MAKING FRUIT BARS
Introduction
This business idea is for the production and marketing of fruit bars. Fruit
bars are made of: mango,
guava, pineapple bananas, jack-fruit and apples which are nutritious and
refreshing. Fruit bars have the same taste with nutritional qualities and are
liked by both children and adults. The total revenue is estimated at US$ 874
per year, with production capacity estimated at 500 fruit bars per day. The
total investment is estimated at US$195,000 per year.
Production process
After making pulp, the pulp is mixed with sugar and citric acid, which is
poured as layers in trays. The pulp is then dried and packed in polyethylene
film (food grade) to avoid moisture from entering the product.
Market Analysis
Fruit bars have a great market potential in both rural and urban areas. They
could be supplied to Supermarket Chains, parking yards and grocery stores.
There are many people vending processed fruits
in Offices and Workplaces.
Capital Investment Requirements in US$
|
Capital investment item |
Units |
Qty |
Unit cost |
Amount |
|
Tray freezer drier |
No. |
1 |
1,500 |
1,500 |
|
Stainless steel kettle |
No. |
3 |
23 |
68 |
|
Juice squeezer |
No. |
3 |
250 |
750 |
|
Weighing balance |
No. |
1 |
100 |
100 |
|
Packing materials(kg) |
500 |
75 |
37,500 |
|
|
Total Costs on Equipments |
39,918 |
Production and Operating costs in US $
|
Cost Item |
Units |
Unit |
Qty |
Prod |
Prod |
Prod cost/ year |
|
Mangoes |
Sack |
25 |
1 |
25 |
650 |
7,800 |
|
Guava |
Sack |
35 |
1 |
35 |
910 |
10,920 |
|
Sugar |
Kgs |
23 |
20 |
460 |
11,960 |
143,520 |
|
Citric acid |
ltrs |
2.7 |
8 |
22 |
562 |
6,739 |
|
Sub-total |
14,082 |
168,979 |
||||
|
General costs(overheads) |
||||||
|
Utilities(water and power) |
100 |
1,200 |
||||
|
Labour |
150 |
1,800 |
||||
|
Rent |
150 |
1,800 |
||||
|
Miscellaneous costs |
50 |
600 |
||||
|
Distribution costs |
260 |
3,120 |
||||
|
Depreciation(Asset write off)Expenses) |
781 |
9,375 |
||||
|
Sub -total |
1,491 |
17,895 |
||||
|
Total Operating Costs |
15,573 |
186,874 |
Production costs assumed 312 days per year with a daily
capacity of 500 packets of fruit bars. Depreciation (fixed assets write off)
assumes 4 years life of assets written off at 25% per year for all assets
Direct costs include materials, supplies and other costs that directly go into
production of the product.
Project product Costs and Price Structure in US$
|
Item |
Qty/day |
Qty /yr |
Unit cost |
Prod cost/yr |
Unit price |
Total revenue |
|
Fruit |
500 |
156,000 |
1.2 |
186,874 |
1.3 |
195,000 |
Profitability Analysis in US$
|
Profitability Item |
Per day |
Per month |
Per Year |
|
Revenue |
625 |
16,250 |
195,000 |
|
Less production and operating Costs |
599 |
15,573 |
186,874 |
|
Profit |
26 |
677 |
8,126 |