Blog: JUICE EXTRACTION – APPLES BUSINESS IN UGANDA

JUICE EXTRACTION – APPLES BUSINESS IN UGANDA

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.

 

John Doe
John Doe

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Hi, jenny Loral
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