A green house is a building in which plants are grown. This business idea aims at a production capacity of 110 kgs per day throughout the year assuming a 3 month production cycle annually. The revenue potential is estimated at US$ 20,000 per quarter translating into US$ 80,000 per year. The total investment capital is US$ 53,400 and a profit of US $ 9,080 per year. The project is expected to yield a net profit margin of 11% and to have a payback period of 7 months.
The idea involves acquiring and preparation of land, setting up the green house, planting the tomatoes, managing the garden, harvesting the tomatoes when they are ready and marketing the tomatoes.
Scale of Investment
Capital Investment Requirements in US$
|TC of Machinery||53,400|
Production and Operating Costs
|Cost Item||Units||@||Qty/qtr||Pdn cost/ qtr||Pdn cost/ yr|
|Depreciation(Asset write off)Exp||4,450||17,800|
|Total Operating Costs||17,730||70,920|
- Production costs assumed are for 366 days per year.
- Depreciation (fixed asset write off) assumes a 1 years’ life of assets written off at 25% per year for all assets.
- A production month is assumed to have 30 days.
- Investment is assumed in 4 quarters a year
Project Product Costs and Price Structures
Profitability Analysis in US$
|Profitability Item||Per day||Per Month||Per Yr|
|Less: Production and Operating Costs||197||5,910||70,920|
Tomatoes are consumed by a big number of people in the county everyday so there market potential is big especially in markets and supermarkets.
Sources of supply of raw materials
All the raw materials required are locally available in Uganda.
Government facilities & incentives available
The government has fixed tax waivers on agriculturalists.
Currently the risks associated with this product are minimal, demand is high and all the ingredients used in making the product can be obtained locally.