CULTIVATION AND MARKETING OF FLOWERS
Introduction
This business idea is for cultivation and marketing of
flowers. Growing flowers is an art - or activity and craft of growing plants,
with a goal of creating a wonderful & beautiful world around.
Flowers are a symbol of love, beauty, affection, romance, etc. Flowers have a
high economic value both at face value and for extracting perfumes and other
products. Flowers are highly demanded especially for personal adornment and
decoration. The production capacity per day is estimated at 400 per day with a
total investment estimated at US$ 162,890 while revenue is estimated at US$ 600
per year
Production process
Flowers can be grown in any soil but most soils will be improved by treatment
of some sort before planting. Flowers are heavy feeders and thrive best in well
worked and well-drained soils. The beds
should be prepared 6-12 months prior to planting. If prepared suitably, beds
can last a long time. Flowers are propagated by seeds, stem or root cuttings,
layering, budding and grafting. Propagation by
stem cuttings is the most common used method. The seeds are planted in a
nursery at intervals of 2.5-5 cm. The nursery beds are sparingly watered thrice
a week and kept clean of weeds. The growing stems are then transferred to the
real field in wooden structures.
Market Analysis
Flowers have a ready market from the florists mainly in urban areas. The market
includes: Churches, Hotels, Households, Offices, and Restaurants. The main key
players includes; Rose Buds, Nsimbe,
Wava flowers, and many small scale farmers on the market.
Capital Investment Requirements in US$
|
Capital investment item |
Units |
Qty |
Unit cost |
Amount |
|
Water pump |
No. |
2 |
300 |
600 |
|
Pipes and Fittings |
No. |
10 |
250 |
2,500 |
|
Water tank |
No. |
1 |
50 |
50 |
|
Cutter |
No. |
5 |
15 |
75 |
|
pesticide sprayer |
No. |
3 |
75 |
225 |
|
scissors |
No. |
5 |
15 |
75 |
|
Barbed wire(roll) |
No. |
2 |
75 |
150 |
|
Tents |
No. |
4 |
50 |
200 |
|
Baskets |
No. |
50 |
15 |
750 |
|
Total Costs on Equipments |
|
4,625 |
Production
costs assumed 312 days per year with a daily capacity of 500 bundles of flowers
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.
Production and Operating costs in US$
|
Cost Item |
Unit |
Unit |
Qty/ |
Prod |
Prod cost/ |
Prod |
|
seeds |
Kgs |
1 |
20 |
20 |
520 |
6,240 |
|
manure |
Kgs |
5.0 |
50 |
250 |
6,500 |
78,000 |
|
Fertilizers |
Kgs |
2.50 |
50 |
125 |
3,250 |
39,000 |
|
Chemicals |
Ltrs |
2 |
30 |
60 |
1,560 |
18,720 |
|
pesticide |
Ltrs |
1.6 |
10 |
16 |
416 |
4,992 |
|
Sub-total |
160 |
471 |
12,246 |
146,952 |
||
|
General costs (overheads) |
||||||
|
Utilities (water and power) |
300 |
3,600 |
||||
|
Labour |
750 |
9,000 |
||||
|
Rent |
150 |
1,800 |
||||
|
Administrative cost |
75 |
900 |
||||
|
Miscellaneous costs |
50 |
600 |
||||
|
Depreciation(Asset write off)Expenses) |
3 |
38 |
||||
|
Sub -total |
1,328 |
15,938 |
||||
|
Total Operating Costs |
13,574 |
162,890 |
Project product Costs and Price Structure in US$
|
Item |
Qty/day |
Qty/yr |
Unit |
Prod |
Unit |
Total |
|
Roses (bundles) |
100 |
31,200 |
1 |
40,722 |
1.8 |
54,600 |
|
Mums (bundles) |
100 |
31,200 |
1 |
40,722 |
1.8 |
54,600 |
|
Carnation(bundles) |
100 |
31,200 |
1 |
40,722 |
2 |
62,400 |
|
Water lilies |
100 |
31,200 |
1 |
40,722 |
1.3 |
39,000 |
|
124,800 |
162,890 |
210,600 |
Profitability Analysis
|
Profitability Item |
Per day |
Per month |
Per Year |
|
Revenue |
675 |
17,550 |
210,600 |
|
Less production and operating Costs |
522 |
13,574 |
162,890 |
|
Profit |
153 |
3,976 |
47,711 |