MAKING FRUIT BARS BUSINESS IN UGANDA
MAKING FRUIT BARS BUSINESS IN UGANDA
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$399,746.
This business idea is for the production and marketing of fruit bars. Fruit bars are made of: mango, guava, pineapple bananas, jackfruit and apples which are nutritious and refreshing. Fruit bars have the same taste with nutritional qualities and are liked by both children and adults. The TR is estimated at US$ 499,200 per year, with production capacity estimated at 500 fruit bars per day. The total investment cost is estimated at US$399,746.
Production process
After making pulp, the pulp is mixed with sugar and citric acid, which is poured as layers in trays. The pulp is then dried and packed in polyethylene film (food grade) to avoid moisture from entering the product.
After making pulp, the pulp is mixed with sugar and citric acid, which is poured as layers in trays. The pulp is then dried and packed in polyethylene film (food grade) to avoid moisture from entering the product.
Capital Investment Requirements in US$
| 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 |
- Production costs assumed 312 days per year with a daily capacity of 500 packets of fruit bars.
- Depreciation (fixed assets write off) assumes 4 years life of assets written off at 25% per year for all assets
- 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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