MAKING BANANA WAFERS
Introduction
Banana Wafers are a popular snack eaten world over. Banana wafers are made by cutting bananas into thin slices. This project uses the bananas commonly known as Matooke in Uganda and is readily available. Wafers can simply be eaten directly or as desserts and puddings so can capture a wide market. It’s a cross cutting venture as it can be undertaken in both rural and urban settings. The project cost is US$ 18,484 producing 46,800kgs per annum bringing estimated revenue of US$ 35,100 per year.
Production process, Capacity and
Technology
The Bananas can be peeled manually or
using a peeling machine. They are then sliced and rapidly dehydrated to reduce
the moisture content and then deep fried in the cooking oil. Excess oil is
extracted
and the fried banana wafers are seasoned with salt and other spices as may be
deemed necessary. The plant capacity is 150kg per 8 hours but there are equipment
with bigger capacity. The technology involved can be locally accessed within
Uganda and therefore this makes it affordable.
Equipment and Machinery
The machinery and equipment to be used in this project can be procured locally or imported.
Market Analysis
Banana wafers are common among the urban population. With an increased shelf life, the wafers can be schools, hotels, hospitals, and with aggressive marketing can capture supplied to supermarkets, a lot of consumer attention. They can also be produced in different styles or designs like macaroons. They can also be exported. However, this industry in not well established as production is mainly operated on small scale.
Capital Investment Requirement in US $
|
Item |
Units |
Qty |
Price |
Total |
|
Peeling machine |
No |
1 |
500 |
500 |
|
Slicing machine |
No |
1 |
250 |
250 |
|
Deep fat frying pans. |
No |
1 |
150 |
150 |
|
Impulse sealer |
No |
2 |
30 |
60 |
|
Salt mixing drum |
No |
1 |
125 |
125 |
|
Weighing balance |
No |
1 |
25 |
25 |
|
Oil extraction machine |
No |
1 |
125 |
125 |
|
Total cost of Machinery & Tools |
1,235 |
1. Production costs assume 312 days per year with daily capacity of 150 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 materials supplies and costs
|
Cost Item |
Units |
Unit |
Qty |
Pdn |
Pdn |
Pdn |
|
Direct Costs |
||||||
|
Bananas |
Kgs |
0.00 |
150 |
0.40 |
10.34 |
124.02 |
|
Cooking oil |
Ltrs |
2 |
10 |
20. |
520. |
6,240. |
|
Spices & Flavour |
Kgs |
4 |
1 |
4.00 |
104.00 |
1,248. |
|
Polythene bags |
packet |
1 |
0.01 |
0.01 |
0.26 |
3.12 |
|
Sub-total |
24 |
634.60 |
7,615.14 |
|||
|
General Costs (Overheads |
||||||
|
Labour |
260 |
3,120 |
||||
|
Selling & distribution |
100 |
1,200 |
||||
|
Utilities |
250 |
3,000 |
||||
|
Rent |
120 |
1,440 |
||||
|
Miscellaneous expenses |
150 |
1,800 |
||||
|
Depreciation |
1 |
309 |
||||
|
Sub-total |
881 |
10,869 |
||||
|
Total Operating Costs |
1,515.5 |
18,483.8 |
Project Product cost and Price Structure in US $
|
Item |
Qty/ |
Qty/ |
Unit |
Prod |
Unit price |
Total |
|
Wafers |
150 |
46,800 |
0.4 |
18,484 |
0.75 |
35,100 |
Profitability Analysis in US$
|
Item |
Per |
Per month |
Per year |
|
Revenue |
113 |
2,925 |
35,100 |
|
Less: Production and operating costs |
59 |
1,540 |
18,484 |
|
Profit |
54 |
1,385 |
16,616 |