GREEN TEA POWDER-MATCHAI BUSINESS IN UGANDA

 GREEN TEA POWDER-MATCHAI BUSINESS IN UGANDA
Introduction
Tea powder is almost used in every household .Green powder tea called matcha is very easy to make and can even be produced at home.
Production Capacity, Technology & Process
The production process involves fermenting fresh tea leaves and then drying them. After drying the fermented tea leaves, then they are chopped into small pieces and grinded to a fine powder. Flavours can be added to make it tastier. The project is aimed at producing 131,040kgms of green powdered tea annually generating TR of US $220,147in the first year of operation. The total operation costs of the project are estimated at US $153,216.

Capital Investment Requirements in US$

Capital investment item units Qty @ Total
Grinder No 1 500 500
Sealing machine No 5 150 750
Weighing machine No 2 100 200
Filling machine No 2 400 800
Delivery Van No 1 9,000 9,000
Trays No 25 175 4,375
Fermenting materials No 10 60 600
Dark shade No 1 1,750 1,750
Furniture & Fixture No 2,000
Other tools No 840
TOTAL 20,815

Production and Operation costs in US$

(a) Direct materials, supplies and costs

Cost Item Units @ Qty/ day Pdn cost/ day Pdn cost/ mth Pdncost/ yr
Direct Costs
Raw tea leaves Kgs 0.75 450 338 8,775 105,300
Flavors Kgs 0.5 20 10 260 3,120
Packaging materials Pcs 0.03 1,700 51 1,326 15,912
Other materials 850
Sub-total 2,170 399 10,361 125,182

General Costs(Overheads)

Labour 792 9,500
Utilities 125 1,500
Selling & distribution 292 3,500
Cleaning & toiletries 115 1,380
Rent 500 6,000
Miscellaneous expenses 79 950
Depreciation 434 5,204
Sub-total 2,336 28,034
Total Operating Costs 12,697 153,216
  1. Production costs assumed are for 312 days per year with daily capacity of producing 1,680-250gms of green tea powder.
  2. Depreciation (fixed asset write off) assumes 4-years life of assets written off at 25% per year for all assets.
  3. Direct costs include: materials, supplies and other costs that directly go into production of the product.
  4. Total monthly days assumed are 26-days.
  5.  The valuation currency used is United States Dollars

Project Product Costs and Price Structure

Item Qty/day Qty/yr @ Pdn cost/yr UPx
Green Tea powder 1,680 524,160 0.29 153,216 0.42

Profitability Analysis Table

Profitability Item Per Day Per Month Per Year
Revenue 706 18,346 220,147
Less: Pdn & Operating Costs 491 12,768 153,216
Profit 215 5,578 66,931

Market Analysis

Green tea powder is not very common on the market therefore when introduced; many people will shift to its consumption. Supplying supermarkets, wholesale and retail shops and selling to individual consumers can be viable though advertisement costs have to be considered as the product is not common on the market so as to increase the sales.

Government Facilities & Incentives

Agricultural products value addition is one of the major goals of the government and programs such as “Bonna Bagagawale” can be an intervention program through funding agro processing.

 

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