Our Target Market and Competitors
Target Market
The primary market of our business is people living in China. China isan attractive market to sell beef because Fleck (2024) showed data that China is Brazil’s biggest customer for beef. (10) Furthermore, as Sicular, Yang and Gustafsson (2021) have argued, the Chinese population of the middle class has increased rapidly. (11) Considering these economical and demographical trends, China is the best market to sell beef produced in Brazil.
Competitive Analysis
In the context of producing beef efficiently, there are some competitorssuch as Minerva Foods, JBS, and Marfrig. According to the homepage of Minerva Foods, they take some measures to enhance productivity such as planned pasture management, rotational grazing, implementation of integrated systems, and genetic engineering. (12) Most of the competitors focused on the environment to raise cattle. However, our solution focused not only on the environment but also on the efficiency of the livestock itself by using genetic engineering technology. Our solutions make it possible to raise higher-quality and more cost-efficient cattle in a smaller area. Moreover, we’re going to hire indigenous people in the later stage of this business to educate them on how to do intensive grazing practices. Therefore, our business is differentiated from others in the context of ESG.
Expected Impact
Our targeted UN SDGs are Responsible Consumption and Production, ClimateAction and Life on Land. By implementing our solution, we can produce inexpensive high-quality beef with minimal land without deforestation. Therefore, our solution contributes to stopping climate change and loss of biodiversity indirectly through stopping deforestation. Although we are going to start this business in cleared land in Mato Grosso, we plan to hire indigenous people and educate them so that our style of production is going to be introduced into the ranches all around the Brazilian Amazon forest. By doing this, we could make a big impact on the Brazilian economy and bring environmental benefits by contributing to stopping deforestation. Furthermore, we could change consumer behavior by creating social values with cheaper eco-conscious products and of higher quality than normal products.
Financial Overview
We want to raise the initial investment of $1,081,000 from investors as equity. By partnering and sharing the equity with laboratories which researched about genetic engineering , we can outsource the function of genetic engineering.
Estimated annual revenue is $350,000 and estimated annual cost is $158,400, so annual estimated net profit is $191,600.
Therefore, we can pay the initial investment in 6 years.
After reaching break-even point, we're going to expand our business by aquiring exisiting ranch and introduce intensive grazing practices so that we can raise the profit and have more impact on Brazilian deforestation probelem by using our experience of 6 years.