Strawberry Farming: A Fresh Effort to

Sweeten Our Economy

Sweet Bangladesh Ltd.

Teknapara, Salna, Gazipur
Telephone: 8810002
Website: www.sweetbd.com

The proposal envisage setting up a company named “Sweet Bangladesh Ltd” for
commercial production of Strawberry and manufacturing plant with modern
machineries at Salna, Gazipur. The strawberry products are being used as basic
materials of the essential food products like jam, jelly, ice-cream, biscuits and milk-
shakes. The growth of the strawberry depends on the financial and policy help given
by the government and the flawlessness of the saplings collected by us. The
machinery for the project has been proposed to be imported from Canada. The project
is expected to go into commercial operation within 18 (Eighteen) months from the
date of expected the L/C for importing capital Machinery. At first phase to acquire
infrastructure and development some capital expenditure has to be incurred and in
second phase cultivation expenses has to be incurred time to time to start our project’s
cultivation process.

Financing

Our total invested money is TK.22,90,150. We will invest 40% of capital by ourselves
and rest of the 60% from the bank or from any financial institution as term loan. Each
of us will contribute equal amount of money. For carry on the business this debt will
cover the portion of the expenses which we cannot finance with our invested amount
of money. It might include office equipment, office rent, other necessary items etc.

1
 Summary of the Project

A. Name of Business: Sweet Bangladesh Limited.

B. Location of the Project:

The proposed project is to be located at Teknapara, Salna under Gazipur District. The
proposed site is nearer to Dhaka. It is a place where a good number of lands are
available for manufacturing purposes. The project site is enjoying facilities like
electricity, water, skilled labor and good road and river communication.

C. Name and Address of Principals:

Entrepreneurs Address Telephone E-mail

Sumon Shahriar
Khan Muhammad Faisol
Mahmudul Hassan
K.M.Saemon Islam
Faijullah Rashid Shimul
Mehreen Ahmed
303/E, East Kazipara,
01717386085 tuhin@yahoo.com
Mirpur, Dhaka.
House-901, East
01716475147 kfaisol@yahoo.com
Shewrapara, Dhaka
20, Chamelibag,
01911188887 mhpalak@gmail.com
Shantinagar, Dhaka
13/10, Shahid Anwar
Saemon135
Girls College Quarter, 01670782070
@yahoo.co.uk
Dhaka Cantonment.
292/2, Dania,
01670978247 frshimul@yahoo.com
Jatrabari, Dhaka.
C-2, Tower Bhaban,
mehreenahmed007
Fuller Road, Dhaka 01727457999
@yahoo.com
University Quarter.

D. Nature of Business : Manufacturing Business

E. Project NPV: Tk.56,82,429 or, 50,07,900 or, 44,23,887.

F. Statement of financing need:

2
 There would be three sources of financing the project as below:

Source Amount
Equity Capital (40%) 9,16,060
Term loan (60%) 13,74,090
Total 22,90,150

Equity,
40
Debt,
60

G. Statement of Confidentiality of Report:

This report is confidential and is the property of the co owners listed above. It is
intended only for use by the persons to whom it is transmitted, and any reproduction
or divulgence of any of its contents without the prior written consent of the company
is prohibited.

Executive Summary

3
‘A Fresh Effort to Sweeten Our Economy’- with this baseline, here emerges a
relatively newer idea in the economic sector of our country. Fundamentally, in a
developing country like ours, it is pretty much crucial that we keep focusing on the
newer business sectors just to enhance the credentials in every respect of the nature of
evolution of business. As we know, with time the matured business segments decline
in incongruent approaches as far as the product appeal is concerned and newer areas
become needed to be exploited. Just keeping in mind this concept, we established a
proposal of strawberry farming that is very much innovative of an idea with the
proven potentials.

As we approach the farming of strawberry, we focused on the plan entirely on

business point of view. In the initial segment of our plan, we analyzed the probable
opportunities in the overall economic sector of Bangladesh. As we stated before, we
found out, there is a great possibility around this sector awaiting exploration.

Then we turn our focus on the potential competitors, which means, how much
commercial rivalry we may face after the starting of this business. While keeping an
eye on our competitors, we analyze our targets from the level of individual consumers
to the institutional level.

While getting ahead with our plan of strawberry cultivation, we were challenged with
the fact that how much friendly will our climate and demographic aspects will be with
the prospect of this project. Keeping in mind this fact, we presented all arguments and
experiments in favor of this venture as well as the probable drawbacks.

Next we worked on our decisive concern that how much viable will be this plan as far
as the commercial notion is concerned. In that segment, we analyzed and presented
every bit of financial approach that we are needed to be concerned with. We evaluate
the sources of financing of this project, required cash flows, NPV, the break-even as
well as the profit margin. So, seemingly, in that segment of financial feasibility we
didn’t leave any stone unturned.

With the financial analysis supporting our claims of this plan to be a success, we
presented the details of the procedural methods of the cultivation of strawberry as
4
 well as the workforce needed for it. And essentially after that the marketing policy of
this plan, which we deemed as the key to success.

Providing the pros n cons of this project that we felt is still pretty much new with all
the potentials in the business viewpoint, we genuinely believe that this is the venture
that is up there with the very best for the next decade.

Industry Analysis

A. Future Outlook and Trends

5
a) Overall Economy: A project’s future growth and
development has some impacts on the country’s overall - 1)
trends in the GNP 2) Unemployment rate 3) Disposable
income. Our project ‘strawberry farming’ seems to have a
positive force to those economic variables. Surely cultivating
strawberry in a poor economy like ours tends to increase
GNP& disposable income and reduce unemployment rate.

b) Culture: Before starting the project we carefully consider the

cultural components- 1) demographic shift 2) Shift in attitude
3) trend in safety, health, nutrition 3) concern for
environment. Now living in a global economy demographic
shift is an important factor to consider while measuring some
project’s possibility and same as the case for ours. Strawberry
is not a product of great demand for Europe or America only
and that’s where our project’s expansion is considerably
possible. Our project ‘strawberry farming’ as a agro-based
model for business has a environment-friendly set-up &
nutrition prospect, through this project our nation’s safety,
health, nutrition and our concern for environment is well-
assured.

c) Legal Concerns: Legal perspective of our project is in a

primal stage. Strawberry, a money-spinning nutritious and
delicious foreign fruit adapted in Bangladesh, may get
government registration soon for cultivation across the
country after experiments yielded encouraging results in
Rajshahi and Natore. Once registered, strawberry cultivation
will be expanded with government patronization according to
Mr. Braja Hari Das, deputy director of Rajshahi Directorate
of Agriculture Extension (DAE). With great export potential,
the sweet and attractive fruit will open a new horizon for
farmers. Strawberry variety has been sent to National Seed
6
 Board and the process for registration is underway as said by
Dr Shafikul Islam, senior scientific officer of Rajshahi
regional Fruit Research Centre (FRC). If it is registered then
some of those issues need to check are: 1) trademark 2)
licensing 3) product safety & liability 4) insurance 5)
contracts 6) restrictions on media advertising.
B. Analysis of Competitors

Strawberry plantation as a concept of business is new in our country and that’s why
meager competition will be found after commercializing our product at home. In
Abroad there are so many competitors and we have little chance to compete with them
because of their huge capital and friendly environment for strawberry production at
least in the very short run. It will be like small manufacturing company’s competition
for capturing a smaller market.

C. Market Segmentation

Besides being taken as a fruit, it is used in preparing ice-cream, jam, jelly, pickle,
chocolate, biscuit, cake or milk shake. This wide variety of strawberry usages will
make our project attractive to local consumer and businesspersons who run mega-
shops for high-class and upper middle-class people. If this project is successful and
acquired expected growth then it can expand its market to other parts of the world.
Market segmentation of our project concentrated into the two main facets: one will be
the aristocratic market of Dhaka and other major cities of Bangladesh and the other
facet will be the countries who are the highest importer of strawberry from various
corners of the world.

a) Posh market: Dhaka, Chittagong, Rajshahi, Sylhet.

b) International market :Germany, UK, USA, France, Netherland,
Belgium, Canada, Italy

7
D. Industry Forecasts

Strawberry farming has started gaining popularity everywhere in northern region for
the last couple of years as the fruit has tremendous economic prospect for the
grassroots farmers. Many farmers, including the amateur ones, have been showing
interest to cultivate strawberry and searching for its saplings during the current
plantation season that will continue till middle of this month. Experts said the
growers' level extension of strawberry cultivation as well as its higher value could
bring a new dimension to the country's agriculture. Referring to the bright prospects
of strawberry cultivation in Bangladesh except the coastal districts, the experts called
for an effective motivational campaign for commercial farming of the soft red-juicy
fruit.

8
 Description of the Strawberry Venture

A. Preamble to the Venture

“Workshop on strawberry farming held at RU” was the news on paper that made a
path to reach the end of our search for a lucrative business idea. We came to know
from the day-long workshop jointly held by Bangladesh Strawberry Association
(BSA) and Botany Department of Rajshahi University that farming strawberry could
be an attractive business with a possibility of earning hefty gains. It was sited as a
value-added good that could bring investors a lot of profit without having huge
capital, large number of labors etc. later when we searched the internet we found more
information on the commercial cultivation of strawberry in Bangladesh.

The government experimental cultivation of strawberry started in 2006, three years

after Dr Manjur Hossain, a teacher of Rajshahi University Botany department evolved
several verities suitable for Bangladesh climate after years of research. Originating in
America, strawberry is usually grown in cold regions like Europe and Australia. It is
also grown in some parts of India. Twelve years ago, Dr Manjur brought saplings of
eight varieties of strawberry plants while returning from Japan after his PhD. He
began research for the first time in country at RU Botany department’s Plant Breeding
and Gene Engineering Laboratory in 1996. In five years, he evolved some new
varieties suitable for cultivation in Bangladesh climate. In 2003, three varieties
yielded encouraging results and were found suitable in local climate. Out of the three,
RU-3 and Modern-3 varieties were found very impressive in size, taste and flavour.
Local fruit importers and some foreigners who visited Manjur’s field recently said the
strawberry was bigger in size, attractive in taste and colour than in many other
countries. Horticulturist Quamruzzaman is also cultivating the fruit on commercial

9
basis at his Modern Horticulture Center at Harishpur in Natore for last three years.
But both of them found the best results this year (2008) in hilly areas at Matiranga
Army Zone where 26 Cavalry Division produced quality strawberries from 200
saplings.

Strawberry cultivation is as easy as growing potatoes or brinjals. Saplings can be

sown in rows in November and December. The plant starts flowering within one
month of plantation and fruits can be collected till March. Saplings can be collected
from nurseries of Dr Manjur and Quamruzzaman in Natore. Each plant bears around
250 to 300 grams of fruits and some 6000 plants can be grown on one bigha of land.
The country has an annual demand for around 50 tonnes of strawberry, now imported
from Thailand and Australia at Tk 900-1200 per kg. Strawberry flavor is also
imported. Enthusiastic people are cultivating the fruit in 24 districts and they formed
Bangladesh Strawberry Association to train growers. The fruit is best for those who
want to get higher and faster returns from limited land, according to Manjur and
Quamruzzaman.

Figure: Two initiator of strawberry farming -Dr Manjur and Quamruzzaman

After exploring through the internet over this opportunity of a fresh entrepreneurial
effort- “Commercial Cultivation of Strawberry” we felt very motivated to take the
venture and for that purpose established a private limited company named “Sweet
Bangladesh Ltd”.

B. Venture Product
1
Sweet Bangladesh Ltd. before launching its commercial cultivation wants to introduce
its product to all walks of people. This section provides information about the
prospect & the very nature of strawberry production. One of the best loved fruits in
many parts of the world is strawberry. Indeed, people from all walks of life truly
enjoy the venerable strawberry. In addition to being a delicious fruit, the strawberry
also is a fruit that can be easy to cultivate and grown. The sweet red berries are
irresistible to almost everyone. Very quick to produce their fruits, strawberry plants
are an excellent crop. These plants can be a wonderful addition to any gardening.
Strawberry plants are lush and have attractive blooms. In addition, when the plants are
laden with berries, they are lovely indeed. They are different from most fruits in that
their seeds are produced on the outside of the fruit - this combined with their bright
red color has the unfortunate side-effect of making them very attractive to birds.
Strawberry is a major fruit of temperate region, but with the advent of day-neutral
cultivars, it grows profitably well in the sub-tropical regions also. Plasticulture
techniques can play very important role in the manipulation of microclimate favorable
for its cultivation. Scientific findings have revealed that use of plasticulture
techniques in strawberry cultivation could revolutionize its commercial cultivation for
higher profitability in the many regions of Bangladesh.

Strawberry is a perennial, stoloniferous herb belongs to the family Rosaceae, genus

Fragaria and most widely consumed fruits throughout the world. It contains
relatively high quantities of ellagic acid, which has a wide range of biological activity.
It is produced in 71 countries worldwide on 506000 acres. Strawberries are now
getting popularity in Bangladesh. Karhu and Hakala1 observed that micro propagated
strawberry plants were comparatively better in different characters (crown size,
number of runners, flowering time and yield of berries) than conventionally
propagated runner plants.

1
 C. Project Cost & Size
1. Karhu, S. and K. Hakala, 2002. Micropropagated strawberries on the field.
ISHS Acta Horticulture, 2: 182
A four Bigha plantation of the crop is a viable proposition. Project costs of the model
are exhibited in a summary of the project cost in the table below:

Estimated Project Cost (four Bigha model strawberry plantations)

Serial No. Component Proposed Expenditure

1. Cost of goods sold
(i) Cost of planting material 77,000
(ii) Fertilizers & pesticides 8,900
(iii) Mulching 11,000
(iv) Cost of Labor 12,000
Sub Total 1,08,900
2. Land & Site Development
(i) Land 16,00,000
(ii) Leveling & Dressing 80,0000
(iii) Fencing & Gates 120,000
Sub Total 18,00,000
3. Building
Pump House 29,000
Labor Shed 14,500
Sub Total 43,500
4. Plant & Machinery
(i) Submersible Pump 72,500
(ii) Fertigation system 58,000
(iii) Farm Equipment Machinery 7,250
Sub Total 1,37,750
5. Furniture & Fixtures 2,00,000
Grand Total 22,90,150

D. Background of Entrepreneurs

There are altogether six entrepreneurs to take the venture of strawberry cultivation.
We all are students of the business faculty of Dhaka University. We think we are

1
energetic, aggressive in decision-making, vibrant to all the opportunities around us,
knowledgeable at the field of business, able to work together and brave enough to
wait and work hard until we reach the peak. Without having much support from our
families it will not be possible to take the venture and we think our families will be
helpful towards us.

Production Plan

1
 The initiative was taken as cultivation of the fruit on
a small piece of land with a little investment can
help us earn handsome profit in any areas where
people mainly depend on agriculture but lack
cultivable land. Strawberry cultivation does not
need much land and takes time not more than two
and a half months. It is not a tough job, as a farmer only needs to process the soil a
little.

A. Agro-Climatic Requirements

Strawberry grows well under temperate climate. Some cultivars can be grown in
subtropical climate. Daylight period of 12 hours or less and moderate temperature are
important for flower-bud formation. Each cultivar has a different day length and
temperature requirement. Sandy loam to loamy soil with pH 5.7-6.5 is ideal for
cultivation.

B. Land Preparation

The soil is ploughed during summer with a soil turning plough which is followed by
repeated ploughing to make soil friable, remove weeds and stubbles. Soil fumigation
with a mixture of methyl bromide and chloropicrin helps to increase root system,
reduce fertilizer requirement and control the weeds.

C. Manufacturing Practices

Different strawberry production systems can be adapted to organic Strawberry

production, including the matted row system, which is lightly mulched with straw in
the planting year to reduce weeds, and the plasticulture system. Weed control is a
challenge for both conventional and organic strawberry growers. Tools for weed
control include the Lely springtine, Buddingh finger weeder, and the Reigi weeder.
The Reigi is now available in 2 and 3 row models, and very popular. Hand weeding is
still needed in addition to the mechanical weed control provided by these implements.
A biologically active soil resulting from green manures and cover crops will have
large reserves of nutrients to feed the crop. Nutrient reserves are built over the years

1
and then maintained for the most part with composts. Natural sources of plant
nutrients can be used to supplement nutrient needs.Insect pests can sometimes be
controlled by crop rotation. For example, crop rotation is the only way to control
strawberry rootworm. However, crop rotation doesn’t help with tarnished plant bug
control. Damage from this pest can be reduced by managing vegetation on land
around the field, don’t mow anything while strawberries are in bloom. Row covers
and black plastic mulch (non photodegradable) are allowed in organic production.
Certain organically acceptable slug and mouse baits are available.

D. Production Technology & Procedure

i) Physical Plants
Strawberry is commercially propagated by runner plants. For large scale propagation
of virus free plants, tissue culture is widely used.

ii) Planting Season

The ideal time of planting runners or crowns in hilly areas is September-October. If
the planting is done too early, plants lack vigour and result
in low yield and quality of fruits. If planted very late,
runners develop in March and crops are light. Runners are
uprooted from nursery, made into bundles and planted in
the field. These can be kept in cold storage before
transplanting. The soil should be frequently irrigated to
reduce water stress in the leaf. Defoliation suppresses the
plant growth, delays fruiting and reduces yield & quality.

iii) Spacing
Planting distance varies according to variety & type of land. A spacing of 30 cm. x 60
cm. is usually followed. In the model scheme, a spacing of 30 cm. x 30 cm. with a
population of 5500 plants per Bigha has been considered which was commonly
observed in areas covered during a field study.

iv) Nutrition
1
A fertilizer dose of 25-50 tonnes farmyard manure, 75-100 kg. N, 40-120 kg. P2O5,
40-80 kg. K2O/ha. may be applied according to soil type and variety planted.

v) Irrigation
Strawberry being a shallow-rooted plant requires more frequent but less amount of
water in each irrigation. Excessive irrigation results in growth of leaves and stolons at
the expense of fruits & flowers and also increases the incidence of Botrytis rot.
Irrigation is applied in furrows between the rows. Trickle and sprinkler irrigation
systems are becoming popular nowadays. In case of trickle irrigation, 30% water and
energy are saved.

vi) Training
Four different types of training systems viz. matted row, spaced row, hill and plastic
mulch are used to train the strawberry plants. Usually matted row system is more
popular than the other training systems.

vii) Intercultural Operations

The field is kept weed free during the first season by harrowing & ploughing,
applying herbicides or plastic sheet. Inter-cultural practices are continued till the straw
mulch is applied.

viii) Growth Regulators

Application of GA3 (50 ppm) sprayed four days after flowering and maleic hydrazide
(0.1-0.3%) sprayed after flowering increases the yield by 31-41%. Morphactin (@ 50
ppm) improves the fruit size.

ix) Harvesting and Yield

Strawberries are generally harvested when half to three fourths of skin develops color.
Depending on the weather conditions, picking is usually done on every second or
third day usually in the morning hours. Strawberries are harvested in small trays or
baskets. They should be kept in a shady place to avoid damage due to excessive heat
in the open field.

E. Machinery and Equipment

1
 Irrigation Infra-Structure
For effective working with drip irrigation system, it is
necessary to install a tube-well with diesel/electric pumpset
and submersible motor. This is post cost of tube-well for four
Bigha.

Drip Irrigation
This is average cost of one acre drip system for the crop inclusive of the cost of
fertigation equipment. The actual cost will vary depending on location, plant
population and plot geometry.

Implements & Equipment

For investment on improved manually/power operated essential implements and
equipment.

Building Infrastructure
A one acre orchard would require minimally a labour shed and a store-cum - pump
house and a labour shed.

F. Names of Suppliers of Raw Materials

Saplings can be collected from nurseries of Dr Manjur and Quamruzzaman in Natore.

At first the farmers have to buy the mother plants from the university at Tk 20 per
sapling and later they will be able to produce the saplings themselves. The teachers
already trained 129 persons from 24 districts on strawberry cultivation and sent
saplings to the districts for experimental farming.

Marketing Plan
A. Pricing

1
 Appropriate pricing is necessary to measure our project’s profit in the short run and
the growth of our company in the long run. For measuring this sensitive factor we use
current market information and analysis of the researchers. In our project per plant
(unit) cost is (108,900/22,000) or 4.95 tk. Our first year sales price is 550 tk per kg
reasonably assumed from the range given 200 tk to 900 tk. As each plant produce 300
grams or 0.30 kg so income from each plant will be (0.30*550) or 165 tk which is
33.33 times higher than the cost of unit good sold (4.95 tk).

B. Distribution

Majority of the growers sell their produce either through trade agents at village level
or commission agents at the market. Our company Sweet Bangladesh Ltd will use
both the way of distribution in line with their accessibility, profitability and cost
effectively. It is expected that the established marketing network should be more
strengthened due to availability of our product at the appropriate time or seasons.

C. Promotion

Free Sample: We have decided to give free samples to the training centers, where
different agro based trainings are provided. Again, we will provide free samples to the
people in the near localities.

Posturing: We will try to promote our product by posturing near training centers and
selling centers.

Sales at Discount: We also have planned to sale our products at discount to the whole
sellers as a plan of the whole promotion planning.

D. Control

One of the major goals of our business is to capture the major share of strawberry
industry in Bangladesh. For this reason, we have set the required sales volume that
will help us to achieve the goal. We will monitor timely and properly the actual sales

1
and forecasted sales. We will also monitor the performance of our manpower
resource.

E. Product Forecasts

The country has an annual demand for around 50 tonnes of strawberry, now imported
from Thailand and Australia at Tk 900-1200 per kg. Strawberry flavor is also
imported. . Each plant bears around 250 to 300 grams of fruits and some 5500 plants
can be grown on one Bigha of land. With growing demand for strawberry around the
world make our product forecast predictable and the forecast is strawberry has a
bright prospect in local market and in the foreign market too.

F. Post Harvest Management

Grading: Fruits are graded on the basis of their weight, size and color.

Storage: Fruits can be stored in cold storage at 320C up to 10 days. For distant
marketing, strawberries should be pre-cooled at 40C within 2 hours of harvesting and
kept at the same temperature. After pre-cooling, they are shipped in refrigerated vans.

Packing: Packing is done according to the grades for long distance markets. Fruits of
good quality are packed in perforated cardboard cartons with paper cuttings as
cushioning material. Fruits of lower grades are packed in baskets.

Transportation: Road transport by trucks/lorries is the most convenient mode of

transport due to easy approach from our site to the posh market of Dhaka, Chittagong,
Sylhet, Rajshahi and other major cities.

Organizational Plan

A. Form of Ownership:

1
Being a green-field Venture it is proposed initially to be set up a Private Limited
Company and registered with the Registrar of Joint stock Companies, Bangladesh
under Companies Act 18 of 1994. After an initial period of successful operation,
marketing, the company may be restructured into a public Limited Company with
issue of Public Shares in the Market.

B. Management of the Company:

The overall management of the company will be vested with Board of Director. The
Board will formulate Company’s policies and will provide guideline for its day to day
business operation. The managing Director is to look after the business affairs and
other logistic support to the company. Highly qualified and experience General
Manager will be recruited to support the Managing director in all operational level of
activities. Besides, staffs at different levels will assist the managing Director.

C. Board of Directors:

Name Address Post

Sumon Shahriar 303/E, East Kazipara, Mirpur. M.D
Faijullah Rashid Shimul 292/2, Dania, Jatrabari, Dhaka. Director
(Finance)
K.M.Saemon Islam 13/10, Shahid Anwar Girls College Director
Quarter, Dhaka Cantonment. (Administration)

D. Organogram:

The organization set-up of the project will be in usual and staff method. The company
will provide both administrative and technical support to the project for its
implementation, operation and smooth running.

The detailed organogram is shown below:

Organogram of Sweet Bangladesh Limited

2
 Chairman

Managing Director

Director Finance & administration

Manager Manager Manager Manger

administration Production Finance Marketing

Supervisor Accounts officer

Marketing Marketing
Marketing Marketing
Officer Officer
Officer Officer

E. Basic Management Structure:

Initially, it will act as a private Limited Company. So here the overall management of
the company will be vested with the Board of Directors. The managing Director will
manage the routine operations of the company. And the major Company vision
Programme and policy discussion will be taken through approval of the board. The
Managing Directors will be assisted by other directors.

For a smooth and professional operation of the company, we will appoint some active
Directors with a degree of professional education and managerial skill and experience

2
as salaried Functional Managers. To establish transparency and accountability we
maintain external and internal auditing system.

F. Number of Staffs:

A. Technical staff: No. of persons

Production manger 02
Asst production manager 02
Supervisor 02
Fore man 02
Qtc officer 02
Skilled worker 15
Unskilled worker 50
Total 75
B. Administrative staff:
General manger 01
Asst. Manager 02
Purchase officer 02
Sales & purchase officer 04
Cashier 02
- Peon, guard, typist, sweeper etc 04
Total 15
Grand total personnel 90

Assessment of risk

A. Plant Risks & Protection

Insect
White grubs, cutworms and hairy caterpillars attack the crop. Areas where
strawberries are to be planted should be free from white grubs and cutworms.

2
Application of endosulfan (0.05%) or Malathion (0.05%) on appearance of
caterpillars has been found to be effective in most cases.

Diseases
Main diseases reported are leaf spot and grey mould. Application of carbendazim /
thiophanate methyl has been found to be effective in most cases.

Disorders
Albinism (lack of fruit colour during ripening) is a physiological disorder in
strawberry. It is probably caused by certain climatic conditions and extremes in
nutrition. Fruits remain irregularly pink or even totally white and sometimes swollen.
They have acid taste and become less firm. Albino fruits are often damaged during
harvesting and are susceptible to Botrytis infection and decay during storage.

B. Evaluation Weakness of Business

 Strawberry cultivation is still in such a primary stage that anything could

happen to this industry.
 Practically there may lack the true taste of strawberry because it is invented in
the laboratory. Though rabi-3 proved itself as a successful type of strawberry.
 Environmental change harm substantially.

Financial Plan

A. Pro Forma Income Statement

Taka
Items Year 1 Year 2 Year 3
Sales revenue 36,30,000 39,60,000 4,290,000

2
Less: Cost of Goods sold
Cost of planting material 77,000 77,770 78,548
Fertilizers & Pesticides 8,900 8,989 9,079
Mulching 11,000 11,110 11,221
Cost of Labor 12,000 12,120 12,241
Total cost of goods sold 1,08,900 1,09,989 1,11,089
Gross profit 35,21,100 38,50,011 41,78,911
Operating expenses
Selling expenses 1,45,200 146,652 1,48,118
Advertising 79,860 80,659 81,466
Salaries, wages 1,81,500 1,83,315 1,85,148
Supplies 19,965 20,165 20,367
Rent 65,340 65,993 66,653
Utilities 14,520 14,665 14,812
Insurance 7,260 7,333 7,406
Term loan interest 29,040 28,930 29,023
Depreciation 28,193 28,193 28,193
Miscellaneous 46,222 47,084 47,751
Total operating expenses 6,17,100 622,989 6,28,307
Net profit 29,04,000 32,27,022 35,50,604
Ratio (Percentage):
Gross profit to sales% 97% 97.22% 97.41%
Net profit to sales % 80% 81.49% 82.76%

B. Cash Flow Projections

Particulars Amount (Year-1)

Receipt Sales 35,57,400
Disbursements
Land & site development 18,00,000

2
 Plant & machinery 137,750
Building 43,500
Furniture & fixtures 2,00,000
Cost of goods sold 1,06,722
Selling expenses 1,42,296
Salaries & wages 1,77,870
Advertising 78,262
Office supplies 19,566
Rent 64,033
Utilities 14,230
Insurance 7,115
Term loan interest 28,460
Total disbursements 28,19,804
Cash flow 7,37,596

C. Pro Forma Balance Sheet:

Taka
Properties & assets particulars Year 1 Year 2 Year 3
Land & Site Development
Land 16,00,00 16,00,000 16,00,000
Leveling & Dressing 0 80,000 80,000
Fencing & Gates 80,000 1,20,000 1,20,000
Building 1,20,000

2
 Pump House 28,130 27,260
Labour Shed 29,000 14,065 13,630
Plant & Machinery 14,500
Submersible Pump 68,875 65,250
Fertigation system 72,500 55,100 52,200
Farm Equipment Machinery 58,000 6,887 6,524
Furniture & Fixture 7,250 1,80,000 1,60,000
2,00,000
Total Fixed Assets 21,81,25 21,53,057 21,24,864
0
Cash balance 3,66,424 3,66,424 3,66,424
Bank balance 5,49,636 5,49,636 5,49,636
Accounts receivables --------- 5,16,060 6,86,060
Total current Assets 9,16,060 9,00,000 9,30,000
Total 30,97,31 35,69,117 37,40,924
0

Taka
Capital & liabilities Year 1 Year 2 Year 3
Equity / Share capital 9,16,060 8,87,867 8,59,674
Retained Earnings 8,07,160 8,07,160 8,07,160
Long term loan 13,74,090 13,74,090 13,74,090
Accounts payable ----------- 3,00,000 4,00,000
Other current liabilities ----------- 2,00,000 7,00,000
Total 30,97,310 35,69,117 37,40,924

D. Break-Even Analysis

Analysis of total cost Fixed Variable Total

Raw Materials (COGS) - 1,08,900 1,08,900
Selling expenses - 1,45,200 1,45,200
Advertising - 79,860 79,860
Salaries, wages 1,00,000 81,500 1,81,500
Supplies 7,986 11,979 19,965
Rent 39,204 26,136 65,340

2
 Utilities 5,808 8,712 14,520
Insurance 7,260 - 7,260
Term loan interest 29,040 - 29,040
Depreciation 28,193 - 28,193
Miscellaneous 18,488 27,734 46,222

Total 2,35,979 4,90,021 7,26,000

We know, CM ratio = (Sales – Variable Cost)/ sales

= (36,30,000-4,90,021)/36,30,000
= 86.5%

BEP (Sales) = Fixed cost / CM ratio

= 2,35,979 / 0.865
= Tk. 2,72,808

BEQ = BEP/Price per unit

= 2,72,808/550
=496 unit

Margin of Safety = (Total sales-Break even sales)/Total sales

= (36,30,000-2,72,808)/36,30,000
= 92.48%

E. Sources and Applications of Funds

Sources of funds
Source Amount
Equity Capital (40%) 9,16,060
Term loan (60%) 13,74,090
Total 22,90,150

Applications of funds
Applications Amount
Land & Site Development 18,00,000
Building 43,500

2
 Plant & Machinery 137,750
Furniture & Fixture 2,00,000
Cost of goods sold 108,900
Total 22,90,150

F. NPV of the Project:

For calculating NPV, we have to find OCF (operating cash flow):

OCF in year-1 = EBIT + Depreciation- Tax
= 28,74,960 + 28,193 - 0
= 29,03,153

OCF in year-2 = EBIT + Depreciation- Tax

= 31,98,092 + 28,193 - 0
= 32,26,285

OCF in year-3 = EBIT + Depreciation- Tax

= 35,21,581 + 28,193 - 0
= 35,49,774

When, required rate of return is 10% then NPV

29 ,03,153 32 ,26 ,285 35 ,49 ,774

= −22 ,90 ,150 + + + = 56 ,82 ,429
1.10 1.10 2 1.10 3

When, required rate of return is 15% then NPV

29 ,03,153 32 ,26 ,285 35 ,49 ,774

= −22 ,90 ,150 + + + = 50 ,07 ,900
1.15 1.15 2 1.15 3

When, required rate of return is 20% then NPV

29 ,03,153 32 ,26 ,285 35 ,49 ,774

= −22 ,90 ,150 + + + = 44 ,23,887
1.20 1.20 2 1.20 3

2
 Concluding Remarks

In a developing country like Bangladesh, the competition of the establishment in an

already recognized & conventional business sector is very hard. The companies invest
more in the familiar business segments rather than most new ones. So, with the
necessity, comes the innovating approach to exploit the potential areas. A plan like
strawberry farming can always succeed in our country where the cost of direct
workforce is relatively cheaper, the environment is as friendly and good
communication as we can practically expect it to be. If government help a little bit
and support, this sector of business can really grow in near future spontaneously.
Presenting this incredibly feasible of a business idea we can say, our economy is
awaiting to become sweetened in a real eco-friendly way.

Assumption:

 Depreciation is charged 3% on building, 5% on

plant & machinery and 10% on furniture & fixture.
 No tax is charged on the 1st three year’s income of
the company. Assume that there is tax exemption on the 1st three years of
operation.
 Cash flow is increased at the rate of 5% for 2nd and
3rd year.
 Assuming that discount rate for calculating NPV is
10% or 15% or 20%

References:

2
1) Entrepreneurship 5th edition
R.D.Hisrich
M.P.Peters
2) BSA (Bangladesh Strawberry Association).
3) Botany Department, Rajshahi University.
4) Professor Dr Manjur Hossain, Rajshahi University, Botany Department.
5) Quamruzzaman, Horticulturist, Horticulture Center, Harishpur, Natore.