Compedium of Diaspora opportunities
MAKING INSTANT COFFEE POWDER BUSINESS IN UGANDA
Coffee is a household crop in Uganda and a major foreign exchange earner. It is widely produced and many Ugandans take it as a beverage, and world over it is a cherished drink. The demand for coffee as a beverage is on the rise locally and any venture in its production and distribution is viable as it involves adding value to the coffee beans.
This project involves milling coffee beans into desired powder and sold over the counter to a waiting customer. The project requires an estimated fixed capital of US$ 5,300, operating costs of US$ 64,841 generating revenue of US$ 116,064 in the first year of operation. The payback period is 5 months.
The process is simple .Coffee beans are roasted first using a coffee roaster and then blended
Capital Investment Requirements
|Capital Investment Item||Units||Qty||@||Total|
|Furniture & Fittings||No||–||–||700|
Production and Operating Costs
|Cost Item||Units||@||Qty/ day||Pdn Cost/ Day||Pdn Cost/ month||Pdn Cost/ year|
|Fresh Coffee Nuts||Kgs||1.1||15||16.5||429||5,148|
|Selling and Distribution||150||1,800|
|Cleaning and Toiletries||104||1,248|
|Total Operating Costs||5,403||64,841|
1) Production costs assumed 312 days per year with daily capacity of producing
25kgs of instant coffee powder.
2) Depreciation (fixed asset write off) assumes 4-years life of assets written off at
25% per year for all assets.
3) Direct costs include: materials, supplies and other costs that directly go into
production of the product.
4) Total monthly days assumed are 26-days.
5) The valuation currency used is United States Dollars.
Project Product Costs and Price Structure
|Item||Qty/ day||Qty/yr||@||Pdn Cost/yr||UPx||Total Rve|
Profitability Analysis Table
|Profitability Item||Per day||Per Mnth||Per year|
|Less: Production and Operating Costs||212||5,514||64841|
The demand for instant coffee is on the rise especially among affluent people in society who are . urban based and from the middle class. Its potential is promising. The revival of coffee shops of the seventies would go a long way to tap the market and popularize the product.
A kilo of this instant coffee powder would fetch a lot more than the raw coffee beans. There are no taxes imposed on exports and any Value Added Tax (VAT) input is claimed and reimbursed by the tax body as a way of encouraging and facilitating exporters.