ESTABLISHING AN ICE CREAM -BALLS MANUFACTURING PLANT IN UGANDA
Introduction
The demand for Ice cream is all round the year and is consumed by all classes of people. The proposed project envisions setting up of an Ice cream balls manufacturing unit with capital investment of US$ 25,250. This business is estimated to yield annual revenue of US$ 336,960 with a net profit of 23% and a payback period of 8 months.
Suggested Plant Capacity and Project Cost
The indicative project cost for manufacturing unit of Ice cream balls; with suggested capacity of 2,000 balls per day is US $ 25,250.
Technology and Process Description
Ice Cream ball is manufactured using cryogenic techniques. Cryogenics process uses liquid Nitrogen to instantaneously freeze
Ice Cream balls, to a temperature of – 187 ˚C (-304˚ F.).
Special storage freezers are required to guarantee the highest flavor quality.
Plant and Machinery Required
Ice cream mix preparation tanks, Ice cream mixer, Boiler, Butter melting Vat, Liquid nitrogen storage tank double wall, Ice cream balls packing machine, Quality control equipments, Molding machine, Blender
Capital Investment Requirement in US$
| Capital Investment Item | Units | Qty | @ | Amount |
|---|---|---|---|---|
| Delivery Van | No. | 1 | 8,000 | 8,000 |
| Mixer | No. | 1 | 3,000 | 3,000 |
| Storage Tanks | No. | 3 | 650 | 1,950 |
| Preparation Tanks | No. | 4 | 500 | 2,000 |
| Molding Machine | No. | 1 | 2,000 | 2,000 |
| Q.C Equipments | Set | 1 | 500 | 500 |
| Blender | No. | 1 | 200 | 200 |
| Freezers | No. | 4 | 1,100 | 4,400 |
| Electric Boiler | No. | 1 | 1,000 | 1,000 |
| Packaging Machine | No. | 1 | 2,200 | 2,200 |
| Total Amount | 25,250 |
Operating Cost in US $ General Costs (Over heads)
| Item | Units | @ | Qty/ day | Prod. Cost/ day | Prod. Cost/ month | Prod. Cost/ Year |
| Direct Costs | ||||||
| Milk | Litres | 0.39 | 1000 | 390 | 10,140 | 121,680 |
| Food Color | Kgs | 0.58 | 50 | 29 | 754 | 9,048 |
| Stabilizers | Kgs | 1.9 | 10 | 19 | 494 | 5,928 |
| Sugar | Kgs | 1.3 | 200 | 260 | 6760 | 81,120 |
| Sub total | 698 | 18,148 | 217,776 | |||
| Rent | 300 | 3,600 |
|---|---|---|
| Packaging Material | 500 | 6,000 |
| Labour | 600 | 7,200 |
| Utilities (Power & Water) | 500 | 6,000 |
| Repair & Servicing | 500 | 6,000 |
| Fuel | 500 | 6,000 |
| Depreciation (Asset write off) Expenses | 526 | 6,312 |
| Sub – total | 3,426 | 41,112 |
| Total Operating Costs | 21,574 | 258,888 |
Project Product Costs & Price Structure in US$
| Item | Qty / day | Qty/ yr | @ | Pdn Cost/ yr | UPx | T/rev |
| Ice Cream Balls | 2000 | 624,000 | 0.41 | 258,888 | 0.54 | 336,960 |
Profitability Analysis in US$
| Profitability Item | Per day | Per Month | Per Year |
|---|---|---|---|
| Revenue | 1,080 | 28,080 | 336,960 |
| Less: Production & Operating Costs | 830 | 21,574 | 258,888 |
| Profit | 250 | 6,506 | 78,072 |
Sources of Supply of Raw Materials
Dairy products will be locally supplied from farming areas of Uganda especially Western & Central Uganda.
Government Facilities Available
The following incentives are available from Government in her bid to promote Agro and Food Processing Industry: Tax exemptions on plant and machinery, infrastructure, grants and long term loans at relatively low interest rates and liberalized market and favorable trade policies.
Capital Investment Requirement in US $ Project product cost and Price structure