BUSINESS IDEA FOR MAKING COCONUT CREAM IN UGANDA

 BUSINESS IDEA FOR MAKING COCONUT CREAM IN UGANDA

Introduction

This business idea is for production and marketing of coconut cream. The business idea is based on production of 74,984 kgs per month, which translates into 899,809 kg per annum.The revenue potential is estimated at US$ 393,666 per month translating into US$4,723,992 per year with a sales margin of 25.4%. Total investment requirement is US$27,270 for the first year of project operation.

Production Process

The first step is breaking the dehisced nuts into halves. The split nuts are deshelled to separate the kernel. These two operations are usually done manually. Kernel is washed and then blanched by immersing it in hot water at 80°C for 10 minutes. The next step is comminution of kernel into small gratings using a hammer mill. The gratings are subjected to pressing using continuous screw press to extract the milk.

The coconut milk obtained is filtered by passing through a vibratory screen. Food additives such as emulsifiers and stabilizers are to be added to the milk to obtain a stable consistency and texture. For this purpose, permitted emulsifiers and stabilizers are mixed with hot water separately and mixed thoroughly. This is added to the coconut milk and then subjected to emulsification using a mechanical impeller emulsifier. The cans are then cooled in running water.

Capital Investment Requirement in US$

Capital Investment Item Units Qty @ Amount
Hammer mill No 1 1,250 1,250
Elevator No 1 1,200 1,200
Screw Press No 1 250 250
Coconut milk storage tanks No 2 750 1,500
Vibrating sieving machine No 1 550 550
Coconut residue mixer No 1 2,500 2,500
Additive mixing tank No 1 2,300 2,300
Emulsifier No 1 500 500
Homogenizer No 1 1,400 1,400
Pasteurizer No 1 480 480
Volumetric filling machine No 1 800 800
Exhaust box No 4 60 240
Can sealing machine No 1 500 500
Agro waste Vertical boiler No 4 300 1,200
Sterilization tank No 1 500 500
Coconut residue storage bins No 4 400 1,600
Land(1 acre) Piece 1 3,000 3,000
Delivery van No 1 7,500 7,500
Total 27,270

Production and Operating Costs General Costs(Overheads)

Cost Item Units @ Qty/ day Pdn cost/ day Pdn cost/ month Pdn cost/ year
Direct Costs
Coconuts No 0.94 11,538 10,846 281,989 3,383,865
Flavor kg 1 200 200 5,200 62,400
Fat kg 0.62 150 93 2,418 29,016
Protein kg 0.7 50 35 910 10,920
Sugars kg 1 70 70 1,820 21,840
Water ltrs 0.004 2,000 8 208 2,496
Pack materials No 0.19 3,000 570 14,820 177,840
Sub-total 17,008 11,822 307,365 3,688,377
Labour 5,750 69,000
Utilities 100 1,200
Preliminary costs 250 3,000
Miscellaneous 100 1,200
Depreciation(Asset write off) Exp 568 6,818
Sub-total 6,768 81,218
Total Operating Costs 314,133 3,769,594

Project Product Costs and Price Structure in US$

Item Qty/day Qty/Yr @ Pdn cost/Yr UPx T/rev
Coconut Cream 2,884 899,808 4.1 3,769,594 5.2 4,723,992

Profitability Analysis in US$

Profitability Item Per day Per Month Per Yr
Revenue 15,141 393,666 4,723,992
Less: Production and Operating Costs 12,082 314,133 3,769,594
Profit 3,059 79,533 954,398

Market Analysis

Coconut cream has a wide market structure because it can be used in many industries like the bakery/confectionary industry, chocolate industry and sweets. It can also be exported.

Availability of Raw Materials and Equipments

Raw materials can be procured locally from Kalangala District while equipments can be imported from China and Japan.

 

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