MAKING BIO FERTILIZERS
Introduction
This
profile envisages the setting up of a plant that manufactures Bio -
Fertilizers. Bio-fertilizer' is a substance which contains living microorganisms
which, when applied to seeds, plant surfaces, or
soil, colonizes the rhizosphere or the interior of the plant and promotes
growth by increasing the supply or availability of primary nutrients to the
host plant. Fertilizers directly increase soil fertility by adding nutrients.
Bio-fertilizers add nutrients through the natural processes of fixing atmospheric
nitrogen, solubilizing phosphorus, and stimulating plant growth through the
synthesis of growth promoting substances.
Production
capacity
This
plant will be established on the premise of producing 1000kg of
bio-fertilizers per day.
Production Technology/Process
1. The
manufacturing process in short involves selection of suitable strain of the organism
for which market demand is identified.
2. Mass multiplication
3. Mixing of the culture with carrier material and packing.
Equipment
& Materials
1.
Boiler/steam generator
2. Autoclaves
3. Rotary shakers
4. Fermenters
5. Laminar air flow
6. BOD incubator
7. Hot air oven
8. Air conditioner
9. Refrigerator
10. Microscope
11. Balances
12. Sealing machine
13. Lab equipments: For quality control and microbial works
14. Distiller water unit
15. Office furniture
16. Delivery Van
Scale of
Investment, Capital Investment Requirements
The total
fixed Capital investment cost to start this project is USD17,260.
Market Analysis:
The
demand for Bio-fertilizers is spread in almost all Agriculture practicing areas
in Uganda. The most manufacturing plant
Project
Costs:
1. Capital Investment Requirements
|
Capital Investment |
Units |
Qty |
Unit Cost$ |
Amount $ |
||||
|
Delivery Van |
No. |
1 |
8,000 |
8,000 |
||||
|
Boiler |
No. |
1 |
1,500 |
1,500 |
||||
|
Auto Claves |
No. |
1 |
2,500 |
2,500 |
||||
|
Rotary Shakers |
No. |
2 |
100 |
200 |
||||
|
Fermenters |
No. |
2 |
50 |
100 |
||||
|
Hot air Oven |
No. |
1 |
500 |
500 |
||||
|
Air Conditioner |
No. |
1 |
400 |
400 |
||||
|
Water Distiller |
No. |
1 |
1,000 |
1,000 |
||||
|
Microscope |
No. |
1 |
300 |
300 |
||||
|
Balances |
No. |
2 |
100 |
200 |
||||
|
Lab Equipment |
Set |
1 |
300 |
300 |
||||
|
Refrigerator |
No. |
1 |
600 |
600 |
||||
|
Laminar air flow |
No. |
1 |
500 |
500 |
||||
|
Furniture |
No. |
2 |
30 |
60 |
||||
|
BOD Incubator |
No. |
1 |
100 |
100 |
||||
|
Sealing Machine |
No. |
1 |
1,000 |
1,000 |
||||
|
Total Amount |
17,260 |
|||||||
2. Operating Costs in US $
|
Item |
Units |
Unit |
Qty/day |
Prod. |
Prod. |
Prod. |
|
Direct Costs |
||||||
|
Lignite |
Kgs |
3 |
800 |
2,400 |
62,400 |
748,800 |
|
Sucrose |
Kgs |
5 |
100 |
500 |
13,000 |
156,000 |
|
Chemical |
Kgs |
2 |
100 |
200 |
5,200 |
62,400 |
|
Sub total |
3,100 |
80,600 |
967,200 |
|||
|
General Costs (Over heads) |
||||||
|
Rent |
500 |
6,000 |
||||
|
Labour |
800 |
9,600 |
||||
|
Utilities (Power & Water) |
1,500 |
18,000 |
||||
|
Repair & Maintenance |
500 |
6,000 |
||||
|
Packaging Materials |
200 |
2,400 |
||||
|
Fuel |
1,000 |
12,000 |
||||
|
Depreciation (Asset write off) Expenses |
359.6 |
4,315 |
||||
|
Sub - total |
4,860 |
58,315 |
||||
|
Total Operating Costs |
85,460 |
1,025,515 |
3. Project Product Costs & Price Structure
|
Item |
Qty/ |
Qty/ |
Unit |
Pdn Cost |
Unit |
T/rev |
|
Fertilizers |
1,000 |
312,000 |
3.29 |
1,025,515 |
4 |
1,248,000 |
4. Profitability Analysis
|
Profitability Item |
Per day |
Per Month |
Per Year |
|
Revenue |
4,000 |
104,000 |
1,248,000 |
|
Less: Production & Operating Costs |
3,100 |
85,460 |
1,025,515 |
|
Profit |
900 |
18,540 |
222,485 |
Sources of Supply of Equipment andRawmaterials:
The major
supplies are readily available in the Ugandan chemicals and Agro industries.
Facilities
and Incentives Available:
The
Government has adopted initiatives to support modernization of Agriculture
through, tax exemptions, basic infrastructure, Grants, and liberalized market.