Business plan Essay Example | Topics and Well Written Essays - 2000 words - 1

Business plan - Essay Example Asian countries are also witnessing growth in the household sector, it is estimated that consumption will continue to grow at a moderate rate through out the year 2006/07. (Source?) Yellow lupins(YL) have been analysed and proven to be a better product for fish feed than soy in studies conducted by Brett Glencross. The large volume of soy and the intermittent supply of YL has led to SSOM cutting out contracts that were originally in place with WestEx in favour of cheaper continually available soy beans. A market for yellow lupins has therefore not been able to be continually established at this point. The export of wheat is definitely the best market for WestEx in the short to middle term. If some of the profits from the supply of wheat were able to be channelled into lupin R+D there may be potential for the product. Yellow lupin supply has also been affected by the current drought. (King & Gilmour, 2007). Research will need to be conducted into areas including those outlined in the R+D section if a Yellow lupin market is to be established. The new 3 monthly contracts starting in November 2007 between Westex and SSOM for an increasing supply of wheat will go some way to cement the relationship between the two companies. The supply of wheat may be able to be considered a â€Å"cash cow† for WestEx to enable them to further R+D and market development into other products to establish further differentiation of products. SoonSoon Oil has requested a supply of APW from WestEx on a sliding scale starting at 500tpm and increasing by 500tpm to 12000tpm. The wheat is used by SoonSoon to mill into flour for on sale to their clients. The flour market in Malaysia is a significant one. WestEx as explained above focuses on wheat. The particular product seems to have an increasing demand within the Malaysian market. In accordance with a series of statistics published in 2007, the consumption of wheat in Malaysia presents an increasing trend