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PRODUCTION OF CITRUS PEEL CANDY BUSINESS IN UGANDA

By: wmutenza0 comments

Introduction

Citrus peel candies are processed fruit products that are consumed as packed beverages. The market for processed beverages exists in Uganda with major consumers such as: supermarkets, restaurants, hotels, wholesale and retail shops.

This business idea is to establish a citrus peel candy plant that can produce an estimated output of 3,000 litres of candy with an investment cost of US$21,590, generating an estimated annual revenue of US$374,400, with a net profit margin of 40% and a payback period of 6 months.

Production Capacity, Technology & Process

The production process is simple but takes a number of stages. Fruits such as oranges are collected, washed and rinsed. They are then culled to remove any damages and later graded into fruit sizes. The fruits are later passed to the juicing machine where they are squeezed and then passed on to the finisher. Here pulp and seeds are removed using filter sieves strainers.

The filtered concentrate now goes through the blending tanks that measure the natural sugar in the concentrate to ensure that the set sugar standard is reached. After blending, the concentrate is pasteurized to make the juice long lasting. The juice is now passed to the refrigeration room where it’s filled into the plastic or cardboard containers through the funnel and packed.

Capital Investment Requirements in US$

Capital investment item Qty @ Total
Fruit washing tanks 3 109 327
Culling &grading machine 1 214 214
Juice extractors(50 Ltr capacity) 2 1,200 2400
Steam Jacketed Kettles(30Ltrs) 2 470 940
Stirrer 1 365 365
Baby boiler(30kg capacity) 1 1,250 1250
Bottle washing and filling machine 1 1,870 1870
Testing equipments 674 674
Delivery Van(Refrigerated) 1 12,000 12,000
Furniture 510 510
Storage tanks 315 315
SS Utensils 355 355
Exhaust fans 370 370
Total 21,590

Production and Operating Costs General Costs(Overheads)

Cost Item Units @ Qty/ day Pdn cost/ day Pdn cost/ mth Pdn cost/ yr
Fruits (Oranges) Kgs 0.25 1,000 250 6,500 78,000
Sugar Kgs 1.2 45 54 1,404 16,848
Preservatives Kgs 2.6 10 26 676 8,112
Packing materials Pcs 0.08 3,000 240 6,240 74,880
Sub-total 4,055 570 14,820 177,840
Labour 1,042 12,504
Utilities 471 5,652
Rent 1,000 12,000
Administration expenses 260 3,120
Cleaning & toiletries 308 3,696
Selling & distribution 288 3,456
Miscellaneous expenses 200 2,400
Depreciation 450 5,400
Sub-total 4,019 48,228
Total Operating Costs 18,839 226,068
  1. Production costs assumed are for 312 days per year with daily capacity of production of 3,000-250gms of peel candy.
  2. Depreciation (fixed asset 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.
  4. Total monthly days assumed are 26-days.
  5. The valuation currency used is United States Dollars.

Project Product Costs and Price

Item Qty/day Qty/yr UP C Pdn cost/yr UPx T/rev
Citrus peel Candy 3,000 936,000 0.2 226,068 0.4 374,400

Profitability Analysis Table

Profitability Item Per Day Per Mth Per Year
Revenue 1200 31,200 374,400
Less: Production & Operating Costs 725 18,839 226,068
Profit 475 12,361 148,332

Government Facilities and Incentives

There is a European Investment Fund and an Agricultural Fund that can be accessed when investing inR the agriculture sector.

Capital Investment Requirements in US$

Capital Investment Item Units Qty @ Amount
Hammer mill No 1 4350 4350
Pulverriser No 1 1200 1200
Rotary Digester No 1 2670 2670
Pelletzer No 1 1200 1200
Tunnel dryer No 1 2100 2100
Vibrating screens No 1 790 790
Platform type weighing machine No 1 600 600
High pressure steam boilers No 2 3800 7600
Rotary Activation kiln No 1 415 415
Activated carbon storage silo No 2 240 480
Non corrosive materials set 1 635 635
Tank filters press. Etc No 1 1750 1750
Total 23,790

 

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