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.
