STARTING A FRUIT JUICE CANNING BUSINESS IN UGANDA
Fruit Juice Canning is a method of preserving fruit juice sealed in an airtight container, which prevents microorganisms from entering and proliferating inside. The products may include: Canned fruit cocktail consisting of a mixture of fruits, such as; mangoes, tangerine, lemons, apples, and passion fruits. There is an increasing demand for canned fruits as they can be sold in both local and foreign markets.
It is projected that at least 100 Dozens of 300m litres (1,400 ltrs) of canned juice can be produced a day.
Production Technology & Process
The canning process involves placing fruit juice in jars or similar containers and heating them to a temperature that destroys microorganisms that cause food to spoil. During this heating process air is eliminated from the jar and as it cools a vacuum seal is formed. This seal prevents air from getting back into the product bringing with it contaminating micro-organisms.
Capital Investment Requirements and Equipment: This project may be operated on both small and large scale depending on the size and nature of the market. The fixed capital investment required to start it is approximately 27,170 USD as shown in the table below:
Raw Material Requirements for 12 Months: It is projected that in a month, at least 42,000 kgs of fruits, 36,000 jar cans & labels are required to meet the projected production capacity. The revenue per annum is USD 748,800, with an operating cost of USD 656,473 at a net profit of 12%. The payback period is 4 months.
The demand for canned juice is very high in super markets, hotels and for export.; Foreign markets will constitute about 80% of the total market size.
Capital Investment Requirements in US$
|Capital Investment Item||Units||Qty||@||Amount|
Operating Costs in US$ General Costs (Over heads)
|Item||Units||@||Qty/ day||Prod. Cost/day||Prod. Cost/mth||Prod. Cost/ Year|
|Utilities (Power & Gas)||1,000||12,000|
|Repair & Servicing||500||6,000|
|Depreciation(Asset write off) Expenses||566||6,793|
|Sub – total||4,266||51,193|
|Total Operating Costs||54,706||656,473|
Project Product Costs & Price Structure in US
Profitability Analysis in US$
|Profitability Item||Per day||Per Month||Per Year|
|Less: Production & Operating Costs||2,104||54,706||656,473|
Sources of Supply of Raw Materials:
Raw materials will be locally supplied from Eastern, Western – Kasese, North Eastern, and Central parts of Uganda, which are the leading and major fruit producing regions.
Government Facilities and Incentives Available:
These incentives are available from the Government in her bid to promote Industrialization and Agro-Processing: tax exemptions, land, transport and communication facilities.