FRUIT SALAD OCESSING AND VENDING
Introduction
|
This business idea is for making and marketing/vending of
fruits. s business involves selling varieties of fruits like mangoes,
Market Analysis There is a high demand in densely populated areas and the Ugandan population is highly sensitized about the use of fruits through FM radios. People eat them more for healthy purposes than as food. Therefore market for fruit salads is high. |
Production Capacity
Translating into US$58,500 per annum inclusive of a sales margin of
10%. The estimated total investment capital required to
establish this project is estimated at US$45,363 for the first year of project
operation.
Technology and Process Description
Fruit vending involves a door to door delivery of service and has no complicated technology involved. Fruit processing is relatively simple because fruits are bought in large quantities, washed, peeled, cut into pieces, mixed and packed into containers in a desired quantities for sale.
Scale of Investment, Capital Investment Requirements and
equipment
The project will be operated locally on small scale for example;
producing at least 250 packed fruit containers per day.
Capital Investment Requirements in US$
|
Item |
Units |
Qty |
Unit Cost |
Amount |
|
Refrigerator |
No |
1 |
400 |
400 |
|
Wrapping machine |
No |
1 |
200 |
200 |
|
Knives |
No |
4 |
1 |
4 |
|
Buckets |
No |
5 |
5 |
25 |
|
Uniforms |
No |
5 |
5 |
25 |
|
Total |
654 |
Production and Operating Costs
Direct Materials, Supplies and Costs in US$
|
Direct Costs |
|
|||||
|
Cost Item |
Units |
Unit |
Qty/ |
Prod |
Prod |
Prod |
|
Mangoes |
No |
0.1 |
100 |
10 |
260 |
3,120 |
|
Sugarcanes |
No |
0.75 |
10 |
8 |
195 |
2,340 |
|
Water |
No |
1 |
10 |
10 |
260 |
3,120 |
|
Apples |
No |
0.25 |
50 |
13 |
325 |
3,900 |
|
Pineapples |
No |
0.5 |
25 |
13 |
325 |
3,900 |
|
Pawpaw |
No |
0.75 |
25 |
19 |
488 |
5,850 |
|
Sweet |
No |
0.05 |
100 |
5 |
130 |
1,560 |
|
Peers |
No |
0.1 |
50 |
5 |
130 |
1,560 |
|
Grapes |
Kg |
1.5 |
5 |
8 |
195 |
2,340 |
|
Jack fruit. |
No |
2 |
1 |
2 |
52 |
624 |
|
Packing |
No |
0.1 |
250 |
25 |
650 |
7,800 |
|
Sub-total |
626 |
116 |
3,010 |
36,114 |
||
|
General Costs(Overheads) |
||||||
|
Utilities (water & Power) |
2 |
53 |
632 |
|||
|
Transport |
13 |
325 |
3,900 |
|||
|
Labour |
10 |
260 |
3,120 |
|||
|
Miscellaneous Costs |
2.5 |
65 |
780 |
|||
|
Depreciation (Asset write off) Exp |
0.52 |
13.63 |
164 |
|||
|
Sub-total |
28 |
716 |
8,595 |
|||
|
Total Operating Costs |
143 |
3,726 |
44,709 |
Capital Investment Requirements in US$
|
Item |
Units |
Qty |
Unit Cost |
Amount |
|
Refrigerator |
No |
1 |
400 |
400 |
|
Wrapping machine |
No |
1 |
200 |
200 |
|
Knives |
No |
4 |
1 |
4 |
|
Buckets |
No |
5 |
5 |
25 |
|
Uniforms |
No |
5 |
5 |
25 |
|
Total |
654 |
Production and Operating Costs
Direct Materials, Supplies and Costs in US$
1. Production costs assumed are for 312 days per year with a daily capacity of
250 packages of fruit salads.
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. A production month is assumed to have 26 work days.
Project Product Costs and Price Structure in US$
|
Item |
Qty/ |
Qty/Yr |
Unit |
Prod |
Unit |
T/rev |
|
Fruit |
250 |
78,000 |
0.6 |
44,709 |
0.75 |
58,500 |
Profitability Analysis in US$
|
Item |
Per |
Per |
Per Yr |
|
Revenue |
188 |
4,875 |
58,500 |
|
Less: Production and Operating Costs |
143 |
3,726 |
44,709 |
|
Profit |
44 |
1,149 |
13,791 |