MAKING BANANA FIBER PRODUCTS
Introduction
The banana fiber is a widely used
product in making coarse woven fabrics e.g. sacks, ropes, twigs, sand bags,
tents, webbings, canvas and screens, kit bags, tool bags, luggage, gunny bags
and covers. The fiber is extracted from the pseudo-stem of banana. Banana fiber
can also be blended with wool and cotton for making blankets, carpets etc. The
proposed project is for setting up a banana fiber making plant to
utilize the products of the variety of banana plantations in Uganda. The
project cost is US$ 34,312 with capacity of 46,800kgs per year, revenue
estimates stand at US$ 93,600 annually.
Production Process
The production process starts with the
extraction of the fiber from banana pseudo-stem. The process involves splitting
of the banana pseudo-stem into strips, injection in open vats followed by
washing
and drying. By using traditional techniques, the fiber can be converted into
various utility items. Production capacity is projected at 150kgs per day.
Market Analysis
A wide range of products can be produced which enjoy good market in both rural and urban areas. It’s a potential boost to the tourism sector and economy as a whole since many tourists like these products. These products are mainly made from Art and Craft Centres, Recreation Centres and Tourist Camps.
Capital Investment Requirement in US $
|
Item |
Units |
Quantity |
Cost |
Total |
|
Two roll crusher |
Numbers |
1 |
3,500 |
3,500 |
|
Drying chambers |
Numbers |
1 |
2,500 |
2,500 |
|
Weighing balance |
Numbers |
1 |
25 |
25 |
|
Cutting and splitting |
Numbers |
2 |
30 |
60 |
|
Open vat |
1 |
1,750 |
1,750 |
|
|
Total cost of Machinery & Tools |
7,835 |
1. Production costs assume 312 days per year with daily capacity of 15 Kgs.
2. Depreciation (fixed asset write off) assumes 4 year life of assets written off at 25% per year for all assets.
3. Direct costs include: materials, supplies and all other costs incurred to produce the product.
4. A production month is 26 work days
5. Currency used is US Dollars.
Production and Operating costs in US $
Direct material, supplies and costs
|
Cost |
Units |
Unit |
Qty |
Prod |
Prod |
Prod |
|
Direct Cost |
||||||
|
Banana |
Kgms |
0.0250 |
321 |
8.01 |
208.33 |
2,499.90 |
|
Chemical |
Litres |
5 |
0.64 |
3.20 |
83.20 |
998.40 |
|
Paper / |
Rolls |
2 |
3 |
4.50 |
117.00 |
1,404.00 |
|
Polythene |
packets |
0.4 |
3.20 |
1.33 |
34.65 |
415.83 |
|
Other |
- |
- |
- |
10.00 |
120.00 |
|
|
Sub-total |
- |
- |
- |
17 |
453.18 |
5,438.13 |
|
General Costs (Overheads) |
||||||
|
Labour |
625 |
7,500 |
||||
|
Selling & distribution |
150 |
1,800 |
||||
|
Utilities |
250 |
3,000 |
||||
|
Rent |
350 |
4,200 |
||||
|
Administration expenses |
65 |
780 |
||||
|
Miscellaneous expenses |
150 |
1,800 |
||||
|
Depreciation |
163 |
1,959 |
||||
|
Sub-total |
1,753 |
21,039 |
||||
|
Total Operating Costs |
2,206.18 |
26,476.83 |
Project product costs and Price structure in US $
|
Item |
Qty/day |
Qty/yr |
Unit |
Pdn |
Unit |
Total |
|
Banana |
150 |
46,800 |
0.6 |
26,477 |
2 |
93,600 |
Profitability Analysis in US$
|
Item |
Per day |
Per |
Per year |
|
Revenue |
300 |
7,800 |
93,600 |
|
Less: Production and operating |
39 |
1,018 |
26,477 |
|
Profit |
261 |
6,782 |
67,123 |