TREE NURSERY
Introduction
Tree nursery is the planting of tree seedling for agro-forestry either on commercial basis or for individual use. The project production and operating costs are US$ 37,865 with capital investment of US$ 4,004, which yield an annual profit margin of US$2,695.
Production Capacity, Technology and Processes Description
The production capacity of the selected types in a three months period is 30,000 seedlings of pine trees, 100,000 seedlings of Eucalyptus, 500 musizi seedlings, 1,000 orange seedlings, and 3,000 mango seedlings. In Uganda the technology used is rudimentary and things like: hoes, pangas, shears and saws are used. In other developed countries Seedbeds are prepared with ploughs, harrows, drills or broadcast seeders. Soil amendments are applied with a spreader; sprinklers for irrigation, pruners, and mowers are used to trim the tops and roots. Fertilizers, pesticides, herbicides are also applied for protection.
Capital Investment Requirements in US$
|
Item |
Units |
Qty |
Unit cost |
Amount |
|
Garden Equipments |
Number |
2 |
297 |
594 |
|
Panga |
Number |
2 |
48 |
96 |
|
Saws |
Number |
2 |
39 |
79 |
|
Pruners |
Number |
3 |
240 |
720 |
|
Spades |
No |
1 |
2,515 |
2,515 |
|
Total |
4,004 |
Scale of investment, capital investment requirements and equipment
It is a small scale project with capital investment of not more than US$ 4,004.
Production and operating Costs
Direct Materials, Supplies and costs
|
Cost item |
Units |
Unit |
Qty/ |
Cost/ |
Cost/ |
Cost/ |
|
Direct Costs |
||||||
|
Mango seeds |
No. |
0.20 |
50. |
10.00 |
260 |
3,120 |
|
Orange seeds |
No. |
0.18 |
50. |
9.00 |
234 |
2,808 |
|
Mango scions |
No. |
0.10 |
50. |
5.00 |
130 |
1,560 |
|
Orange scions |
No. |
0.10 |
50. |
5.00 |
130 |
1,560 |
|
Soils |
Tones |
15.00 |
0.46 |
6.92 |
180 |
2,160 |
|
Fertilizer |
kg |
0.50 |
0.76 |
0.38 |
10 |
119 |
|
Pesticides |
Liters |
0.90 |
1.90 |
1.71 |
44 |
534 |
|
Subtotal |
0.48 |
150. |
24.00 |
624 |
7,488 |
|
|
General Costs(Overheads) |
||||||
|
Administration expenses |
450 |
5,400 |
||||
|
Labour |
920 |
11,040 |
||||
|
Utilities |
220 |
2,640 |
||||
|
Rent |
308 |
3,696 |
||||
|
Selling & Distribution |
250 |
3,000 |
||||
|
Depreciation |
83 |
1,001 |
||||
|
Miscellaneous |
300 |
3,600 |
||||
|
Subtotals |
2,531 |
30,377 |
||||
|
Total operating Costs |
3,155 |
37,865 |
We need soils of three types, Forest soils, sand soil and loam soils, polythene bags of various sizes, tree seeds, pesticides and others. Tools needed are: wheel barrows, hoes, pangs, poles watering cans; labour will include semi-skilled and unskilled labour and consultants.
Market Analysis
The market for tree seedlings has
increased due to government intervention through encouraging afforestation in
the country. There is a new development in the sector where people with large
extracts of land are investing in planting trees as a long time investment.
Secondary there is a developed desire for developers to plant trees at their
sites. There are many players in this business idea and they are widespread
throughout the country.
Project product costs and price structure in US$
|
Item |
Qty |
Qty/ |
Unit |
Prod/ |
Unit |
Revenue |
|
Mango |
100 |
31,200 |
0.82 |
25,708 |
0.70 |
21,840 |
|
Orange |
100 |
31,200 |
0.82 |
25,708 |
0.60 |
18,720 |
|
Totals |
40,560 |
Profitability analysis in US$
|
item |
Per day |
Per month |
Per year |
|
Revenue |
130 |
3,380 |
40,560 |
|
Less: Production operating costs |
121 |
3,155 |
37,865 |
|
Profit |
9 |
225 |
2,695 |