MAKING BANANA WAFERS BUSINESS IN UGANDA

 MAKING BANANA WAFERS BUSINESS IN UGANDA
Introduction:
Banana Wafers are a popular snack eaten world over. They are made by cutting bananas into thin slices. This project uses the banana variety commonly known as Matooke in Uganda and is readily available. Wafers can simply be eaten directly or as desserts and puddings. It is a cross cutting venture as it can be undertaken in both rural and urban settings. The project initial cost is US$ 1,318 producing 46,800kgs of banana wafers per year giving an estimated revenue of US$ 35,100 annually with a profit margin of 475 and a payback period of about 4 month.
Production,Capacity and Technology:
The Bananas can be peeled manually or using a peeling machine. They are then sliced and rapidly dehydrated to reduce the moisture content and then deep fried in cooking oil. Excess oil is extracted and the fried banana wafers are seasoned with salt and other spices as may be deemed necessary. The plant capacity is 150kg per 8 hours but there are also equipments with bigger capacity if needed. The technology involved can be locally accessed within Uganda, which makes it affordable.

Capital Investment Requirement in US $:

Item Units Qty Price Total
Peeling machine No 1 500 500
Slicing machine No 1 300 300
Deep fat frying pans No 1 150 150
Impulse sealer No 2 34 68
Salt mixing drum No 1 125 125
Weighing balance No 1 50 50
Oil extraction machine No 1 125 125
Total Cost of Machinery & Tools 1,318

Production and Operating Costs in US $ General Costs (Overheads)

Cost Item Units Unit cost Qty/ day Pdn cost/ day Pdn cost/ month Pdn cost/ year
Direct material Costs
Bananas Kgms 0.003 150 0.45 11.7 140.4
Cooking oil Litres 2 10 20 520 6,240
Spices & Flavour Kgs 4 1 4 104 1,248
Polythene bags Packets 1 0.01 0.01 0.26 3.12
Sub-total 24.5 636 7,631
Labour 260 3,120
Selling & distribution 100 1,200
Utilities 250 3,000
Rent 120 1,440
Miscellaneous expenses 150 1,800
Depreciation 27 329
Sub-total 907 10,889
Total Operating Costs 1,543 18,520
  1. Production costs assume 312 days per year with daily capacity of 150 Kgs.
  2. Depreciation of fixed asset is assumed at 25% per year.
  3. Direct costs include: materials, supplies and all other costs incurred to produce the product.
  4. A production month is 26 work days
  5. Currency used is US Dollars.

Project Product cost and Price Structure in US $

Item Qty/ day Qty/yr @ Pdn cost/yr UPx TR
Wafers 150 46,800 0.40 18,520 0.75 35,100

Profitability Analysis in US$

Profitability Item Per day Per month Per year
Revenue 112.5 2,925 35,100
Less: Production and operating costs 59 1,543 18,520
Profit 53 1,382 16,580

Market

Banana wafers are common among the urban population. With an increased shelf life, the wafers can be supplied to supermarkets, schools, hotels, hospitals, and with aggressive marketing, they can capture a lot of consumer attention even in the international market. They can also be produced in different styles or designs.

Source of Equipment and Raw Materials:

Machinery can be fabricated locally by Tree Shade Ltd located at Mwanga II Kisenyi Kampala or could be imported. Bananas are easily available in the local market all over the country.

 

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