MAKING BIO FERTILIZERS BUSINESS IN UGANDA

 MAKING BIO FERTILIZERS BUSINESS IN UGANDA
Introduction
This profile envisages the setting up of a plant that manufactures Bio – Fertilizers. Bio-fertilizer’ is a substance which contains living microorganisms which, when applied to seeds, plant surfaces, or soil, colonizes the rhizosphere or the interior of the plant and promotes growth by increasing the supply or availability of primary nutrients to the host plant. Fertilizers directly increase soil fertility by adding nutrients. Bio-fertilizers add nutrients through the natural processes of fixing atmospheric nitrogen, solubilizing phosphorus, and stimulating plant growth through the synthesis of growth promoting substances.
Production capacity
This plant will be established on the premise of producing 1000kg of bio-fertilizers per day.
Scale of Investment, Capital Investment
The total fixed Capital investment cost to start this project is USD 17822
Market Analysis:
The demand for Bio-fertilizers is spread in almost all agriculture practicing areas in Uganda

Capital investment requirement in US $

Capital Investment Item Qty @$ Amount $
Delivery Van 1 6,000 6,000
Boiler 1 1,200 1,200
Auto Claves 1 3,000 3,000
Rotary Shakers 2 150 300
Fermenters 2 68 132
Hot air Oven 1 1000 1000
Air Conditioner 1 900 900
Water Distiller 1 1,000 1,000
Microscope 1 1200 1200
Balances 2 143 143
Lab Equipment 1 300 300
Refrigerator 1 743 743
Laminar air flow 1 430 430
Furniture 2 45 90
BOD Incubator 1 134 134
Sealing Machine 1 1,250 1,250
Total Amount 17,822

Production and operation costs in US $ General Costs (Over heads)

Item Units @ $ Qty/ day Prod. Cost/ day$ Prod. Cost/ month$ Prod. Cost/ Year
Direct Costs
Lignite Kgs 5.2 800 4,160 108,160 1,297,920
Sucrose Kgs 4.2 100 420 10,920 131,040
Chemical nutrients Kgs 3.5 100 350 9,100 109,200
Sub total 3,100 80,600 967,200
Rent 500 6,000
Labour 800 9,600
Utilities (Power & Water) 1,500 18,000
Repair & Maintenance 500 6,000
Packaging Materials 200 2,400
Fuel 1,000 12,000
Depreciation (Asset write off) Expenses 371 4,456
Sub – total 4,871 58,456
Total Operating Costs 85,471 1,025,656

Project Product Costs & Price Structure

Item Qty/ day(kg) Qty/ year @$ Pdn Cost/ yr$ UPx T/rev
Fertilizers 1,500 468,000 3.3 1,539,720 4 6,158,880

Profitability Analysis

Profitability Item Per day Per Month Per Year
Revenue 19,740 513,233 6,158,880
Less: Production & Operating Costs 3,287 85,471 1,025,656
Profit 16,452 427,762 5,133,224

Sources of Supply of Raw Materials:

The major supplies are readily available in the Ugandan chemicals and Agro industries.

Government Facilities and Incentives Available:

The Government has adopted initiatives to support modernization of agriculture through, tax exemptions, basic infrastructure, Grants, and liberalized market.

 

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