FOR MAKING MILK POWDER
Introduction
This business idea is for the production and marketing of powder milk. The business idea is premised on the production of 52,000 kg of powder milk per month which translates into 624,000 kg per year. The revenue potential is estimated at US$ 208,000 per month which translates into US$ 2,496,000 per year. The project cost is US$ 1,688,194.
Production Process
Milk bubbles are sprayed in hot air for 3-30 seconds. The water particles from the milk get evaporated and remain as powder. As this happens in fractions of time, the healthy particles of milk are protected.
Market Analysis
Milk products are consumed countrywide. There is a ready market for dairy products in Uganda and neighboring countries.
Tools and Equipment in US$
|
Item |
Unit |
Qty |
Unit Cost |
Total |
|
Auto miser |
No. |
1 |
10,000 |
10,000 |
|
lactoscan |
No. |
1 |
250 |
250 |
|
Parking machine |
No. |
1 |
9,000 |
9,000 |
|
storage containers |
No. |
2 |
250 |
500 |
|
Milk sampler |
No. |
1 |
25 |
25 |
|
Milk reception unit |
No.
|
1 |
10,000 |
10,000 |
|
Delivery van |
No. |
3 |
2,500 |
7,500 |
|
Total cost of Machinery |
|
|
|
37,275 |
Production and Operating Costs in US $
Direct Materials, Supplies and Costs
|
Cost Item |
Units |
Unit Cost |
Qty |
Prod. cost |
Prod. Cost/ month |
Prod. Cost/ year |
|
Orslator |
No. |
25 |
1 |
25 |
650 |
7,800 |
|
Transformer |
No. |
75 |
1 |
75 |
1,950 |
23,400 |
|
Diodes |
No. |
5 |
1 |
5 |
130 |
1,560 |
|
Thermostat |
No. |
8 |
1 |
8 |
195 |
2,340 |
|
Circuit board |
No. |
3 |
1 |
3 |
65 |
780 |
|
Capacitors |
No. |
4 |
1 |
4 |
91 |
1,092 |
|
Resistor |
No. |
0.3 |
1 |
0 .3 |
7 |
78 |
|
Switch |
No. |
4 |
1 |
4 |
104 |
1,248 |
|
Fetes |
No. |
5 |
22 |
110 |
2,860 |
34,320 |
|
Box (metallic) |
No. |
25 |
1 |
25 |
650 |
7,800 |
|
Sub-total |
6,702 |
80,418 |
||||
|
General costs (Overheads) |
||||||
|
Utilities (power) |
15 |
180 |
||||
|
Salaries |
25 |
300 |
||||
|
renting |
75 |
900 |
||||
|
Depreciation (Assets write off) Expenses |
3 |
41 |
||||
|
Sub-total |
118 |
1,421 |
||||
|
Total Operating costs |
6,820 |
81,839 |
Production assumed 312 days per year with a daily capacity of 20,000 Liters of powder milk. Depreciation (fixed assets write off) assumes 4 years life of assets write off at 25% per year for the delivery vans. Direct costs include materials, supplies and other costs that directly go into production of the product.
Project Product Cost and Price Structure in US $
|
Item |
Period |
out |
Unit |
unit |
Total |
Total |
|
Power |
per |
15 |
455 |
600 |
6,820 |
9,000 |
|
per |
180 |
5,456 |
7,200 |
81,839 |
108,000 |
Profitability Analysis in US$
|
Profitability item |
per day |
per |
per year |
|
Revenue |
|||
|
Power Invertors |
346 |
9,000 |
108,000 |
|
Less Prod & Operating Costs |
262 |
6,820 |
81,839 |
|
Profit |
84 |
2,180 |
26,161 |