PROCESSING SUGAR
Introduction
Sugar is a very
vital commodity in every household and its demand has increased both
domestically and internationally with the local demand already exceeding
supply. The project idea is based on production of sugar using the cheapest
technology with an estimated production output of 312,000kgms annually with
fixed capital of 36,100US$, and operating costs of 134,287US$ employed to
generate a total revenue of 500US$ in the first year of operation.
Production Capacity, Technology
&Process
The harvested cane material is collected and crushed, the juice is collected and filtered and the liquid treated with lime to remove impurities. This is then neutralized with sulfur dioxide and then boiled .The sediment settles to the bottom and can be dredged out while scum rises to the surface and this is skimmed off. The heat is removed and the liquid crystallizes usually while being stirred to produce sugar crystals. The production capacity greatly depends on the desired objectives of the entrepreneur, but the technology is simple mostly involving crushing, filtering, boiling and cooling.
Market Analysis
The market for sugar is already available as most of the sugar consumed is
still being imported & there is still a wide market in Southern Sudan.
Investment Scale, Capital Requirements
& Equipment
Capital Investment Requirements in US$
|
Item |
units |
Qty |
unit |
Total |
|
Land & Buildings |
No |
- |
- |
15,000 |
|
Delivery Van (3-tones) |
No |
1 |
12,700 |
12,700 |
|
Sugar cane crusher |
No |
1 |
750 |
750 |
|
Filtering machine |
No |
1 |
350 |
350 |
|
Collection containers |
No |
4 |
100 |
400 |
|
Boiler |
No |
2 |
750 |
1,500 |
|
Mixer |
No |
2 |
250 |
500 |
|
Dryer |
No |
1 |
2,000 |
2,000 |
|
Packaging Machine |
No |
2 |
200 |
400 |
|
Weighing machine |
No |
2 |
200 |
400 |
|
Furniture & Fixture |
No |
- |
- |
1,200 |
|
Other tools |
No |
- |
- |
900 |
|
Total |
36,100 |
Production and Operating Costs in US$
(a)Direct materials,
Supplies and Costs
1) Production costs assumed are for 312 days per year with daily capacity of
processing 1,000kgs of sugar.
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) Total monthly days assumed are 26-work days.
5) The valuation currency used is United States Dollars.
Project Product Costs and Price Structure
|
Item |
Qty/ |
Qty/yr |
Unit |
Prod |
Unit |
Total revenue |
|
Sugar |
1,000 |
312,000 |
0.43 |
134,287 |
0.75 |
234,000 |
Profitability Analysis Table
|
Item |
Per |
Per |
Per Year |
|
Revenue |
750 |
19,500 |
234,000 |
|
Less: Production & Operating |
430 |
11,191 |
134,287 |
|
Profit |
320 |
8,309 |
99,713 |