Meat products, investment analysis, Meat processing, economies of scale, Evaluation

Research Article
Varalakshmi K
DOI: 
xxx-xxxxx-xxxx
Subject: 
science
KeyWords: 
Meat products, investment analysis, Meat processing, economies of scale, Evaluation
Abstract: 

This paper evaluates the potential of meat processing as a business in India. It analyses and compares the economics and investment feasibility of different meat products. It also compares the feasibility on different size groups of processing plants. The primary data on input use and output yield were taken from studies of NRCM and data was analysed using economic analysis and investment appraisal techniques like NPV, IRR (%), BC ratio, and Break even analysis. The results indicated that Emulsion products requires highest investment (Rs.91 lakhs) on large units compared to other products. Average Cost of production (Rs.411/kg) and resulting selling price (Rs.452/kg) were found to be highest for enrobed products. Feasibility was found to be highest for enrobed products among the products and for large units among the size groups with average Benefit cost ratio of 2.43, IRR of 86%, Return on investment of 42% and Return on equity of 170%. Economies of scale is evident form all perspectives like production costs, profits, discounting measures and breakeven point for all the products. Meat processing was found to be profitable irrespective of product and unit.