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Production of frozen fruits and vegetables as a business

Freezing of fruits and vegetables is a technology that allows them to maintain their properties (taste, vitamins, natural freshness) for an almost unlimited amount of time.

Learn more:

Market freeze – the situation today and prospects of development

Popularity among consumers of frozen vegetables has long been proven. According to the Agency BusinesStat, the volume of the market of frozen vegetables in our country is 310 thousand tons. This figure refers to the year 2015. Currently, due to the protracted crisis, there is a slight drop in demand, but, nevertheless, since 2017, sales of these products are expected to increase by 1.7 – 3.4 % per year. Today, most of the products in this market, according to various estimates up to 80%, comes from neighboring countries – China, Poland, etc. The economic situation led to the activation of domestic entrepreneurs who decided to master the business of freezing vegetables.

The product range that can be frozen includes:

They are used in the manufacture of home-cooked food, and in the catering system. This defines the range of basic consumer retail outlets, major supermarkets, manufacturers of confectionery products, etc., chain fast food restaurants.

The main costs of the organization of production

It can be argued that this type of business is seasonal. That is, the fall of the market occurs in the spring and persists until autumn. But in the summer, the entrepreneur is actively working on the purchase of raw materials and the formation of stocks.

The costs necessary to ensure the operation of the shop, which uses shock freezing include:

Production technology

The technology of deep freezing is done in a few steps:
In more detail you can learn about technology in article -
"Features of shock freezing of vegetables"

Necessary technological equipment

For the organization of work of shop with a productivity of 2 400 kg per shift, the following equipment of deep freezing is necessary:

It is easy to calculate that the main costs for the purchase of the necessary equipment will be about $ 57,800. But if the budget for the promotion of this type of business is limited, you can reduce costs by purchasing equipment on the market with less power and less automation. In addition, you can always find equipment, such as shock cooling chambers, used and save, thus, from $18 000 to $24 000.

You can see and choose the model for the necessary task in the section -
"Shock freezing chambers"

The estimated payback period and access to full, estimated profit is three to four years.

Subtleties of work in the market of deep freezing

Analysis of companies operating in this market shows that with relatively high profitability and low competition among domestic producers, they have enough difficulties.

The first is the relationship with consumers. For the most part, they include retail chains and large supermarkets. As a rule, they may require certain preferences. In some networks, the volume of preferences can be up to $ 390 per position.

The second problem is the importance of raw materials, or rather its quality. Each manufacturer has its own concept of quality and it can not cause difficulties in the procurement process. Everything else because of this there are problems with the formation of the commodity stock. The best option would be to conclude contracts with those enterprises-producers of agricultural products, which are able to fulfill all the requirements for the quality of products intended for freezing.

In practice, it is difficult to determine which frozen products will be in demand next season. If by the beginning of mass sales contracts with consumers are not concluded, the invested funds can be considered lost.

The third problem is a long payback cycle. That is, in the summer, the funds will be spent on the formation of a raw material warehouse, and they will return only during sales, that is, in the winter. In other words, the money will be frozen for a period of six months, and withdraw them from circulation is not possible.

The logistics component is the fourth problem. Experience suggests that the cost of improperly organized logistics can be up to 30% of the cost of production.

By the way, it will be useful to organize the passage of voluntary certification, confirming the quality and safety of products. Such a move will certainly increase the level of confidence in the start-up company and allow to enter the market faster.

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Who trusts us

We work with many companies whose needs include shock cooling and deep freezing of products. Here are just a few of our customers who already have Fast°Cold™ fast cooling.