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Compedium of Diaspora opportunities

PRODUCTION OF FRUIT SQUASH BUSINESS IN UGANDA

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Introduction

Fruits are an important source of energy and vitamins, however due to them being highly perishable and only growing in certain seasons call for a need preservation. The most effective way of preserving fruits is by turning them into squash. Consequently there is a market for a venture process to fruits into a state where by they are readily available.

The establishment of the project is aimed at producing a capacity of 826,800litres of squash per year with a required capital investment cost of US$17,623. The project is estimated to generate annual revenue of US$433,020, generate a net profit margin of 25% and a payback period of 4 months.

Production Capacity, Technology & Process

The production process is very simple as it involves squeezing, filtering, boiling and preservation.

Good quality ripe fruits are washed, peeled and cleaned. Then the juice is extracted from fruits and is filtered to remove seeds and fibres. Then the juice is processed and sterilized and then syrup

General Costs(Overheads)

of sugar preservatives are added and this mixture is stirred till a uniform solution is formed. After, the bottling and packing is done

Capital Investment Requirements

Project Product Costs and Price Structure

Labour 1,096 13,152
Utilities 517 6,204
Rent 1,000 12,000
Administration expenses 263 3,156
Cleaning & toiletries 208 2,496
Selling & distribution 375 4,500
Miscellaneous expenses 175 2,100
Depreciation 367 4,404
Sub-total 4,001 48,012
Total Operating Costs 36,085 433,020
Capital investment item Qty @ Total
Fruit washing tanks 3 200 600
Juice extractors (50lts 2 940 1880
Steam jacketed Kettles (30ltres) 2 435 870
Stirrer 1 328 328
Baby boiler (30kgm 1 1,304 1304
Bottle washing & filling machine 1 1,650 1650
Testing equipments 1 654 654
Furniture 435
SS Utensils 217
Storage racks 260
Delivery Van 1 9,000 9,000
Exhaust fans 175
Other tools 250
Total 17,623
Item Qty/day Qty/yr @ Pdn cost/ yr UPx T/rev
Fruit Squashes 2,650 826,800 0.5 433,020 0.7 578,760

Profitability Analysis Table

Government Facilities & Incentives

There is a European Investment Fund and an Agricultural Fund which support agro processing industries

Production and Operating Costs (a)Direct materials, Supplies and Costs

Profitability Item Per Day Per Month Per Year
Revenue 1,855 48,230 578,760
Less: Production & Operating Costs 1,388 36,085 433,020
Profit 467 12,145 145,740
Cost Item Units @ Qty/ day Pdn cost/ day Pdn cost/ mth Pdnc ost/yr
Direct Costs
Fruits Kgs 0.3 3,200 864 22,464 269,568
Sugar Kgs 1.2 200 240 6,240 74,880
Preservatives Kgs 2.5 10 25 650 7,800
Packing materials Pcs 0.07 1,500 105 2,730 32,760
Sub-total 4,910 1,234 32,084 385,008

 

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