ESTABLISHING A COFFEE CAFFEINE PROCESSING PLANT IN UGANDA

By: wmutenza0 comments

Introduction

Caffeine is a drug that is naturally produced in the leaves and seeds of many plants. Coffee is quite popular as a leisure drink, and the ingredients of coffee include:caffeine, aroma, protein, tannic acid and fat etc.

The references show a small amount of caffeine can stimulate the brain and enhance memory while if caffeine is drunk too much, then it may trigger high blood pressure, kidney and coronary artery diseases, which are negative effects.

Production Capacity

It is projected that this plant will produce 1 ton (1,000kgs) of Caffeine powder per day. The production cost is estimated at USD 300,886, generating revenue potential of USD 655,200 per annum and a net profit margin of 54%. The payback period for this project is 2 months.Production Process & Technology First, a grinder is used to crush coffee beans into a fine consistency and its filtered through a 40 mesh filter. When it reaches the operating temperature, a mixture of coffee powder and RO water is placed into the ultrasound machine, and then processed under various extraction conditions. The extracted liquid is initially filtered through a 40 mesh filter and collected. In order to achieve a ratio of liquid to water of 1:9 for a final dilution of 10 times, the

extraction liquid is further filtered through a 0.45μm filter paper.

And then, the caffeine content is used as a base for comparative analysis of the HPLC.

Market Analysis

There is soaring demand for caffeine-fueled energy drinks, which are especially popular among teens. And as it happens, energy drinks have become enormously popular as mixers with alcohol in bars.

Project Costs:

Capital Investment Requirements in US$

Capital Investment Item Units Qty @$ Amount $
Truck No. 1 8,000 8,000
Grinder No. 1 2,700 2,700
Filter No. 1 50 50
Water Baths No. 2 30 60
Cleaning Equipment No. 1 500 500
Furniture No. 2 30 60
Weighing Scale No. 1 100 100
Packaging Machine No. 1 1,000 1,000
Total Amount 12,470

Operating Cost in US$ General Costs (Over heads)

Item Units @ $ Qty/day Prod. Cost/day Prod. Cost/ month Prod. Cost/ Year[1]
Direct Costs
Coffee Kgs 0.75 1,112 834 21,684 260,208
Sub total 834 260,208 21,684
Rent 500 6,000
Labour 500 6,000
Utilities (Power & Water) 500 6,000
Repair & Maintenance 500 6,000
Packaging Materials 130 1,560
Fuel 1000 12,000
Depreciation(Asset write off) Expenses 259.8 3,118
Sub – total 3,390 40,678
Total Operating Costs 25,074 300,886

Project Product Costs & Price Structure

Item Qty/ day (mg) Qty/yr @$ Pdn Cost/ yr$ UPx Total / revenue
Caffeine 10,000 3,120,000 0.1 300,886 0.2 655,200

Profitability Analysis in US$

Profitability Item Per day Per Month Per Year
Revenue 2,100 54,600 655,200
Less: Production & Operating Costs 964.3766 25,074 300,886
Profit 1,136 29,526 354,315

Raw Material Availability

Raw materials are readily available in Uganda since there are many coffee growers.

Government Facilities and Incentives Available

Government is willing to finance Agro-Processing Industries and provide technical support to them in a bid to promote Industrialization.

Risk

The business risk involved is healthy and safety related, surrounding the manufacturing and processing but this can be solved by employing food scientists and adhering to a strict safety regime.

Capital Investment in US$ General Costs (Over heads)

 

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