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 |
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 |
Qty/ |
Prod |
Prod. |
Prod. |
|
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/ |
Qty |
Unit |
Prod. |
Unit |
Total |
|
Fish |
8 |
2,496 |
20 |
2,947 |
28 |
68,640 |
Profitability Analysis
|
Profitability item |
per day |
per |
per year |
|
Revenue |
|||
|
Smoked fish |
220 |
5,720 |
68,640 |
|
Less Prod & Operating Costs |
189 |
4,911 |
58,931 |
|
Profit |
31 |
809 |
9,709 |