Final Year thesis

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Corrick Bridge Gourmet Gluten-Free Sausages
Christopher Brady
The Research Project is submitted to Dundalk Institute of Technology in fulfilment of the
requirements for B.Sc. (Hons) in Food and Agri-Business
Department of Applied Sciences
School of Health and Science
Principle Supervisor:
Eamon Mullins and Joe McKeever
May 2015

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Table of Contents
1. Executive Summary........................................................................................................3
2. Declaration of Originality ...............................................................................................3
3. Introduction.....................................................................................................................4
4. Description of the Product ..............................................................................................5
5. Industry and Market Analysis.........................................................................................7
i. Analysis of target market ............................................................................................7
ii. Market trends...............................................................................................................7
iii. Profile of customers ....................................................................................................8
iv. Benefits of product/service to customers ....................................................................9
v. Analysis of competitors...............................................................................................9
6. Legislation relating to the product ................................................................................10
7. Production Process........................................................................................................14
8. Supply Chain.................................................................................................................17
9. Marketing Plan..............................................................................................................20
i. Marketing objectives.................................................................................................20
ii. Marketing Strategies .................................................................................................21
iii. Marketing budget .................................................... 2Error! Bookmark not defined.
10. Financial Plan............................................................................................................24
i. Financial assumptions ...............................................................................................24
ii. Financial requirements ..............................................................................................26
iii. Sources of finance .....................................................................................................27
iv. Projected profit and loss account for 3 years ............................................................28
v. Cash flow for 3 years ................................................................................................29
vi. Breakeven analysis....................................................................................................32
11. Conclusion and Discussion .......................................................................................33
12. Appendices................................................................................................................34
13. References .................................................................................................................41

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Executive Summary:
Corrick Bridge Gourmet Gluten-Free Sausages is company dedicated to producing gourmet
gluten-free sausages. The business is located onsite of an established pig farm in Cootehill
Co. Cavan where all the meat will have originated from; the company prides itself in being
guaranteed Irish all meat within the sausages can be traced back to origin. The company also
has a green image from the fact that all ingredients within the sausages are all from natural
origin and there are no artificial colourings or preservatives present within the sausages.
The company was set up by Christopher Brady a fourth year student in Dundalk Institute of
Technology, Christopher has a completed a four year course in Food and Agri business which
effectively means he has got an insight and knowledge of food business, processing and
production. Christopher is from a pig farming background and understands the pig markets
and price of meat very well. Christopher also has experience in working with a pig processing
plant in Mc Carron’s Co. Cavan, which in turn portrays that he has experience in production
of large scale operations of pig meat processing.
Corrick Bridge Gourmet Gluten-Free Sausages is a small scale sausage producing unit that
has great potential with the knowledge and expertise that the owner has from his many years
in the pig production world.
DeclarationofOriginality:
I hereby declare that this project entitled Corrick Bridge Gourmet Gluten-Free Sausages is
entirely my own work.
______________________________
Student Name: Christopher Brady
Date: 30/04/2015

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Introduction:
The product that the company plans to bring to market and sell is “Corrick Bridge Gourmet
Gluten-Free Sausages”. While there are other somewhat similar offerings available both locally
and further afield, none of them can produce the same quality product at the price that this
unique recipe delivers. One of the disadvantages of this recipe is that to produce a tastier,
healthier sausage, the shelf life is slightly reduced as only pure ingredients and natural
preservatives are used. My aim is to prove that a small niche market business domiciled within
an existing successful pig producing unit can take advantage of lower production costs,
minimum delay between the animal being slaughtered and the raw material being extracted and
also no transport costs in sourcing the main ingredient – pork meat. Flavour is sometimes
sacrificed in the pursuit of healthier eating – not the case with Corrick Bridge Gourmet Gluten
Free sausages.
It will all depend on whether I can bring the product to market and make a sustainable profit
year on year to succeed and grow the business.
3.1 Market Analysis:
I plan to concentrate market analysis/demand in 3 areas – the first 2 relate to coeliac sufferers
and health/fitness conscious buyers and the third area will be marketed/ aimed at school going
children and teenagers.
The theory is that if the product catches on with these buyers then it will to an extent sell itself
to the wider market once it gets established. I anticipate that it will take 3 to 5 years to establish
a reputation/brand recognition before it can be launched on to the mass market. I also anticipate
that the cost to produce in the earlier stages will be higher than later on in the product life cycle
when it is hoped that economies of scale will drive the costs downwards.
3.2 Legislative restrictions/requirements:
Food production handling, storage and processes must comply with industry standards
(hygiene, food storage, waste disposal etc.). FBO – FSAI.
EC regulations regarding Labelling, information and packaging must also be applied.
The requirements of the Sale of Goods and Services act have to be satisfied.

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As this is (at least to start with) a small cottage industry I will not have issues with the
Competition Authority. The C.A can, and have in the past refused permission for potential
monopolies i.e. Kerry-gold and Breeco - they objected to 3 product lines - Rashers, Non-
poultry cooked meats and processed cheeses.
3.3 Production process:
The production process is relatively straight forward - Blend the ingredients – this can be done
manually or by machine – I will need a sausage forming machine and a wrapping machine to
render the finished product airtight and suitable for handling – the core value of the product
rests with the recipe. Being able to keep the costs down to facilitate selling a gourmet product
at a “normal” selling price is the real challenge.
4. Description of product:
4.1 Corrick Bridge Gluten-Free Sausages Innovation
The production of sausages is not difficult to replicate as is evident with the variety available
today – my plan is to produce a tastier, healthier sausage and sell it for the same price as the
“ordinary” sausages by basing the production within the actual confines of Corrick Bridge Pigs
Farms.
4.2 Scientific Properties of Corrick Bridge Gourmet Gluten-free Sausages
There are no artificial colourings, flavourings or preservatives. The pork meat does not have to
be wrapped and transported to another location to be turned into sausages and thus it loses none
of its freshness and flavour. In terms of scientific properties Corrick-Bridge Gourmet Gluten -
free sausages. The sausages will have a higher protein percentage in it compared to other brands
products with each sausage having 80% pork meat compared to Mallon’s gluten-free sausages
65%. This higher pork meat content will also result in a lower fat content/percentage.
4.3 Ingredients of Corrick Bridge Gluten-free Sausages:
The following recipe is enough to make 8 gluten-free sausages:
455 grams ground lean pork
15 grams salt
3.75 grams pepper
7.5 grams sage
1.87 grams ginger powder
3.75 grams nutmeg
3.75 grams thyme
1 egg
15 grams rice flour
3 grams – mix of various spices
Average weight of a sausage is 70 grams
4.4 Packaging and Preservation of Corrick Bridge Gourmet Gluten-Free Sausages
As detailed above – salt is the only natural preservative in the recipe and the packaging will be
plain with the logo attached to a clear, air tight packaging. The expected shelf life of the

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sausages will be 2 weeks if stored at the correct temperature and in the proper facility i.e. a
clean fridge that maintain 4 degrees on a consistent basis.
4.5 Testing of Corrick Bridge Gourmet Gluten-free Sausages
There was sensory analysis testing was carried out Corrick Bridge Gourmet Gluten-Free
Sausages, this was done by making and cooking the sausages according to the recipe and tasting
and marking the sausages out of ten. For this sensory analysis the company got ten different
people from ten different aspects and backgrounds of the community to carry out the analysis
this in turn would give the company a clearer image of how the sausages would be perceived
by consumers. In the table below the will give a brief background to the ten people that carried
out the sensory analysis.
Table 1: this is a brief description of the ten people that carried out the sensory analysis.
No. Age: Gender: Profession: Any sickness or illness: Are they active:
1 15 Female Student No Yes exercise 3
times a week
2 18 Male Student No Yes exercise 3
times a week
3 22 Male Student Coeliac Yes exercise 5
times a week
4 26 Female Vet No No
5 50 Female Banker Coeliac No
6 55 Male Pig farmer Diabetic Yes exercise
twice a week
7 67 Male Retired High blood pressure No
8 37 Male Carpenter No Yes exercise 5
times a week
9 33 Female Housewife Diabetic No
10 66 Female Housewife Had previously
suffered a brain
hermitage
No
There was a comment also made in each section of the sensory analysis to give a clearer image
and picture of the sausages, after the sensory analysis was conducted the company comprised
the average result from each of the participants and the company felt that would be the clearer
and more accurate way to know how the sausages would be perceived in the consumer market.
Here are the following results;
 Taste: 5/10 all the participants felt the sausages tasted very plain and bland.
 Texture: 7/10 all the participants felt the sausages texture was thick and chunky due to
the high meat percentage.
 Aesthetics: 7/10 all the participants felt the sausages didn’t look any way in different
to that of a normal sausage that would be on the market which gives the opinion that it
looks normal and won’t look out of place in the gluten-free market.
 Mouth-feel: 4/10 all the participants felt the sausage felt was thicker and at times was
hard to chew due to the high meat percentage within the sausage.
 Aroma: 6/10 all the participants felt the smell of the sausages was savoury and didn’t
have an outputting smell about them but in the same didn’t have the same aroma that a
sausage with gluten would have.
Once the sensory analysis was conducted and results were taken in account, the overall feel for
the sausage was that the sausage would have a plain taste due to the lack of fat presence in it,
while the aesthetics, aroma and the texture were normal compared to that of the sausages that

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would be on the market, while the mouth feel was that of a thick one due to the higher meat
percentage. This sensory analysis testing was fairly reliable as seen in table 1 the age and back
ground of each participant was very wide and covered really all aspects of the population.
5. Industry and Market Analysis:
5.1 Analysis of Target Market
With recognition of the pressure that gluten places on our system/metabolism and the well
documented increase in allergic reactions to wheat – catering for the growing coeliac market
makes sense. In Ireland alone there are over 50000 people diagnosed coeliac decease.
(Goodness Grains2014).
With access to web based nutritional science sites and comparison websites, today’s shopper
is much more discerning. It is also now relatively easy to compare one product with another as
per EU standards all the ingredients must be detailed on all packaging. (Goodness
Grains2014).
Over 26.5% of Ireland’s population is now considered obese with the numbers of young
children increasing at an alarming rate (Dermody 2013).
Up to 5 years ago gluten free products were basically unheard of except for specific health
shops, since then the sale of gluten free products has increased in volume and value. Sales in
the category have doubled in the last 5 years and are expected to double again in the next 3
years to $5.5 billion by 2015 (Dermody 2013).
5.2 Market Trends:
 A confirmed diagnosis of coeliac disease has been proven to result in the family as a
whole avoiding gluten. When dining out they will choose to eat in restaurants that offer
gluten free options (Dermody 2013).
 In Britain alone the consumption of gluten free product has risen by 120% over the past
5 years and within Britain there are recorded 12 million consumers (Dermody 2013).
 A 2013 report by Face found a consumer wishing to follow a gluten- free diet must
spend 344% more than a consumer wishing to purchase goods with gluten. This
amounts to €1,616 more each year (McCullough 2013).
 There were no company’s in Ireland producing Gluten free sausages 6 years ago but in
recent years there between 5-10 companies in full production (Bord BIA).
 Gluten-free products have proven to very successful when included as part of a weight
loss plan as gluten has a very high fat percentage (Dermody 2013).
 Shopping Behaviors of Gluten-Free Consumers where noted at the following, 55%
spend 30% or more on their grocery budget for gluten-free foods, 68% shop at three
or more stores per month to find gluten-free foods, when asked if they could find the
same products at all the following stores where would they most prefer to shop for
gluten-free foods; 71% grocery store, 9% independent natural or health food store, 8%
mass merchandiser, 7% natural food chain, 5% club store and 0.1% drug store. (C,
McCann2008).
 Product selection is the most important factor, followed by low price, convenience,
good service, close to where they live, knowledgeable staff to help, friendliness of
staff, and close to where they work(C, McCann2008).

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 Product selection is the most important factor, followed by low price, convenience,
good service, close to where they live, knowledgeable staff to help, friendliness of staff,
and close to where they work
 The majority (77%) agreed it was hard to find good tasting gluten-free foods(C,
McCann2008).
 More than half (57%) have tried ten or more new gluten-free products in the last year
(C, McCann2008).
5.3 Profile of Customers
In relation to the market research carried out through questionnaires, to investigate whether
customers who are interested in gluten free products would be willing to pay more for the
product if they tasted better. We will also examine what outlet would be the best to sell the
product. If this product was to be launched into the market, what size packet would be best to
package them in?
Questionnaires were made and were handed out in the Co. Meath, Monaghan and Cavan area.
They were completed outside local butchers, supermarkets and local shops in the areas
concerned. Some were also distributed to fellow students. The results were collected and
analysed. A statistical analysis of the results is carried out and a visual representation can be
seen in the form of charts and graphs (these graphs can be seen in the appendixes). The main
results are as follows:
 62% of the people asked said that they purchase the sausages in the local butchers rather
than in supermarkets “off the shelf” products. Product loyalty was a common thread
with the bigger brand names scoring well (Denny/Galtee etc.).
 The majority of people who completed the questionnaire were between the ages 19 and
35. Young parents were particularly interested in healthier options being offered at
affordable prices – likewise students questioned were very cost conscious and would
avail of the Gluten free option if available at the same price.
 80% of participants that took the questionnaire were male.
 67.5% of the participants said that there wasn’t a family member that suffered from
food intolerance/allergies – by process of elimination – 32.5% had a family member
that had food allergies.
 In terms of the sale and purchase of gluten - free sausages the majority of the
participants said that would have to go to a supermarket to buy that product as it’s not
available in the local shops or butchers.
 For the participants to buy the product the four areas that would most concern them
would be: taste, price, nutrition value and source of the product. The guaranteed Irish
logo was identified as a “must have” indicator of Irish origin.
 The potential customers of the product stated that they would like to leave the sausage
untainted and have no foreign recipes included into it. (e.g. onions, mushrooms or any
spicy flavours)
 The preferred size of the packets of sausages would be 8 as it is more convenient and
easy to store within a household fridge and a 16 pack would only suit a larger family.
 The last and more important stat that came out of the market research was that 57.5%
of people would be willing to spend a little more on my product than that of sausages
made with gluten in them. Therefore if I can keep relatively the same selling price, my
product will sell based on overall value for money and taste.

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In relation to these stats and figures deprived from my market research/feasibility studies I have
completed an analysis of who my immediate future customer will be:
 People who are trying to avoid gluten as a lifestyle choice and may be battling
problems with obesity.
 The age profile will be between 19 and 35 as these are the most cost conscious and
health conscious apart from those already suffering for coeliac disease.
(students/young parents)
I am hoping to bring to market a product that the wider family members that do not have to
deal with food intolerance issues will be attracted to and as such grow my customer base within
the family group.
5.4 Benefits of Product/Service to Customers
The benefits of the product/service to the customers are the following:
 Higher protein percentage: with a higher meat percentage per sausage, this in turn will
result in a lower fat content, which is of great benefit for the consumers in the healthy
lifestyle target market.
 Absence of preservatives and artificial colourings: the only preservative present is salt,
this enforces the image and quality and consistency of the sausage being produced
 Gluten-free: obviously with the sausages being gluten/wheat-free this is clear benefit to
the people that suffer from being a coeliac.
 Irish based: important to have a loyal local market from which to expand.
 Meat can be traced back to the source: all meat can be traced back to the farm and will
carry the “Guaranteed Irish” label.
 The company has its own Delivery van: if an order comes in it can be delivered in the
shortest possible timeframe.
5.5 Analysis of Competition:
Table 2: here is a table that analysis all Corrick Bridge Gourmet Gluten-free sausages
competitors.
Competitors name: Competitive advantage:
Jane Russell gluten-free sausages  Established since 1863
 Sources the meat through Bord BIA
to ensure quality approved and full
traceability.
 All their gluten free products are:
Nitrate free, Lactose free, Soy free,
Wheat free and Egg free. This gives
a very good competitive advantage
as this represents a good healthy
clean image for their products.
 Their recipe is based on a French
sausage.
 They have their own butchers set-up
in Co. Kildare
 Average cost of packet of Sausages:
3.75 for a pack of 8.

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Clonakilty sausages  Traditional butchers and pig factory,
they only started to produce gluten
free products in 2007.
 Have been in operation since 1980s
so will have a good image and
history with an established
customer base.
 At this moment in time they are
currently testing the market for 2
more gluten free products; this
would infer that their current gluten
free products are making profit.
 Have their own butchers set-up in
Clonakilty Co. Cork
1.89 euro for a pack of 6
Irish pork sausages  Have the name and tradition of
being able to produce the ‘healthiest
sausage in Ireland’
 Their gluten free sausage only
contains 2% fat which makes their
product ideal for anybody who is
trying to lose weight.
 Average cost of packet of
Sausages:2.75 euro for a pack of 8
Hodgins sausages  Have a contract with Tesco that
Tesco will only sell their products as
part of the Tesco gluten-free range –
huge advantage.
2.00 euro for a pack of 6 sausages
Mallon’s sausages  Have the same background and
image as Clonakilty sausages and
Irish pork sausages.
 In terms of sausage production, they
are most commonly brought and
eaten sausage in Ireland
 Mallon Sausages are produced
using only 100% Irish Pork and
traditional recipes. The sausages
are available in all retailers
throughout Ireland in many
different pack sizes and flavours.
2.30 for a pack of 6
In conclusion as seen in above table 2, there is no shortage of competitors within my target
market, all my competitors seem to be producing only packets of 6 sausages from this
information I will produce 8 sausages per packet, this will give competitive advantage over my

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competitors as my packets will have more value to them. In comparison to the price per packet
of sausages the average for all the competitors is 2 euro, while my price will be 3 euro per
packet but also offering 2 extra sausages which works at better value. My main competitor will
be Mallon’s sausages as they are only located only 15 miles from me and already have a good
customer base set-up through-out the locality and the country. If the company was to survive
it would initially have to eat into Mallon’s customer base as otherwise it is going to be very
different. In terms of Hodgins they are the sole producing of gluten-free sausages that sell
through Tesco which gives them a competitive advantage as I won’t be able to retail my product
through Tesco as Tesco has agreed to only sell Hodgins gluten-free sausages and sell no other
competitor. Overall for the business and to compete with its competitors the main priority
would be to eat into Mallon’s customer base as it is within the locality.
6. Legislation
6.1General Provisions:
General provisions for food production are put in place by the Food Safety Authority for Food
Business operators. In this regulation the food safety authority places the responsibility on the
Food Business Operator (FBO) to produce safe food in a clean environment. The following
responsibilities must be undertaken by the food business operator:
 The FBO must not place any unsafe food on the market. (FSAI 2012).
 The FBO is responsible for the food they produce, transport, sell and store. (FSAI
2012).
 The FBO must be able to rapidly trace any of their products back to their sources. (e.g.
farms) (FSAI 2012).
 The FBO must inform the proper authorities if they believe that their food is unsafe to
eat or consume. (FSAI 2012).
 The FBO must withdraw any food or products that they believe are unsafe for human
consumption (FSAI 2012).
 The FBO must identify and regularly review the critical points in their processes and
ensure that controls are applied to these points (FSAI 2012).
 The FBO must co-operate with all authorities in actions taken to reduce risk (FSAI
2012).
6.2 Categories of Reduced-gluten and Gluten-free Food:
There are 2 different types of gluten-free products within Ireland. . For a food to be classified
as a gluten-free product it must fulfil the following criteria:
 The level of gluten within a food product should not exceed 20 mg/kg in the product.
 In terms of 20mg/kg to 100mb/kg these products should be labelled as reduced gluten
product (FoodsafetyAuthority2010).
 This is demonstrated accordingly in table 3:

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Table 3: here below is the table that is used to compare the reduced gluten and gluten free
products (FoodsafetyAuthority2010).
Gluten content FSAI guidance Commission regulation
(EC)
Not greater than 20mg/kg Can be labelled ‘gluten-
free’
Can be labelled ‘gluten-
free’
20 to 100 mg/kg Label ‘ reduced gluten
suitable for most coeliac’
Label ‘ very low gluten’
Date of application of
labelling requirements
To be labelled in
accordance with
recommendations from 17
June 2009
Compulsory from 1
January 2012 but can be
applied to products now.
In terms of food legislation that is applied to gluten- free products, it is monitored by the
food safety authority of Ireland as they will conduct tests and analysis on all gluten-free
Products to see if they are produced in hygienic manner and in gluten free environment. This
is done by setting up a scientific working group who in turn advises the authority on issues
relating to the coeliac condition and how it should be handled and monitored and what steps
should be taken to make sure all gluten-free products are produced correctly: These steps
where:
 Continuation of the Health Service Executive/Food Safety Authority of Ireland
surveillance programmes for foods suitable for consumption by coeliac
(FoodsafetyAuthority2010).
 The drawing up of guidelines for industry for the avoidance of cross contamination in
production, manufacturing, catering and retail establishments as applicable
 Development of training programmes for relevant enforcement staff, those producing
foods suitable for consumption by coeliac and for the catering and restaurant trades
 Improvement of the nutritional quality of foods suitable for consumption by coeliac,
especially those that are made using unenriched, refined grains or starches. Of particular
note, the needs of the coeliac warrant consideration when examining folic acid
fortification of flour (FoodsafetyAuthority2010).
 The progression of standards and harmonised labelling provisions for gluten-free foods
and those rendered gluten-free at EU level and at relevant Codex Alimentarius
Committees (FoodsafetyAuthority2010).
 The development of enhanced greater linkages between the Coeliac Society of Ireland,
the Food Safety Authority of Ireland, safe food, relevant health professionals and food
industries on these issues. (FoodsafetyAuthority2010).
The food safety authority took these steps into consideration and applied each step in
accordance with food legislation for gluten-free products. The Food Safety Authority recently
monitored and analysed all gluten-free products to make sure they had only levels of under
20mg/kg present within them and any products that are produced that have levels of between
20mg/kg and 100 mg/kg are correctly labelled and identified as reduced gluten free products.
In terms of Corrick Bridge Gluten-Free sausages, the product would fall into the gluten-free
range as it contains 0mg/kg (FoodsafetyAuthority2010).

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6.3 Food labelling:
Food labelling is used to inform consumers of the properties of pre-packaged food. The most
important rule of labelling is that the consumer should not be misled. This section covers some
of the main areas of food labelling requirements.
What must appear on the label?
Under General labelling legislation the following must appear on the label:
 Name under which the product is sold (FSAI 2000).
 List of ingredients (FSAI 2000).
 Quantity of certain ingredients (FSAI 2000).
 Net quantity (FSAI 2000).
 Date of minimum durability (FSAI 2000).
 Any special storage instructions or conditions of use (FSAI 2000).
 Name or business name and address of the manufacturer or packager, or of a seller
within the European Union (FSAI 2000).
 Place of origin of the foodstuff if its absence might mislead the consumer to a material
degree (FSAI 2000).
 Instructions for use where necessary (FSAI 2000).
 Beverages with more than 1.2% alcohol by volume must declare their actual alcoholic
strength (FSAI 2000).
The general labelling requirements in Ireland are that foods must be labelled in English or in
Irish and English. The foods may also be labelled in other languages but only in addition to
English (or English and Irish) (FSAI 2000).
6.4 Labelling of gluten-free foods:
Labelling Provisions:
There are several important labelling regulations which apply to foods generally and also more
specifically to gluten-free foods or those reduced in gluten. For coeliac foods, labelling of
products can be of more significance than for other consumers (FSAI 2000). The use of the
terms ‘gluten-free’ and ‘suitable for coeliac’ can also be considered under labelling controls.
Also ‘reduced gluten’ should also be labelled on the suitable products that fall into the select
criteria that can is portrayed in table 1. (FSAI 2000).
6.5 Food contact material:
In terms of food contact material it is regulated by the Framework Regulation (EC) No
1935/2004 and Regulation (EC) No 2023/2006 (Food Contact materials). The Framework
Regulation (EC) no 1935/2004 has an underlying principle that any material or article intended
to come into contact with food should be sufficiently inert to preclude substances being
transferred to food in quantities large enough to endanger human health or to bring about an
unacceptable change in the composition or a deterioration in the organoleptic properties of the
food, i.e. a taint in the food. Regulation 1935/2004 requires that FCMs are manufactured in
compliance with good manufacturing practice (Food Contact materials). It also specifies
labelling and traceability (one step forward and one step back) requirements for FCMs. In terms
of the Regulation (EC) No 2023/2006 this regulation lays down the rules for good
manufacturing practices that all applies to all groups of materials and articles intended to come
into contact with food (Food Contact materials). These 2 regulations have a major impact on
the gluten-free sausages as they are packed and sold in plastic trays that are heat sealed in
plastic pouches. (Food Contact materials)

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6.6 Food allergens:
In terms of food allergens legislation for gluten-free sausages, the presence of egg is the one
the listed 14 allergens according with Regulation (EU) No. 1169/2011. In this regulation it
states that with the presence of egg in a product that it must be labelled correctly and boldly
and stand-out clearly from the rest of the ingredients. E.g. pork meat, Egg, thyme, nutmeg.
(FSAI 2011)
7. Production process
7.1 Process in making the sausages:
The following process is used when producing Gluten-Free Sausages within the company:
 Correctly weigh out all the ingredients that are included in the recipe.
 Put all ingredients in a mixing bowl and mix thoroughly either my hand or by mixer.
 Once all of the ingredients all properly mixed put the mixture through a sausage former
and shaping machine.
 Once the sausages are formed put them in their according trays (8, 16 or 32) then put
plastic over trays and product and seal using vacuum packer and label according.
7.2 Description of Premises, Machinery and Equipment
There will 3 rooms within the facility, an office (Green Square within diagram 2), a
hanging/chilling room (Red Square within diagram 1) and the main factory floor (red square
within diagram 2). The hanging/chilling room will be a small room that will be used to hang
and chill the meat to the correct temperature for the meat to be processed. The office will be a
small room with the essential office materials (desk, filing space for records, phone, computer
etc.). The factory floor is detailed below in diagram 1. The reason why the company is choosing
to lay out the premises like is for a number of reasons, here is the reason:
 As seen in diagram 1 the flow of meat come in one door and goes out another door,
never comes back onto itself which in turn would prevent contamination of meat as two
batches of meat will never cost each other paths or processed meat would never cross
with freshly killed carcasses.
 In the terms of the two doors the entry door and chilling room door will only have
access to the farm as the carcasses of the animals will be brought through this door and
follow the arrows set out in diagram 1 through the processing area and leave through
the exit which will only have access to the outside of the premises. At this door there
will be a loading ramp so that the products can be loaded onto the delivery van.

15
Flow diagram and floor plan of the factory floor
Red Square: Factory Floor.
Blue Square: Chilling/Hanging room
Green Square: Office
Blue Arrows: The direction of the way meat will move through the factory floor.
2 items will have to be purchased for the business - a sausage forming and vacuum packaging
machine.
 Sausage forming machine: (Sausage making machine/sausage filling machine 0086
15238020875) the mixture is fed into the top of the machine through a funnel; the
mixture is manipulated and formed into the appropriate shape within the machine and
comes out at the base of the machine as properly formed sausages of equal weight.
This machine will have settings that will allow the operator makes various sizes of
sausage i.e. Cocktail sausages, standard and large sized sausages. The reason behind
why I have selected this machine to is that this machine is ideal for a small scale plant
as it very reliable and is very easy maintained, the machine is also small and light and
can be easily carried in case I have to move it if I was to restructure and or re-do the
factory floor.
 Vacuum packing machine: (Mini Jumbo Henkelman) place the packaging pouches
around the product and the vacuum packer seals each of the trays individually making
the packaging air tight. The machine can also be set to pack different sized trays. The
reason why I have selected this machine as the machine is small and very to move and
as well as that it’s not too hard to operate. The machine is also small and light and can
be easily carried in case I have to move it if I was to restructure and or re-do the
factory floor.

16
Flow diagram and floor plan of the factory floor:
1. Entry door: The already cut-up meat comes into the plant from the slaughter area
within the farm, as seen in diagram 2 below the meat come through the door and
follows the arrows.
2. Mixing area: The meat and all ingredients are put it into the mixing bowl and mixed
according to the recipe and process, as seen in diagram 2 the meat will follow the flow
arrows from the entry door.
3. Forming area: The mixture is now taken from the mixing area and put through the
sausage forming machine to form the sausages to a pre-determined standard which will
ensure consistency in size and shape, this is portrayed in diagram 2.
4. Packaging area: The formed sausages are brought to the packaging area after they have
been placed in the according trays and sealed with plastic pouches using a vacuum
pack heating machine and approved/compliant labelling detailing all the information
required, this is portrayed in diagram 2.
5. Storage area: The packed sausages are put into the storage area where the temperature
is kept at a constant 4 degrees to optimise freshness and flavour.
6. Exit door: The finished product is packed onto the delivery van through this door to
avoid contamination this is portrayed in diagram 2.
7. Storage of all raw ingredients: All the raw ingredients (e.g. salt, herbs and spices etc.)
are stored here until there are needed for production.
8. Water Drain, this is situated in the middle of the factory floor so any waste water can
be drained this can be seen in diagram 2.
9. Cleaning Materials Storage unit: This is just a closet for all the cleaning materials will
be stored such as disinfectant and soaps etc. This storage unit will also store all the
essential PPE gear; this is portrayed in diagram 2.
10. Hot and cold waters tap with hoses used for washing and cleaning and disinfecting the
different areas in accordance with health and safety standards, this is portrayed in
diagram 2.

17
Diagram 2: The floor plan for the main body of the factory floor.
7.3 Costing of all Machinery, Equipment and Company Van
The sausage forming machine :( Sausage making machine/sausage filling machine 0086
15238020875) will cost 1000 euro new off the website http://www.ecplaza.net/trade-leads-
seller/sausage-making-machine-sausage-filling--8046375.html.
The vacuum packer machine: (Mini Jumbo Henkelman) will cost 1000 euro new off the
website http://smsfoodequip.com/vacuum_packer_henkelman_minijumbo.htm.
The Company Van will cost 5000 euro 2rd hand, this can be seen off the following website
http://www.vanbuyersguide.ie/volkswagen-caddy-2.0-2005-kerry-diesel-van-4600.
7.4 Staffing Requirements:
There will no need for full time staff to begin with as it mostly a one man operation. The only
staffing requirement that will be necessary will be to hire administration staff once every 3
months for 4 to 5 days to do the necessary admin, invoicing etc.
8. Supply Chain
8.1 Transport:
The bulk of raw materials can be sourced on site reducing costs and saving time. The remaining
materials are of small enough quantities to be delivered by courier service. The majority of the
transport costs will be in delivering bulk orders for the retail market or when the company
participates at trade or farm fairs. The company web site will detail the minimum order amount
1. Entry door 2. Mixing area: 10. Tap 3. Forming area:
9.Cleaning materials
Storage unit.
7. Storage for raw ingredients:
8.Water drain
10. Tap
5. Storage area 4. Packaging Area:
6. Exit door

18
– it is anticipated that only retailers/shop owners will avail of online ordering. If particular
locals want me to fill domestic orders then I will do so until such time as I have established a
good geographical spread of outlets selling my produce. I would also hope further down the
line that I could grow the business enough to attract other small enterprises with a view to
opening a local farmers market selling only local farm produce.
8.2 Location:
The location of the business will be in Cootehill Co. Cavan on-site within an established pig
farm. This alone will have a major impact on the supply chain as the most ingredients in the
product are available on hand at all times. The business premises are only twenty minutes away
from Cavan and Monaghan (county towns). The location is perfectly suited as it’s only one
hour and thirty minutes away from 2 major cities (Belfast and Dublin). This is a major
advantage as the proximity to the border means I can sell to both ROI and NI economies. It
also means that should the sterling exchange rate fluctuate as it has recently (currently quoting
a Mid-rate of 7.2 versus an average rate of between 8.4 and 8.9) I can take advantage of those
changes by selling more or less when necessary to manage the exchange rate risk.
8.3 Inventory:
All the ingredients can be sourced in the local supermarket (if for example the bulk orders of
spices and herbs were late I can purchase locally albeit at a much higher price) and the meat
for the sausages will be coming from the animals that are present on the on-site farm. In terms
of animal slaughter the company will only be killing the amount of animals required for that
particular week. The meat will be brought in from the farm and will only need to be put into
the chilling facilities for 24 hours before being processed, it is very important that all meat must
be ordered a 48 hours before the order is due otherwise I cannot guarantee the freshest possible
product. In terms of packaging and labelling there will be enough packaging and labels brought
each month with one month’s extra supply in case of delays in delivery.
8.4 Production:
All production will happen on site as the necessary raw materials equipment and machinery
are all on-site. This is a great bonus as the supply chain doesn’t have to be stretched to complete
any part of the production. The only part of the production line that can cause a problem would
be that the meat needs be ordered and picked up/delivered within 48 hours. If the delivery van
should break down then I will have to lease an alternative vehicle with a chilling capability.
8.5 Best practices:
In terms of the supply chain, best practices must be implemented straight and implemented
correctly otherwise the supply chain will be under pressure or stress which could cause it to
fall or break. The way that best practices where implemented in the supply chain is:

19
 All meat was to move in the same direction never to turn back on itself and this in the
terms on thing would prevent cross contamination of processed meat and meat that
hasn’t been processed. This is portrayed above in diagram 2.
 The machinery and equipment are to be located in order within the factory floor in terms
of production as this would mean that production can go in a straight line never having
to turn back on itself. This is portrayed above in diagram 2.
 Another best practice that the company will imply will be have 2 doors within the plant
one for meat is only killed and ready to be processed and one for the loading of the
finished sausage. This is portrayed above in diagram 2.
 The water drain for the factory floor will be located in the middle of the floor with a
slope leading to it as this drain will carry away any waste water or materials that can be
carried away after or during cleaning. This is portrayed above in diagram 2.
 The cleaning cabinet will be located right beside the entry door as this will remind any
people coming into the factory to put all PPE cloves and aprons. This is portrayed above
in diagram 2.
 The Ingredients cabinet will be located beside the mixing bowl as this prevents the
person making the sausages from having to go too far away to get ingredients. This is
portrayed above in diagram 2.
8.6 Risks to the supply chain:
There are a number of risks to the supply chain:
 One or both of the machines could be break down or be temporarily be out of service
which would stretch the supply chain as the work that machine was doing might have
to be carried out on a different production system/location which would entail transport
and time lost costs. As both machines are second hand this increases the risk of down
time and additional transport costs.
 If the supply chain or factory chain was to become contaminated with dangerous
bacteria this would pose a health risk (such as E.coli) and the company would have to
relocate the work to another plant until the company was declared free of
contamination/ bacteria. When dealing with raw carrion where bacteria will always be
present there is a real and present danger of this happening. There is also the associated
risk that the pig feed may carry other contaminants (such as fish and bone meal in the
BSE crisis) that will affect the quality of the meat and as such the end product.
 Stock Shortage is a risk which hopefully can be managed satisfactorily because of the
closeness of the source of the chief raw material. However if the company hadn’t a pig
selected, killed and chilled in overnight for an order to be processed, the company
would have to buy meat off the nearby pig processing at an additional cost plus transport
costs as the accepted orders would have to be filled

20
9. Marketing Plan
9.1 Marketing Objectives
The marketing Objectives of Corrick Bridge Gourmet Gluten-Free Sausages are to raise the
profile of the brand to attract more customers and retailers to purchase the product. The
marketing needs to emphasise the key features of the sausages, taste, texture, high in protein ,
low in fat, gluten free and only natural preservatives - a gourmet product at an affordable price.
Short term 1 to 3 years: (see marketing communication strategy for full details)
 Breaking into the target market: I need to get a foothold my 3 niche markets and
concentrate on them with a view to expanding in years 2 and 3. I anticipate that a 15%
share of the gluten free market in my locality (Monaghan/Cavan/South Armagh) is
achievable in year one – aiming for a 25% share in year 2 combined with making
inroads into the neighbouring counties. Year 3 – average of 20% market share taking
into account the higher concentration in the Cavan/Monaghan area combined with a
lower market share in the outlying counties (lower market share – larger catchment area
resulting in higher sales overall).
 Profit: The objective within this point would be to turn a modest profit/break even in
year one while I am consolidating my customer base – and grow the business (without
over trading) in years 2 and 3. I will only take a basic minimum wage in these formative
years to boost my businesses chances of survival.
 Advertising: I need to set-up an advertising campaign among local newspapers, create
fliers and seek agreement to advertise on healthy food promoters websites.
 Set up the business: The business would be fully up and running and in full operating
capacity by the end of June in the first year.
 Establish the business: By the end of year the business will have an established
customer base from which to grow.
Medium term 3 to 5 years:
 Profit: Look to keep increasing Turn over and EBITDA on a yearly basis and
continuously reinvest any spare capital available.
 Sell the product internationally: Look to break into the gluten-free market in NI first
and then England and Europe.
 Expand the business: Look to hire staff and expand the premises as I at least double
production.
 Image of the business: I plan to sell an Irish, gluten-free delicious sausage that will
differentiate itself from others on the market because of its quality and value

21
Long term 5 to 10 years:
 Increase size of the business: Look to create a second production plant within Ireland
or to further expand the premises so that the production levels can increase. Should that
happen I will need to hire more employees.
 Profit: Look to keep turning profit on an annual basis and keep reinvesting the profit
back into the business and improve the infrastructure.
 Have a stable share of the destined target market: At this stage the business ideally
would have succeeded in establishing its identity and would have a loyal customer base.
9.2 Marketing Strategies
1. Branding
The branding of the business will be one of a healthy/green image as the products are high in
protein, low in fat and low in preservatives (this is some salt therefore not preservative free).
The company will use the logo below to demonstrate that all the meat within the products has
come from on-site farm and can be traced right back to source. The logo will demonstrate that
all the meat is produced on a farm and all the animals that are used in the production of the
sausages can be seen on the farm. This will give the consumer the opinion that firstly the
sausages are guaranteed Irish but that the sausages are made from top quality Irish Pork as the
farm is recognized as one the top 10 pig producers within Ireland. The brand will also represent
the fact that all the natural origins and no added artificial preservatives will be present within
the product as all ingredients can be brought locally in the local supermarket.
2. Pricing strategy
In relation to the market research carried there were 3 very important stats recorded that impacts
this area:
1. Majority of the customers will only pay between 3 and 5 euro for a packet of 8 sausages.
2. Majority of customers will pay extra for my product, instead of sausages that have
gluten in them.
3. Majority of consumers would like to see the sausages in packs of 8.
With all these in mind the prices of 3 different packets of sausages I have come up are:
Table 3: this table portrays the sale price of each sausage and the expected profit off each pack.
Sale price: Expected profit off each
pack:
8 pack: 3.00 1.50
16 pack: 5.00 1.70
32 pack (cocktail): 5.50 1.60

22
I believe the prices above will help me stay competitive within the target market as the average
price of sausages from my competitors is 2.00 euro while my competitors only have 6 sausages
per pack while in terms of the company they will 8 sausages per packet which give the company
the opportunity to charge a higher price.
In accordance with the table above I also have compiled a table below that details the cost of
producing packets of sausages:
Table 4: this table portrays the cost of production of each packet of sausages.
Meat Ingredients Packaging
and
labelling:
Esb and
phone
Labour: Total
cost:
8 pack: 0.70 0.25 0.15 0.10 0.30 1.50
16 pack: 1.50 0.55 0.25 0.30 0.70 3.30
32 pack: 1.70 0.55 0.25 0.40 1.00 3.90
In terms of the cost of production for each packets of sausages produced are demonstrated in
the table above but here is an explanation behind each cost:
 The dearest ingredient is the meat, with the price of kilo of dead pig at 1.40 and with
the recipe needing half a kilo for 8 sausages which in turn effectively means the price
of meat per kilo will cost 70 cent (Clarke 2015).
 All of the other ingredients are less expensive than the cost of meat – hence as the
weight of the product increases the pro rata costs of the other non-meat ingredients
decreases.
 In terms of the packaging the plastic seal will cost 10 cent for each packet while the
label will cost 5 cent per packet. In terms of the Esb and phone
3. Marketing Communication Strategy
The company will apply the follow marketing communication strategy:
 The company will look at setting up a website for consumer/retailers so that they can
get in contact to place orders and be able to access details about the company and the
background of the company. On this website the company will post videos showing
how the sausages are made and pictures of the pig farm. There also will an overview
picture of the farm and factory beside each other to show that they are both located
beside each other.
 The company would like to look at getting the opportunity to sell the product on certain
food websites (i.e. food.ie and irishfoodmagazine.ie), this will give the company the
opportunity to expand and sell the product to a wider customer base. This part of the
strategy could have cost implications as some websites will look for a percentage of
product sold.
 The company will look at being published in the monthly food magazines (i.e. Irish
food magazine and Good Food Ireland).
 The companies contact details will be clearly printed on each packet of sausages for
any enquires or complaints that may trouble the consumer. They also will be postage
address on the packets of sausages for any of the consumers that may not have the use
of a computer and may feel that it may be more appropriate to contact the business
through the postal system – do not anticipate a huge demand from this section of the
consumer base.
 In terms of social media the company will look at setting up Facebook and Twitter
accounts for the customers to follow any developments or sales promotions that may

23
be happening within the business and also give the consumers a chance to get in touch
with the company through another medium. The company will offer free products or
incentives at the end of each month for customers who like and share and republish
posts and tweets.
 The company will also look at participating in food and trade fairs that occur on a
weekly basis locally to cement its foothold in the local area.
 If the company began to make profit after 12/24 months, the company would look to
sponsor the local Gaelic or soccer team with a set of jerseys or a set of sport tops that
advertise the company logo and raise awareness.
All the above steps are needed to properly expand the brand name of the business and product
within the locality and the wider area. As seen above the locality that the business is in would
have to be main target as it can take a while before consumers further afield start to use the
website and social media pages as there are many other websites online . This problem can be
mitigated by the fact that the company will sell their product through Irish food websites as
they are already established.
9.3 Marketing Budget
Table 5: This is a breakdown of the total costings of the marketing budget.
Activity: Type/Explanation: Cost:
Advertising  Selling
through food
websites.
 Sponsoring a
local sports
team
 Adverts in
monthly food
magazines
2000 euro
Sales Promotion Attending trade and food
fairs.
600 euro
Web and internet Setting up twitter, Facebook
and company website.
200 euro
The total cost of the marketing budget is 2800 euro and the breakdown of these figures are
below:
 The cost of selling the company’s product through food websites will be approx. 500
annually - it can increase and decrease depending on the amount of the product that is
sold. In terms of the food magazines it costs 100 euro per magazine for an advert in the
monthly magazines and the last 300 euro would go towards sponsorship of a local sports
team. This is illustrated in the above table 5:
 In terms of the sales promotion figure, the 600 euro would be used for promoting the
product and company at trade and food fairs as the company will have to pay an entry
fee into each of these fairs. Fees vary from 10 – 50 euro depending on the location.
 Setting up the twitter and Facebook will cost nothing other than time as the social media
accounts that I plan to use are free. I will have to pay a web site designer to properly
set up the web page for the company so that orders can be taken through the website as
well as dealing with complaints.

24
In terms of my marketing budget all the costs are and I am trying not to overspend on any
unnecessary costs as the company will not be able re coup this outlay unless sales increase
accordingly.
10. Financial Plan.
10.1 Financial assumptions
Table 6:
Name of cost: Origin: Cost: Reference:
Health insurance: FBD Insurance 2000 annually Adrian Grimes
(0871220856)
Insurance of the
vehicle:
FBD Insurance 450 annually Adrian Grimes
(0871220856)
Insurance of the
equipment
(0871220856)
Insurance of the
premises:
(0871220856)
Maintenance and
servicing of
equipment:
Kevin Hughes
Electrician
300 annually By the phone.
PPE and work ware Screwfix limited 600 annually www.screwfix.ie
Effluent College meats 600 annually By the phone
Laboratory Frank Clerkin labs 300 annually Frank Clerkin
(0876592384)
Cleaning and
materials:
Noel o Sullivan
limited
3000 annually Tom O’Rourke
(0872551140)
Maintenance of
premises
Jet wash Limited 600 annually Internet
www.jetwash.ie
Rates 300 annually Internet
Repairs and
maintenance of
van:
Brendan Farrell
motors
800 annually Quote rec14/04/2015
Fuel Ballybay tyre centre 5040 annually Estimated.
Road Tax Motortax.ie 360 annually www.motortax.ie
Advertising Irish food magazine 2000 annually Internet
Sales promotion 600 annually Estimated
Direct selling 600 annually Estimated
Trade fairs 540 annually Estimated
Public relations: 300 annually Estimated
Web and internet: Mark Lavelle
computer services.
60 annually Mark Lavelle
(0872333797)
Telephone: Vodafone 720 annually www.vodafone.ie
Postage 300 annually Estimated
Office expenses Eason’s shop
Monaghan town
500 annually By the phone
Accountancy Fees: Thomas Young
accountancy
1,500 annually Thomas (0876193005)

25
Administration
salary
Edel McElroy
Bookkeeping
1,400 annually Edel (0876419269)
Legal and
Professional fees:
Sinead O’Brien
solicitors
Pest control Tom Hurley pest
control:
600 annually Quote based on 4 visits.
Ancillary materials: Eason’s shop
Monaghan town
150 annually Misc.
Travelling 500 annually Estimated.
Subscriptions Farmers journal and
Irish food magazine
100 annually
100 annually
Quoted
Quoted
Stationary costs: Eason’s shop
Monaghan town
Interest on loans AIB bank 5392 Appendices picture 1
Sausage forming
machine
ecplaza 1000 (ecplaza.net 2015).
Vacuum packer
machine
Henkelman 1000 (Henkleman2015).
Company van Van buyers guide 5000 (Vanbuyersguide2015).
Premises renovated Jetwash 15000 Jetwash.ie and by phone
Packaging per
packet:
National Packaging 10 cent per packet (nationalpackaging2015).
Labelling per packet Flexo labels 5 cent per labelling (Flexolabels2015).
The above figures are reliant on achieving T/O of 45K in year one – should this figure be
exceeded some of the costs (Travel, packaging etc.) will also increase. The down side is that
should the T/O figure be less than 45K – it is unlikely that there will be a corresponding
reduction in costs due to the high element of fixed costs.
Where possible I have gotten costings (i.e. .Accountancy/book keeping, professional fees) from
the professionals that I would have complete the work for the business thus ensuring as much
accuracy as I can without them having actually complete the work. Same applies to repairs and
maintenance of both the premises and the machinery. The pig farm where my new business
will be located also uses these services and I will have the advantage of being able to negotiate
better rates because of an already established business relationship.
The Sausage forming machine is being bought from ecplaza.net at a very affordable price, as
is the vacuum packing machine being bought from Henkelman.com. This is a website that
specialises in food packing. The 2rd hand van is being bought from Van buyers guide website
as they do affordable top quality vans.
The renovation work to the premises will be carried out by Jetwash limited who have an
established reputation in building pig houses they also do PVC interiors that are easy to clean,
maintain and keep at the appropriate temperature.
The packaging and labelling costs come as 10 cent for the trays and plastic pouches that the
trays will be packed this figure comes from national packaging while the labels for the
packaging costs 5 cent a packet and this figure comes from Flexo Labels.

26
10.2 Financial Requirements
Funding Requirements
Fixed Capital
Premises
15,000
Machinery 2,000
Fixtures & Fittings
Other 6,000
Total Fixed Costs 23,000
Working Capital
Raw materials 2,500
Stock 600
Safety cash 7300
Prepaid expenses 3000
Start -up costs 3,100
Other 2,500
19,000
Total Capital Costs 42,000

27
10.3 Sources of Finance.
Sources of Funding
Promoters Own
Funds 7,000
Investors
Amount: 7000
Source: on site farm
Details 9,000
Loans
Long Term
Amount: 26000
Source: Bank of Ireland Bank
Repayment Period: 5 years
Interest Rate: 7% 26,000
Short Term
Amount:
Source:
Repayment Period:
Interest Rate:
Leases
Leasing Period:
Amount:
Source:
Leasing Period:
Rate of interest
Grant Aid sought
Amount:
Source:
Total Funding 42,000

28
10.4 Projected Profit and Loss Account for 3 Years
Projected Trading and Profit & Loss Account
for 12 months ending Year 1: Year 2: Year 3:
SALES 51000 57000 62000
Less Cost of Sales:
Opening Stock 2500 2700
Add: Materials purchased 24000 28525 32475
24000
Less: Closing stock 2700 2675
24000 28325 32500
Investors and own cash 16000
Gross Profit 43000 28675 29500
Expenditure:
Labour Costs
Gross Staff Salaries 0 0 0
Employers PRSI 0 0 0
Staff Bonuses 0 0 0
Staff Training Costs 0 0 0
Health Insurance 2000 2000 2000
Other Staff Costs 0 0 0
2000 2000 2000
Production Overheads
Heat, Light & Power 360 540 540
Rent/ Lease of equipment 0 0 0
Insurance of Equipment 200 200 200
Maintenance 300 600 600
Laboratory - Quality Control 300 300 300
Effluent 600 750 750
PPE & Workware 600 720 720
Other production costs 400 400 400
2760 3510 3510
Premises Costs
Premises Rent 0 0 0
Heat, Light & Power 2040 2400 2400
Insurance of premises 500 500 500
Cleaning 3000 3600 3600
Maintenance 600 900 900
Rates 300 300 300
6440 7700 7700
Transport Costs
Repairs & Maintenance 800 800 800
Vehicle Leases 0 0 0
Fuel 5000 6000 6000
Motor Insurance 450 450 450
Road Tax 360 360 360
6610 7610 7610
Selling Costs
Advertising 2000 2000 2000
Sales promotion 600 600 600
Direct selling 600 780 780
Trade Fairs 540 660 660
PR 300 600 600
Web and internet 60 100 100
Other Promotion Costs 140 180 180
4240 4920 4920
Administration Costs
Telephone & internet 720 720 720
Postage 300 480 480
Office Expenses 500 300 300
Accountancy Fees 1500 300 300
Administration Salary 1400 1600 1600
Legal & Professional Fees 2000 500 500
Pest Control 600 600 600
Stationery Cost 150 150 150
Ancillary Materials 150 350 350
Travelling 500 800 800
Clearing, Refuse & Others 0 0 0
Security 0 0 0
Subscriptions 200 200 200
Other admin costs 300 300 300
8320 6300 6300
Finance Costs
Interest on Loans & Overdraft 5392 5392 5392
Bank Charges/ Fees 300 400 400
Other Finance Costs 800 1000 1000
6492 6792 6792
Depreciation
Property (2%) 300 294 288
Fixtures & Fittings (10%) 300 270 243
Motor Vehicles (20%) 1000 800 640
Machinery & Equip. (20%) 400 320 256
Other
2000 1684 1427
Total Expenses 38862 40516 40259
Net Profit before tax 4,138 -11841 -10759

29
10.5 Cash Flow for 3 Years
Year 1:
Projected Cash Flow Forecast
Year 1
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec TOTAL
Sales 500 2,750 3,050 3,200 4,500 4,000 4,500 5,000 4,500 4,500 4,000 4,500 45,000
Other income 400 400 400 400 350 250 300 500 1,500 300 400 800 6,000
Owners capital 0 0 0 7,000 0 0 0 0 0 0 0 0 7,000
Investors 0 0 0 0 0 0 9,000 0 0 0 0 0 9,000
Bank loan 26,000 0 0 0 0 0 0 0 0 0 0 26,000
26,900 3,150 3,450 10,600 4,850 4,250 13,800 5,500 6,000 4,800 4,400 5,300 93,000
Equipment 1,000 0 0 0 0 0 0 0 0 0 0 0 1,000
Equipment 2 1,000 0 0 0 0 0 0 0 0 0 0 0 1,000
Raw materials 1,000 2,000 1,900 2,100 2,100 2,000 2,300 2,150 2,200 1,650 2,000 2,600 24,000
Health Insurance 400 0 0 400 0 0 400 0 0 400 0 400 2,000
Heat, Light & Power 30 30 30 30 30 30 30 30 30 30 30 30 360
Insurance of Equipment 0 200 0 0 0 0 0 0 0 0 0 0 200
Maintenance 0 0 0 0 0 150 0 0 0 0 0 150 300
Laboratory - Quality Control 0 0 0 150 0 0 0 0 150 0 0 0 300
Effluent 0 200 0 0 0 200 0 0 0 200 600
PPE & Workware 100 0 100 0 100 0 100 0 100 0 100 0 600
Other production costs 400 0 0 0 0 0 0 0 0 0 0 0 400
Heat, Light & Power 170 170 170 170 170 170 170 170 170 170 170 170 2,040
Insurance of premises 0 250 0 0 0 0 0 0 250 0 0 0 500
Cleaning 250 250 250 250 250 250 250 250 250 250 250 250 3,000
Maintenance 0 100 0 100 0 100 0 100 0 100 0 100 600
Rates 0 100 0 0 100 0 0 100 0 0 0 300
Repairs & Maintenance 0 0 0 0 0 400 0 0 0 0 0 400 800
Vehicle Purchase 5,000 0 0 0 0 0 0 0 0 0 0 0 5,000
Fuel 420 420 420 420 420 420 420 420 420 420 420 420 5,040
Motor Insurance 0 0 450 0 0 0 0 0 0 0 0 0 450
Road Tax 0 0 0 360 0 0 0 0 0 0 0 360
Advertising 500 0 0 500 0 0 500 0 0 500 0 0 2,000
Sales promotion 600 0 0 0 0 0 0 0 0 0 0 0 600
Direct selling 50 50 50 50 50 50 50 50 50 50 50 50 600
Trade Fairs 45 45 45 45 45 45 45 45 45 45 45 45 540
PR 0 0 0 0 0 0 300 0 0 0 0 300
Web and internet 60 0 0 0 0 0 0 0 0 0 0 0 60
Other Promotion Costs 140 0 0 0 0 0 0 0 0 0 0 0 140
Telephone & internet 60 60 60 60 60 60 60 60 60 60 60 60 720
Postage 150 0 0 0 0 150 0 0 0 0 0 0 300
Office Expenses 250 0 0 0 0 250 0 0 0 0 0 0 500
Accountancy Fees 0 500 0 0 0 0 500 0 0 0 0 500 1,500
Administration Salary 0 0 500 0 0 0 0 500 0 0 0 400 1,400
Legal & Professional Fees 2,000 0 0 0 0 0 0 0 0 0 0 0 2,000
Pest Control 300 0 0 0 0 0 300 0 0 0 0 0 600
Stationery Cost 150 0 0 0 0 150 0 0 0 0 0 0 300
Ancillary Materials 150 0 0 0 0 150 0 0 0 0 0 0 300
Travelling 200 0 0 0 100 100 0 0 0 0 100 500
Subscriptions 0 0 200 0 0 0 0 0 0 0 0 0 200
Other admin costs 25 25 25 25 25 25 25 25 25 25 25 25 300
Bank Loan repaymnts 366 366 366 366 366 366 366 366 366 366 366 366 4,392
Interest on Overdraft 0 0 0 0 0 500 0 0 0 0 0 500 1,000
Bank Charges/ Fees 0 0 0 0 0 150 0 0 0 0 0 150 300
Other Finance Costs 0 200 0 0 0 200 0 0 200 0 0 200 800
14,816 4,666 4,666 4,866 4,076 5,716 5,616 4,666 4,416 4,066 3,516 7,116 68,202
Excess of Income 12,084 -1,516 -1,216 5,734 774 -1,466 8,184 834 1,584 734 884 -1,816 24,798
Opening balance 2,650 14,734 13,218 12,002 17,736 18,510 17,044 25,228 26,062 27,646 28,380 29,264 2,650
Closing balance 14734 13218 12002 17736 18510 17044 25228 26062 27646 28380 29264 27448 27448

30
Year 2
Year2
Sales 3,500 4,000 4,250 4,250 3,750 4,500 4,500 5,000 4,500 4,250 4,000 3,500 50,000
Otherincome 500 500 550 500 650 650 650 700 700 700 500 400 7,000
4,000 4,500 4,800 4,750 4,400 5,150 5,150 5,700 5,200 4,950 4,500 3,900 57,000
Raw materials 2,000 2,250 2,375 2,350 2,250 2,500 2,500 2,800 2,500 2,750 2,250 2,000 28,525
Heat, Light &Power 45 45 45 45 45 45 45 45 45 45 45 45 540
Maintenance 100 0 100 0 100 0 100 0 100 0 100 0 600
Effluent 0 0 250 0 0 0 250 0 0 250 0 0 750
PPE&Workware 120 0 120 0 120 0 120 0 120 0 120 0 720
Otherproduction costs 400 0 0 0 0 0 0 0 0 0 0 0 400
Heat, Light &Power 200 200 200 200 200 200 200 200 200 200 200 200 2,400
Cleaning 300 300 300 300 300 300 300 300 300 300 300 300 3,600
Maintenance 0 150 0 150 0 150 0 150 0 150 0 150 900
Rates 0 0 100 0 0 100 0 0 100 0 0 0 300
Repairs &Maintenance 0 0 0 0 0 400 0 0 0 0 0 400 800
Fuel 500 500 500 500 500 500 500 500 500 500 500 500 6,000
MotorInsurance 0 0 450 0 0 0 0 0 0 0 0 0 450
Road Tax 0 0 0 0 360 0 0 0 0 0 0 0 360
Advertising 500 0 0 500 0 0 500 0 0 500 0 0 2,000
Sales promotion 600 0 0 0 0 0 0 0 0 0 0 0 600
Direct selling 65 65 65 65 65 65 65 65 65 65 65 65 780
Trade Fairs 55 55 55 55 55 55 55 55 55 55 55 55 660
PR 0 0 200 0 0 200 0 0 200 0 0 0 600
Web and internet 100 0 0 0 0 0 0 0 0 0 0 0 100
OtherPromotion Costs 180 0 0 0 0 0 0 0 0 0 0 0 180
Telephone &internet 60 60 60 60 60 60 60 60 60 60 60 60 720
Postage 40 40 40 40 40 40 40 40 40 40 40 40 480
Office Expenses 300 0 0 0 0 0 0 0 0 0 0 0 300
Accountancy Fees 0 0 0 0 0 300 0 0 0 0 0 0 300
Legal &Professional Fees 500 0 0 0 0 0 0 0 0 0 0 0 500
Pest Control 300 0 0 0 0 300 0 0 0 0 0 0 600
Stationery Cost 150 0 0 0 0 150 0 0 0 0 0 0 300
Travelling 200 0 0 200 0 0 0 200 0 0 0 200 800
Subscriptions 0 0 200 0 0 0 0 0 0 0 0 0 200
Otheradmin costs 25 25 25 25 25 25 25 25 25 25 25 25 300
OtherFinance Costs 0 0 250 0 0 250 0 0 250 0 0 250 1,000
7,281 4,906 6,101 5,406 4,486 7,681 5,126 5,206 5,726 5,706 4,126 5,756 67,507
Excess of Income -3,281 -406 -1,301 -656 -86 -2,531 24 494 -526 -756 374 -1,856 -10,507
Opening balance 27,448 24,167 23,761 22,460 21,804 21,718 19,187 19,211 19,705 19,179 18,423 18,797 27,448
Closing balance 24167 23761 22460 21804 21718 19187 19211 19705 19179 18423 18797 16941 16941

31
Year 3
Year3
Sales 4,000 4,000 4,250 4,250 4,750 4,500 4,500 5,000 4,500 4,250 4,500 4,500 53,000
Otherincome 700 700 750 850 650 850 950 700 700 700 750 700 9,000
4,700 4,700 5,000 5,100 5,400 5,350 5,450 5,700 5,200 4,950 5,250 5,200 62,000
Raw materials 2,500 2,250 2,675 2,650 2,500 2,500 2,500 2,800 3,100 2,750 3,250 3,000 32,475
OtherStaff Costs 100 100 100 100 100 100 100 100 100 100 100 100 1,200
Heat, Light &Power 45 45 45 45 45 45 45 45 45 45 45 45 540
Maintenance 100 0 100 0 100 0 100 0 100 0 100 0 600
Effluent 0 0 250 0 0 0 250 0 0 250 0 0 750
PPE&Workware 120 0 120 0 120 0 120 0 120 0 120 0 720
Otherproduction costs 400 0 0 0 0 0 0 0 0 0 0 0 400
Heat, Light &Power 200 200 200 200 200 200 200 200 200 200 200 200 2,400
Cleaning 300 300 300 300 300 300 300 300 300 300 300 300 3,600
Maintenance 0 150 0 150 0 150 0 150 0 150 0 150 900
Rates 0 0 100 0 0 100 0 0 100 0 0 0 300
Repairs &Maintenance 0 0 0 0 0 400 0 0 0 0 0 400 800
Fuel 500 500 500 500 500 500 500 500 500 500 500 500 6,000
MotorInsurance 0 0 450 0 0 0 0 0 0 0 0 0 450
Road Tax 0 0 0 0 360 0 0 0 0 0 0 0 360
Advertising 500 0 0 500 0 0 500 0 0 500 0 0 2,000
Sales promotion 600 0 0 0 0 0 0 0 0 0 0 0 600
Direct selling 65 65 65 65 65 65 65 65 65 65 65 65 780
Trade Fairs 55 55 55 55 55 55 55 55 55 55 55 55 660
PR 0 0 200 0 0 200 0 0 200 0 0 0 600
Web and internet 100 0 0 0 0 0 0 0 0 0 0 0 100
OtherPromotion Costs 180 0 0 0 0 0 0 0 0 0 0 0 180
Telephone &internet 60 60 60 60 60 60 60 60 60 60 60 60 720
Postage 40 40 40 40 40 40 40 40 40 40 40 40 480
Office Expenses 300 0 0 0 0 0 0 0 0 0 0 0 300
Accountancy Fees 0 0 0 0 0 300 0 0 0 0 0 0 300
Legal &Professional Fees 500 0 0 0 0 0 0 0 0 0 0 0 500
Pest Control 300 0 0 0 0 300 0 0 0 0 0 0 600
Stationery Cost 150 0 0 0 0 150 0 0 0 0 0 0 300
Travelling 200 0 0 200 0 0 0 200 0 0 0 200 800
Subscriptions 0 0 200 0 0 0 0 0 0 0 0 0 200
Otheradmin costs 25 25 25 25 25 25 25 25 25 25 25 25 300
OtherFinance Costs 0 0 250 0 0 250 0 0 250 0 0 250 1,000
7,881 5,006 6,501 5,806 4,836 7,781 5,226 5,306 6,426 5,806 5,226 6,856 72,657
Excess of Income -3,181 -306 -1,501 -706 564 -2,431 224 394 -1,226 -856 24 -1,656 -10,657
Opening balance 16,941 13,760 13,454 11,953 11,247 11,811 9,380 9,604 9,998 8,772 7,916 7,940 16,941
Closing balance 13760 13454 11953 11247 11811 9380 9604 9998 8772 7916 7940 6284 6284

32
10.6 Breakeven Analysis
Table 7: here is a table of the breakdown of the break even analysis of the company.
Year Variable cost
per unit:
Selling price
per unit:
Contributi
on per
unit:
Total fixed
costs:
Breakeve
n
calculatio
n :
Amount of
packets 8 have
to be sold to
break even:
1 1.50 3.00 1.50 61202 40801 5100
2 1.50 3.00 1.50 67507 45004 5625
3 1.50 3.00 1.50 72657 48438 6054
Here is year by year breakdown of the calculations in the above table.
Year 1
This is a break-even analysis on how many packets of 8 sausages would I have to sell to break
even.
Variable cost per unit: 1.50
Selling Price per unit: 3.00
Contribution per unit: 1.50
Total fixed costs: 61202 euro
Break even calculation: 61202 divided by 1.50 = 40801 divides this by 8 to get the amount
packets of 8 sausages that would have to be sold to break even which in turn is 5100 packets
of sausages. This can be portrayed in table 7.
Year 2
This is a break even analysis on how many packets of 8 sausages would I have to sell to break
even.
Break even calculation: 67507 divided by 1.50 = 45004 individual sausages would have to be
sold to break even and in turn 5625 packets of 8 sausages would have to be sold to break even.
This is demonstrated in table 7.
Year 3
This is a break even analysis on how many packets of 8 sausages would I have to sell to break
even.
Break even calculation: 72657 divided by 1.10 = 48438 individual sausages would have to sell
to break even while 6054 packets of 8 sausages would have to be sold to break even.

33
The analysis of the Break even analysis it can be seen that all of the figures are more than
achievable as even in year one the expected and target sales for year one is 10000 units. (See
appendices)
11. Conclusion and Discussion
11.1 Discussion:
Corrick Bridge Gourmet Gluten-Free sausages could be a profitable and sustainable business.
A number of factors will contribute to the success or failure of this company. Corrick Bridge
Gourmet gluten free sausages will have to release more than one product as the business won’t
survive with just one product and also Good top quality pork meat is really too good and too
rich to put into sausages alone (unless I charge the market price in which case in all likelihood
my sales figures would drop). From the same meat top quality pork chops and bacon can be
produced and sold a higher price/margin and smaller quantities. This is a very important
factor/point as most of the competitors and other sausage producers wouldn’t be putting as fine
or as much meat as I am. The majority of the meat that goes into other companies’ sausages
would be off cuts in addition to wheat which in turn will make the sausage heavier and can be
sold for a higher price.
Another factor that must be taken into account is the proximity of Mallon’s meats hinterland.
This is a major obstacle as Mallon’s is an already established and very popular brand of
sausages within my catchment area. Corrick Bridge Gourmet Gluten free sausages would need
to infiltrate Mallon’s customer base and this would have to be done quickly. I expect that
Mallon’s would respond to any perceived threat to their business and they have deeper pockets
to price their variety of gluten free sausages as a “Loss Leader” for longer than I could and
drive me out of business.
As portrayed in the profit and loss figures and cash flow figures in the above financial section
it shows worrying as in terms of the Cash flow figures the gross profit at the end of each year
decreases on to the next year, to counter Corrick Bridge Gourmet would need an increase in
sales output or otherwise bring out a new product that could possibly increase sales. In
discussion with the Profit and Loss Figures it can be seen in Year 2 and Year 3 show worrying
figures as there is deficit within the company, now this is expected as must companies don’t
start to make money in terms of profit till after year 3 but Corrick Bridge Gourmet would need
to counter this by either increasing sales or reducing costs around this business.
Corrick Bridge Gourmet would need to employ staff in the near future as if it is to expand one
person can’t produce and deliver the products on their own as this will cause a back log in
orders at busy times. The solution to this problem is obvious - Corrick Bridge Gourmet Gluten
Free sausages would need to take on staff and allow them to produce the product or to deliver
the product – however cost versus sales would have to be the deciding factor.

34
11.2 Conclusion
Apart from the high failure rate of start-up businesses my main concerns are based more around
the market, the actions of my competitors and risks of contamination with the processing unit
on site of a working farm as opposed to issues with my product.
Unless I am able to increase my range of products and gain a wider customer base then I may
be eaten up by the stronger established competitors. Because I do not have infinite resources
to fight off any long term aggressive tactics I am at risk of failing within the first 1 – 3 years.
The other factor that is outside of my control is the risk of being closed down because of disease
or other issues with the pig farm. Most other competitors operate independently from their
source of raw materials and their risk is significantly lower.
While I believe I stand a chance of succeeding in this endeavour, on balance the risks outweigh
the potential rewards. I could lose practically all of my investment (machines/van could be sold
to recoup some of my losses) in the first year if the other producers move to block my entry
into the market - and they have the strength to do just that.
If I were in their shoes that is exactly what I would do – and that is the clincher!
12. Appendices:
Questionnaire review
Gluten free sausages
Introduction:
The product that we are marketing is gluten free sausages which can be consumed by coeliac.
Coeliac disease is a condition causing people to react to gluten in the protein found in wheat
barley and rye. As well as the product being gluten free the product will be low in fat. However
they will have a different taste to that of normal sausages. The sausages will be more expensive
due to the cost of production and the ingredients used however they will have more health
benefits to the consumer.
A marketing brief from the client was received. It outlined what the product was and its benefits
to customers. It also stated the target market that the product was being aimed at:
• People who are trying to lose weight
• People trying to avoid gluten
• Coeliac
• Active people
• Elderly people

35
• Young families
• Really a vast amount of people as this product can be sold and made appealing to all
consumers.
The objectives of the survey are to see if the market is there for gluten free sausages. To
investigate whether customers who are interested in gluten free products would be willing to
pay more for the product if they tasted better. We will also examine what outlet would be the
best to sell the product. If this product was to be launched into the market, what size packet
would be best to package them in?
Questionnaires were made and were handed out in the Co. Meath, Monaghan and Cavan area.
They were completed outside local butchers, supermarkets and local shops in the areas
concerned. Some were also distributed to fellow students. The results were collected and
analysed. A statistical analysis of the results is carried out and a visual representation can be
seen in the form of charts and graphs etc. later on in this report.
Survey findings:
When we had distributed all the questionnaires and they had been filled out we started to
analyse them. We all got together and analysed 3 questions each by just writing down all the
possible answers for each question and then seen how frequent each answer was. When we had
all this done we started to input the results into different charts for statistical analysis.
Question1: Age Of participants in the survey
The survey was given to 40 people. First question asked was the age of the person who was
filling in the review. The highest age group were 19-35 year olds with 25/40 people ticking this
answer. The next highest section was the 36-50 year old category with 8/40 and then 50+ with
4/40 and 1-18 years old with 3/40. It is clear to see that the 19-35 year olds were most dominant
and maybe this was caused by fellow students answering some of the questioners.
1-18 years old 19-35 36-50 50+
0
5
10
15
20
25
30
Age of Praticipants

36
Question2:
Gender Male Female
Number out of 40. (%) 32/40 (80%) 8/40 (20%)
32 people out of the 40 asked were male and the other 8 were female.
Question3: Do you know a family member or a friend that has food intolerance?
Yes: 13(32.5%)
No: 27(67.5%)
Out of the 40 people asked 13 (32.5%) knew a friend or a family member with a food
intolerance and the other 27(67.5%) did not. This was strange as we taught that food
intolerances were becoming more common but maybe we were wrong.
Question 4: Would you consider buying gluten free products?
Yes = 50% No=50%
When asked if they would eat gluten free products the results came back 50/50. This was
interesting that there was a 50/50 answer to this question.
Question 5: Where do you buy your normal sausages?
62%
7%
10%
13%
8%
Local butcher Tesco Dunnes Supervalu Aldi

37
The results from this question gave five different answers with 62% of the 40 asked saying
they bought their sausages from their local butcher. 13% claimed they bought theirs at
Supervalu stores, 10% at Dunne’s stores with 8% buying theirs at Aldi and the other 7% buy
theirs at Tesco.
Question 6: Can you buy gluten free sausages in any of your local shops?
It can be seen from this set of results that the supermarket was the dominant result where nearly
half of the people can buy their gluten free sausages there. The butchers were next in line where
8 out of the 40 asked can buy their sausages there. 15 % of those asked can get them from
another source and then 5 % can buy them in a farm store. 5% didn’t know and 2 out of the 40
can buy them in their local shop. From this set of results it can be seen that gluten free sausages
are already on the market in many different businesses, so it is hard to know if there is room
on the market for another brand of these sausages.
Question 7: What factors would you consider most important when buying your sausages.
Rated from 1 being the most important to 4 being the least important?
0
2
4
6
8
10
12
14
16
18
20
butcher farm store Supermarket Local Shop Other Don't Know
0
20
40
60
80
100
120
140
Taste Price Nutrional Value Source

38
When all the figures were added up from the questioners they were totalled and put into the bar
chart above. Both the nutritional value and the source had the maximum total therefore they
were the least important to people when they are buying sausages. Taste is the most important
according to the chart which would have been expected with the price of the sausages coming
next.
Question8: Do you think gluten free food is tasteless?
When people were asked did they think gluten free food was tasteless it was quite surprising
that nearly half of those asked didn’t know. We can gather from this that a lot of them must not
have tried gluten free food before. 30% said yes and 25% said no which there was only a slight
difference in opinion.
Question 9: Would you like any flavours added to your Gluten free sausages?If so What?
From the above pie chart it is clear to be seen that nearly half of the people surveyed did not
want any flavours added to their gluten free sausages. Both cheese and herbs were next in line
but they were not as significant as only 10% wanted cheese or herbs. 3 people would like spices
and 3 others wanted garlic. 2 people said yes but didn’t specify what flavours they wanted with
30%
25%
45%
Yes
No
Don’t Know
7%
47%
8%
10%
5%
10%
5%
5% 3%
garlic none spices cheese peppercorn
herbs yes chicken chilli gluten flavour

39
2 more people chicken chilli flavour and the final 2 wanted peppercorn flavour. There was one
person wanted gluten flavour which is a false answer as you can’t get gluten flavour.
Question 10+11: What size pack sausages would you normally buy and how much would
you pay for your preferred pack of sausages?
The results obtained from this question resulted in 18 people normally buying the 8 pack of
sausages for €3-€5. Over half of the people asked (23/40) normally buy the 8 pack regardless
of the price with only 9 buying the 16 pack and 8 buying the 16+ pack. We would recommend
therefore that the gluten free sausages would be sold in an 8 pack as they seem to be the best
sellers.
Question 12: Would you be willing to pay more for your gluten free sausages if they tasted
the same as normal sausages?
Yes: 23/40 (57.5%)
No: 17/40 (42.5%)
There was a slight difference in results for this last question but it is a positive result for the
seller. With 23/40 saying they would pay more and only 17/40 saying they wouldn’t. This
means that there is possibly a market for these sausages.
Conclusion:
Overall we found that this questionnaire was a success with all the questions answered with no
problems and all the objectives were met that we had set out. The 1st objective was to see if
0
2
4
6
8
10
12
14
16
18
20
8 pack 16 Pack 16 +
€1-€3
€3-€5
€5-€10
€16+

40
there was a market for gluten free sausages. We found out that there were already gluten free
sausages on the market but that doesn’t mean that there wouldn’t be room for another brand of
them. We also found out that people were willing to pay more for gluten free sausages if they
tasted nicer than normal sausages. It was clear to see that the supermarket would be the best
outlet to sell this product as nearly half of those asked said that they can buy them there. Finally
if this product was to go on the market it would be the best if they were sold in packets of 8 as
that is what most people would buy. The only recommendation we would have is maybe have
a look at the other brands out there and see if you can try and make them better than them and
maybe try and make and sell them cheaper than the other companies, but overall we think that
this is a good product and most of the results obtained have a positive reflection on what the
product might be.
My funding needs to start up this business are as follows:
 To build and renovate premises on the pig farm would cost 15000 as I would have to
renovate an old shortage shed up the necessary hygiene standards as well as having to
build a store room for the product while waiting to be delivered.
 The company would also need to purchase a company van that will have the ability to
deliver large amounts of the product at a one time. The van will cost 5000 euro with
insurance on the farm coming in at 450 euro for a named driver and the commercial
road tax on the van would be approx... 360 annually.
 The company would need to set aside 2000 euro to purchase the 2 pieces of equipment
required to run the operation, sausage former and shaper machine and a vacuum packer
heat sealer to seal the sausages in an air tight atmosphere within the packaging.
 3100 euro would be required to purchase all the essential raw materials at the start of
production, this will include pig meat, all ingredients and all packaging and labelling.
 The company would also like to have cash on hand of 7300 euro in case of times
emergency or cash flow problems.
 I will set aside a contingency fund in the region of 3000 euros to ensure that bills are
kept up to date (Phone, Electricity, running costs for the delivery van) for the first few
months while the business is in “start-up” phase.

41
Picture 1: Picture of the bank statement from AIB bank for start-up business loan:
13. References:
(Dermody 2013).market for gluten free continues to rise as sales grow. Available:
http://www.irishexaminer.com/business/market-for-gluten-free-products-continues-to-
rise-as-sales-grow-246823.html. Last accessed 19dec2014.
(McCullough 2013). Trend towards gluten free products worth millions. Available:
http://www.independent.ie/business/farming/trend-towards-glutenfree-products-worth-
millions-29554034.html. Last accessed 19dec2014
(FSAI 2000). Directive 2000/13/EC of the European Parliament and of the Council of 20
March 2000 on the approximation of the laws of the Member States Relating to the
labelling, presentation and advertising of foodstuffs, Official Journal of the European
Union, 20/03/2000, [online], available:
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(Food safety Authority2014). Food Contact materials. Food contact materials. 1 (1), 2.
(FSAI2011). Food Allergens Labelling. Available:
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(FSAI 2012). (2012). General provisions of hygiene packing. Available:
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(FoodsafetyAuthority2010). Legislation on gluten-free. Available:
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(Clarke 2015). Pig price and pig market report. Available: https://irishpigs.wordpress.com/.
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(C, McCann2008). Gluten free market trends . Available: http://thegluten-
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(ecplaza.net 2015). Sausage making machine . Available: http://www.ecplaza.net/trade-leads-
seller/sausage-making-machine-sausage-filling--8046375.html. Last accessed 7/5/15.
(Henklemam2015). Mini Jumbo . Available:
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(Van buyer’s guide2015). Volkswagen Caddy 2.0 diesel. Available:
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(nationalpackaging2015). Prices of packaging . Available:
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