PRODUCTION OF CITRUS PEEL CANDY

• Agriculture
• Fruits and Vegetables

Introduction
Citrus peel candies are processed fruit products that are consumed as packed beverages and have a very high demand due to their fantastic flavor taste. The Business Idea target is to establish a citrus peel candy plant that can produce an estimated output of 234,000 liters of peel candy when an investment fixed capital of 19,031US$and operating costs totaling to 195,310US$, generating an estimated revenue of 800US$ in the first year of operation.

Production Capacity, Technology & Process
The production process is simple but takes a number of stages. Fruits such as oranges are collected, washed and rinsed. They are then culled to remove any damaged or unripe oranges and later graded into fruit sizes. The oranges are later passed to the juicing machine where they are squeezed and then passed on to the finisher. Here pulp and seeds are removed using filter sieves strainers. The filtered concentrate now goes through the blending tanks that measure the natural sugar in the concentrate to ensure that the set sugar standard is reached. After blending, the concentrate is pasteurized where it is heated very quickly to kill bacteria so as to make the juice fresher longer. The juice is now passed to the refrigeration room where it’s filled into the plastic or cardboard containers through the funnel and packed.

 

 Market Analysis
The market for processed beverages exists in Uganda with major consumers such as: supermarkets, restaurants, hotels, wholesale and retail shops plus individual buying.

Investment Capital Requirements Scale, Equipment & The investment scale required is a bit large, more especially the working capital requirements.
Capital Investment Requirements in US$

Capital investment item	units	Qty	unit cost	Total($)
Fruit washing tanks	No	3	107	321
Culling &grading machine	No	1	210	210
Juice extractors(50 Ltrs capacity)	No	2	1,000	2,000
Steam Jacketed Kettles(30Ltrs)	No	2	450	900
Stirrer	No	1	350	350
Baby boiler(30kg capacity)	No	1	1,400	1,400
Bottle washing and filling machine	No	1	1,700	1,700
Testing equipment	No	-	650	650
Delivery Van(Refrigerated)	No	1.00	10,000	10,000
Furniture	No	-	500	500
Storage tanks	No	-	300	300
SS Utensils	No	-	350	350
Exhaust fans	No	-	350	350
Total				19,031

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/yr
Fruits (Oranges)	Kgs	0.25	1,000	250	6,500	78,000
Sugar	Kgs	1.10	45	50	1,287	15,444
Preservatives	Kgs	2.40	10	24	624	7,488
Packing materials	Pcs	0.05	3,000	150	3,900	46,800
Sub-total	4,055	474	12,311	147,732
General Costs(Overheads)
Labour	1,042	12,500
Utilities	471	5,650
Rent	1,000	12,000
Administration expenses	260	3,120
Cleaning & toiletries	308	3,700
Selling & distribution	288	3,450
Miscellaneous expenses	200	2,400
Depreciation	396	4,758
Sub-total	3,965	47,578
Total Operating Costs	16,276	195,310

 

1) Production costs assumed are for 312 days per year with daily capacity of production of 3,000-250gms of peel candy.
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-days.
5) The valuation currency used is United States Dollars.

Project Product Costs and Price Structure

Item	Qty/ day	Qty/yr	Unit Cost	Prod cost/yr	Unit price	T/rev
Citrus peel Candy	3,000	936,000	0.21	195,310	0.3	280,800

 

 

 

Profitability Analysis Table

Item	Per Day	Per Month	Per Year
Revenue	900	23,400	280,800
Less: Production & Operating Costs	626	16,276	195,310
Profit	274	7,124	85,490