CHEESE MAKING BUSINESS IN UGANDA

 CHEESE MAKING BUSINESS IN UGANDA

Introduction

Cheese is a product made from the curd obtained from whole or skimmed milk, with or without added cream, by coagulating the casein and further treatment, of the separated curd by ripening ferments, special molds or seasoning.

Production Capacity

The rated Plant capacity is 1,000kgs per day.

Production Process Description

Cheese is made by curdling the milk. The homogeneous fluid changes into a mixture of solid particles and a pale yellow liquid. These are separated and the solid elements make up the curd, which is pressed into moulds, after which the cheese goes into a brine bath for several days. Subsequently, it is stored and thus gradually matures into the delicious product we can buy in the shops.

Scale of Investment, Capital Investment Requirements and Equipment:

The project will be operated locally on small scale, i.e. producing at least 350kg of processed Cheese per day (105,000.00 KGS/annum). The total Fixed Capital Investment required to establish this project is estimated at USD 20,475. It is expected to yield an estimate of US$936,000 and a net profit margin of 50%.

Market Analysis:

The demand for Cheese is widely spread across all factions of people in Uganda as one of the essential items of daily life in the diet of the population, thus an indispensable necessity both locally and internationally.

Capital Investment Requirements in US$

Capital Investment Item Units Qty @ Amount
Milk Van No. 1 8,000 8,000
Cream Separator No. 1 1,600 1,600
Molding Machine No. 1 2,000 2,000
Cheese Vat No. 1 325 325
C.Scoops No. 2 100 200
Freezers No. 2 1,000 2,000
Boiler No. 1 1,000 1,000
Centrifuge No. 1 500 500
Cheese Knives No. 2 10 20
Packaging Machine No. 1 3,000 3,000
Milk Cans No. 20 80 1,600
Weighing Balance No. 1 80 80
Furniture No. 5 30 150
Total Amount 20,475

Operating Costs in US$Project Product Costs & Price Structure in $

Units @ Qty/ day Prod. Cost/day Prod. Cost/ month Prod. Cost/ Year
Direct Costs
Milk Litres 1 1,000 1,000 26,000 312,000
Enzymes Litres 2 100 200 5,200 62,400
Salt Kgs 1 50 50 1,300 33,800
Phosphate Kgs 2 50 100 2,600 67,600
Sub total 1,350 35,100 475,800
General Costs (Over heads)
Rent 300 3,600
Packaging Material 150 1,800
Labour 350 4,200
Utilities (Power & Water) 400 4,800
Repair & Servicing 200 2,400
Fuel 200 2,400
Depreciation (Asset write off) Expenses 434 5,208
Sub -total 72,234 976,008
Total Operating Costs 107,334 1,451,808
Item Qty/ day (Kg) Qty/yr (Kg) @ Pdn Cost/ yr UPx T/rev
Cheese 1,000 312,000 2 624,000 3 936,000

Profitability Analysis in US$

Profitability Item Per day Per Month Per Year
Revenue 3,000 78,000 936,000
Less: Production & Operating Costs 1,525 39,650 475,800
Profit 1,475 38,350 460,200

Sources of Supply of Raw Materials

Raw materials will be locally sourced from Dairy farmers especially from Western Uganda.

 

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