ICE CREAM MAKING
Introduction
Ice cream is a frozen dessert usually made from dairy products such as: milk and often combined with other ingredients and flavours. Most varieties contain sugar although some are made with other sweeteners. Alternatively it can be made from soya milk, rice milk and goat milk for those who are lactose intolerant or allergic to dairy products and soya and rice for those who avoid dairy products. The production capacity is 38,398kg per year yielding revenue of US $995 per annum from an investment of US $57,832.
Production Process, Capacity and
Technology
The basic steps in manufacturing ice cream are generally as follows: Blending of the mix ingredients, pasteurization, and homogenization, ageing the mixture, freezing, packaging and hardening. Ice-cream represents a congealed dairy product produced by freezing a pasteurized mixture of milk, cream, and milk solids other than fat, sugars, emulsifier and stabilizers.
Market Analysis
There are two types of ice-cream, soft and hard available on the market. Ice cream is readily marketable as it’s consumed by all sections of society. What is needed is strategic location of the business. The major key players in this sector includes; Snowman, Fido Dido, BIMBO, among others.
Capital Investment Requirement in US $
|
Item |
Units |
Qty |
Cost |
Total |
|
Mixing / blending machine |
No |
1 |
3,000 |
3,000 |
|
Homogenization machine |
No |
1 |
3,000 |
3,000 |
|
Ageing % storage vat |
No |
1 |
3,000 |
3,000 |
|
Batch Freezers |
No |
2 |
1,500 |
3,000 |
|
Pasteurization machine |
No |
1 |
3,000 |
3,000 |
|
Hardening machine |
No |
1 |
3,000 |
3,000 |
|
Storage (Refrigerated) |
No |
1 |
3,000 |
3,000 |
|
Distribution Van |
No |
1 |
7,000 |
7,000 |
|
Total cost of Machinery & Tools |
28,000 |
1. Production costs assume 312 days per year with daily capacity of 123Kgs.
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 all other costs incurred to produce the product.
4. A production month is 26 work days
5. Currency used is US Dollars.
Production and Operating cost in US$
Direct materials, supplies and costs
|
Cost Item |
Units |
Unit |
Qty/ |
Prod |
Prod |
Prod |
|
Direct Costs |
||||||
|
milk (solid/ fat) |
Kgs |
2.25 |
38 |
87 |
2,250 |
27,000. |
|
sugar, |
Kgs |
1 |
10 |
11.00 |
286. |
3,432 |
|
Flavourings, |
Kgs |
3 |
2 |
5.00 |
130 |
1,560 |
|
Stabilizers / |
Kgs |
2 |
0.16 |
0.24 |
6.25 |
75.00 |
|
Eggs |
Trays |
2 |
2 |
4.50 |
117. |
1,404. |
|
Sub-total |
98 |
2,536. |
30,432 |
|||
|
General Costs (Overheads) |
||||||
|
Labour |
800 |
9,600 |
||||
|
Selling & distribution |
100 |
1,200 |
||||
|
Utilities (Water, power) |
500 |
6,000 |
||||
|
Rent |
200 |
2,400 |
||||
|
Miscellaneous expenses |
100 |
1,200 |
||||
|
Depreciation |
583 |
7,000 |
||||
|
Sub-total |
2,283 |
27,400 |
||||
|
Total Operating Costs |
4,819. |
57,832 |
Project product cost and Price Structure in US$
|
Item |
Qty |
Qty |
Unit |
Prod |
Unit |
Total |
|
Ice Cream |
123 |
38,398 |
1.5 |
57,832 |
2.5 |
95,995 |
Profitability analysis in US$
|
Item |
Per |
Per |
Per |
|
Revenue |
308 |
8,000 |
95,995 |
|
Less: Production and operating costs |
86 |
2,224 |
57,832 |
|
Profit |
222 |
5,775 |
38,163 |