DEHULLING OF SESAME SEEDS BUSINESS IN UGANDA

Introduction

Sesame is commonly called simsim and it is predominantly grown in the North, West Nile, Teso, and Kapchorwa sub regions of Uganda. Sesame is used to produce oil used for cooking.

This project is for setting up a plant to de-hull the sesame seeds. Some of the varieties are black with a black coating that gives it a bitter taste and therefore, the seeds must be rid of that covering to render them edible. This black covering has high oxalates content and by dehulling sesame you turn it white coloured, which can be used in various preparation such as sweets, groundnut butter, sweets, powders, chutneys etc. The project requires an estimated fixed capital of US$ 3,900 operating costs of US$ 142,793 generating total revenue of US$202,800 in the first year of operation.

Production Process

The dark seeds are cleaned by subjecting them to an alkali treatment for a few minutes. The seeds are then washed with cold water to free the product from traces of alkali. The processed seeds are then dried and are white and rid of bitterness and of good nutritive qualities. The removed outer coat has the bitter oxalic acid and the seed is now bereft of fungal infections.

Capital Investment Requirements in US$

Capital Investment Item Units Qty @ Total
Soaking Tank No 2 100 200
Pulper No 1 1,000 1,000
Drier No 1 1,250 1,250
Trays No 10 35 350
Weighing scale No 1 250 250
Furniture & Fittings No 850
Total 3,900

Production and Operating Costs (a)Direct Materials, Supplies and Costs

Cost Item Units @ Qty/ day Pdn Cost/ day Pdn Cost/ month Pdn Cost/ year
Direct Costs
Black Coloured sesame Kgs 0.4 1,000 400 10,400 124,800
Sodium Hydroxide Kgs 0.8 25 20 520 6,240
Packaging materials Pcs 0.4 10 4 104 1,248
Sub-total 1,035 424 11,024 132,288

General Costs (Overheads)

Rent 200 2,400
Labour 208 2,500
Cleaning and Toiletries 91 1,090
Utilities 250 3,000
Miscellaneous 45 540
Depreciation 81 975
Sub-total 875 10,505
Total Operating Costs 11,899 142,793
  1. Production costs assumed 312 days per year with daily capacity of producing 1,000kgms of sesame Seeds.
  2. Depreciation (fixed asset write off) assumes 4-years life of assets written off at 25% per year for all assets. 3)
  3. Direct costs include: materials, supplies and other costs that directly go intoproduction of the product.
  4. Total monthly days assumed are 26-days.
  5. The valuation currency used is United States Dollars.

Market Analysis

The demand for whiter sesame oil is on the increase on the market. Being plant oil it is healthier as it gives less cholorestal. Sesame oil is used as a cooking medium and in pickles. Restaurants, hotels, fast foods shops, groceries and supermarket chains are the main outlets. Sesame oil has exportable potential especially to the Arab world.

Project Product Costs and Price Structure

Item Qty/Day Qty/yr @ Pdn Cost/ yr UPx Total Rve
Sesame seeds 1,000 312,000 0.46 142,793 0.65 202,800

Profitability Analysis Table in US$

Profitability Item Per day Per Mnth Per year
Revenue 650 16,900 202,800
Less: Production and Operating Costs 458 11,899 142,793
Profit 192 5,001 60,007

Government Incentive

The government has come out to encourage any value addition to agricultural produce, therefore this project falls within the government policy. Through Private Sector Foundation Uganda, the government comes out to support enterprises using donor funds for capacity building and consultancies on strategic planning etc.

The equipment needed for this project can be procured locally from Ms Tree Shade 2000, Mwanga II Rd Kisenyi, and Kampala.

 

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