PRODUCTION OF FRUIT SQUASH

• Agriculture
• Fruits and Vegetables

Introduction
Fruits are an important source of energy for human beings but their availability is seasonal and they perishable, therefore the need for preservation which results into value addition. Squash consists of sweetened juice of fruits containing some pulp. They contain at least 25 % (by volume) of fruit juice and are consumed after dilution. Flavors are also added to make them tastier. The establishment of the project is aimed at producing a capacity of 826,800litres of squash per year with an estimated fixed capital of 15, 794US$, and operating costs of 396,676US$ generating revenue of 760US$ in the first year of production.

Production Capacity, Technology & Process
The production process is very simple as it involves squeezing, filtering, boiling and preservation. Good quality ripe fruits are washed, peeled and cleaned. Then the juice is extracted from fruits and is filtered to remove seeds and fibres. Then the juice is processed and sterilized and then syrup of sugar preservatives are added and this mixture is stirred till a uniform solution is formed. After, the bottling and packing is done.

 

Market Analysis
The market for squash readily exists with major outlets such as: supermarkets, educational institutions, medical institutions, wholesale & retail shops and individual buying. Britania and Riham are the major players in this industry.

Investment Scale, Capital Requirements &Equipment
The investment scale largely depends on the machines production capacity and the project set objectives.

Capital Investment Requirements

Item	units	Qty	unit cost	Total
Fruit washing tanks	No	3	109	326
Juice extractors (50Ltres)	No	2	924	1,848
Steam jacketed Kettles (30ltres)	No	2	435	870
Stirrer	No	1	326	326
Baby boiler (30kgm capacity)	No	1	1,304	1,304
No	1	1,630	1,630
Testing equipment	No	1	652	652
Furniture	No	-	-	435
SS Utensils	No	-	-	217
Storage racks	No	-	-	260
Delivery Van	No	1	7,500	7,500
Exhaust fans	No	-	-	175
Other tools	No	-	-	250
Total	15,794

Machine Production and Operating Costs
Direct materials, Supplies and Costs

Cost Item	Units	Unit cost	Qty/ day	Prod cost/ day	Prod cost/ month	Prod cost/ yr.
Direct Costs
Fruits	Kgs	0.25	3,200	800	20,800	249,600
Sugar	Kgs	1.1	200	220	5,720	68,640
Preservatives	Kgs	2.40	10	24	624	7,488
Packing materials	Pcs	0.05	1,500	75	1,950	23,400
Sub-total	4,910	1,119	29,094	349,128
General Costs(Overheads)
Labour	1,096	13,150
Utilities	517	6,200
Rent	1,000	12,000
Administration expenses	263	3,150
Cleaning & toiletries	208	2,500
Selling & distribution	375	4,500
Miscellaneous expenses	175	2,100
Depreciation	329	3,948
Sub-total	3,962	47,548
Total Operating Costs	33,056	396,676

1) Production costs assumed are for 312 days per year with daily capacity of producing 2,650 litres of fruit squash.
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.
Market Analysis
The market for squash readily exists with major outlets such as: supermarkets, educational institutions, medical institutions, wholesale & retail shops and individual buying. Britania and Riham are the major players in this industry.
Project Product Costs and Price Structure

Item	qty/day	qty/yr.	Unit Cost	Prod cost/yr.	Unit price	Total Revenue
Fruit Squashes	2,650	826,800	0.48	396,676	0.7	578,760

 

Profitability Analysis Table

Profitability Item	Per Day	Per Month	Per Year
Revenue	1,855	48,230	578,760
Less: Production & Operating Costs	1,271	33,056	396,676
Profit	584	15,174	182,084