MAKING FISH PICKLES
Introduction
This
Business Ideais for manufacturing and marketing of fish pickles. This is a
ready-to-eat product in form of sauce made of fish. With the increasing demand
for non-vegetarian pickles, making preserved readyto-eat fish would be a
lucrative activity. This business idea is premised on production of 2,600ks per
month which translates into 31,200 kgs per year. The revenue potential is
estimated at US$,400 per month translating into US$124,800 per year with a sales
margin of 20% and total Investment requirement of US$119,131 for the first year
of project operation. After cleaning,fish is placed in a salt solution or brine
to increase the shelf life. Later, the fish is fried, mixed with spice powders,
salt, vinegar, and oil and finally packed for the market.
Capital
Investment Requirements in US$
|
Capital Investment Item |
Units |
Qty |
Unit Cost |
Amount |
|
Grinder |
No |
2 |
250 |
500 |
|
Cooking/frying Equipments |
Set |
2 |
100 |
200 |
|
Containers |
No |
5 |
5 |
25 |
|
Ice boxes |
No |
2 |
50 |
100 |
|
Gas stove |
No |
1 |
400 |
400 |
|
Total |
1225 |
Production and Operating Costs
Direct Materials, Supplies and Costs in US$
|
Cost Item |
Units |
Unit |
Qty/ |
Pdn |
Pdn |
Pdn cost/ |
|
Direct Costs |
||||||
|
Fish |
kg |
2.5 |
105 |
262.5 |
6,825 |
81,900 |
|
Spices |
kg |
0.75 |
10 |
7.5 |
195 |
2,340 |
|
Salt |
kg |
0.5 |
5 |
2.5 |
65 |
780 |
|
Vinegar |
liter |
2 |
15 |
30 |
780 |
9,360 |
|
Cooking Oil |
liter |
1 |
25 |
25 |
650 |
7,800 |
|
packaging |
No |
0.1 |
100 |
10 |
260 |
3,120 |
|
Sub-total |
260 |
337.5 |
8,775 |
105,300 |
||
|
General Costs(Over heads) |
||||||
|
Rent |
100 |
1,200 |
||||
|
Labour |
750 |
9,000 |
||||
|
Utilities(water & gas) |
75 |
900 |
||||
|
Miscellaneous Costs |
50 |
600 |
||||
|
Transport costs |
50 |
600 |
||||
|
Depreciation (Asset write off) Exp |
26 |
306 |
||||
|
Sub-total |
1,051 |
12,606 |
||||
|
Total Operating Costs |
9,826 |
117,906 |
1.
Production costs assumed are for 312 days per year with a daily capacity of 100
Kilograms of fish Pickles.
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 workdays.
Project
Product Cost and Price Structure in US$
|
Item |
Qty/ |
Qty/Yr |
Unit |
Pdn |
Unit |
T/rev |
|
Fish |
100 |
31,200 |
3.8 |
117,906 |
4 |
124,800 |
Profitability Analysis in US$
|
Profitability Item |
Per |
Per |
Per Yr |
|
Revenue |
400 |
10,400 |
124,800 |
|
Less: Production and Operating Costs |
378 |
9,826 |
117,906 |
|
Profit |
22 |
574 |
6,894 |
Market Analysis
The
marketability of fish pickles would mostly depend on the quality of the product
and the price. Points of supply would be Supermarkets, Hostels, Fast Food
Centres, Canteens, Private and Government
establishments like railway stations, the military, etc. Therefore, Fish pickles
may have a wider market and high demand if the plant is set up.
Supply of
Raw materials and Equipment
Raw
materials and Equipments can be procured locally.
Incentives
Available
The
Government has come out with funds to support development of Aquaculture and
small scale investors. This was partly funded by the European Union and funds
were at very attractive rates. There are some NGOs that have come out to
support the growing of fish because it is very nutritive in terms of proteins
and vitamins.