PROCESING COCONUTS (DESICCATED COCONUTS)
Introduction
The business idea is for the production and marketing of desiccated
coconuts. The dehydrated shredded flesh of coconut known as desiccated coconut
is often used as a substitute to grated coconut in food preparations such as
curries, cakes, sweets and chutneys. Confectionery and bakery units are the
main consumers of desiccated coconut. Desiccated Coconut Powder is obtained by
drying ground or shredded coconut kernel after the removal of brown testa. From
the survey, it is revealed that coconut products are highly demanded by both
the middle class and upper class families residing in cities and towns. The
total cost for this project is US$ 114,369 per year with revenue estimated at US
400 per year.
Production Process
The process consists of the removal of coconut shell, de-husking, shelling and
paring. The nuts are then washed, disintegrated, dried and packed for the
market.
Market Analysis
Desiccated coconuts are on high demand because they are mainly used in bakeries
and confectioneries production. This industry has not yet grown in Uganda.
Capital Investment Requirements in US$
|
Capital investment item |
Units |
Qty |
Unit cost |
Amount |
|
Dis integrator |
No. |
2 |
90 |
180 |
|
De-husking and paring tool |
No. |
1 |
4,750 |
4,750 |
|
Sieving machine |
No. |
1 |
375 |
375 |
|
Grinder |
No. |
2 |
245 |
490 |
|
Weighing scale |
No. |
1 |
500 |
500 |
|
Hot air tray |
No. |
1 |
4,000 |
4,000 |
|
Total cost of machinery |
10,295 |
Production and Operating costs in US$
|
Cost Item |
Units |
Unit cost/day |
Qty/day |
Prod cost/day |
Prod cost/month |
Prod cost/year |
|
Fresh mature coconuts |
kg |
0.8 |
400 |
300 |
7,800 |
93,600 |
|
Sub-total |
400 |
300 |
7,800 |
93,600 |
||
|
General costs(overheads) |
||||||
|
Utilities(water and power) |
150 |
1,800 |
||||
|
Labour |
906 |
10,875 |
||||
|
Rent |
150 |
1,800 |
||||
|
Miscellaneous costs |
50 |
600 |
||||
|
Distribution costs |
260 |
3,120 |
||||
|
Depreciation(Asset write off)Expenses) |
214 |
2,573.75 |
||||
|
Sub -total |
1,731 |
20,768.75 |
||||
|
Total Operating Costs |
9,531 |
114,369 |
1 Production costs assumed 312 days per year with a daily
capacity of 300 packets of desiccated coconuts.
2 Depreciation (fixed assets 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.
Project product Costs and Price Structure in US$
|
Item |
Qty/day |
Qty/ yr |
Unit |
Prod cost/yr |
Unit |
Total |
|
Desiccated |
300 |
93,600 |
1.22 |
114,369 |
1.5 |
140,400 |
Profitability Analysis in US$
|
Profitability Item |
Per day |
Per month |
Per Year |
|
Revenue |
450 |
11,700 |
140,400 |
|
Less
production and |
367 |
9,531 |
114,369 |
|
Profit |
83 |
2,169 |
26,031 |