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ESTABLISHING AN ICE CREAM -BALLS MANUFACTURING PLANT IN UGANDA

By: wmutenza0 comments

Introduction

The demand for Ice cream is all round the year and is consumed by all classes of people. The proposed project envisions setting up of an Ice cream balls manufacturing unit with capital investment of US$ 25,250. This business is estimated to yield annual revenue of US$ 336,960 with a net profit of 23% and a payback period of 8 months.

 

Suggested Plant Capacity and Project Cost

The indicative project cost for manufacturing unit of Ice cream balls; with suggested capacity of 2,000 balls per day is US $ 25,250.

 

Technology and Process Description

Ice Cream ball is manufactured using cryogenic techniques. Cryogenics process uses liquid Nitrogen to instantaneously freeze

Ice Cream balls, to a temperature of – 187 ˚C (-304˚ F.).

Special storage freezers are required to guarantee the highest flavor quality.

 

Plant and Machinery Required

Ice cream mix preparation tanks, Ice cream mixer, Boiler, Butter melting Vat, Liquid nitrogen storage tank double wall, Ice cream balls packing machine, Quality control equipments, Molding machine, Blender

Capital Investment Requirement in US$

Capital Investment Item Units Qty @ Amount
Delivery Van No. 1 8,000 8,000
Mixer No. 1 3,000 3,000
Storage Tanks No. 3 650 1,950
Preparation Tanks No. 4 500 2,000
Molding Machine No. 1 2,000 2,000
Q.C Equipments Set 1 500 500
Blender No. 1 200 200
Freezers No. 4 1,100 4,400
Electric Boiler No. 1 1,000 1,000
Packaging Machine No. 1 2,200 2,200
Total Amount 25,250

Operating Cost in US $ General Costs (Over heads)

Item Units @ Qty/ day Prod. Cost/ day Prod. Cost/ month Prod. Cost/ Year
Direct Costs
Milk Litres 0.39 1000 390 10,140 121,680
Food Color Kgs 0.58 50 29 754 9,048
Stabilizers Kgs 1.9 10 19 494 5,928
Sugar Kgs 1.3 200 260 6760 81,120
Sub total 698 18,148 217,776
Rent 300 3,600
Packaging Material 500 6,000
Labour 600 7,200
Utilities (Power & Water) 500 6,000
Repair & Servicing 500 6,000
Fuel 500 6,000
Depreciation (Asset write off) Expenses 526 6,312
Sub – total 3,426 41,112
Total Operating Costs 21,574 258,888

Project Product Costs & Price Structure in US$

Item Qty / day Qty/ yr @ Pdn Cost/ yr UPx T/rev
Ice Cream Balls 2000 624,000 0.41 258,888 0.54 336,960

Profitability Analysis in US$

Profitability Item Per day Per Month Per Year
Revenue 1,080 28,080 336,960
Less: Production & Operating Costs 830 21,574 258,888
Profit 250 6,506 78,072

 

Sources of Supply of Raw Materials

Dairy products will be locally supplied from farming areas of Uganda especially Western & Central Uganda.

Government Facilities Available

The following incentives are available from Government in her bid to promote Agro and Food Processing Industry: Tax exemptions on plant and machinery, infrastructure, grants and long term loans at relatively low interest rates and liberalized market and favorable trade policies.

Capital Investment Requirement in US $ Project product cost and Price structure

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