DEHULLING OF SESAME SEEDS
Introduction
Sesame is commonly called simsim and it is widely grown in Uganda, but it is
dominantly grown in the North, West Nile, Teso, and Kapchorwa sub regions. Sesame
is used to produce oil used for cooking. This project is for setting up a plant
to de-hull the sesame seeds. Some of the varieties are black and that black
coating gives it a bitter taste and therefore the seeds must be rid of that
covering to render them edible. This black covering has high oxalates content
and by dehulling sesame you turn it white coloured which can be used in various
preparation such as sweets, groundnut butter, sweets, powders, chutneys etc.
The project requires an estimated fixed capital of US$ 3,900, operating costs
of US$ 142,793, generating total revenue of US$800U in the first year of operation.
Production Process
The dark seeds are cleaned by subjecting them to an
alkali treatment for a few minutes. The seeds are then washed with cold water
to free the product from traces of alkali. The processed seeds are then dried
and are white and rid of bitterness and of good nutritive qualities. The
removed outer coat has the bitter oxalic acid and the seed is now bereft of
fungal infections.
Market Analysis
The demand for whiter sesame oil is on the increase on
the market. Being plant oil it is healthier as it gives less cholesterol.
Sesame oil is used as a cooking medium and in pickles. Restaurants, hotels,
fast
foods chops grocery shops, and supermarkets chains are the main outlets. Sesame
oil has exportable potential especially in the Arab world. In Uganda, this
industry is not yet well developed.
Capital Investment Requirements in US$
|
|
Units |
Qty |
Unit cost |
Total |
|
Soaking Tank |
No |
2 |
100 |
200 |
|
Pulper |
No |
1 |
1,000 |
1,000 |
|
Drier |
No |
1 |
1,250 |
1,250 |
|
Trays |
No |
10 |
35 |
350 |
|
Weighing scale |
No |
1 |
250 |
250 |
|
Furniture & Fittings |
No |
- |
- |
850 |
|
Total |
3,900 |
Production
and Operating Costs
Direct Materials, Supplies and Costs
|
Cost Item |
Units |
Unit |
Qty/ |
Prod |
Prod |
Prod |
|
Direct Costs |
||||||
|
Black
Coloured |
Kgs |
0.4 |
1,000 |
400 |
10,400 |
124,800 |
|
Sodium |
Kgs |
0.8 |
25 |
20 |
520 |
6,240 |
|
Packaging |
Pcs |
0.4 |
10 |
4 |
104 |
1,248 |
|
Sub-total |
1,035 |
424 |
11,024 |
132,288 |
||
|
General Costs (Overheads) |
||||||
|
Rent |
200 |
2,400 |
||||
|
Labour |
208 |
2,500 |
||||
|
Cleaning and Toiletries |
91 |
1,090 |
||||
|
Utilities |
250 |
3,000 |
||||
|
Miscellaneous |
45 |
540 |
||||
|
Depreciation |
81 |
975 |
||||
|
Sub-total |
875 |
10,505 |
|
|
|
|
|
Total Operating Costs |
11,899 |
142,793 |
|
|
|
1) Production costs assumed 312 days per year with daily capacity of producing 1,000kgms of sesame Seeds.
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 Structure
|
Item |
Qty/ |
Qty/yr |
Unit |
Prod |
Unit |
Total |
|
Sesame |
1,000 |
312,000 |
0.46 |
142,793 |
0.65 |
202,800 |
Profitability Analysis Table in US$
|
Item |
Per day |
Per month |
Per year |
|
Revenue |
650 |
16,900 |
202,800 |
|
Less: Production and Operating Costs |
458 |
11,899 |
142,793 |
|
Profit |
192 |
5,001 |
60,007 |