DEHYDRATED GREEN PEPPER
Introduction
This business idea is for producing
dehydrated Green pepper. Pepper is commonly used as a culinary item in both
rural and urban areas. Pepper adds taste to food, stimulates secretion of
gastric juices, and also has medicinal properties. Dehydrated green pepper is
an item that is required in every household and thus has a good market potential
both in urban and rural areas. Supply to supermarket chains, grocery/retail
shops, restaurants, hotels and tourist centers etc. is recommended for one to
enter the market. The business idea aims at production of 150 kgs of green
pepper per day, which translates into 46,800 kgs annually. The revenue
potential is estimated at 600 dollars per year. The Total capital investment
for the project is 2,946 dollars.
Production capacity
The envisaged plant is expected to
have a minimum daily capacity of 150kg.
Technology and processes description
The equipments used are: boilers,
kettles and driers. Harvested green pepper of optimum maturity is de stalked and
cleaned. After heating, the berries are chemically treated and dried under
controlled conditions. The dried product is then cleaned, sorted, and packed in
polythene or gunny bags for marketing.
Market Analysis
Dehydrated Green pepper has a long
life span on the market which increases its demand on both local and
International market. Green pepper is consumed by almost all Races of people in
Uganda hence expanding its market size. This industry is still informal in
Uganda.
Scale of Investment
1. Capital Investment Requirements in US $
|
Item |
Units |
Qty |
Cost |
Amount |
|
Boiler |
No |
1 |
2,746 |
2,746 |
|
Kettles |
No |
2 |
50 |
100 |
|
Driers |
No |
2 |
50 |
100 |
|
Total |
2,946 |
2. Production and Operating Costs in US$
|
Cost Item |
Unit |
Unit |
Qty |
Prod |
Prod |
Prod |
|
Direct costs3: |
||||||
|
Green Pepper |
No |
2 |
150 |
300 |
7,800 |
93,600 |
|
Preservatives |
No |
6 |
50 |
300 |
7,800 |
93,600 |
|
Packaging |
Pcs |
0 |
150 |
60 |
1,560 |
18,720 |
|
Sub-total |
17,160 |
205,920 |
||||
|
General costs (Overheads) |
||||||
|
Labour |
200 |
2,400 |
||||
|
Utilities |
500 |
6,000 |
|
Selling and Distribution |
100 |
1,200 |
|
Administrative expenses |
150 |
1,800 |
|
Shelter |
400 |
4,800 |
|
Depreciation (Asset write off) Expenses |
61 |
737 |
|
Sub-total |
1,411 |
16,937 |
|
Total Operating Costs |
18,571 |
222,857 |
Production is assumed for 312 days per year. Depreciation assumes 4 year life of assets written off at 25% per year for all assets. A production Month is assumed to have 26 days.
3. Project product Costs and price Structure in US $
|
Item |
Qty |
Qty |
Unit |
Prod |
Unit |
Total |
|
Green |
150 |
46,800 |
5 |
222,857 |
7 |
327,600 |
|
Total |
46,800 |
222,857 |
327,600 |
4. Profitability Analysis Table
|
Profitability Analysis Table |
Per |
Per |
Per Year |
|
Revenue |
1,050 |
27,300 |
327,600 |
|
Less: Production and Operating Costs |
714 |
18,571 |
222,857 |
|
Profit |
336 |
8,729 |
104,743 |