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MAKING FRUIT BARS BUSINESS IN UGANDA

By: wmutenza0 comments

Introduction
This business idea is for the production and marketing of fruit bars. Fruit bars are made of: mango, guava, pineapple bananas, jackfruit and apples which are nutritious and refreshing. Fruit bars have the same taste with nutritional qualities and are liked by both children and adults. The TR is estimated at US$ 499,200 per year, with production capacity estimated at 500 fruit bars per day. The total investment cost is estimated at US$399,746.
Production process
After making pulp, the pulp is mixed with sugar and citric acid, which is poured as layers in trays. The pulp is then dried and packed in polyethylene film (food grade) to avoid moisture from entering the product.
Capital Investment Requirements in US$

Capital investment item Units Qty @ Amount
Tray freezer drier No. 1 1,500 1,500
Stainless steel kettle No. 3 23 68
Juice squeezer No. 3 250 750
Weighing balance No. 1 100 100
Packing materials(kg) 500 75 37,500
Total Costs on Equipments 39,918

Production and Operating costs in US $

Cost Item Units @ Qty day Pdn cost /day Pdn cost/ month Pdn cost/ year
Mangoes Sack 35 1 35 910 10,920
Guava Sack 35 1 35 910 10,920
Sugar Kgs 50 20 1000 26000 312,000
Citric acid ltrs 3 8 24 624 7,488
Sub-total 28,444 341,328

General costs(overheads)

Utilities(water and power) 100 1,200
Labour 150 1,800
Rent 150 1,800
Miscellaneous costs 50 600
Distribution costs 260 3,120
Depreciation(Asset write off)Expenses) 831.625 9,980
Sub -total 1,542 18,500
Total Operating Costs 29,986 359,828
  1. Production costs assumed 312 days per year with a daily capacity of 500 packets of fruit bars.
  2. Depreciation (fixed assets write off) assumes 4 years life of assets written off at 25% per year for all assets
  3. Direct costs include materials, supplies and other costs that directly go into production of the product.

Project product Costs and Price Structure in US$

Item Qty / day Qty /yr @ Pdncost /yr UPx TR
Fruit bars 500 156,000 2.3 359,828 3.2 499,200

Profitability Analysis in US$

Profitability Item Per day Per month Per Year
Revenue 1600 41,600 499,200
Less production and operating Costs 1153.29 29,986 359,828
Profit 446.71 11,614 139,373

Market Analysis

Fruit bars have a great market potential in both rural and urban areas. They could be supplied to supermarket chains, parking yards and grocery stores.

Sources of raw materials:

Raw materials are locally available and equipments can be sourced from Saachi Uganda Limited Luwum Street.

Government Facilities and Incentives

The government has set up incentives for those who are involved in manufacturing sector as a bid to encourage setting up of small and medium enterprises to create employment.

 

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