SMOKING FISH

Introduction
The business idea is for smoking and marketing of fish. This business idea is premised on smoking of 208 batches of fish per month which translates into 2,496 batches of fish per year. The revenue potential is estimated at US $ 609 per year. The project cost is US $ 4,911 for the first month of operation.


Production Process
Fresh fish is cleaned and left to dry under sunshine for some time. It is then put on a wire mesh and covered with banana leaves in the oven for smoking. After some time, fish is changed over to allow
both sides to dry. Fish is then removed from the oven or kiln and left to cool before being packed for dispatch.


Market Analysis
Smoked fish is a delicacy to all tribes in Uganda; it is consumed almost in all regions of the country. Smoked fish can be supplied to Educational Institutions, Armed Forces, and Supermarkets as well as
General markets and individuals. There is also a ready market in Congo, Zambia, Zimbabwe and Sudan. There are many small and medium traders involved this trade. There is high demand of smoked fish in Congo

Capital Investment Requirements in US$

Item

Unit

Qty

Unit
Cost

Total

Oven/ kiln

No.

1

200

200

Wire mesh

No.

1

8

8

Delivery van

No.

1

3,500

3,500

Fish Baskets

No.

10

5

50

Hand tools

No.

5

8

40

Total cost of Machinery

3,798




Production and Operation Costs
A). Direct materials, supplies and costs in US$

Cost Item

Units

Unit
Cost
/ day

Qty/
day

Prod
.
cost/
day

Prod.
Cost/
month

Prod.
Cost/
year

Fish

batches

20

8

160

4,160

49,920

Firewood

bundles

1

3

3

78

936

Sub-total

4,238

50,856





General costs (Overheads)







Utilities (water)

10

120





Fuel

390

4,680





Rent

50

600





Salaries

150

1,800





Depreciation (Assets write off) Expenses

73

875





Sub-total

673

8,075





Total Operating costs

4,911

58,931





Production costs assumed are for 312 days per year with a daily capacity of 8 batches. Depreciation assumes 4 years life of assets written off at 25% and charged only on delivery van. Direct costs include: Materials, supplies and other costs that directly go into production.
Product cost and Price Structure in US $

Item

Qty/
day

Qty
/yr

Unit
cost

Prod.
/ yr

Unit
price

Total
Revenue
($)

Fish

8

2,496

20

2,947

28

68,640

 

Profitability Analysis

Profitability item

per day

per
month

per year

Revenue




Smoked fish

220

5,720

68,640

Less Prod & Operating Costs

189

4,911

58,931

Profit

31

809

9,709