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Srijana Sharma(17330)

Seminar Presentation. Srijana Sharma(17330). Study of Nepalese Business Environment. Company Name – SP Poultry Farm Pvt. Ltd. Products – Boilers, Layers, Egg, Manure

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Srijana Sharma(17330)

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  1. Seminar Presentation • Srijana Sharma(17330) • Study of Nepalese Business Environment

  2. Company Name – SP Poultry Farm Pvt. Ltd. • Products – Boilers, Layers, Egg, Manure • Objective – To contribute to the sustainable poultry meat production by catering the current demand of the poultry product. • Registered under Private Firm Registration Act • Revenue model – Sale of poultry products

  3. Product Economy • Annual Turnover 33.72 billion i.e. equivalent to 1.5% of total country’s economy (CBS) • GVA (Gross Value Addition): 6.84 billion a year • Spent 26.88 billion and earn 33.72 billion(CBS) • 76 % are in profit and 80% are in the verge of expanding (CBS) • Creating multiplier effect in other industry as well • Annual growth rate of poultry production is 17-19% (2017 expo brochure) • “Demand always outstrips supply”, President of poultry Association

  4. Commercial farming in 64 district out of 75 • Fulfill 13% of the countries meat requirement • Daily chicken requirement of KTM and adjoining district 300-350 tons and accounts for 60% of the total demand of the district (June 3,2017 KTM post) • Around 10-15 vans of Indian chicken are smuggled to Siraha markets every day despite being restriction in import of chicken and poultry product (April 19, 2018 KTM post)

  5. Acts and Regulatory bodies Acts and Regulations Company Act 2063 Industrial Enterprise Act 1992 Labor Act 2017 Income Tax Act 2058 Animal Health and Livestock Service Act 2055 Animal Feed Act 2033 Panchipalan NITI Regulatory Bodies Government of Nepal Ministry of Agriculture Department of Livestock Services Association Poultry Federation Association Nepal Feed Industry Association

  6. Company Act • Incorporation of company under this Act • Objectives set forth in MOA • Application to be made for incorporation • MOA • AOA • Prior approval or licence to be undertaken • Citizenship certificate • Registration of the company • Industrial Enterprises Act 1993 • Incorporation as per Industrial Enterprise Act, 2073 (confirmation within 15 days): Agro and forest based industry • Small industry: Up to 30 million rupee • Registration in DOCS • 35% tax rebate on registration (female entrepreneur) • Nepal Health and Livestock Service Act 2055 • Recommendation letter to establish the company • Contains terms to be abide while exporting, terms to be followed, procedure for disposal and all other terms and condition to be followed

  7. Analysis of Macro Environment

  8. Political perspective • Ease of doing business • 2016: 107 • 2017: 105 • Recent election ensures the 5 years ruling(stability) • Corruption Perception Index 2016 :131st out of 176 countries 2017 :122nd out of 180 countries • Free movement of goods among states (Constitution) • Competitive index: 4.02 (Rank 88) • Nepal Feed Industry Association (NFIA) and Department of Livestock Service under the Ministry of Livestock Development, jointly organized a program to spread awareness about ‘The benefits of eating poultry meat and eggs regularly’ recently in Kathmandu

  9. Economic Environment • 4% contribution in GDP and accounts for about 11.5% of livestock GDP (CBS 2014/15) • Engaging and employing 70,000 people • GDP per capital purchasing power parity has reached to $2642 in 2017 • Monetary Policy, FY 2017/18 • Defined as priority sector • Commercial banks – 25% of total credit • Development banks – 15% of total credit • Finance companies – 10% of total credit • Micro enterprises will get an income tax waiver for five years while the women-run enterprises will not have to pay income tax for seven years(Budget 2018)

  10. Legal Environment • Flat tax rate of 20%. 70% of normal rate is rebated for providing direct employment for more than 100 Nepalese throughout the year. • Considering the important contribution of poultry in national economy, APP has given 3rd priority in LDP • VAT shall be exempted on payment of insurance premium for insurance for poultry farming business. • Custom duty exemption: Custom duty of 1% only shall be imposed on vehicles transporting poultry. • “Rupantarankomargachitra 2075”- Integrated Agricultural Market in every state and local level

  11. Socio-Cultural perspective • Increasing tendency of consumer favoring white meat • Popularity of poultry meat without regard to caste/creed/age (Homogenization) • Changing food habits of urban inhabitants • Being one of the cheapest source of animal protein • Culture that showcase the importance of chicken meat for children and nursing mother • Fasting during the month of Shrawan

  12. Environmental/Physical perspective • Necessity to carry out Initial Environmental Examination or Environmental Impact Assessment. • Prevention and control of diseases • Bird flue has a direct impact on price of chicken • Proper disposal and management of dead poultry • Odor, flies and rodents and landscape degradation major problem • Water pollution when pesticide used to control parasite

  13. Technological perspective • Temperature Maintenance System (20-24° Celsius) • - Direct relation between temperature and mortality rate • Lack of modern laboratories regarding the disease diagnosis(Challenge)

  14. International perspective • Hike in price of petroleum product (12 times in 12 month) • Foreign Direct Investment creating challenges for local entrepreneurs

  15. Provision of WTO SPS agreement • The protection of animal or plant life or health within a territory from risks arising from the entry, establishment, or spread of pest, disease, disease-carrying organisms, or disease-causing organisms. • The protection of human or animal life or health within a territory from risks arising from additives, contaminants, toxins, or disease-causing organisms in foods, beverages, or feedstuffs. • The protection of human life or health within a territory from risks arising from diseases carried by animals, plants, or products thereof, or from entry, establishment, or spread of pests.

  16. Conclusion • Huge growth potential because of increasingdemand and supply deficit • Priority sector that can enhance/uplift the country economy • Business environment is favorableif cope up with few challenges

  17. References Company Act Industrial Entreprise Act Nepal Health and Livestock Service Act FeeD Act Nepal Health and Livestock Regulation Nepal Commercial Poultry Survey 2071-72 Poutry production and the environment: A review Nepal Livestock policy of Nepal: Opportunities and Challanges https://thehimalayantimes.com/nepal/chickens-poultry-products-being-smuggled-to-nepal-from-india/ https://www.farm.com.np/student_articles/nutritive-value-of-poultry-meat/ https://www.ibn.gov.np/uploads/files/Sector/Agriculture.pdf https://thehimalayantimes.com/nepal/poultry-import-scanner/ https://thehimalayantimes.com/business/poultry-owners-anxious-foreign-investment http://www.poultryhub.org/production/husbandry-management/housing-environment/climate-in-poultry-houses/ https://thehimalayantimes.com/business/benefits-of-poultry/ http://nepalagritech.com.np/events/nepal-poultry-livestock-2017/ http://kathmandupost.ekantipur.com/news/2017-02-17/govt-preparing-to-give-50-per-cent-subsidy-to-farmers.html https://www.wattagnet.com/articles/27319-nepal-poultry-sector-turnover-tops-us300-million-a-year https://thehimalayantimes.com/nepal/nepal-poultry-livestock-international-expo-2017-concludes/

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