MAKING BLEACHED DRY GINGER
Introduction
Ginger is a commonly grown culinary item. The envisaged project is to set up a plant to plant & to preserve ginger by bleach-drying. The ginger is bleached, left to dry and dehydrated for preservation. Preserved ginger has a big market over an extended period. Used in instant masalas, dried ginger is a sort of a ready mix for all food preparations. In the pharmaceutical industry, ginger is used for extracting oleoresins. Ginger is widely grown in Uganda and thus this project need not be put in the urban areas alone. The project can be put up in the rural areas where most of the ginger is grown. It costs US$ 52,806 capacity of 62,400kg per year and revenue estimate US $400 annually.
Production process, capacity and
Technology
Fresh ginger is cleaned thoroughly to remove soil and dirt. The outer skin is peeled with the help of a stainless steel knife. The ginger is then washed and soaked in limewater for 12 hours after which it is dried. This process is repeated two or three times to get dried moisture level of 10-12 %. The product is then packed in polythene lined gunny bags. The envisaged plant has a minimum capacity of 200kg per day. The output can later on be increased but the only issue is the sustainability of the supply of the ginger.
Market Analysis
Dried ginger has a market as a culinary item in almost all over the world. The market for instant masalas has been growing for some time and supply to restaurants, supermarket chains, etc. Aggressive advertising is needed though there is competition comes from imported products. This industry is not well developed in Uganda as there are very few players, such as; SESACO.
Capital Investment Requirement in US$
|
Item |
Unit |
Qty |
Price |
Total |
|
Ginger peeling machine |
No |
1 |
1125 |
1125 |
|
Electrically operated tray |
No |
1 |
1500 |
1500 |
|
Weighing Scale, sealing |
No |
1 |
55 |
55 |
|
Washing tank |
No |
2 |
75 |
150 |
|
Racks, Knives, cutters, |
No |
1 |
27.5 |
27.5 |
|
Packing tables/ plastic |
No |
1 |
125 |
125 |
|
Total cost of tools & Equipment |
2982.5 |
1.Production costs assumed are for 312
days per year with daily capacity of 200 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 other costs directly incurred
to produce the product.
4. Currency used is US Dollars
Production and Operation costs in US $
Direct materials, supplies and costs
|
Cost Item |
Units |
Unit |
Qty/day |
Prod |
Prod |
Prod |
|
Direct Costs |
||||||
|
Fresh |
kgs |
1.25 |
64.10 |
80.13 |
2083.3 |
25,000 |
|
Lime / salty |
Ltrs |
6 |
0.32 |
1.9 |
50 |
600 |
|
Polythene |
packets |
7.5 |
6.41 |
48.1 |
1250 |
15,000 |
|
Sub-total |
130 |
3,383.33 |
40,600 |
|||
|
General Costs (Overheads) |
||||||
|
Labour |
455 |
5,460 |
||||
|
Selling & distribution |
200 |
2,400 |
||||
|
Utilities (Water, power) |
50 |
600 |
||||
|
Administration |
50 |
600 |
||||
|
Rent |
100 |
1,200 |
||||
|
Miscellaneous expenses |
100 |
1,200 |
||||
|
Depreciation |
62 |
746 |
||||
|
Sub-total |
1,017 |
12,206 |
||||
|
Total Operating Costs |
4,400.46 |
52,806 |
Project product costs and Price Structure in US $
|
Item |
Qty |
Qty |
Unit |
Pdn |
Unit |
Total |
|
Bleached dry |
200.0 |
62,400 |
0.85 |
52,806 |
1 |
62,400 |
Profitability Analysis in US$
|
Item |
Per |
Per |
Per |
|
Revenue |
200 |
5,200 |
62,400 |
|
Less: Production and operating costs |
169 |
4,400 |
52,806 |
|
Profit |
31 |
800 |
9,594 |