Compedium of Diaspora opportunities
MAKING POULTRY FEEDS BUSINESS IN UGANDA
The poultry industry is one of the fastest growing industries in Uganda. The poultry a product especially feeds have a wide market both in urban and rural areas of the country. The Business Idea was developed basing on the need to add value in the agricultural sector with provision of high quality poultry feeds.
An estimated fixed capital of US$23,940, when invested into the project, can yield an estimated annual revenue of US $78,000 from sale of 195,000kgms of poultry feeds, and 17,971US$, from sale of 39,936kgms of maize flour in the first year of production. The payback period is 2 years and the net profit margin is at 31%.
Capital Investment Requirements in US$
|Capital Investment Item||Units||Qty||@||Total|
|10-HP Hammer mill||No||1||1,632||1,632|
|15-HP Corn Cracker||No||1||2,250||2,250|
|Furniture & Fixtures||Set||5||300||1,500|
Production and Operating Costs in US$
Direct Materials, Supplies and Costs
|Cost Item||Units||@||Qty/ day||Pdn cost/ day||Pdn cost/ mth||Pdn cost/yr|
General Costs (Overheads)
|Selling & distribution||133||1,600|
|Total Operating Costs||5,479||65,749|
- 1) Production costs assumed are for 312 days per year with daily production of 625kgs and 128kgsof poultry feeds and maize flour respectively.
- Depreciation (fixed asset write off) assumes 4-years life of assets written off at 25% per year for all assets.
- Direct costs include: materials, supplies and other costs that directly go into
production of the product.
- Total monthly days assumed are 26-days.
- The valuation currency used is United States Dollars.
Project Product Costs and Price Structure
|Item||Qty/ day||Qty/yr||UnitCost||Pdn cost/yr||Upx||T/rev|
Profitability Analysis Table
|Profitability Item||Per Day||Per Month||Per Year|
There is wide market for poultry feeds both in rural and urban centers as most of people are embarking on poultry farming since it’s a lucrative venture, but there exists large producers of poultry feeds in Uganda and these include: Kagodo Farmers, Ugachick Uganda Ltd and Biyinzika farmers etc. These may be producing at low costs by enjoying the advantages of economies of scale.
Government Facilities and Incentives
The government is encouraging value addition in the agricultural sector and hence access to the agricultural fund, and European Investment fund can easily be granted.
The risk associated with this idea is healthy and safety related issue which can be addressed by employing food scientists.
Cupcakes can be baked directly in a patty, often baked in paper cases.
Basic Cupcake Mix; General Costs (Over heads) 50g/2oz self raising flour
|Utilities (Power &Water)||200||2,400|
|Repair & Maintenance||500||6,000|
|Depreciation(Asset write off) Expenses||102||1,224|
50g/2oz Caster sugar (superfine)
50g/2oz Butter or margarine (shortening)
Tools & Equipments
- The Essential tools and equipments required include:
- Measuring Cups and spoons
- Electric Mixer or Hand Mixer
- Sheet Pans or Cupcake Pans
- Oven Thermometer.
Capital Investment Requirements
Project product cost and Price structure
|Cup cake Pans||No.||10||25||250|
|Item||Qty/day||Qty/yr||@$||Pdn Cost/ yr$||UPx||T/rev|
Profitability Analysis Table