SEASONING OF WOOD
Introduction
The business idea is to set up a Wood seasoning plant. This business idea is
premised on production of 59,800 seasoned woods per month which translates into
717,600 products per year. The revenue potential is estimated at US $ 187 per
year. This project cost is US $ 183,888.
Production Process
The two methods of seasoning timber are; air seasoning and kiln seasoning. But
one can use the following steps; Chop the wood/ pole to the desired
measurements, Stack the wood so it isn't sitting directly on the ground or
right up against a wall, Allow space between your stack and a wall to allow air
to move, Ensure that the top of the wood is covered to allow rain to run off
without soaking the wood, but the ends of the stack are uncovered to allow air
to circulate and moisture to escape.
Market Analysis
The seasoned wood is used by various Companies as well as private individuals
for making furniture, Sleepers, interior furnishings, etc. The major key
players in this industry include; Budongo Saw Mill, Nile Ply, among others.
Tools and Equipment in US$
|
Item |
Unit |
Qty |
Unit |
Total |
|
Vertical Boiler |
No. |
1 |
3,500 |
3,500 |
|
Conveyer Belts |
No. |
1 |
1,000 |
1,000 |
|
Lift loaders |
No. |
1 |
8,500 |
8,500 |
|
Electric oven with thermostatic |
No. |
1 |
2,000 |
2,000 |
|
Hand tools |
No. |
1 |
1,000 |
1,000 |
|
Trucks |
No. |
2 |
15,000 |
30,000 |
|
Total cost of Machinery |
46,000 |
Production and Operating Costs in US$
a) Direct Materials, Supplies and Costs
|
Cost Item |
Un |
Unit |
Qty/ |
Prod. |
Prod. |
Prod. |
|
Electric |
No |
50,000 |
100 |
500 |
13,000 |
156,000 |
|
Fencing |
No |
0.8 |
2,200 |
0.0004 |
0.009 |
0.11345 |
|
Chemicals |
Ltrs |
0.5 |
20 |
0.0250 |
1 |
7.80 |
|
Sub-total |
|
13,001 |
156,008 |
|||
|
General costs (Overheads) |
||||||
|
Utilities (power) |
100 |
1,200 |
||||
|
(Utilities (water) |
15 |
180 |
||||
|
Salaries |
300 |
3,600 |
||||
|
Rent |
300 |
3,600 |
||||
|
Depreciation (Assets write off) Expenses |
958 |
11,500 |
||||
|
Sub-total |
1,673 |
20,080 |
||||
|
Total Operating Costs |
14,674 |
176,088 |
|
|||
Project Product Costs and Price Structure In US$
|
Item |
Qty/ |
Qty/yr |
Unit |
Prod./ |
Unit |
Total |
|
Electric |
100 |
31,200 |
0.3 |
7,800 |
75 |
585,000 |
|
Fencing |
2,200 |
686,400 |
0.3 |
176,088 |
1.5 |
264,132 |
|
Total revenue |
183,888 |
849,132 |
Profitability Analysis In US$
|
Profitability item |
per day |
per |
per |
|
Revenue |
|||
|
Electric poles |
1,875 |
48,750 |
585,000 |
|
Fencing poles |
847 |
22,011 |
264,132 |
|
Less Prod & Operating Costs |
3,921 |
14,674 |
176,088 |
|
Profit |
(1,199) |
56,087 |
673,044 |