CULTIVATION AND MARKETING OF FLOWERS BUSINESS IN UGANDA

 CULTIVATION AND MARKETING OF FLOWERS BUSINESS IN UGANDA

Introduction:

This business idea is for cultivation and marketing of flowers. Growing flowers is an art – or activity and craft of growing plants, with a goal of creating a wonderful & beautiful world around. Flowers are a symbol of love, beauty, affection, romance, etc. Flowers have a high economic value both at face value and for extracting perfumes and other products. Flowers are highly demanded especially for personal adornment and decoration. The production capacity per day is estimated at 360 per day with a total investment estimated at US$ 3794 while revenue is estimated at US$ 193752 per year.

Production process

Flowers can be grown in any soil but most soils will be improved by treatment of some sort before planting. Flowers are heavy feeders and thrive best in well worked and well-drained soils. The beds should be prepared 6-12 months prior to planting. If prepared suitably, beds can last along time. Flowers are propagated by seeds, stem or root cuttings, layering, budding and grafting. Propagation by stem cuttings is the most common used method. The seeds are planted in a nursery at intervals of 2.5-5 cm.

The nursery beds are sparingly watered thrice a week and kept clean of weeds. The growing stems are then transferred to the real field in wooden structures.

Capita investment requirement

Capital investment item Units Qty @ Amount
Water pump No. 2 80 160
Pipes and Fittings No. 10 200 2,000
Water tank No. 1 152 152
Cutter No. 5 4.8 24
pesticide sprayer No. 3 14 42
scissors No. 5 8 40
Barbed wire(roll) No. 2 48 96
Tents No. 4 280 1120
Baskets No. 50 3.2 160
TCs on Equipments 790 3,794

Production and operating costs General costs (overheads)

Cost Item @ Qty/ day Pdn cost/ day Pdncost/ month Pdn cost/ yr
seeds 1.5 20 30 780 9,360
manure 4 50 200 5,200 62,400
Fertilizers 2.2 50 110 2,860 34,320
Chemicals 2 30 60 1,560 18,720
pesticide 2.3 10 23 598 7,176
Sub-total 160 423 10,998 131,976
Utilities (water and power) 300 3,600
Labour 750 9,000
Rent 150 1,800
Administrative cost 75 900
Miscellaneous costs 50 600
Depreciation Expenses 79.04 948.5
Sub -total 1,328 15,938
Total Operating Costs 12,326 147,914
  1. Production costs assumed 312 days per year with a daily capacity of 500 bundles of flowers
  2. Depreciation (fixed assets write off) assumes 4 years life of assets written off at 25% per year for all assets Direct costs include materials, supplies and other costs that directly go into production of the product.

Project product cost and Price structure

Item Qty/day Qty/yr @ Pdn cost /yr UPx TR
Roses (bundles 90 28,080 1 28,080 1.8 50,544
Mums (bundles 90 28,080 1 28,080 1.8 50,544
Carnation (bundles 90 28,080 1 28,080 2 56,160
Water lilies (bundles 90 28,080 1 28,080 1.3 36,504
112,320 162,890 193,752

Profitability analysis

Profitability Item Per day Per month Per Year
Revenue 621 16,146 16,146
Less production and operating Costs 474.1 12,326 147,914
Profit 146.9 3,820 45,838

 

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