Post: MAKING MAYONAISE CREAM BUSINESS IN UGANDA

MAKING MAYONAISE CREAM BUSINESS IN UGANDA

Introduction

The business idea is for production and marketing of mayonnaise cream. Mayonnaise is a thick, creamy sauce or dressing that is made of oil, egg yolks, lemon juice or vinegar and seasonings. The total potential revenue is estimated at US$156,000 per year, the production capacity is estimated at 200 containers per day and the total investment cost is estimated at US $9,300. The net profit is 26% while the payback period is 1 month.

Production process

A method of producing mayonnaise comprises directing coagulated egg yolk and milk protein into a container in which they are mixed together and adding salt and a small amount of oil and colorants. The mixture is then directed through a dosing pump to a first heater in which the mixture is briefly heated to a temperature in the range of about 80°C-100°C.

The emulsion is then stirred with vinegar and other additives to form a mayonnaise. The mayonnaise is pasteurized by heating it briefly in a second heater to about 80°C-100°C or it is sterilized by heating it to a higher temperature of 110°C- 130°C. Thereafter, the pasteurized mayonnaise is cooled in a second cooler and it is continuously filled into sterilized containers.

Capital Investment Requirements in US$

Capital investment item Units Qty @ Amount
Dynamic mixer No. 1 1,000 1,000
Heater No. 2 100 200
Delivery Van No. 1 6,500 6,500
Cooling machine No. 2 750 1,500
Packing materials No. 200 0.5 100
Total Costs on Equipments 9,300

Production and Operating costs in US $ General costs (overheads)

Cost Item Units @ Qty/ day Pdn cost/ day Pdn cost/ month Pdn cost/ year
Oil Litres 2 10 20 520 6,240
Vinegar Litres 3 5 15 390 4,680
Milk Proteins Kgs 10 18 180 4,680 56,160
Salt Kgs 0.1 2 0.2 5.2 62.4
Eggs Trays 3.2 35 112 2,912 34,944
Sub-total 70 327.2 8,507 102,086
Utilities (water and power) 125 1,500
Labour 160 1,920
Rent 120 1,800
Miscellaneous costs 150 1,80`0
Distribution costs 300 3,120
Depreciation(Asset write off)Expenses) 194 2,325
Sub -total 1049 12,465
Total Operating Costs 9,556 114,551
  1. Production costs assumed 312 days per year with a daily capacity of 200 tins of mayonnaise
  2. Depreciation (fixed assets write off) assumes 4 years life of assets written off at 25% per year.
  3. Direct costs include materials, supplies and other costs that directly go into production of the product.

Project product Costs and Price Structure

Item Qty /day Qty/yr @ Pdncost /yr UPx TR
Mayonnaise cream 200 62,400 2.3 114,551 2.5 156,000

Profitability Analysis

Profitability Item Per day Per month Per Year
Revenue 500.0 13,000 156,000
Less production and operating Costs 367.2 9,546 114,551
Profit 132.8 3,454 41,449

Market Analysis

Mayonnaise is commonly served with sandwiches and with salads. Therefore, the product has high demand. It is supplied to super markets, shops, hotels and restaurants as major outlets.

Sources of raw materials:

Raw materials are locally available in shops and markets.

John Doe
John Doe

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Hi, jenny Loral
Hi, jenny Loral

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