MAKING PRAWN FEEDS
Introduction
This Business idea is on making and production of prawn feeds. Prawn feed is a ready-made food for prawns (is for fish consumption). Commercial prawn manufacturing began in the 1970s, and production grew steeply, particularly to match the market demands of the U.SA, Japan and Europe. There is a lot of encouragement to local communities to get involved, but it has not yet formed grip as it is in the developed Countries. The activity is most popular especially in coastal districts. The demand for ready-made food for prawns has shot up with the commercial growth of aquaculture industry. The feeds provide the basic nutrients to the prawns for healthy growth. The business idea is premised on production of 26,000 kgs per month which translates into 312,000kgs per annum. The revenue potential is estimated at US$200 per year with a sales margin of 5% and total investment is US$199,040 for the first year of project operation.
Production Process
The ingredients, like wheat, maize meal, molasses and bone meal are pulverized to the required mesh size with the feed mixed and meshed in vibrating screen to ensure correct size. Finally, the feed is packed in polythene gunny bags for sale.
Market Analysis
With the growing aquaculture industry, the demand for prawn feeds has considerably gone up. Backyard fish farming and cage fish farming have increased in Uganda and this has resulted in an increase in the demand for fish prawn. The major key player in this sector is Ugachic (U) Ltd.
Capital Investment Requirements in US$
|
Item |
Units |
Qty |
Unit |
Amount |
|
Batch Mixer |
No |
1 |
2,500 |
2,500 |
|
Pulveriser |
No |
1 |
1,500 |
1,500 |
|
Ribbon blender |
No |
1 |
500 |
500 |
|
Sifter |
No |
1 |
500 |
500 |
|
Meshes of different sizes |
No |
2 |
250 |
500 |
|
Weighing scale |
No |
1 |
50 |
50 |
|
Small Truck |
No |
1 |
50 |
50 |
|
Total |
5,600 |
Production and Operating Costs
Direct Materials, Supplies and Costs in US$
|
Cost Item |
Unit |
Unit |
Qty/ |
cost/ |
cost/ |
cost/ year |
|
Direct Costs |
||||||
|
Maize |
kg |
0.2 |
400 |
80 |
2,080 |
24,960 |
|
Wheat |
kg |
0.5 |
300 |
150 |
3,900 |
46,800 |
|
Fish meal |
kg |
0.5 |
100 |
50 |
1,300 |
15,600 |
|
Fowl's dung |
kg |
0.15 |
100 |
15 |
390 |
4,680 |
|
Bone meal |
kg |
0.5 |
50 |
25 |
650 |
7,800 |
|
Molasses |
liter |
2 |
100 |
200 |
5,200 |
62,400 |
|
Vitamins Mix |
kg |
1.5 |
50 |
75 |
1,950 |
23,400 |
|
Mineral Mix |
kg |
1 |
25 |
25 |
650 |
7,800 |
|
Sub-total |
1125 |
620 |
16,120 |
193,440 |
||
|
General Costs(Overheads) |
||||||
|
Rent |
250 |
3000 |
||||
|
Labour |
750 |
9,000 |
||||
|
Utilities(Power) |
100 |
1,200 |
||||
|
Preliminary Costs |
250 |
3,000 |
||||
|
Miscellaneous Costs |
100 |
1,200 |
||||
|
Depreciation(Asset write off)Exp |
117 |
1,400 |
|
|
|
|
|
Sub-total |
1,567 |
18,800 |
|
|
|
|
|
Total Operating Costs |
17,687 |
212,240 |
|
|
|
|
1.
Production costs assumed are for 312 days per year with a daily capacity of
1,000 Kilograms of prawn feeds.
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/d |
Qty/Yr. |
Unit |
Prod |
Unit |
T/rev |
|
Prawn |
1,000 |
312,000 |
0.7 |
212,240 |
0.75 |
234,000 |
Profitability Analysis in US$
|
Item |
Per |
Per |
Per Yr. |
|
Revenue |
750 |
19,500 |
234,000 |
|
Less: Production and Operating Costs |
680 |
17,687 |
212,240 |
|
Profit |
70 |
1,813 |
21,760 |