MAKING FISH PICKLES BUSINESS IN UGANDA

wmutenza 19/10/2020 Compendium
MAKING FISH PICKLES BUSINESS IN UGANDA

Introduction

This Business Idea is for manufacturing and marketing of fish pickles. This is a ready-to-eat product in form of sauce made out of fish. With the increasing demand for non-vegetarian pickles, making preserved ready-to-eat fish would be a lucrative activity. This business idea is premised on production of 2,600kgs per month, which translates into 31,200 kgs per year. The revenue potential is estimated at US$10,400 per month translating into US$124,800 per year and total Investment requirement of US$1,225 for the first year of project operation.

Production process

After cleaning, fish is placed in a salt solution or brine to increase the shelf life. Later, the fish is fried, mixed with spice powders, salt, vinegar, and oil and finally packed for the market.

Capital Investment Requirements in US$

Capital Investment Item Units Qty @ Amount
Grinder No 2 250 500
Cooking/frying Equipments Set 2 100 200
Containers No 5 5 25
Ice boxes No 2 50 100
Gas stove No 1 400 400
Total 1,225

Production and Operating Costs
Direct Materials, Supplies and Costs in US$

Cost Item Units @ Qty/ day Pdn cost/ day Pdn cost/ month Pdn cost/ year
Direct Costs
Fish Kg 2.5 105 262.5 6,825 81,900
Spices Kg 0.75 10 7.5 195 2,340
Salt Kg 0.5 5 2.5 65 780
Vinegar Liter 2 15 30 780 9,360
Cooking Oil Liter 1 25 25 650 7,800
Packaging No 0.1 100 10 260 3,120
Sub-total 260 337.5 8,775 105,300

General Costs(Over heads)

Rent 100 1,200
Labour 750 9,000
Utilities(water & gas) 75 900
Miscellaneous Costs 50 600
Transport costs 50 600
Depreciation (Asset write off) Exp 26 306
Sub-total 1,051 12,606
Total Operating Costs 9,826 117,906
  1. Production costs assumed are for 312 days per year with a daily capacity of 100 Kilograms of fish Pickles.
  2. Depreciation (fixed asset write off) assumes _4_ years life of assets written off at _25% per year for all assets.
  3. Direct Costs include materials, supplies and other costs that directly go into
  4. production of the product.
  5. A production month is assumed to have 26 workdays.

Project Product Cost and Price Structure in US$

Item Qty/ day Qty/ Year @ Pdn cost/ Yr UPx Total/ revenue
Fish Pickles 100 31,200 3.8 117,906 4 124,800

Profitability Analysis in US$

Profitability Item Per day Per Month Per Yr
Revenue 400 10,400 124,800
Less: Production and Operating Costs 378 9,826 117,906
Profit 22 574 6,894

Market Analysis

The marketability of fish pickles would mostly depend on the quality of the product and the Price. Points of supply would be Supermarkets, Hostels, Fast Food Centres, Canteens, Private and Government establishments like railway stations, the military, etc. Therefore, fish pickles may have a wider market and high demand if the plant is set up.

Supply of Raw materials and Equipment

Raw materials and Equipments can be procured locally.

Government Incentives Available

The Government has come out with funds to support development of Aquaculture and small scale investors. This was partly funded by the European Union and funds were at very attractive rates. There are some NGOs that have come out to support the growing of fish because it is very nutritive in terms of proteins and vitamins.

General Costs (Overheads)

Labour 400 4,800
Selling & distribution 120 1,440
Utilities (Water, power) 150 1,800
Administration 50 600
Rent 100 1,200
Miscellaneous expenses 100 1,200
Depreciation 69 825
Sub-total 989 11,865
Total Operating Costs 2,061.62 24,740
Capital Investment Item Units Qty @ Amount
Syrup tank No 1 500 500
Heating vessels No 1 800 800
Nylon net No 1 500 500
Plastic vats No 1 1,000 1,000
Cross flow drier No 1 1,000 1,000
Impulse sealer No 1 31 31
Other tools & equipment No 1 500 500
TC of Machinery & Tools 4,331

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