STARTING A SMOKING FISH BUSINESS IN UGANDA

By: wmutenza0 comments

Introduction

The business idea is for smoking and marketing of fish. This business idea is premised on smoking of 208 batches of fish per month which translates into 2,496 batches of fish per year. The revenue potential is estimated at US $ 5,824per month,which translates into US $69,888per year. The project cost is US $ 4,178 for the first month of operation.

Production Process

Fresh fish is cleaned and left to dry under sunshine for some time. It is then put on a wire mesh and covered with banana leaves in the oven for smoking. After some time, fish is changed over to allow both sides to dry. Fish is then removed from the oven or kiln and left to cool before being packed for dispatch.

Capital Investment Requirements in US$

Item Unit Qty @ Total
Oven/ kiln No. 1 220 220
Wire mesh No. 1 8.8 8.8
Delivery van No. 1 3,850 3,850
Fish Baskets No. 10 5.5 55
Hand tools No. 5 8.8 44
TC of Machinery 4,178

Production and Operation Costs

A). Direct materials, supplies and costs in US$

Cost Item Units @/ day Qty/ day Prod. cost/ day Prod. Cost/ month Prod. Cost/ year
Fish batches 20 8 160 4,160 49,920
Firewood bundles 1 3 3 78 936
Sub-total 4,238 50,856

General costs (Overheads)

Utilities (water) 10 120
Fuel 390 4,680
Rent 50 600
Salaries 150 1,800
Depreciation (Assets write off) Expenses 73 876
Sub-total 673 8,076
Total Operating costs 4,911 58,932
  1. Production costs assumed are for 312 days per year with a daily capacity of 8 batches.
  2. Depreciation assumes 4 years life of assets written off at 25% and charged only on delivery van.
  3. Direct costs include: Materials, supplies and other costs that directly go into production.

Product cost and Price Structure in US $

Item Qty/ day Qty /yr @ Prod./ yr UPx TR ($)
Fish 8 2,496 24 58932 28 69,888

Profitability Analysis

Profitability item per day per month per year
Revenue 103 2688 69,888
Smoked fish 220 5,720 68,640
Less Prod & Operating Costs 189 4,911 58,932
Profit 35 913 10,956

Market

Smoked fish is a delicacy to all tribes in Uganda; it is consumed in almost all regions of the country. Smoked fish can be supplied to colleges and schools, armed forces, hospitals and homes. There is also a ready market in Congo, Zambia, Zimbabwe and Sudan.

Availability of Raw Materials

All the raw materials can be obtained from the local market; fish can be purchased from the nearby lake shores.

Government Intervention

Government is encouraging fish farming as a way of eradicating poverty through the National Agricultural Advisory (NAADS) Programme by provision of various fish species that are resistant to harsh environment and diseases.

Fish farming is environmentally friendly. There are grants from European Union and other NGOs to Fish Farmers.

 

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