ESTABLISHING A GRAIN GROCERY
Introduction
Grains are agricultural products that have a very high demand in the country.
They usually include: sim sim, ground nuts, soy beans, maize, popcorn, and cow
peas. The project idea is based on adding value by packaging good quality
grains and selling them at relatively low prices. An estimated operating cost
of 45,668US$, if well applied can generate revenue of 400US$ when 72,000 kgs of
grain are sold in the first year of commencement of the business.
Market Analysis
The market for grains readily exists and its demand continues to increase even
across the boarders such as Southern Sudan.
Equipment Required For Establishment in
US$
The equipment mostly needed include those that are tabled below.
Capital Investment Requirements in US$
|
Capital investment item |
units |
Qty |
unit cost |
Total |
|
Motor truck(4 tones) |
No |
1 |
14,000 |
10,000 |
|
Furniture & Fittings |
No |
0 |
2,000 |
1,000 |
|
Packing machine |
No |
1 |
1,000 |
300 |
|
Grading machine |
No |
1 |
1,000 |
450 |
|
Grain cleaning machine |
No |
1 |
1,200 |
950 |
|
Dust woofers |
No |
2 |
350 |
700 |
|
Weighing scale |
No |
1 |
350 |
350 |
|
Total |
13,750 |
Production and Operating Costs in US$
Direct Materials, Supplies and Costs
|
Cost Item |
Units |
Unit |
Qty/ |
Prod |
Prod |
Prod |
|
G. nuts |
Kgs |
0.5 |
71 |
35 |
917 |
11,000 |
|
Soy beans |
Kgs |
0.3 |
32 |
10 |
250 |
3,000 |
|
Pop corn |
Kgs |
0.3 |
64 |
19 |
500 |
6,000 |
|
Cow peas |
Kgs |
0.3 |
64 |
19 |
500 |
6,000 |
|
Packaging |
Pcs |
0.05 |
300 |
15 |
390 |
4,680 |
|
Sub-total |
531 |
98 |
2,557 |
30,680 |
||
|
General Costs (Overheads) |
||||||
|
Field collection fuel |
125 |
1,500 |
||||
|
Rent |
400 |
4,800 |
||||
|
Utilities |
113 |
1,350 |
||||
|
Selling & distribution |
88 |
1,050 |
||||
|
Salaries & wages |
200 |
2,400 |
||||
|
Miscellaneous expenses |
38 |
450 |
||||
|
Depreciation |
286 |
3,438 |
||||
|
Sub-total |
1,249 |
14,988 |
||||
|
Total Operating Costs |
3,806 |
45,668 |
1) Production costs
assumed 312 days per year with daily capacity of packing 231kgs of grains.
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 in US $
|
Item |
Qty/ |
Qty/yr |
Unit |
Prod |
Unit |
Total Revenue |
|
G. Nuts |
71 |
22,000 |
0.634 |
13,954 |
1.2 |
26,400 |
|
Soy |
32 |
10,000 |
0.634 |
6,340 |
0.8 |
8,000 |
|
Pop |
64 |
20,000 |
0.634 |
12,680 |
0.8 |
16,000 |
|
Cow |
64 |
20,000 |
0.634 |
12,680 |
0.75 |
15,000 |
|
Total |
231 |
72,000 |
45,654 |
65,400 |
Profitability Analysis Table
|
Profitability Item |
Per Day |
Per Month |
Per Year |
|
Revenue |
210 |
5,450 |
65,400 |
|
Less: Production & Operating Costs |
48 |
1,249 |
45,654 |
|
Profit |
162 |
4,201 |
19,746 |