MAKING DECORTICATED CASHEW NUT
Introduction
This business idea is for Production and marketing of edible cashew nuts, the business idea is premised on production of 5,200 kgs of cashew nuts per month which translates into 62,400 per year. The revenue potential is estimated at US$500 per year. The project cost is US $ 53,280
Production Process
In the mechanized system, the raw cashew nuts are decorticated using a hand operated machine, mounted on a work table. The decorticator splits the nut when placed between two horizontally mounted blades, especially spread to suit the contour of the raw nut. The outer shell is conveniently split by sliding and splitting action of blades. An operator can process 25-30 kg nuts per day.
Production Capacity
The plant can have a capacity 9000 kgs per year
Land Requirement
Rent for a year would cost about 1,200 US Dollars
Market Analysis
Cashew nuts are highly demanded on the world market. Local market also exists although cashew nuts are not very common in all the areas of Uganda. This could turn out to be the turning factor in the marketing of cashew nuts as they have an open market, with limited competition. This sector is still informal in Uganda.
Capital Investment Requirements in US Dollars.
|
Item Unit |
Quantity |
Unit Cost |
Total |
|
|
Cashew Decorticator |
No. |
1 |
1,000 |
1,000 |
|
Other equipments |
No. |
1 |
100 |
100 |
|
Delivery van |
No. |
1 |
2,500 |
2,500 |
|
Total cost of Machinery |
3,600 |
|||
Source of Supply of Equipment and Raw materials
|
Profitability item |
per day |
per month |
per year |
|
Revenue |
|
|
|
|
Cashew nuts |
250 |
6,500 |
78,000 |
|
Less Prod & Operating Costs |
159 |
4,140 |
49,680 |
|
Profit |
91 |
2,360 |
28,320 |
Production and Operating Costs in US $
Direct Materials, Supplies and Costs
|
Item |
Unit cost |
Qty/day |
Prod. Cost/day |
Prod. Cost/ month |
Prod. Cost/ year |
|
|
Cashew nuts |
Kgs |
0.5 |
300 |
150 |
3,900 |
46,800 |
|
Sub-total |
|
|
3,900 |
46,800 |
||
|
General costs (Overheads) |
||||||
|
Utilities (power) |
15 |
180 |
||||
|
Utilities (water) |
15 |
180 |
||||
|
Salaries |
60 |
720 |
||||
|
Rent |
75 |
900 |
||||
|
Depreciation (Assets write off) Expenses |
75 |
900 |
||||
|
Sub-total |
240 |
2,880 |
||||
|
Total Operating Costs |
4,140 |
49,680 |
||||
|
Production and Operating Costs in US $ Direct Materials, Supplies and Costs
Production costs assumed 312 days per year with a daily capacity of 200 kgs of cashew nuts. Depreciation (fixed assets write off) assumes 4 years life of assets write off of 25% per year for all assets. Direct costs include: materials, supplies and other costs that directly go into production of the product. Project Product Cost and Price Structure in US$
|
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|
Item Unit |
Quantity |
Unit Cost |
Total |
|
|
Cashew Decorticator |
No. |
1 |
1,000 |
1,000 |
|
Other equipments |
No. |
1 |
100 |
100 |
|
Delivery van |
No. |
1 |
2,500 |
2,500 |
|
Total cost of Machinery |
3,600 |
|||
Source of Supply of Equipment and Raw materials
|
Profitability item |
per day |
per month |
per year |
|
Revenue |
|
|
|
|
Cashew nuts |
250 |
6,500 |
78,000 |
|
Less Prod & Operating Costs |
159 |
4,140 |
49,680 |
|
Profit |
91 |
2,360 |
28,320 |
|
Production and Operating Costs in US $ Direct Materials, Supplies and Costs
Production costs assumed 312 days per year with a daily capacity of 200 kgs of cashew nuts. Depreciation (fixed assets write off) assumes 4 years life of assets write off of 25% per year for all assets. Direct costs include: materials, supplies and other costs that directly go into production of the product. Project Product Cost and Price Structure in US$
|
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