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.
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.
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 |
- Production costs assume 312 days per year with daily capacity of 150 Kgs.
- Depreciation of fixed asset is assumed at 25% per year.
- Direct costs include: materials, supplies and all other costs incurred to produce the product.
- A production month is 26 work days
- 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.
