SO, YOUVE DECIDED TO START A SEAFOOD BUSINESS?

Ireland produces a wide range of high quality seafood products both farmed and wild caught. Seafood demand and consumption is rising across Europe and it has been predicted by the Food and Agriculture Organization (FAO) to rise significantly in the coming years.

Running a seafood business can be enjoyable, challenging and rewarding. Seafood has many unique characteristics that make it unlike any other product even other food products. This booklet has been produced with two specific types of business start ups in mind; Starting a Seafood Retail Business. Starting a Seafood Processing Business. This booklet is intended to act as a step by step guide for the start up phase of a new business; it provides you with information on the seafood sector, on the typical Irish seafood consumer and the domestic seafood market. We shall show you how to access various supports for your new business such as technical information, mentoring support and grant aid. We will guide you through the steps that you must take and the relevant agencies that you must work with in order to set up a seafood business. BIM's role is to support commercial development in the seafood sector which comprises of fisheries, aquaculture and seafood processing. Bord Bia promote and market Irish seafood both domestically and internationally. Teagasc may also be in a position to support seafood businesses through their range of industry services and their provision of training courses. The County Enterprise Boards also offer a range of supports to seafood businesses within their geographic areas. The other agencies involved in the seafood sector are the HSE and the Sea Fisheries Protection Authority (SFPA) who both have regulatory and enforcement roles in the seafood sector. We will also provide you with a brief introduction to the regulatory agencies and some of the issues associated with food safety and the proper handling of seafood in retail and processing situations.

STARTING OFF YOUR BRIGHT IDEA!

Many people start their business with a simple idea of what they want to do and what they want to achieve. The motivations to start a business can vary, some people want to earn more money, some want to be their own boss.
Essentially they all have a simple idea; that they can provide a product or service at the right price and that they can be successful doing so.

It is important to test your idea and if necessary, alter it or even abandon it in favour of something else. It is critically important that you take a systematic approach to starting the business and that you pass certain milestones in the correct order, this will make life easier for you in the longer term. Start off with a simple outline of your idea, consider the following questions and then write down your answers: What you want to do and why you want to do it? What is your product? How is it different or better than existing products? When do you intend to start your business and where? Who will run the business side and who will do the day to day work? What do you think it will cost you to start up and do you have these resources? What demand you think there will be for your product? Why you think your product can be successful? These basic questions and answers will help you to identify the key points of your proposed new business, you can then start drawing up a business plan.

Market Research
Before you start your business you should carry out some simple market research. This can be done as simply as noting product range and prices at fish counters at supermarkets or by talking to your local fishmonger about what products are popular. Visiting a fish auction (if there is one in your area) can be very informative regarding the availability, wholesale prices and demand for locally caught or grown seafood. Visiting seafood restaurants and looking at their menus will also provide you with some very valuable information on prices and consumer preferences. You will quickly notice trends such as the popularity of Salmon, Cod, Prawns and Mussels. The next phase of your research can seek information from various sources such as the internet, industry magazines, the media and the various state agencies such as BIM and Bord Bia. A list of useful websites is provided at the back of this booklet. To help you with your research here are some key figures relating to the Irish seafood industry.

712.35m
Total Irish seafood sales 2010

Total Domestic Seafood Sales 2010 Made up of Irish Food Service Sales Irish Retail Sales Irish Seafood Imports 2010 (not included in other figures)

333.4m 142m 191.4m 170m

379m
Total Irish seafood exports 2010

The most popular seafood species sold on the Irish retail market are salmon, cod and prawns. The average Irish shopper purchases seafood 24 times per year and the average volume of seafood purchased per trip is 500g. Fresh fish accounts for just under 60% of total fish spend.

 Both fresh and frozen fish has increased in popularity, however, modern shoppers tend to buy less fish (by weight) now than was the case previously, this may be down to the purchase of fillets rather than whole fish or shoppers buying just enough for a single meal etc. Pre-packed continues to increase value share of the fresh fish market and now accounts for 69% of the overall market. (Pre-pack means packed fish in a branded pack or packed fish prepared in-store, it does not include fish sold fresh from a fish counter). The Irish retail market is seeing price decreases due to deflation and the increasing sale of cheaper types of fish e.g. Pangasius (an imported Asian freshwater fish). Volumes purchased have declined due to promotions, decreases in pack size and consumers purchasing less fish in terms of quantity and customers also buying fish less often than before.

The age profile of retail seafood purchases is: Under 34 years old: 30% 35 to 44 years old: 15% 45 years and older: 55%

Friday remains the most popular day to buy fish in Ireland. This is followed by Thursday and Saturday.

Research Results
1. Visited fish auction or Fisheries cooperative Fish Prices /kg

2. Visited Fishmonger or local supermarket fish counter Fish Prices /kg

3. Held discussions with Fishermen/Fishmonger regarding seasonality/availability of fish etc. Fish Prices /kg

WRITING YOUR BUSINESS PLAN

Once youve completed your research it is important that you produce a business plan that will document the type of business you wish to start.
It is very important that you have a well researched, detailed and thorough business plan because when you try to start your business and if you need to get some help, the first thing that many people will ask for is a copy of your business plan. A good business plan is a critical step in showing others the potential of your idea and getting their help in establishing and developing your business.

You should draft your plan along the following lines;

1. Introduction
Write a short introduction about yourself, your qualifications, experience, skills and resources available to you (premises etc.) Do the same for any other directors or partners in the business. It is very important to outline who will manage the business and what type of structure the business will have, include details on who will be responsible for the various tasks such as production, sales, logistics and finance.

2. Products and Markets

This is a very important section, please outline in detail the information that you have acquired about the products you wish to produce, the markets you wish to target, raw material costs, finished product costs, retail costs and information on supply, demand and seasonality. Describe who you expect your primary customers will be, what they want and how you will provide them with the product that they want. Describe your products, what are they? Why you think people will buy from you? What's unique or special about your products? Describe your proposed price structure, your proposed production capacity (how much product can you produce in a day / week / year) and your predicted sales capacity (How much can you sell? How big is the market? Do you have advance orders?)

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3. Operational Details
In this section you need to document the day to day activities of your proposed business. Describe in as much detail as possible the whole production chain; from the moment you source the raw material until it is handed over to your customer. Include detail on origin of the raw material, the process of transport to your premises, the receipt of goods, the processing and storage of the seafood, the portioning, packaging and presentation of the seafood. Include detailed information on how you will conduct sales and deliveries. This section is particularly important for processors who may be carrying out operations like cooking, smoking and preparing ready meals. It is crucially important to be as detailed as possible and to include detail on what type of equipment you intend to use, describe the technical specifications etc. of the equipment you have or wish to buy if possible.

4. Premises
Describe in as much detail as possible the premises you wish to use. Include details of any modifications that may be required and describe the size, location, previous use of the premises that you have in mind. If you are planning to have a registered third party carry out processing on your behalf please provide basic details and contact information.

5. Competition
It is also very important at this stage to carry out an analysis of your competitors, you must measure what you intend to do against what other people are already doing! You need to establish how many businesses are offering similar product to the same market. What is their price structure? Are they more expensive or cheaper than you? Do they carry out promotions? Do they sell vast quantities? Do they have access to more raw material than you?

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6. Finance
The next step is to establish how much it will cost to start up your business and how you will fund the start-up phase, start-up can be a difficult time as you may have to spend considerable monies to buy equipment, prepare premises, hire staff, purchase stock before you will be able to make any sales. Describe the sources of funding that you propose to use to start your business, describe if you have money in the bank, an offer of a bank loan or investors etc. Describe how you will spend the monies and how much of a cash reserve you maintain until you start achieving sales. You must also prepare a cost of production, this means that you try to establish the cost of running the business and then, based on how much you will produce, a break-even cost per unit or kilo or tonne of the product that you intend to sell.

Rent of Premises Wages Commercial Rates Waste Disposal Charges Raw Materials Water Charges Insurance Vehicle costs

Shop fittings Protective clothing First aid materials Fire fighting Equipment Training Boxes and packaging Pest control contract Consumables

Once youve established your costs, then break down your costs and see what your week to week costs are, this will give you a base from which you can calculate what your weekly sales targets will be. It is important to try to produce accurate and viable projected cash flow statements for the first three years of your business, because this will help you manage debts and allow you to plan spending and investment at appropriate times.

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7. Summary
One of the most important parts of a business plan is an overall summary. When you have completed your plan, read over it and then summarise the whole plan into a single page, there is no need to go into great detail such as product pricing and costs when drafting the summary, it is more important that the nature of the business proposal is discussed. It is easier to draft the summary when the plan is completed, however, it's best to place the summary at the beginning of the business plan to allow anyone reading your business plan to quickly scan and understand the nature of your proposal.

Checklist

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MAKING IT HAPPEN PUTTING YOUR BUSINESS PLAN INTO ACTION!

Starting a business can be great fun, however, it can also be difficult, costly, and very frustrating when things dont quite work. It is important that you make effective use of the support structures that are available to you.
Once you have completed your business plan, you then have a platform to start bringing on-board various people and agencies that can help you to get your business off the ground. When starting a seafood business you can seek help from Bord Iascaigh Mhara, Bord Bia, dars na Gaeltachta or your local County Enterprise Board.

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Bord Iascaigh Mhara

BIM is the Irish state agency with responsibility for developing the Irish Sea Fishing and Aquaculture industries. BIM assist all manner of seafood businesses through out Ireland, in terms of processors and retailers and we can assist you with technical development, processing systems, seafood handling, consumer preference data, new product innovation, industry contacts and advice on food safety and hygiene.

Bord Bia
Bord Bia is the state agency responsible for the market development and promotion of Irish food, drink and horticulture. Its mission is to grow the success of a world class industry through strategic market development, promotion and information services. It is responsible for seafood promotion in domestic and international markets. This includes consumer and trade promotions and trade shows. It is also responsible for developing market opportunities for the seafood sector in domestic and export markets.

dars na Gaeltachta
dars na Gaeltachta is the regional authority responsible for the economic, social and cultural development of the Gaeltacht. dars support economic development through the provision of various services such as employment grants, capital investment grants and training grants. The authority also has a portfolio of premises that may be made available to industry when appropriate.

County Enterprise Board

The County Enterprise Boards provide a wide range of services to start-up businesses including grants for feasibility studies, employment grants for job creation, capital grants for equipment and business mentoring and training.

Teagasc
The Agriculture and Food Development Authority is the national body providing integrated research, advisory and training services to the agriculture and food industry and rural communities. Teagasc provide a wide range of industry support services through their facilities at Ashtown, Co. Dublin and Moorepark, Co. Cork. Teagasc provide an extensive range of training courses for the food industry. It may be prudent to approach Teagasc after you have made some progress on developing your business.

IASC (Irish Association of Seafood Companies)

IASC is a representative body for those involved in processing, wholesaling and retailing seafood in Ireland. They are very helpful and are keen to encourage and support entrepreneurs looking to enter the fish trade. 15

Research Results
Contacted Development Agencies and identified potential support for new business venture.

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TRAINING
Training and skills are often overlooked by many entrepreneurs, many feel they are too busy or that training is too expensive this is a false economy. Training is a vital part of developing any successful business and there are many options open to entrepreneurs that are operating on limited budgets of time or money. It is important that you look seriously at the skills and experience that you have and see if there is a deficit.
In order to run a small business effectively you must have a wide range of skills, food safety and hygiene, seafood handling and processing, managing quality, book-keeping, accounting and credit control. You should contact Bord Iascaigh Mhara, Bord Bia, the Food Safety Authority of Ireland and your local Enterprise Board in order to establish if there are opportunities for you to avail of training courses or financial support for training initiatives.

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Research Results
Identified potential training or skills development programme for new business venture. Description of Training: Date:

Financial Training
No one expects that you will become an accountant! However, a financial training course is one of the most important courses that you can take when starting off a new business. It will equip you to manage your finances better so that you have a good picture of how the business is progressing. It will also ensure that you don't become over dependent on your accountant who will charge you for services. Financial training should be seen as a supplement to the services of accountants but not a replacement! The trap that many entrepreneurs fall into is that they buy their raw material at one price, sell it for a profit and assume that they are making money. In order to run a profitable business one must be able to calculate the total cost of producing the product and must then sell it at a suitable margin. Simply selling something for more than you buy it is not a guarantee of success, you can do this and still lose a lot of money!

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Research Results
Identified financial training or skills development programme for new business venture. Description of Training: Date:

Food Safety Training

Ensuring food safety is the most important responsibility of any food business, it is more important that customer service, sales or profit. Everyone running a seafood business must ensure that their products and premises are in a fit state to protect public health and no stone can be left unturned in ensuring that only the safest and best quality products make their way into the hands of consumers. You must acquire in-depth food safety training that will equip you to operate your business properly and to protect public health. This is one of the first steps that should be taken after you have decided to start a seafood business. Investment in food safety training should be seen as one of the factors that will reassure your customers and drive future sales and success. Food safety training should never be seen as a burden or an inconvenience. There are numerous avenues that can be pursued in order to acquire adequate food safety training. BIM provide a number of training and seafood handling courses at various locations and can also advise you on getting training from other sources. BIM may also be able to advise you on accessing food safety training provided by other bodies or institutions.

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The Food Safety Authority of Ireland (FSAI) provides a wide range of instructional materials and food safety guides, many are for free but some have a limited cost. The FSAI also offer a business start-up pack that can be most useful for a new seafood business. Teagasc provide a wide range of training courses including food safety management and HACCP. Many Teagasc courses would be applicable to a start up seafood business. Teagasc courses are usually provided at quite reasonable costs. The Sea Fisheries Protection Authority (SFPA) also have literature on food safety issues such as shellfish bio-toxins, registration of your seafood processing plant and export regulations. Remember, food safety training, like every type of training should be seen as an on-going process and not as a once off course to meet legal requirements for training. Training methods, laws and food safety theory evolves, therefore refresher courses should be taken at intervals to ensure that your business is being run to the correct and most up to date standards.

Research Results
Identified potential Hygiene, Safety, HACCP or other training or skills development programme for new business venture. Description of Training: Date:

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Processing and Seafood Handling Training

Seafood is a unique product which requires knowledge and care while being processed. There are many different types of seafood, each with their own unique characteristics, because of this there are numerous technical skills required to handle seafood, these include: opening oysters, gutting whole fish, skinning and filleting fish and the general handling and storage techniques that ensure quality and make your product more presentable. There is no single right way that can be used to handle all fish, many species need to be handled in a particular manner, for example, cod and salmon cannot be iced or packed in the same manner. If the wrong methods are used to handle fish the quality of the fish will deteriorate. When starting out in a fish processing business, you should seek advice from the SFPA before making any significant decisions on investing in, or developing a processing plant. You should also contact BIM to get advice on processing techniques, fish handling, hygiene and packaging.

Research Results
Identified fish processing training provider for new business venture.

Description of Training:

Date:

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RULES AND REGULATIONS

The production of safe food and the protection of public health is a key responsibility of every food business. Businesses operating in the seafood sector must deal with specific agencies according to their operations.

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The Role of the Food Safety Authority of Ireland

The activities of seafood businesses, like all other food businesses are primarily regulated by the Food Safety Authority of Ireland (FSAI). The FSAI, with co-operation from the Health Service Executive and the Sea Fisheries Protection Agency, regulate and monitor seafood businesses and enforce legislation and when necessary, instigate prosecutions. The Health Service Executive monitor food service and retail businesses and the Sea-Fisheries Protection Authority inspect and monitor seafood processing plants to ensure compliance with legislation. The Food Safety Authority of Ireland (FSAI) provides a wide range of information on food safety and hygiene; such as training requirements, labelling, food safety legislation and HACCP. The FSAI also offers a business start-up pack that can be very useful for a new seafood business. For more information visit www.fsai.ie or www.facebook.com/FSAI.

The Role of the Sea Fisheries Protection Authority (SFPA)

The Sea Fisheries Protection Authority (SFPA) has an important role in the seafood processing sector. The SFPA monitor factories, fish processors and depuration facilities. All establishments that handle or process fishery products and live bivalve molluscs must be approved under Regulation (EC) No 853/2004. Therefore anyone who intends to operate a seafood processing business should visit the SFPA website at www.sfpa.ie and contact the SFPA to discuss commencing the approval process.

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The Role of the Health Services Executive (HSE)

The HSE has a critical role in the food industry in ensuring that food and food premises are safe and operating in a manner that ensures maintenance of public health. The HSE monitors retail businesses like fishmongers, restaurants, takeaways and market stalls etc. The Environmental Health Officers (EHO) of the HSE may visit your premises at any time, with no prior warning, to inspect the condition of your products, premises and equipment to ensure that public health is protected. It is strongly recommended that anyone wishing to start a new seafood retail business, should contact their local EHO and seek their advice and guidance from a very early stage. You can find more information on www.hse.ie. The EHO can advise about the suitability of proposed premises - some premises may never be suitable for a food business and it is better to be aware as soon as possible.

Research Results
Identified potential Hygiene, Safety, HACCP or other training or skills development programme for new business venture. Name: Agency Date:

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Selling to Retail Chains or Supermarkets

If you hope to supply your products to retail chains or supermarkets, then you should be aware that there are a number of things you should prepare in advance of approaching them. You should be able to quickly and succinctly inform them about: Your product range and the benefits that it offers them and their customers Product benchmarks compared to retailers current stock (price, size, shelf life) Key selling points (and why their customers will like it) Pricing and scope for pricing specials (ability to run special offers) Estimated profit margin (per unit) that the retailer can achieve Promotional capability and resources

Retailers will expect this information, and you will find yourself at a disadvantage if you are not able to provide it when they ask for it. The process of selling products, particularly products like fresh fish, to retail chains is highly technical and you must demonstrate that you are competent to meet the demands of large retailers in terms of food safety, traceability, quality, transport and logistics management and consistency of supply. Preparation for these meetings is vital if you want to get your product onto the shelves of any major retailer. It is advised that you complete a suitable training course in advance of trying to make sales into the larger retail chains. Remember: Supermarket retailing is a high volume, low margin business and supermarket buyers (the staff who are tasked with sourcing products) are under huge pressure to deliver profit on every product that they agree to buy, do not expect that they can be easily won over.

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The Seafood Development Centre A dedicated Product Innovation Centre

The Bord Iascaigh Mhara Seafood Development Centre is the first dedicated innovation facility for the Irish seafood sector. This state of the art facility will enable companies to exploit and maximise the market potential for Irish seafood by fostering and integrating innovation into feasible business strategies and the development of new products and processes for the seafood industry. The centre is integrated with BIM's Business Development and Innovation Division and the Fisheries and Aquaculture Division's to ensure Irish seafood companies are equipped with all the necessary services to exploit market opportunities.

What is the BIM Seafood Development Centre (SDC)?

The SDC has an overall space of 768 m2 and includes following facilities: Product processing (Wet fish area) Graduate area Product development kitchen Innovation and product concept room Business incubation units (2) Reception and administration

What can the BIM Seafood Development Centre do for your business?
The overall aim of the SDC is to grow your business and to add sustainable, profitable, competitive, value-added offerings that meet your end customers' requirements. By working through a regional hub approach (North East, East and South West) the SDC will provide an integrated service to the Irish Seafood Industry.

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Process for Development of New Seafood Products

Seafood Seafood ValueValueAdding Adding Ideas Ideas

Capture Capture and and Market Market Spot Spot Check Check Screen Screen IdeaIdea and and Feasability Feasability withwith BIMBIM Specialists Specialists Customer Customer and and BIMBIM Project Project Team Team

Review Review

Business Business PlanPlan

Concept Concept Development Development

Stage Stage Gates Gates

Route Route To To Market Market

Pilot Pilot Marker Marker TestTest

Review Review

Process Process Development Development and and Scaling Scaling Up Up

Launch Launch

Review Review

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Bord Iascaigh Mhara

Full contact details for various BIM staff are available at www.bim.ie. The following staff work within the Business Development and Innovation Division.
Dublin
Donal Buckley Business Development and Innovation Manager BIM, P.O. Box 12, Crofton Road Dun Laoghaire, Co. Dublin Direct: 01 2144272 Email: buckley@bim.ie Ian Mannix Business Development Executive BIM, P.O. Box 12, Crofton Road Dun Laoghaire, Co. Dublin Direct: 01 2144105 Email: mannix@bim.ie

Seafood Development Centre

Susan Steele Innovation Co-ordinator SDC BIM, Clogheen, Clonakilty, Co. Cork Direct: 01 2144280 Email: steele@bim.ie Innovation Co-ordinator for new product development at SDC. John Fagan Seafood Technologist, BIM, Clogheen, Clonakilty, Co. Cork Mobile: 087 9045047 Email: fagan@bim.ie New Product Development assistance for all seafood companies, innovative packaging, ingredients, shelf-life and processing technologies, A-Z product development, troubleshooting and pilot scale product development.

North-West
Dr. Michael Gallagher BIM Office, The New Pier, Killybegs, Co. Donegal Direct: 074 9732605 Email: gallagher@bim.ie Focus on supporting and integrating producerprocessor and route to market structures in the pelagic, crab and prawn sectors.

Processing Services
Paul Ward Processing Services Executive BIM, Clogheen, Clonakilty, Co. Cork Direct: 01 2144125 Mobile: 087 1332080 Email: ward@bim.ie Responsibility for developing programmes and services for the seafood processing sector including quality, troubleshooting, lean manufacturing processes, advising on investments for capacity, new technologies and green initiatives.

West
Mirtn Walsh BIM Office, New Docks Road, Galway Direct: 091 539364 Email: walshm@bim.ie Focus on supporting and integrating aquaculture producer-processor and route to market structures.

South-West
John Hackett BIM, Clogheen, Clonakilty, Co. Cork Direct: 01 2144100 (Switchboard) Email: hackett@bim.ie Focus on supporting route to market structures in the whitefish sector.

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Bord Bia
Clanwilliam Court, Lower Mount Street, Dublin 2 Tel: 353 1 6685155 Fax: 353 1 6687521 Email: info@bordbia.ie More information is available at: www.bordbia.ie

Sea Fisheries Protection Authority

Clonakilty (HQ) SFPA, Park Road, Clogheen, Clonakilty, Co. Cork. Tel: 353 23 8859300 Fax: 353 23 8859720 More information is available at www.sfpa.ie

Food Safety Authority of Ireland

The FSAI is comprised of a number of specialised sections, more information on these specific sections is available at www.fsai.ie Food Safety Authority of Ireland, Abbey Court, Lower Abbey Street, Dublin 1. FSAI advice line: 1890 33 66 77 Tel: 353 1 8171300 Fax: 353 1 8171301

County Enterprise Boards

You can find more information on your local County Enterprise Board and the services and supports they provide at www.enterpriseboards.ie

Teagasc
Ashtown Food Research Centre, Ashtown, Dublin 15. Tel: 01 8059500 Fax: 01 8059550 Food Safety: Food Industry Development: Prepared Foods: Consumer and Market Insights: Dr Geraldine Duffy Mr Pat Daly Dr Gerard Downey Dr Maeve Henchion Email: Email: Email: Email: geraldine.duffy@teagasc.ie pat.daly@teagasc.ie gerard.downey@teagasc.ie maeve.henchion@teagasc.ie

More information is available at www.teagasc.ie

Irish Association of Seafood Companies (IASC)

10 Emlagh, Dingle, Co. Kerry. Tel: 087 2026420 Email: info@iasc.ie Contact: Artie Clifford

dars na Gaeltachta
Co. Galway (Head Office) dars na Gaeltachta, Na Forbacha, Co. na Gaillimhe. Tel: 353 91 503100 Fax: 353 91 503101 More information is available at www.udaras.ie

Health Service Executive (HSE)

You can find more information on the HSE at www.hse.ie. Information about your local HSE offices, local Environmental Health Officers (EHO) and general information on Food Control issues can be found by using the search function.

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Summary Template for Writing a Business Plan

1. Executive Summary overall view of business and potential. 2. Background people, description and rationale. 3. Management Structure who and how the company is organised. 4. Market Research analysis of market potential and dynamics. 5. Products and markets Pricing strategy price point will effect the image of the product and service you are offering, and what margins you expect. Channels of distribution the geographic area, selling directly to retail or food service or through a wholesaler. Product promotion, advertising, personal selling and sales promotion. Sales management how will product be sold, how will customer complaints be handled. 6. Competition Identify main competitor(s) and define your advantage. 7. Operational details description of premises and equipment. 8. Financial plan how the business will be financed, cash flows and accounts.

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