Budgeting and Business Planning for a Fruit Processing Facility

Abstract

In our research work we created a financial plan for a fruit processing facility located in the district of Bacs-Kiskun, Hungary. Building our business plan was based on consulting with investors and visiting several fruit processing plants. The biggest manufactory has a number of 50 partners who farm about 1.000 hectares of fruit. Mainly produces elderberry and apple concentrate.
The estimate was made regarding opportunities for EU fundings. Scenario planning allowed us to generate a first set of forecasts, identify the key signposts that distinguish one scenario versus another.
The first one included the current EU funding, the second one was financed completely with our own resources without leverage.
Calculation included Discounted Payback Period (DPP), Net Present Value (NPV), Internal Rate of Return (IRR) and Profitability Index (PI). The EU funded scenario seemed to be more beneficial, it is worth implementing.