MAKING COCONUT CREAM

• Manufacturing
• Edible oil products

 

Introduction
This business idea is for production and marketing of coconut cream. The business idea is based on production of 74,984 kgs per month which translates into 899,809 kg per annum. The revenue potential is estimated at US$ 920 per month translating into US$4,499,040 p.a with a sales margin of 20%. And total investment requirement is US$3, 96,926 for the first year of project operation.
Production Process
The first step is breaking the dehisced nuts into halves. The split nuts are deshelled to separate the kernel. These two operations are usually done manually. Kernel is washed and then blanched by immersing in hot water at 80°C for 10 minutes. The next step is comminution of kernel into small gratings using a hammer mill. The gratings are subjected to pressing using continuous screw press to extract the milk. The coconut milk thus obtained is filtered by passing through a vibratory screen. Food additives such as
emulsifiers and stabilizers are to be added to the milk to obtain a stable consistency and texture. For this purpose, permitted emulsifiers and stabilizers are mixed with hot water separately and mixed thoroughly. This is added to the coconut milk and then subjected to emulsification using a mechanical impeller emulsifier. The emulsified milk assumes a creamy consistency. The coconut cream is then pasteurized at 95°C for 10 minutes in a plate heat exchanger. The pasteurized coconut cream is hot filled in cans using
a mechanical volumetric filling machine followed by steam exhausting. The cans are seamed using an automatic can seamer. The seamed cans are sterilized in a rotary retort at 15 psi for 20 minutes. The cans are then cooled in running water.
Market Analysis
Coconut cream has a wide market structure because it can be used in many industries like the bakery/confectionary industry, chocolate industry and sweets. It can also be exported.
Capital Investment Requirement in US$

Capital Investment Item	Units	Qty	Unit Cost	Amount
Hammer mill	No	1	1,000	1,000
Elevator	No	1	1,250	1,250
Screw Press	No	1	250	250
Coconut milk storage tanks	No	1	2,500	2,500
Vibrating sieving machine	No	1	400	400
Coconut residue mixer	No	1	2,500	2,500
Additive mixing tank	No	1	1,250	1,250
Emulsifier	No	1	500	500
Homogenizer	No	1	1,250	1,250
Pasteurizer	No	1	400	400
Volumetric filling machine	No	1	1,000	1,000
Exhaust box	No	4	50	200
Can sealing machine	No	1	500	500
Agro waste Vertical boiler	No	4	250	1,000
Sterilization tank	No	1	500	500
					Coconut residue storage bins	No	4	500	2,000
Land(1 acre)					Piece	1	2,500	2,500
Delivery van					No	1	6,000	6,000
Total					25,000

Production and Operating Costs
Direct Materials, Supplies and Costs inUS$

Cost Item	Un its	Unit cost	Qty/ day	Pdn cost/ day	Pdncost/ month	Pdn cost/ year
Direct Costs
Coconuts	No	1	11,538	11,538	299,988	3,599,856
Flavor	kg	1	200	200	5,200	62,400
Fat	kg	0.5	150	75	1,950	23,400
Protein	kg	0.5	50	25	650	7,800
Sugars	kg	1.25	70	87.5	2,275	27,300
Water	ltrs	0.01	2,000	10	260	3,120
Pack materials	No	0.15	3,000	450	11,700	140,400
Sub-total	17,008	12,386	322,023	3,864,276
General Costs(Overheads)
Labour	5,750	69,000
Utilities	100	1,200
Preliminary costs	250	3,000
Miscellaneous	100	1,200
Depreciation(Asset write off) Exp	521	6,250
Sub-total	6,721	80,650
Total Operating Costs	328,744	3,944,926

1. Production costs assumed for 312 days per year with a daily capacity of 2,884Kilograms of Coconut cream.
2. Depreciation (fixed asset write off) assumes _4_ years life of assets written off at _25% per year for all assets.
3. Direct Costs include materials, supplies and other costs that directly go into production of the product.
4. A production month is assumed to have 26 days.
Project Product Costs and Price Structure in US$

Item	Qty/d ay	Qty/Yr	Unit cost	Pdn cost/Yr	Unit pric e	T/rev
Coconut Cream	2,884	899,808	4.4	3,944,926	5	4,499,040

Profitability Analysis in US$

Profitability Item	Per day	Per Month	Per Yr
Revenue	14,420	374,920	4,499,040
Less: Production and Operating Costs	12,644	328,744	3,944,926
Profit	1,776	46,176	554,114

Source of Rawmaterials and Equipments
Raw materials can be procured locally from Kalangala District while equipments can be imported from China and Japan.
Incentives
Government has put up Organisations like PSFU through which subsidies and free advisory services are given to the investors and it is encouraging locals to grow coconuts.