Market Feasibility Report Ethanol Plant Fijian Islands

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Market Feasibility Report

Of

Manildra Ethanol Plant, Production & Distribution

In the Fiji Islands.

[pic]

TABLE OF CONTENTS

1) Executive Summary…………………………………………………………………………….P4

2) Introduction……………………………………………………………………………………….P5

3) Manildra the organisation and product capabilities

3.1) Market Power Theory & Government Partnership Benefits………………...P6

3.2) The Sugar Industry & Agricultural Inefficiencies Challenges & Benefit.P7

3.3) Level of Technology Benefits……………………………………………………………...P8

3.4) Barriers to Entry Benefit & Challenges………………………………………………P8

3.5) Political Instability Challenges……………………………………………………….….P8

3.6)Language Barriers & Psychic Distance Benefits……………………………….…P8

4) The Economic Environment of Fiji Islands……………………………...P9

4.1) Export Environment of Sugar Cane………………………………………………..…P9

4.2) Balance of Trade………………………………………………………………………….…..P9

4.3) Trade Agreements…………………………………………………………………………..P10

4.4) Major Economical Issue facing Ethanol Production…………………………P10

5) Issues In Socio-Cultural Values, Traditions & History……….P11

5.1) The Sugar industries Longevity in Fijian Culture……………………………..P11

5.2) Seasonal Production Systems, Food Security & Limited Resources……P11

5.3) Environmental & Social Effects………………………………………………….……P12

6) Situational Analysis of Ethanol Production Viability………P13

6.1) Strengths & Opportunities in Investment………………………………………..P13

6.2) Threats & Weaknesses in Investment………………………………………………P13

7) CONCLUSION & RECOMMENDATIONS……………………………………………..P14

8) BIBLIOGRPAHY / REFERENCE LIST…………………………………………………P15

9) APPENDIX………………………………………………………………………………………P16

EXECUTIVE SUMMARY

The Fijian government has been looking for a viable partner to start the production of an Ethanol Industry in Fiji. Purpose of this report is to assess the market feasibility of the Australian company Manildra Group expanding their international market base into Fiji by providing technological knowledge and processes, skilled labour and expertise in the industry for environmentally friendly biofuels.

Situational analysis is conducted to assess the challenges and benefits to the commencement into an ethanol production in Fiji. Economical the proposed venture appears viable provided large amounts of investment and sufficient time is implemented into the project by both the Fijian government and Manildra Group Headquarters. Potential opportunity exists in expanding the market from domestic production and localised supply to international supply of Fijian Biofuels possibly to the South Pacific Market.

Unbalanced trade deficits would improve by increased exportation of biofuels and decreased importation of fossil fuels. Potential threats exist from political instabilities that are inherent within the Fijian governmental system. However, political and legal restraints could be overcome through contractual agreements.

The impact from falling EU sugar prices have slowed the production rate of cane farming in Fiji, revitalisation of the industry would be necessary to increase cane yields to provide enough produce to supply existing international sugar export agreements and the increased required capacity of ethanol production. Farming is a long-standing occupation of Fijians. Therefore, with increased profit available from ethanol production opportunities a time scale could be established to overcome this weakness.

It is recommended that further studies be done into the impact on environmental and social effects of Fijian communities from changes to ethanol production. Furthermore, economic viability studies regarding costs of construction of plant and facilities, training and re-education of the community for commercial farming practices and procedures....
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