A RICE HULLING PLANT
Introduction
This business idea is for hulling and selling of rice. It is premised on
processing 7,200 Kg per day, which
translates into 187,200 Kg per month. The revenue potential is estimated at US$,
600 per year. The total investment is estimated at USD 13,550.
Production Process
Dried and cleaned paddy is dehusked by aspiration, and the dehusked brown rice
is got. The brown rice is placed in a polisher where the polished rice and bran
are separated. After sieving the polished rice, the broken rice is separated.
The sieved rice is packed in bags for dispatch.
Market Analysis
Locally produced rice would need massive marketing. Competition faced would be
from imported varieties although with the relevant institutional and government
support, this can be overcome. Supply
to supermarket chains, retailers, wholesalers and Forces. Tilda (U) Ltd, is the
major key player in this sector, however, there are very many small scale investors
in this sector wide spread in Uganda.
Capital investment requirements in US$
|
Item |
Unit |
Qty |
Unit |
Total |
|
Combined Rice huller |
No. |
1 |
2,500 |
2,500 |
|
Electric Motor |
No. |
1 |
900 |
900 |
|
Truck |
No. |
1 |
10,000 |
10,000 |
|
Weighing scale |
No. |
1 |
150 |
150 |
|
Total cost of Machinery |
13,550 |
Production & Operating Cost in US
Dollars
Direct Materials, Supplies and Costs
|
Cost |
Units |
Unit |
Qty/ |
Prod. |
Prod. |
Prod. |
|
Rice |
Kgs |
0.5 |
3,000 |
1,350 |
35,100 |
421,200 |
|
Rice |
Kgs |
0.5 |
2,200 |
1,100 |
28,600 |
343,200 |
|
Up land |
Kgs |
0.5 |
2,000 |
1,000 |
26,000 |
312,000 |
|
Sub-total |
89,700 |
1,076,400 |
||||
|
General costs (Overheads) |
||||||
|
Utilities (power) |
150 |
1,800 |
||||
|
(Utilities (water) |
15 |
180 |
||||
|
Salaries |
300 |
3,600 |
||||
|
renting |
150 |
1,800 |
||||
|
Depreciation (Assets write off) Expenses |
74 |
888 |
||||
|
Sub-total |
689 |
8,268 |
||||
|
Total Operating costs |
90,389 |
1,084,668 |
Production costs
assumed are for 312 days per year with a daily capacity of 7,200 kgs per day.
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 products.
Project Product Cost and Price Structure
in US$
|
Item |
Qty/ day |
Qty/ yr |
Unit Cost |
Prod. Cost /year ($) |
Unit price |
|
Rice (super) |
3,000 |
936,000 |
0.5 |
468,000 |
1. |
|
Rice (Kaiso) |
2,200 |
686,400 |
0.5 |
343,200 |
1. |
|
Up land rice |
2,000 |
624,000 |
0.5 |
312,000 |
1. |
|
1,123,200 |
Profitability analysis in US$
|
Profitability item |
per day |
per month |
per year |
|
Revenue |
|||
|
Rice (super) |
1,500 |
39,000 |
468,000 |
|
Rice (Kaiso) |
1,100 |
28,600 |
343,200 |
|
Up land rice |
1,000 |
26,000 |
312,000 |
|
Less Prod & Operating Costs |
3,476 |
90,389 |
1,084,668 |
|
Profit |
124 |
3,211 |
38,533 |