Fruits like grapes, oranges, papaya, mangoes, etc. are largely grown in Uganda. However, they are harvested seasonally resulting in some seasons of relative scarcity. In order to maintain the availability of fruits and vegetables throughout the year, the activity of dehydration is undertaken.
The process of dehydration also helps constitute fruits and vegetables in a hygienic condition. The estimated capital investment US$5,150, with revenue estimates of US$40,560 per year, with net profit of 38% and a payback period of 1 year and 3months.
Production Process, Capacity and Technology
The process starts with major selection of the fruits and vegetables, and washing them. They are peeled, shelled, sliced, blanched and dehydrated under controlled conditions.
The dehydrated fruits and vegetables are finally packed in suitable containers to avoid moisture absorption. Dehydration of fruits & vegetables is done by various processes like Traditional Sun Drying, Solar Dryers, Mechanical Dryers, vacuum freeze drying, vacuum drying, Osmotic dehydration, dehydration through explosion puffing and microwave based technique.
The envisaged project has minimum daily capacity of 100kg per day.
Capital Investment Requirement in US $:
|Cross flow drier||No||1||1,000||1,000|
|Other tools & equipment||No||1||500||500|
|TC of Machinery & Tools||5,150|
Production and Operation costs in US$
(a) Direct materials, supplies and costs
|Cost Item||Units||@||Qty||Pdn cost||Pdn cost|
General Costs (Overheads)
|Selling & distribution||120|
|Utilities (Water, power)||150|
|Total Operating Costs||2,061.62|
Project product costs and Price structure in US$
|Item||Qty/day||Qty/yr||Unit cost||Pdn cost/yr||UPx|
Profitability Analysis in US$
|Profitability Item||Per day||Per month||Per year|
|Less: Production and operating costs||80||2,084||24740|
The market for fruits and vegetables exists and all year round. Supply is bound to increase the returns to investment. Supply is recommended to supermarket chains, grocery shops, main markets, as they can help a lot in capturing a portion of the market. With an increased shelf life for the fruits and vegetables, the profit sales ratio is bound to increase.
Source of Equipment and Materials
It can be locally made by Tonet Ltd, Kanyanya, Gayaza Rd or imported. Fruits and vegetables are readily available in the local market throughout the country depending on the season.
Startup costs 25% granted on actual cost over the first four years in four equal installments.