Introduction:
This profile envisages the establishment of a plant for the production of apple juice with a capacity of 2,000 liters per day. Apple juice is the unfermented juice obtained from sound, ripe apples.
Production Capacity:
Based on the demand projection indicated in the introduction, capital requirement and minimum economy of scale, the proposed plant will have production capacity of 2,000 liters of apple juice per annum.
Production Process:
Apple juice production begins with fruit harvesting, transport and washing facilities, then extraction of juice and packaging. However, all fruit must be sound and free from gross damage or contamination. The fruit should be picked at the proper stage of maturity for the preparation of juice. The flavour, sugar content and pectin levels of the juice will vary with the maturity of the fruit.
Equipment:
The Equipment used to press or extract juice from fruit include: Juice Extractor, Juice filters, Filling and Packaging machine, Refrigerator/Cooling Machine, Labeler and Boiler.
Capital Investment Requirements
The Scale of investment for this project capital is estimated at USD18 965, to yield an estimated annual amount of US$1,248,000.
Market Analysis & Projected Demand
Apple juice may be sold in Super markets, Schools, Hospitals, Hotels, Retail shops and Exported.
Capital Requirements:
| Capital Investment Item | Units | Qty | @$ | Amount $ |
|---|---|---|---|---|
| Delivery Van | No. | 1 | 12,000 | 12,000 |
| Juice Extractor | No. | 1 | 2,500 | 2,500 |
| Jar Lifter | No. | 1 | 1,000 | 1,000 |
| Timer | No. | 1 | 20 | 20 |
| Juice Tanks | No. | 5 | 50 | 250 |
| Boiler | No. | 1 | 500 | 500 |
| Furniture | No. | 3 | 65 | 195 |
| Labeler | No. | 1 | 500 | 500 |
| Packaging Machine | No. | 1 | 2000 | 2,000 |
| Total Amount | 18,635 | 18,965 |
Operating Costs Project Product Costs & Price Structure
| Item | Units | @ | Qty/ day | Prod. Cost/day$ | Prod. Cost/ month$ | Prod. Cost/ Year[1]$ |
|---|---|---|---|---|---|---|
| Direct Costs | ||||||
| Apples | Kgs | 1.5 | 1000 | 1500 | 39000 | 468000 |
| Flavours | Kgs | 1 | 50 | 50 | 1300 | 15600 |
| Food Colours | Kgs | 1 | 50 | 50 | 1300 | 15600 |
| Preservatives | Kgs | 5 | 50 | 250 | 6500 | 78000 |
| Sugar | Kgs | 1.2 | 200 | 240 | 6240 | 74880 |
| Water | Litres | 0.04 | 100 | 4 | 104 | 1248 |
| Sub total | 2,094 | 54,444 | 653,328 |
| General Costs (Over heads) | ||||||
|---|---|---|---|---|---|---|
| Item | Units | @ | Qty/ day | Prod. Cost/day$ | Prod. Cost/ month$ | Prod. Cost/ Year[1]$ |
| Rent | 500 | 6,000 | ||||
| Packaging Material | 500 | 6,000 | ||||
| Labour | 1500 | 18,000 | ||||
| Utilities (Power) | 400 | 4,800 | ||||
| Repair & Servicing | 300 | 3,600 | ||||
| Fuel | 500 | 6,000 | ||||
| Depreciation (Asset write off) Expenses | 300 | 3,600 | ||||
| Sub – total | 4,000.00 | 48,000.00 | ||||
| Total Operating Costs | 58,444 | 701,328 | ||||
| Item | Qty/day | Qty/yr | @$ | Pdn Cost/yr | UPx | T/rev |
| Apple Juice | 2000 | 624,000 | 1.4 | 910,635 | 2 | 1,248,000 |
Profitability Analysis
| Profitability Item | Per day | Per Month | Per Year |
|---|---|---|---|
| Revenue | 4,000 | 104,000 | 1,248,000 |
| Less: Production & Operating Costs | 2,248 | 58,444.00 | 701,328 |
| Profit | 1,752 | 45,556.00 | 546,672 |
Sources of Supply of Raw Materials:
The major raw material, apple fruit can be grown in the region, in areas like Kanungu & Kabaale or sourced from neighboring regions like Kenya.
Government Facilities and Incentives Available:
The Government is willing to support Agro – processing industries by providing Capital/Inputs, Tax exemptions, Land, Basic infrastructure, Grants and long term Loans at relatively low interest rates and a liberalized market.
