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DRYING FRUITS BY OSMO-AIR DEHYDRATION BUSINESS IN UGANDA

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Introduction

There is a wide variety of fruits in Uganda. The problem is that fruits like mangoes, pineapples, jackfruit, etc., are very perishable. To retain the freshness, colour, flavor and texture of fruits, the fruits are Osmo-air dried. Osmo-air dried fruits are widely used in ready-to-eat foods, ice creams, fruit salad, cakes and bakery. This activity can be set up in rural areas to benefit the rural people. The plant has a capacity of 31,200kgs per year allowing revenue estimates of US$31,200 net profit of 21% per year having invested US$ 4,331, which is estimated to be recovered with 1 year and 4 months.

Production Process, Capacity and Technology and capital requirements

Fruits are selected, cleaned, washed, peeled, cured and sliced. The prepared fruits are then soaked in a sugar solution to remove water by osmotic pressure. The slices of fruits are then drained and dried in hot air. The fruits are then packed up in flexible pouches. The plant can have a minimum output of 100kg daily with output to be increased as demand does increase.

  1. Production costs assumed are for 312 days per year with daily capacity of 100 kgs.
  2. Depreciation (fixed asset write off) assumes 4 year life of assets written off at 25% per year for all assets.
  3. Direct costs include: materials, supplies and all other costs incurred to produce the product.
  4. A production month is 26 days
  5. Currency used is US Dollars.

Production and Operation costs in US$

(a) Direct materials, supplies and costs

Cost Item Units @ Qty/ day Pdn cost/ day Pdn cost/ mth Pdn cost/yr
Direct Costs
Fruits Kgs 0.3 16.03 4.81 125.0 1,500
Sugar syrup ltrs/ kgs 1.1 0.80 0.88 22.9 275
Citric acid Ltrs 36 0.32 11 300.0 3,600
Packing material Kgs 0.5 48.08 24 625.0 7,500
Sub-total 41 1,072.92 12,875

Project Product Costs and Price Structure in US $

Item Qty/day Qty/yr Unit Cost Pdn cost/r UPx TR
Dried Fruits 100 31,200 0.8 24,740 1 31,200

Profitability Analysis in US$

Profitability Item Per day Per month Per year
Revenue 100 2,600 31,200
Less: Production and operating costs 79 2,062 24,740
Profit 21 538 6,460

Market

Osmo-air dried fruits are similar to fresh fruits so they are easy to market. Supply to ice cream makers, bakeries, restaurants, fast food places, etc. Supply to the military for the fruits to be used as military rations is also necessary for the fruits to capture market.

Source of Equipment and Raw Materials

Machinery can be fabricated locally by Tree Shade Ltd Mwanga II Kisenyi Kampala or could be imported. Fruits are easily got in the local market all over the country.

Government Incentives available

Uganda Investment Authority provides guidelines on investment and government incentives, policies and security matters.

 

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