Funding

SECTION I: ESTIMATION OF COSTS 

1 Taking into account the rest of the cost evaluation please provide an overall estimation of the total costs for full deployment/production of the R & D result.
… in terms of IPR protection
Completion of IP procedure  – 2.000 e 
…in terms of product development
In term of testing of product on semi industrial scale15.000 e

In terms of completion of documentation for prototype industrial facility and testing of final product 25.000 e

…in terms of mass production
Precondition for production Balkan traditional milk fat dairy product is the existence of dairy plant.

If dairy plant does exist it is necessary to install the process equipment for Balkan traditional milk fat dairy production. Investments necessary for building of working space for Balkan traditional milk fat dairy production (BTFDP) department and installation of machinery for processing of  2.000 l milk per day in BTMFDP are in range 100.000 – 150.000 e

If dairy plant does not exist, the cost of building up of whole dairy plant may be in range between 500.000 and 1.300.000 euro, depending on product range in dairy plant, level of modernization, ect.

Total costs (without the costs of buildings and equipment) for full production include costs of raw milk, work labor, energy, and other costs. 

Beside dairy plant may have different product ranges production costs for BTMFDP.  Calculation may be made based on capacity of 5.000 l of milk per day, and 12 workers in dairy plant, as well as valorization of equipment through 8 years and buildings through 50 years investments, respectively. If all raw milk is used for BTMFDP the proportion of the expenses that are dedicated only to BTMFDP based on total investment costs, personnel costs and other running costs would take 20%, 30% and 25% respectively. New technology for BTMFDP will utilize 40% of raw milk in first year, 60%, 80% and 100% in 2nd 3rd and 4th year, respectively and in 5th year total plant capacity is calculated to 130% of based capacity, with full utilization of milk for BTMFDP. Regarding that calculated expenses for BTMFDP should take in consideration proportions mentioned above.

… in terms of marketing
50.000 e, for establishing initial production on the market in 1st year and 20.000 e per year over range from 2nd – 5th year.

 

2 Based on the above assessment as well as the marketing information please provide the correct estimation of the price for R&D product in correlation with costs 
  Year 1 Year 2 Year 3 Year 4 Year 5
Fixed costs 18.500 18.500 18.500 18.500 18.500
Personnel 26.000 26.000 29.000 29.000 35.000
Other running costs 115.000 172.500 230.000 287.500 373.750
Marketing costs 60.000 40.000 40.000 40.000 60.000
TOTAL EXPECTED COSTS 219.500 257.000 317.500 375.000 507.250
Price per Unit 4.2 4.2 4.2 4.2 4.2
Type of Unit  
Number of Units 58.400 87.600 116.800 146.000 190.000
TOTAL Expected Revenues 245.280 367.920 490.560 613.200 798.000
CASH FLOW REQUIRED (REVENUES-COSTS) 25.780 110.920 173.060 238.200 290.750

 

SECTION 2: QUALITATIVE FACTORS

3 Dimension of identified target groups
Detailed comment

Potential target groups may be:

  1. existing local dairy plants that are willing to extend their product range, or make complete change of existing product range;
  2. local companies that are willing to extend current business by introducing dairy business;
  3. farmers with big amount of milk produced who are interested in starting with processing own milk;
  4. international companies in surrounding countries that are interested in dairy business in Serbia with idea to cover production BTMFDP, with the idea to extend the this production on larger scale in order to reach overseas markets.

 

4 Evaluation of financial Risks for R&D result
Detailed comment

Product has never been produced under industrial procedure. It is likely that some upgrading of procedure, as well as process equipment will be needed in starting period of production. 

 SECTION 3: IDENTIFICATION OF FINANCING SOURCES

After evaluating all the above mentioned criteria, please tick the best financing source for the achievement of R&D result (i.e. own capitals, banking credits, venture capital, business angels, etc)

1. European Funding

Define relevance of the product with the following potential funding sources and comment

1. …IPA programme supporting agriculture

2. …Rural development support

3.

4.

 

2. National Funding
1. …Ministry of economy

2. …Ministry of agriculture

3.

 SECTION 3: FINAL EVALUATION

It is requested a final evaluation considering the funding opportunities you believe most suitable for the exploitation of the R&D result, considering the possibility of the creation of a spin-off, further research, in particular, a cost/benefit analysis and a financial projection for the R&D result, type of collaboration identified (i.e. Licensing Agreement, Technical Cooperation, Joint Venture, Manufacturing Agreement, Commercial Agreement with Technical Assistance, Creation of a spin-off, Joint further development)…
National support should come from resources that are supporting development of the agriculture and rural area development. New technology for BTMFDP may reach a position of leading national brand in dairy sector. Support should be incorporated in network that supports agriculture, with significant export orientation. 

 Decision of evaluation (Please keep only the appropriate)

  • The R&D has a high potential of exploitation 
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