MANUFACTURING FRUIT TOFFE

• Agriculture
• Fruits and Vegetables

Introduction

This business idea is for production and marketing of fruit toffee.  Toffee is made out of fruit pulps and has ingredients like skimmed milk powder, glucose and sugars in different flavors. Fruit toffees have good demand in cities, urban and semi-urban areas and institutions. As the product is based on real fruit, the essential taste of the original fruit is preserved. They are a delicacy to children. Being relatively free of artificial flavors, they are also a healthier product. The business idea is premised on production of 208,000 fruit toffees per month which translates into 2,496.000 fruit toffees per year. The revenue potential is estimated at US$200 per month, translating into US$998,400 per year with a sales margin of 15% at a sales price of $0.012 each, and total investment requirement for the first month of Project operation is US$535,363.

Production Capacity

This depends on the Machinery, Equipment and raw materials used in the production process.

Technology and process Description

Fruit toffee manufacturing involves the use of technologies like: Steam Jacketed Toffee Cooker, Cooling Plates, Batch Formers, Toffee cut and Wrap machine, Boiler etc. Production process involves extracting fresh fruits from the fruit pulps, sugar is added and the whole mass is cooked. The cooked mixture is spread to a thin layer of 1cm thickness and then dried. The thin sheet is cut to size by a Toffee Cutter and wrapped in a cellophane film to avoid moisture being absorbed.

Market Analysis

Fruit based toffees are not very common in the country though a few brands do exist. There is immense potential in the product as it is a fast moving item popular with children, besides being a relatively chemical free product. Furthermore, there is great demand from overseas markets.

Scale of Investment, Capital Investment Requirements and
Equipment
This Business Idea is for a medium scale investment, and capital injected depends on the desired production capacity.
Capital Investment Requirements in US$

Capital Investment Item	Units	Qty	Unit Cost	Amount
Steam Kettles	No	2	2,500	5,000
Cooling Plates	No	2	500	1,000
Batch formers	No	2	2,500	5,000
Toffee cut & wrap machine	No	1	3,000	3,000
Stainless steel Vessels	No	2	2,500	5,000
Cabinet drier	No	1	750	750
Pulping Machine	No	1	1,750	1,750
Kneading & cooking table	No	1	1,000	1,000
Weighing Machine	No	1	250	250
Delivery Van	No	1	7,500	7,500
Total				30,250

 

 

Production and Operating Costs
Direct Materials, Supplies and Costs in US$

Cost Item	Units	Unit cost	Qty/ day	Prod cost/day	Prod cost/ month	Prod cost/ year
Direct Costs
Blending glucose	kg	1	450	450	11,700	140,400
Sugar	kg	0.85	100	85	2,210	26,520
Milk Solid fats	kg	2	100	200	5,200	62,400
Common salts	kg	0.25	25	6.25	163	1,950
Packing materials	roll	10	5	50	1,300	15,600
Fruit pulp	kg	0.75	500	375	9,750	117,000
Essence and colors	kg	1	100	100	2,600	31,200
Sub-total			1280	1266.25	32,923	395,070
General costs(Overheads)
Rent	5,000	60,000
Utilities(power & water)	190	2,280
Labour	2,850	34,200
Preliminary costs	250	3,000
Other costs	250	3,000
Depreciation(Asset write off ) Expenses	630	7,563
Sub-total	9,170	110,043
Total Operating Costs	42,093	505,113

                     

1.  Production costs assumed 312 days per year with a daily capacity of 80 Kilograms of fruit toffee

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 days.

 

 

 

 

Project Product Costs and Price Structure in US$

Item	Qty/ day	Qty/Yr	Unit cost	Prod cost/Yr	Unit price	Total /rev
Fruit Toffee	8,000	2,496,000	0.3	505,113	0.4	998,400

 

Profitability Analysis in US$

Item	Per day	Per Month	Per Yr
Revenue	3,200	83,200	998,400
Less: Production and Operating Costs	1,619	42,093	505,113
Profit	1,581	41,107	493,288