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.
