will have to be allocated for chemicals before sowing root crops. How to correctly calculate the number of seedlings required for sowing the land? Based on practice, about 20 kg of seed (tubers) will be required per 1 weave of land. Thus, for 0.3 ha, you need to provide 20 * 30 = 600 kg of root crops. The wholesale price for the purchase of potatoes is on average 20 rubles per 1 kg, so you will have to spend 12 thousand rubles to purchase seed. Taking into account fertilizers, the costs will cost 42 thousand rubles.

Formation of a team of workers

What kind of employees to attract to work in a potato farm? To do this, it does not hurt to invite machine operators - specialists who will service the equipment and work on the land. Also, you can not do without handymen for weeding, watering and sorting root crops.

In addition, you will need an auto mechanic who will repair the equipment. In the summer, guards should be involved to control the order on the field. An example staffing might look like this:

• handyman (2 people) - 16 thousand rubles;
• machine operator (2 people) - 24 thousand rubles;
• enterprise manager - 20 thousand rubles;
• auto mechanic - 15 thousand rubles;
• security guard (2 people) - 20 thousand rubles;
• accounting (payment for outsourcing) - 5 thousand rubles.

In total, monthly expenses for the salaries of employees will amount to 100 thousand rubles. At first, the owner of the business can keep records of the warehouse economy, which will reduce the costs of remuneration of the relevant specialist.

Business plan for growing potatoes

Before embarking on a commercial project, an entrepreneur needs to develop a detailed business plan for growing potatoes. It allows you to determine the amount of initial costs for a start, evaluate the prospects and calculate the possible profit.

In addition, the businessman must know the amount of monthly expenses that are mandatory in the course of work. Calculate the amount of investment to start the enterprise, which includes the following components:

• purchase of land - 75 thousand rubles;
• purchase of equipment - 970 thousand rubles;
• planting material and fertilizers - 42 thousand rubles;
• business registration - 15 thousand rubles;
• purchase of fuel and lubricants - 10 thousand rubles;
• warehouse rental - 30 thousand rubles.

Thus, the amount of initial investments is 1.142 million rubles. Running a root crop business involves monthly costs, which include:

• rent of premises - 30 thousand rubles;
• payment for utilities - 25 thousand rubles;
• tax deductions - 20 thousand rubles;
• staff salary - 100 thousand rubles;
• equipment depreciation - 15 thousand rubles;
• purchase of fuel and lubricants - 10 thousand rubles;
• other expenses - 10 thousand rubles.

Total - regular costs amount to 216 thousand rubles. Now let's calculate the possible profit of the enterprise. It is realistic to harvest 280 kg of potatoes from one hundred square meters of land, the total yield will be 8.4 tons. Let half a ton of potatoes be unsuitable for sale. Thus, 7900 kg of root crops are obtained, which can be sold.

If you sell the harvest in bulk at a price of 20 rubles per 1 kg, the total amount of income will be 158 thousand rubles. When selling washed and dried root crops in small wholesale lots and retail, you can make a profit of about 40 rubles per 1 kg, which will bring 316 thousand rubles. The net profit from the sale of one crop will be 100 thousand rubles.

This amount can be increased many times if you organize year-round cultivation of potatoes in greenhouses. In the future, it will not hurt to scale the business, which will lead to a significant increase in income. For example, medium-sized farms own land plots with an area of ​​2 hectares or more. This allows you to harvest more than 50 tons of crops at a time.

FAQ

Consider frequently asked questions on the topic.

What is the demand for potatoes today?

Potato is one of the most important food products, the demand for which does not depend on the season. As practice shows, the profit from the sale of root crops in winter can almost double. In addition to ordinary consumers, large quantities of potatoes are purchased by manufacturing firms. For example, potatoes are used to make starch and alcohol on an industrial scale. Recently, this product has been used for the production of chips. In addition, the main buyers of potatoes are wholesalers, large retail chains and supermarkets.

Where to look for potato marketing channels?

Entrepreneurs who want, for example, to open a beer store, initially focus on the huge consumer demand for such a product. Potatoes do not need advertising, and they will be bought in any quantities. Consider several effective ways to sell the crop:

1. Sale on the collective farm markets. This option is able to bring good profit, however, it should be understood that it requires an investment of a large amount of time. This task should be entrusted to one of the family members or involve implementers. It is profitable to sell potatoes from mid-autumn to early May, when this product is in great demand (despite high prices).
2. Delivery of potatoes for sale. A fairly promising option, since it allows you to gain a decent amount of money. To do this, you should find several sellers who have their own outlets and offer them favorable terms of cooperation.
3. Harvest wholesale. An entrepreneur can hand over large quantities of potatoes to wholesale buyers, as well as to purveyors. They offer a low price for the goods, but if you need money for all the products at once, this is the best option. It is most often resorted to by large farms that can offer buyers large quantities of goods.
4. Direct sales of potatoes to retail chains and stores. This option is considered the most profitable. The entrepreneur can arrange the supply of potatoes to stores at an agreed price. Washed and packaged products are in great demand among buyers.

Important: if it is planned to grow potatoes in large volumes, it makes sense to find buyers for the products in advance. Wholesalers and manufacturers should agree on the terms on which they will cooperate. This will allow you to grow potatoes and not worry about finding distribution channels.

What documents need to be issued for potatoes?

According to the requirements of the TR of the Customs Union, potatoes must undergo a mandatory quality assessment. For this reason, manufacturers will have to have the appropriate documentation. You can get it from an accredited organization that provides product certification services. Such a body must have the right to assess the quality of food products, as well as issue the relevant documents, which are approved by Russian law. If it is planned to store potatoes, especially with the use of heating systems, a businessman will need to obtain permits for doing business in state supervision and a sanitary and epidemiological station.

Is it possible to build a business on the resale of potatoes?

Consider the idea of ​​​​a business selling potatoes, associated with its implementation by the type of market dealers. Its essence lies in the fact that you need to place ads in the sleeping areas of the city for the sale of products, receive orders from customers and breed goods at the specified addresses. It should be immediately noted that the minimum order must be at least 30 kg (the volume of one mesh). To start making money, you don’t need to register an enterprise at the initial stage, spend money on renting an office space or buying a vehicle.

Earnings from the sale of one grid is about 200 rubles. Renting a truck costs about 300 rubles per hour. In order to make a profit and not work at a loss, you should manage to deliver more than 3 nets of potatoes to customers during this time. The product must be purchased in advance at wholesale markets or supermarkets. To do this, it is enough to have only a few thousand rubles of starting capital. Relatively quickly, you can reach a stable income of up to 10 thousand rubles a day, which will require daily investments in the purchase of goods of about 25 thousand. Businessmen who have already built up their client base receive up to 20 calls per hour. It is easy to calculate the possible profit per day. The best option would be to deliver potatoes simultaneously to courtyards with multi-storey buildings, where this service is most popular.

The industrial scale of root crop production requires serious financial investments. Before starting such a business, you need to draw up a plan consisting of the following actions:

1. find and rent a land plot of the required area;
2. register a farm, having previously collected all the necessary documents;
3. buy equipment for planting and harvesting;
4. hire staff;
5. purchase material for planting.

There are two ways to grow tubers for sale:

• Winter cultivation in greenhouses. the profit from this method is greater, but the costs are also increased by paying for electricity and heating.
• Growing potatoes in the summer.

If you are a novice entrepreneur, then the second method is much more preferable - the costs are minimal, simple agricultural technology that does not require certain knowledge.

There is a certain technology, the observance of which guarantees success in this business.:


• tractor - 900 thousand rubles;
• potato planter - 320 thousand rubles;
• potato digger - 430 thousand rubles;
• hiller - 300 thousand rubles;
• line for sorting - 410 thousand rubles.

In addition, you will need a special room in which this equipment will be stored in the winter - dry and well ventilated.

Vegetable store

A room that will help keep the tubers until spring with minimal losses. It is worth noting that it is in spring that the cost of the second bread increases almost three times. Approximately two million rubles will be spent on the equipment of this premises.

Staff

In order for the work on growing potatoes to take place without delay, the help of workers will be required.:

• two mechanics;
• one mechanic;
• three guards;
• handymen who will help harvest the crops in the amount of 10 people.

Some functions can be taken over by the head of the farm - accounting, search for a sales market.

Cost price

Before creating a potato production business, you need to evaluate how profitable the enterprise will be, and for this, evaluate the cost of the process. Determine how much money will have to be spent on the purchase of equipment, planting material, payment to staff, and so on.

The cost of equipment for working with seed minitubers

This is a unique unit that can be used both outdoors and indoors. It is intended for obtaining a large number of minitubers from one plant.

If you use the installation during the spring-summer period, then the cost of electricity is significantly reduced, since artificial lighting is not required for production. The cost of this equipment is 180 thousand rubles.

Tuber costs


The cost of planting tubers varies from 8 to 30 rubles per kilogram., depending on the season of purchase. So if you buy tubers in the spring, then their price will be maximum.

But it is not advisable to make a purchase in the fall, since it is not clear how they will be stored in the winter. Therefore, for calculations, it is better to take the average price - 25 rubles.

To avoid a large consumption of planting material, large and medium-sized tubers are cut into pieces weighing 40-50 g - so that each share has 2-3 sprouts. In the years of a warm, not very damp spring, the yield from them is no lower than from whole tubers of about the same mass.

Buying or renting land

This is one of the important steps in starting a potato growing business. On average, a hundred square meters of land costs 5 thousand rubles. If we take into account that we need 0.3 hectares, then the investment will be equal to 80 thousand rubles. But at the first stage, it is mono not to spend money, but to lease land for 49 years from municipal organizations.

If we take into account that such an area will be allocated somewhere in the countryside, then the cost will not be high. As soon as the business is established, and begins to bring a constant profit, it will be possible to think about acquiring a land plot in the property.

Profitability

Potato production for sale is a profitable and relevant business. In our country, it is eaten daily. The advantages of this business are:

• potatoes are easy to grow, you do not need to have skills and special knowledge;
• there is no seasonality in the demand for root crops, it is eaten all year round;
• at the first stage, you do not need to invest a lot of money in the business;
• quick payback - subject to a competent approach, the first profit will be received at the end of the first season.

Minuses:

Despite the disadvantages, it is profitable to plant potatoes for sale, even summer residents, having a sufficient area of ​​​​land in their ownership, have a small, but stable profit every year.

Is it profitable to grow for sale?


Consider what costs will entail starting a business selling potatoes:

1. land lease within 200 thousand rubles;
2. purchase of planting material - 300 thousand rubles, assuming that 10 hectares of land will be planted;
3. fertilizers - 100 thousand rubles;
4. organization issues - 100 thousand rubles;
5. purchase of equipment - 2.5 million rubles;
6. construction of a vegetable store - 2 million rubles.

If we take into account that a farm is being created for the industrial production of potatoes with a land area of ​​10 hectares, then investments will amount to 5.2 million rubles.

If we assume that 250 tons of tubers can be harvested from 10 hectares in a harvest year, then we can assume that the profit in one season will be 10 million rubles (read about the secrets of agricultural technology for growing a large root crop, and from you you will learn how to get a rich early potato harvest). Subtract from this amount the initial capital of 5.2 million and monthly expenses of 864,000 rubles, then the net profit for the season will be 3.936 million rubles.

The amount of investment is considerable, so it is better to start with smaller territories and then expand your business.

Production project per 1 ha in Russia

Before starting to implement the project, it is necessary to draw up a business plan, which should be detailed. This will help not only calculate the amount needed to start a business, but also allow you to calculate the approximate profit from the enterprise. In addition, you need to understand how much money you have to spend on monthly expenses.

First of all, let's calculate the one-time investment:

• acquisition of a land plot - 50,000 rubles;
• equipment - 970,000 rubles;
• fertilizers and seeds - 42,000 rubles;
• paperwork - 15,000 rubles;
• fuel and lubricants - 10,000 rubles;
• warehouses for rent - 30,000 rubles.

The calculation shows that at the first stage we will need 1.117 million rubles.

Now let's calculate the monthly cost of doing business:

• utility bills - 25,000 rubles;
• rental of premises - 30,000 rubles;
• taxes - 20,000 rubles;
• payment to staff - 100,000 rubles;
• depreciation of equipment - 15,000 rubles;
• fuel and lubricants - 10,000 rubles;
• unforeseen expenses - 10,000 rubles.


So - production costs will amount to 216,000 rubles per month.

The next step is to calculate the possible profit. With an average yield, 25 tons of potatoes can be harvested from this area, of course, not all of them will be suitable for sale, in the aisles 2.5 tons of tubers will go for culling. You can sell 22.5 tons.

Let's say we will sell the crop at retail at a price of 40 rubles per kg. As a result, it turns out that we will sell potatoes for 900 thousand. Net profit 252,000 rubles. Over time, you can expand production and thereby increase net profit.

Conclusion

If you decide to start a potato growing business, then you need to approach this issue rationally.. You should not run to the bank for millions of loans, start small. Rent half a hectare of land and try your hand at this business. Make a profit - expand your business. The potato growing business is laborious, but profitable, and you can gradually expand to large areas.