NIKHIL . P2nd SEMESTER

IntroductionIndia has vast potential for fisheries from both

inland and marine resources. It has a large marine

product and processing potential with varied fish

resources along the 8041-km long coastline, 28000

km of rivers and millions of hectares of reservoirs &

brackish water. The wide variety of fish resources

found in Indian inland waters, coastal areas and

deep seas comprising India’s Exclusive Economic

Zone has a large potential of growth.

WHAT IS PROCESSING ?

Nutritionally, fish is a very important source of easily

digestible, high quality protein, vitamins and fats not

obtainable in such high concentrations elsewhere. Nonetheless,

fish is a highly perishable foodstuff and spoils very fast unless

appropriate preservation and processing techniques are

applied for increasing shelf life of fish.

Global scenarioThe net earnings rose from US $ 5200 millions in 1985 to US $ 15600 million in ’99.Thailand and Norway are the world’s major exporters of fish products in value terms accounting for 16% each of total world trade.

Europe is the leading region in sea food export with 40% of total sea food production

Tuna, cephalopods, prawns are most exported globally.

Indian ScenarioIndia exports today marine products worth Rs 5124.6 Cr, covering 60 commodities. The share of marine products in total export earnings is around 3.4%. The share of Frozen shrimp in the export earnings is very high and contributes about 65 –70 % of the total export earningsEstablishments connected with marine products export (as registered with MPEDA, 1996), include 625 exporters (380 manufacturer-exporters and 240 merchant-exporters), 376 freezing plants, 13 canning plants, 4 in the agar-agar industry, 149 ice plants, 15 fish meal plants, 903 shrimp peeling plants, 451 cold storage units, and 3 chitosan/chitin plants, with 95% of the seafood processing units concentrated in 20major clusters in 9 states.The total installed freezing capacity is 7 500 tons per day, and the commercial production is mostly export oriented.

Technological changes in processing units

1) Developments of canning industry

2) New freezing techniques (IQF)

3) Changes in quality assessment & management process in

quality control

4) Introduction of value added marine product

5) Development of subsidiary processing industries with fish by

products

There are three types of costs in processing plant

1)Cost of initial investment

2)Operational cost

3)Fixed cost

Cost Sheet :

A. Initial investment Item Quantity Cost ( INR)Land

Freezing plant

Cold storage

Canning retort

Electrification

Water supply

channels

Vehicles

Other Plant & Machinery

Total

What are the production inputs?

B. Operational cost

Item Rate Value

Raw material cost

Cost of ice

Wages

Cost of packaging material

1) polythene

2)Straps clips

3)carton

4)Cost of fuel, electricity

5)Cost of freon

6)Inspection fee

Administrative expenses (salary)

Telephone charges

selling expenses

a)Flight charges

b)Advertisement charges

Total

C) Fixed cost

Item Rate Value

Depreciation of machinery

Depreciation of vehicles

Cost of finance

1)Interest on packing material

2)Interest on bank loans

3)Sales tax

Total

Final estimatesTOTAL INVESTMENT

TOTAL FIXED COST

TOTAL VARIABLE COST

TOTAL COST

TOTAL REVENUE

GROSS PROFIT [Total Revenue- Total Variable cost]

NET PROFIT [Total Revenue – Total Cost]

PAY BACK PERIOD[Investment / Net profit]

RATE OF INVESTMENT [Net profit/Investment]

BREAK EVEN SALES[Fixed cost x Sales /(Sales – Variable cost)]

CONCLUSION

THE PROFITABILITY INDICATORS ESTIMATED WERE

Total returnsGross profitNet profitReturn to capitalInput-output ratio