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The Feasibility Study On The Simmemtal Base Construction Project

Posted on:2008-01-16Degree:MasterType:Thesis
Country:ChinaCandidate:X L ZhouFull Text:PDF
GTID:2189360215452003Subject:Business Administration
Abstract/Summary:PDF Full Text Request
Animal husbandry industry is one of an important element at the national economy,the demand of consecutive development of the national economy can only be met with the speedup of the development steps of the animal husbandry industry. CPC Central Committee has emphasized that we have to develop the animal husbandry industry actively while drafting the suggestions to the 10th Five Years Plan of the National Economy and Social Development, while telling the opinions at the Country and Rural Work Meeting in 2001, meanwhile expressed the explicit requests on the aspects of speeding up the new product development and cultivating brand products, etc.While planning the 10th Five Years Plan of Jilin Provincial Agricultural Development, it's been mentioned to develop the animal husbandry industry into a main industry, the construction of beef cattle production base enjoy a top priority, which will import good species from the abroad.Jilin Lin Hai Yuan Grass Co., Ltd. is a pretty large animal husbandry enterprise in Jilin province, which was set up under the modern enterprise system and under the direct leadership of Jilin Provincial Animal Husbandry Administration Bureau, share holding by Jilin Livestock Farming Corporation. It's been doing the business on grassland quality improving, grassland opening up and livestock breeding, etc. In order to take the historical opportunity and echo to the active development of the animal husbandry industry, which was called up by the national and Jilin provincial government, Jilin Lin Hai Yuan company have the project of the establishment of the Simmemtal base construction, which with the annual production ability of 10,000cattles.Based on the study to the project establishment background and the construction program, this article has made a scientific and systematic analysis to the feasibility of the project economization, social and ecological benefits, which offered an evidence for the references of the project construction in a scientific and thorough way.Take a look at the project construction background,the birth of this project is a result under the requests of the national industrial policy, the in-line industrial development planning and recycling economy. The necessity of this project has been confirmed whereas the current situation in Jilin province is that the beef cattle butchering quantity can only reach to 1/4 of the beef cattle processing ability, the construction of beef cattle breeding base and beef cattle breeding system has been lagged far behind.The construction site of this project is at Jilin Changling Stud Farm, where locates at the east side of the Knorchin Prairie and enjoy an advantage on geography side, which is a good place to produce the beef cattle and fit for the green food standard. As the qualified beef product, which is being produced under the green food standard, it is very competitive at both domestic and abroad markets.The project construction content include: construction of the covering and breeding base, refrigerator equipment system, fodder processing base, beef cattle breeding and the relevant functions construction. The general target of the project is to breed 10,000 the Simmemtal annually, including breeding 3,000 the Simmemtal of the basic cows; establishing a sample the Simmemtal breeding area with the annual production ability of 4,500cattles; establishing a foddering processing plant with the annual processing ability of 20,000 tons of the fodder, 10,000 tons protein enrichment element.The project's preparation and construction period plan to be finished in two years. In order to ensure a smooth construction of the project, the project management work will be co-shared by Jilin Lin Hai Yuan Grassland Co., Ltd. and Jilin Changling Stud Farm. The main technology items of the project including fresh reservation of the pasture, supplement feeding by concentrate, frozen sperm narrow tube treatment, fertilizer speedup ready in spring and beef cattle out of the stage in time, etc.The total investment of this project is RMB 24.59 million yuan, including RMB13.69 million yuan on fixed asses investment, RMB 10.9 million yuan current fund, RMB 5 million yuan special fund applied from Jilin Agricultural Development Office, RMB 5 million yuan bank loan, RMB 14.59 million yuan enterprise self-owned capital.Through the calculation and analysis to the key economic figures and evaluation indices, such as: financial internal income rate, capital income rate, financial net current value, dynamic investment return period, investment profit rate, investment profit tax rate, etc., we get the financial net current value after the tax is RMB 20.2956 million yuan, financial internal income rate after the tax is 31.2%, investment profit rate is 25.43%, investment return period is 5.8 years. So we can say this project is feasible on financial aspect.Since the variables we used at the financial evaluation are the assumption and forecast to the future, it has its uncertainty nature. Then we made the analysis to its uncertainty for the project via the break-even analysis and sensitivity analysis, the solution out of that is this project has a good economical profitability and strong anti-risk ability.This project can be classified under the ecological type for the prairie treatment, which has a good social benefits and ecological effects. Its social benefits can be reflected from its good species beef cattle breeding by the utilization of the idled asset and the undeveloped resources of Jilin Changling Stud Farm, solved the lay out problem of the people at the farmyard, which plays a positive role at the social stableness and solidarity, economic prosperity aspects. Its ecological benefits of the project will be shown at the prairie treatment in Jilin province, 80,000 acres of the eroded prairie can be treated better after the implementation of the project. Till then, the surrounding ecological environment and the hygienic conditions can be improved a lot at the northwestern side of Jilin Changling County. The fermented dung and urine of the livestock can be put into the fodder land and the grass land, which can enrich the farmland, increase the organic staff's content at the soil, decrease the content of the chemical fertilizer, even stop using the chemical fertilizer, to facilitate the ecological development of the farming and animal husbandry industries and a good recycling of the material and energy at the ecological agricultural system.Out of the risk identification and analysis, we find the project exists four risky elements: technical risk, personnel risk, market risk, policy and project undertaker's risk. Referring to the different risks, the following specific measures will be taken: first is to technical risk, the advanced tech. measures will be taken to ensure a smooth run of the project, such as: fresh reservation of the pasture, supplement feeding by concentrate, frozen sperm narrow tube treatment, fertilizer speedup ready in spring and beef cattle out of the stage in time, etc.; second is to personnel risk, which requests us to strengthen personnel training to have them fit for the project requirement; third is to market risk, ensure the product can reach to the green food quality standard, enhance marketing force, expanding marketing channels, enlarging the market covering rate; forth is to policy and project undertaker's risk since the project meet with the national policies of environment friendliness, resource and cleanliness, etc. the modern conditions, basically has no policy risk, and it can enjoy the preferential policy support on tax paying aspect. Since the local government attached great importance on this project, which has established the project construction headquarter, doing the project preparation and construction work strictly according to the Basic Construction Management Regulations from the Agricultural Ministry, which can avoid the short eyesight behavior. The above risks can be avoided effectively with the implementation of the above measures.Via the feasibility study, it can proof that the project does meet with environment protection requirement, fit for the industrial development direction of the national and Jilin province; rich supply of the resources, good market potentiality of the product, feasible on technical craft and financial aspects, with low production cost, good economic benefits, which has an obvious social and ecological effects, has a strong anti-risk ability, also owns great market potentiality, can be a sample demonstration project, we can say the project is feasible. The establishment of the project bears great meaning, which can push the economic development at the surrounding area, improve the living standard of the local people, keep the people become rich; and speedup the improvement of the ecological environment at the western side of Jilin province, to boost the agricultural ecology construction, turn the resources advantage into industrial and economic advantages. Jilin Lin Hai Yuan Grass Co., Ltd. should take the chance, speedup the project construction, try to put the project into production, to show its benefits as soon as possible.
Keywords/Search Tags:Construction
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