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UREA-MOLASSES MULTI -NUTRIENT BLOCK BUSINESS IN UGANDA

By: wmutenza0 comments

Introduction

This project is about manufacturing cattle licks containing Urea, Molasses, Vitamins, Minerals and other nutrients that may be included in the recipe. These blocks are quite convenient to package, transport, and store. This is an easy feeding method and it is quite nutritive because the lick combines a variety of nutrients. At the manufacturing level, a lot more can be added as may be desired.

Process and Production Capacity

Preparation of the ingredients is done before the whole process starts. The mixing is done in a clear sequence –Molasses are put first, then Urea is added, followed by Salt and Minerals, Cement follows and finally Bran is added. The addition of water should follow a ratio of 3-4 litres per 10kgs of cement. The paste formed can then be put into moulds that may be the size of 25x15x10 cm and the molded blocks are put in a well ventilated shade where they may be kept between 24-72 hrs. The mixing may be manual where production does not exceed 150 blocks a day.

Capital Investment Requirements in US$

Capital Investment Item Units Qty @ total
Delivery Van(1.5tone) No 1 28,000 28,000
Mould No 4 30 120
Wheelbarrow, Spades No 44
Weighing Scale No 1 75 75
Furniture & Fittings No 200
Total 28,439

Operating Costs in US$

Cost Item Units @ Qty/ day Pdn Cost/ day Pdn Cost/ mth Pdn Cost/ yr
Direct Costs
Molasses kgs 0.25 98 25 637 7,644
Urea kgs 2 25 50 1300 15,600
Bran kgs 0.06 63 4 98 1,179
Soybeans kgs 0.4 33 13 343 4,118
Cement kgs 0.28 25 7 182 2,184
Salt Kgs 0.4 8 3 83 998
Sub-total 252 102 2644 31,724

General costs(Overheads) Project Product Costs & Price Structure

Rent 200 2,400
Labour 225 2,700
Utilities 23 270
Selling & distribution 87 1,040
Miscellaneous 33 400
Depreciation 592 7,110
Sub-total 1160 13,920
Total Operating Costs 3,804 45,644
Item Qty/day Qty/ yr @ Pdn Cost/yr UPx Total Rve
Urea Molasses 50 15,600 2.76 45,644 4.5 70,200

Profitability Analysis Table

Profitability Item Per day Per Month Per year
Revenue 225 5,850 70,200
Less: Production and Operating Costs 146 3,804 45,644
Profit 79 2,046 24,556

Marketing Analysis

The Urea-Molasses and cattle licks are very popular with farmers because of their nutritive value. They contain many ingredients that can hardly be found in any one other feed.

Government Incentive

The government maintains liberalized policies on trade and commerce that allow free marketing and non-taxing of exports etc. Government bureaucrats offer free advisory consultancy services to those who care to use them.

 

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