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 |
- Production costs assumed are for 312 days per year with a daily capacity of 100 Kilograms of fish Pickles.
- Depreciation (fixed asset write off) assumes _4_ years life of assets written off at _25% per year for all assets.
- Direct Costs include materials, supplies and other costs that directly go into
- production of the product.
- 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 |
