MAKING MAYONAISE CREAM
Introduction
The business idea is for production and marketing of mayonnaise cream.
Mayonnaise is a thick, creamy sauce or dressing that is made of oil, egg yolks,
lemon juice or vinegar and seasonings.
While mayonnaise is often referred to as a dressing, it is really intended to
"dress" sandwiches and not leaf salads. The total potential revenue
is estimated aUS$600 per year, the production capacity is estimated at 100 tonnes
per day and the total project cost is estimated at US $144,482
per year.
Production process
A method of producing mayonnaise comprises directing coagulated egg yolk and
milk protein into a container in which they are mixed together and adding salt
and a small amount of oil and colorants in which the mixture is briefly heated
to a temperature in the range of about 80°C-100°C. The emulsion is then stirred
with vinegar and other additives to form a mayonnaise. The mayonnaise is
pasteurized by heating it briefly in a second heater to about 80°C- 100°C or it
is sterilized by heating it to a higher temperature of 110°C- 130°C.
Thereafter, the pasteurized mayonnaise is cooled in a second cooler and it is
continuously filled into sterilized containers.
Market Analysis
Mayonnaise is commonly served with sandwiches and Salads. Therefore, the product
has high demand. It is supplied to super markets, shops, hotels and restaurants
as major outlets.
Capital Investment Requirements in US$
|
Capital investment item |
Units |
Qty |
Unit |
Amount |
|
Dynamic mixer |
No. |
1 |
1,000 |
1,000 |
|
Heater |
No. |
2 |
100 |
200 |
|
Delivery Van |
No. |
1 |
6,500 |
6,500 |
|
Cooling machine |
No. |
2 |
750 |
1,500 |
|
Packing materials |
No. |
200 |
0.5 |
100 |
|
Total Costs on Equipments |
9,300 |
Production and Operating costs in US $
|
Cost Item |
Units |
Unit |
Qty/ |
Prod |
Prod |
Prod |
||
|
Oil |
Ltrs |
2 |
10 |
20 |
520 |
6,240 |
||
|
Vinegar |
Ltrs |
5 |
5 |
25 |
650 |
7,800 |
||
|
Milk |
Kgs |
10 |
18 |
180 |
4,680 |
56,160 |
||
|
Salt |
Kgs |
0.1 |
2 |
0.2 |
5.2 |
62 |
||
|
Eggs |
No. |
2.0 |
100 |
200 |
5,200 |
62,400 |
||
|
Sub-total |
135 |
425 |
11,055 |
132,662 |
||||
|
General costs (overheads) |
||||||||
|
Utilities (water and power) |
100 |
1,200 |
||||||
|
Labour |
131 |
1,575 |
||||||
|
Rent |
150 |
1,800 |
||||||
|
Miscellaneous costs |
150 |
1,800 |
||||||
|
Distribution costs |
260 |
3,120 |
||||||
|
Depreciation(Asset write off)Expenses) |
194 |
2,325 |
||||||
|
Sub -total |
985 |
11820 |
||||||
|
Total Operating Costs |
12,040 |
144,482 |
||||||
1, Production costs assumed 312 days per year with a daily
capacity of 200 tins of mayonnaise
2, Depreciation (fixed assets 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.
Project product Costs and Price Structure in US$
|
Item |
Qty |
Qty/yr |
Unit |
Pdn cost |
Unit |
Total |
|
Mayonnaise |
200 |
62,400 |
2.3 |
144,482 |
2.5 |
156,000 |
Profitability Analysis
|
Profitability Item |
Per |
Per |
Per |
|
Revenue |
500 |
13,000 |
156,000 |
|
Less production and operating Costs |
463 |
12,040 |
144,482 |
|
Profit |
37 |
960 |
11,518 |