WAX EMULSION FOR FRUITS AND VEGETABLES
Introduction
Wax emulsion is used to extend the storage life and maintain the quality of fresh fruits and vegetables. All the regions of Uganda produce fruits and vegetables but the biggest problem is that the fruits and vegetables are highly perishable and thus have a very short shelf life. Use of wax emulsion is one way of extending the storage/shelf life of the fruits and vegetables. It can cost US$31,813 with a capacity of 31,200 liters annually and annual estimated revenue of US$ 944.
Production process
The wax is weighed, melted and the necessary quantity of emulsifiers is added at controlled temperatures. Boiling water is then added until water-wax emulsion (O/W type) is ready. The hot wax emulsion is then cooled by running cold soft water and the volume of the wax emulsion made up with cold soft water. The cooled wax emulsion is then dispensed into containers and stored at room temperatures. The wax emulsion is stable and does not deteriorate between 10°C and 100°C for a period of 9-12 months. The water wax emulsion once frozen cannot thaw out. The profiled plant has a minimum capacity of 100 litres per day.
Market
To meet the variegated needs of the off-season fruits and vegetables, there is need to increase the shell life of these products. In all of Uganda, fruits and vegetables are grown in plenty. Therefore, there is a need to preserve them for the off-season. Wax emulsion comes handy to improve the shell life of the fruits and vegetables. Therefore, wax emulsions have good demand in the market. However, there are key players in this sector in Uganda.
Capital Investment Requirement in US $
|
Item |
Unit |
Qty |
Price |
Total |
|
Wax emulsion unit |
No |
1 |
2,500 |
2,500 |
|
Stirrer |
No |
1 |
150 |
150 |
|
Jacketed round bottom tank |
No |
1 |
600 |
600 |
|
Exhaust fan |
No |
1 |
100 |
100 |
|
Pump |
No |
1 |
100 |
100 |
|
M.S Tank |
No |
1 |
400 |
400 |
|
Total cost of tools & Equipment |
3,850 |
1. Production costs assumed are for 312 days per year with daily capacity of 100 liters.
2. Depreciation (fixed asset write off) assumes 4 year life of assets written off at 25% per year for all assets.
3. Direct costs include: materials, supplies and other costs directly incurred to produce the product.
4.
Currency used is US Dollars
Production
and Operating costs in US $
Direct materials, supplies and costs.
|
Cost Item |
Units |
Unit |
Qty |
Prod |
Prod |
Prod |
|
Direct Costs |
||||||
|
Sugar
cane wax/ |
kgs |
2.5 |
6.41 |
16.0 |
417 |
5,000 |
|
Paraffin wax |
ltrs |
2 |
1.60 |
3.2 |
83 |
1,000 |
|
oleic acid |
ltrs |
75 |
0.03 |
2.4 |
63 |
750 |
|
Triethanolamine |
ltrs |
50 |
0.06 |
3.2 |
83 |
1,000 |
|
packaging |
Pcs |
2.5 |
5.00 |
12.5 |
325 |
3,900 |
|
Sub-total |
37 |
970.83 |
11,650 |
|||
|
General Costs (Overheads) |
||||||
|
Labour |
450 |
5,400 |
||||
|
Selling & distribution |
200 |
2,400 |
||||
|
Utilities (Water, power) |
250 |
3,000 |
||||
|
Administration |
200 |
2,400 |
||||
|
Rent |
400 |
4,800 |
||||
|
Miscellaneous expenses |
100 |
1,200 |
||||
|
Depreciation |
80 |
963 |
||||
|
Sub-total |
1,680 |
20,163 |
||||
|
Total Operating Costs |
2,651 |
31,813 |
Project product costs and Price Structure in US $
|
Item |
Qty |
Qty |
Unit |
Prod |
Unit |
Total |
|
Wax |
100 |
31,200 |
1.02 |
31,813 |
1.12 |
34,944 |
Profitability Analysis in US $
|
Item |
Per |
Per |
Per |
|
Revenue |
112 |
2,912 |
34,944 |
|
Less: Production and operating costs |
102 |
2,651 |
31,813 |
|
Profit |
10 |
261 |
3,132 |