Seafood Scaling & New Market Development Scheme Guidelines
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- Marjory Booker
- 5 years ago
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1 Seafood Scaling & New Development Scheme Guidelines The scheme supports industry projects that seek to promote economies of scale through promoting industry cooperation, joint ventures and shared route to market structures. The vision is to enable Collectives to invest in market development and through incentivised market penetration become self-financing. This will involve setting ambitious growth targets and investing in business development resources to develop sales with a broadening customer base. Scheme Operation The scheme will operate with two support levels as per table below. 1. Fixed support element contributing towards the market facing investments: Collective formation, market survey, market development and in-market business development resources. 2. Performance driven incentives based on sales growth. 3. Total grant cannot exceed 120,000 in any one year. 4. The scheme will last until the end of the EMFF Operational Programme or for 5 years whichever is the earlier. 5. To incentivise collaboration, two or more seafood processing SMEs that have formally merged since 2013 will continue to be treated as a Collective for 5 years following that merger, or until the end of the EMFF Operational Programme, whichever is the earlier. Scheme Element Details Qualifying expenditure Collective Formation and Business Planning Development Performance Third party professional costs for the following activities: Legal advice on drawing up of joint venture contracts. Business planning costs in relation to joint ventures, scaling of operations and accessing new markets. In- (New ) Development Costs: Micro-market business plans and market intelligence studies. In-market development costs including travel and subsistence office rental. Contracting of business development executives and translators. Attendance/stand rental at trade shows (only those not supported by other Development Agencies). Supply chain logistic and traceability modelling including new business models, e-trading structures, (CRM) Customer Relationship Management. Valid from 2018 and based on net Collective sales of preceding year to new markets. *To last 5 years or duration of EMFF whichever is the earlier up to 50% or maximum grant of 60, and after Up to 25% or maximum grant of 60, : not valid 2018 : 2.0% of net sales 2019 : 1.5% of net sales 2020 : 1% of net sales 2021* : 0.5% of net sales 1
2 Travel Costs Within EU 50% of flight costs per participant trip, or a maximum grant of 400, whichever is lower. Outside EU 50% of flight costs per participant trip, or a maximum grant of 1,000, whichever is lower. Hotel Expenses Europe 50% of up to 150 per night Asia 50% of up to 125 per night Daily Allowance (per diem rate as approved by BIM receipts not required, but vouched against travel dates). Europe 50% of up to 80 per day Asia 50% of up to 80 per day Documentation requirements As part of the Application process, Collectives will be required to submit a summary Business Model Canvas outlining joint operations. Collectives are required to submit a legal signed agreement and business plan with grant claim by end of year 1. Claims will be submitted with audited certs validating claims including: Eligible expenditure Validated Collective net sales to new markets 2
3 Case Example - Vision of a Successful Collective The tables below are illustrative only and show how a Collective might grow and become self-financing with an incentivised grant process. During year 1, maximum grant is capped at 60,000 and from year 2 the grant is capped at 120,000 pa. There are three tables illustrating: 1. ing investment feasibility as a % of net sales value. 2. Example of how the BIM grant process will operate with both grant towards marketing investment and a performance incentive on revenue growth. 3. Example of marketing investment elements eligible for support. Table 1 - Collective Development over 5 years The table illustrates how a Collective might invest in marketing resources to drive growth over 5 years while achieving a feasible marketing cost as a % of sales. The goal is to incentivise self-financing with low marketing cost as % of sales by end of five years. Year No. of BD Exec s Investment (MI) Assumed Annual Sales tonnes Net Sales Value based on 5000 per tonne ing Investment as % Net Sales Value ,000 N/A N/A , % , % , % , % Table 2 - Grant Scheme in Operation There are two elements to grant support: % support of ing Investment cost % of sales generated During year 1, there is a grant of 50% of marketing investment with a grant capped at 60,000. From year 2, the grant towards marketing investment reduces to 25% and a % of sales grant is introduced enabling up to a maximum grant of 120,000 to be achieved. To incentivise growth and self-financing, the % of net sales grant is progressively reduced as a % of sales, 2% in year 1 and reducing to 0.5% by year 5. Year Investment (MI) % Maximum Grant of MI Grant towards MI Net Sales Value (NSV) target (A) Grantas % of NSV (based on actual) Grant amount as % NSV (B) Total Grant (A)+(B)* capped at max 120, ,000 50% ,000 25% ,000, % 20, ,000 25% ,000, % 45, ,000 25% ,000, % 50, ,000 25% ,000, % 50, Notes: Years are guide lines and scheme will conclude at the end of EMFF programme. 3
4 Table 3 - Investment Costs Illustration The table below sets out estimated Investment guidelines for years 1 to 5, with increasing investment in business development resources to drive sales growth. ing Investment Cost Details Year 1 Year 2 Year 3 Year 4 Year 5 Collective formation & Business Plan 10,000 Survey 10,000 10,000 10,000 10,000 10,000 Development Travel Trade show participation 20,000 20,000 20,000 20,000 20,000 No 1 - Business Account Manager 80,000 80,000 80,000 80,000 80,000 No 2 - Business Development Manager 80,000 80,000 80,000 No 3 - Business Development Manager 80,000 Total 120, , , , ,000 Expenditure Headings Collective Formation: Covers legal and formation costs with professional assistance in the preparation of a 3 year business plan. Research: Third party costs related to market intelligence studies. Development and Trade Participation: In- Development costs including travel, subsistence, office rental and tradeshow attendance/stand rental (only those not supported by other agencies). Business Account /Development Managers Cost: Estimate of salary, travel and subsistence. 4
5 Business Canvas Model Key Partners Key Activities Value Propositions Customer Relationships Customer Segments Who are our key partners? Who are our key suppliers? Which key resources are we acquiring from our partners? Which key activities do partners perform? What key activities do our value propositions require? Our distribution channels? Customer relationships? Revenue streams? What value do we deliver to the customer? Which one of our customers problems are we helping to solve? What bundles of products and services are we offering to each segment? How do we get, keep, and grow customers? Which customer relationships have we established? How are they integrated with the rest of our business model? How costly are they? For whom are we creating value? Who are our most important customers? What are the customer archetypes? Which customer needs are we Key Resources satisfying? Channels What key resources do our value propositions require? Our distribution channels? Customer relationships? Revenue streams? What is the minimum viable product? Through which channels do our customer segments want to be reached? How do other companies reach them now? Which ones work best? Which ones are most costefficient? How are we integrating them with customer routines? Cost Structure Revenue Streams What are the most important costs inherent to our business model? For what value are our customers really willing to pay? Which key resources are most expensive? For what do they currently pay? Which key activities are most expensive? What is the revenue model? What are the pricing tactics? Ireland s EU Structural and Investment Funds Programmes Co-funded by the Irish Government and the European Union Agriculture, Food and the Marine Talmhaíochta, Bia agus Mara EUROPEAN UNION This measure is part-fi nanced by the European Maritime and Fisheries Fund 5
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