Introduction
Fruits are an important source of energy and vitamins, however due to them being highly perishable and only growing in certain seasons call for a need preservation. The most effective way of preserving fruits is by turning them into squash. Consequently there is a market for a venture process to fruits into a state where by they are readily available.
The establishment of the project is aimed at producing a capacity of 826,800litres of squash per year with a required capital investment cost of US$17,623. The project is estimated to generate annual revenue of US$433,020, generate a net profit margin of 25% and a payback period of 4 months.
Production Capacity, Technology & Process
The production process is very simple as it involves squeezing, filtering, boiling and preservation.
Good quality ripe fruits are washed, peeled and cleaned. Then the juice is extracted from fruits and is filtered to remove seeds and fibres. Then the juice is processed and sterilized and then syrup
General Costs(Overheads)
of sugar preservatives are added and this mixture is stirred till a uniform solution is formed. After, the bottling and packing is done
Capital Investment Requirements
Project Product Costs and Price Structure
| Labour | 1,096 | 13,152 |
|---|---|---|
| Utilities | 517 | 6,204 |
| Rent | 1,000 | 12,000 |
| Administration expenses | 263 | 3,156 |
| Cleaning & toiletries | 208 | 2,496 |
| Selling & distribution | 375 | 4,500 |
| Miscellaneous expenses | 175 | 2,100 |
| Depreciation | 367 | 4,404 |
| Sub-total | 4,001 | 48,012 |
| Total Operating Costs | 36,085 | 433,020 |
| Capital investment item | Qty | @ | Total |
| Fruit washing tanks | 3 | 200 | 600 |
| Juice extractors (50lts | 2 | 940 | 1880 |
| Steam jacketed Kettles (30ltres) | 2 | 435 | 870 |
| Stirrer | 1 | 328 | 328 |
| Baby boiler (30kgm | 1 | 1,304 | 1304 |
| Bottle washing & filling machine | 1 | 1,650 | 1650 |
| Testing equipments | 1 | 654 | 654 |
| Furniture | – | – | 435 |
| SS Utensils | – | – | 217 |
| Storage racks | – | – | 260 |
| Delivery Van | 1 | 9,000 | 9,000 |
| Exhaust fans | – | – | 175 |
| Other tools | – | – | 250 |
| Total | 17,623 |
| Item | Qty/day | Qty/yr | @ | Pdn cost/ yr | UPx | T/rev |
| Fruit Squashes | 2,650 | 826,800 | 0.5 | 433,020 | 0.7 | 578,760 |
Profitability Analysis Table
Government Facilities & Incentives
There is a European Investment Fund and an Agricultural Fund which support agro processing industries
Production and Operating Costs (a)Direct materials, Supplies and Costs
| Profitability Item | Per Day | Per Month | Per Year |
|---|---|---|---|
| Revenue | 1,855 | 48,230 | 578,760 |
| Less: Production & Operating Costs | 1,388 | 36,085 | 433,020 |
| Profit | 467 | 12,145 | 145,740 |
| Cost Item | Units | @ | Qty/ day | Pdn cost/ day | Pdn cost/ mth | Pdnc ost/yr |
| Direct Costs | ||||||
| Fruits | Kgs | 0.3 | 3,200 | 864 | 22,464 | 269,568 |
| Sugar | Kgs | 1.2 | 200 | 240 | 6,240 | 74,880 |
| Preservatives | Kgs | 2.5 | 10 | 25 | 650 | 7,800 |
| Packing materials | Pcs | 0.07 | 1,500 | 105 | 2,730 | 32,760 |
| Sub-total | 4,910 | 1,234 | 32,084 | 385,008 |
