Current Status Concept / Business Plan
Amount Invested RM2,000
Funding Required RM1,000,001 to RM2,000,000
Description Pepper has been known as black gold in Sarawak and it fetched high price from international market. However,there are handful of exporter currently trading pepper from Sarawak. This idea is to harness the current opening in international pepper trading. Most of the current exporter are traditional exporter which has not fully utilising technology in their marketing, this create opportunity for newcomer to obtain customer. Pepper that currently being traded are black pepper and white pepper and these pepper then processed to its classification in accordance to International standard. Those standards are FAQ and ASTA, FAQ is Fair Average Quality while ASTA is American Spice Trader Association quality specification. Pepper will usually be processed at Malaysia Pepper Board Processing Plant at Pending. Several areas in Sarawak has been identified as high pepper yield area and there are hundreds of small and large scale farmers that are willing to sell their pepper at fair prices.
Business Opportunity There are opportunity to compete with other well established pepper exporter in Sarawak. It is due to their method of trading which still very much traditional in marketing and customer preferences. While most of them are focussed at Far east importer, other region of this world are under traded due to trust issue and comfortability. This means, new exporter can develop and trade with new region and create a sound partnership with importer. Apart from that, with new method of marketing and better exposure, new exporter can attract wider range of importer worldwide. Therefore, it is important to balance between numbers of customer and pepper supply to cater to the demands. As farmer trade their pepper to make money, it is wise to preserve ties between exporter and farmer to secure supply and being fair to farmer. Farmer are happy to produce high quality of pepper if it can fetch high price but in current situation, pepper dealer and exporter are bias toward farmer and has led them to produce low quality pepper due to financial constraint.
Revenue / Business Model Exporter will earn a good percentage of profit if they can secure large amount of supply and steady flow of export contract. At average pepper exporter in Sarawak are making 25-30% profit margin. This is due to unfair buying price at farmer and dealer level. Most of Sarawak pepper importer now are food processor, re-exporter and pharmaceutical corporation. Efficiency in supply chain can contribute to higher profit margin because much of the expenditure is in supply chain such as transportation. A thorough and meticulous planning in transportation of pepper supply from farm to port can further propel company growth.
Management Team Management team should consist of general manager that will oversee the overall operation of the company. The general manager will be helped by logistic supervisor,purchasing supervisor and marketing/sale supervisor. The logistic supervisor will handle logistic matter such as transportation and warehousing. Purchasing supervisor will oversee buying of supply. He/she will have to work closely with logistic supervisor to coordinate the transportation between farm to warehouse. Purchasing supervisor are required to monitor its network of dealers to ensure smooth process of acquiring pepper supply. Good planning in supply chain is essential to secure steady pepper supply and create competition amongst exporter. Marketing/Sale supervisor will handle client and quality of pepper to be sold abroad. He/She also involve in extensive marketing and maintain relationship with existing customer. Quality of pepper include licensing and certification of pepper to be exported comply with international requirement.
Company Background D.M Partnership is a registered entity in Samarahan,Sarawak with registration number SAM 234/15. Our business was registered on June 2015 and has kick off since. We designed and launched our own website short after. We also coordinated our own marketing campaign and managed to attract many potential client around the world. We secured 6 export contract initially, however due to work demand we dropped 5 of them and focussed on single contract with high profitability. We have been visited by a multinational corporation spice division manager and keen to work closely with us. We done our research on pepper plantation area and export market as well as pepper quality. However, due to financial constraint, we turned down our business as we could not secure any financing and investor.
Funding Milestone We have been in contact with several bank managers across Kuching and investor from West Malaysia. However, bank is reluctant to provide us financing due to our young age and management incompetencies. Investors had show much interest in our business and willing to invest substantially. We refused their investment due to absurd demand and not able to co-manage the business.
Company Name D.M Partnership (SAM 234/15)
Business Address PIBU SEDC SAMARAHAN, 1st Floor Lot7993 E&F Block 9 Jalan Dato Muhd Musa MTLD 94300 Kota Samarahan
Contact Person Don Makanzie Ak Lock@Sulen