Cooking Oil Manufacturing Business

Our main rule in business organization (manufacturing) is financial, organizational, marketing integrity. These are general rules, they are used by leading global companies. All these principles are interconnected. We have synergy when 1 + 1 = much more than 2. The integration of tangible and intangible assets should be according to these guidelines:

1. The production of cooking oil should make a profit. The cooking oil business is very old. We have formed a constant demand for edible vegetable oil. On our side: demography (the population of the globe is constantly growing), a young market for raw materials in Ukraine, duty-free trade in cooking oil with the EU market. We are sure that in the near future the demand for our products will increase. Asia increases sunflower oil intake every day

2. The company must optimize taxes & expenses. Taxes. Our competitors regularly optimize taxation. Therefore, we cannot ignore this area of business. In the global market there is a struggle even for 1% of the profits. In Ukraine, a significant role is played by the VAT refund for the exporter. Real economy. We consider it necessary to carefully select employees for the entire work package. Incompetence is expensive. Oil for cooking as a commodity. This is one of the coolest foods: convenient to store and transport. Therefore, investment in cooking oil has a natural advantage

3. Skills team use budget. Revenues must be greater than expenses. We need to coordinate intelligence, skills and assets to achieve synergy. Very often, at the beginning of a business, unexpected expenses begin. Usually these are: excessive expenditures of money during the construction (creation) of an object, an underestimation of the necessary amount of working capital (as when purchasing raw materials for making oil, and as a commodity credit for customers)

4. Ability to use financial leverage & ability to scale food business worldwide. The world's population is growing rapidly. Almost all banks and financial funds invest money in food supply transactions. This is a low margin and low volatility market. To compensate for low margin traders get a good leverage

5. Management should be informed about the latest trends & should be able to analyze the current situation. We must carefully monitor any changes in the world market of vegetable oils. Also compare this information to the domestic market of oils and oilseeds of Ukraine. All actions depend on the specific scale of production and trading conditions.

Ukraine: Key Facts

  • Area:
    603,500 square kilometers
    Largest country
    within Europe
  • Location:
    Borders Poland, Romania,
    Slovakia, Hungary and Moldova
    in the west, with Belarus and
    Russia to north and east, and
    via the Black Sea, Bulgaria,
    Georgia and Turkey
    to the south
  • Political system:
    Parliamentary-Presidential Republic
    President Petro Poroshenko
    Prime Minister Arseniy Yatsenyuk
  • Population:
    45 million
    70% urban-based
  • Diaspora worldwide:
    20 million strong network
    throughout the world
  • GDP (PPP):
    $373
    billion in 2014
    top-50
    economy
    globally
  • Average salary:
    $156
    per month
    Most cost-competitive
    manufacturing
    platform in Europe
  • Big Mac
    price:
    $1.55
  • Visa free
    travel
    for short stays
    for most
    Western
    countries

Trade:

  • 1
    Geographical center of Europe,
    making the country an ideal trade
    hub to the EU, Middle East and Asia
  • 2
    World
    Trade
    Organization
    member
  • 3
    Deep and
    Comprehensive
    Free Trade Agreement
    (DCFTA) with
    European Union
  • 4
    Free trade: EU, CIS,
    EFTA, FYROM,
    Georgia, Montenegro
    On-going negotiations
    with Canada, Israel
    and Turkey