MAKING YOGHURT BUSINESS IN UGANDA

 MAKING YOGHURT BUSINESS IN UGANDA

Introduction

This profile envisages the establishment of a plant that produces Yoghurt generically known as cultured milk as they all derive from the action of bacteria on all or part of the Lactose to produce Lactic acid, carbon dioxide acetic acid, diacetyl, acetaldehyde and several other components that give the products the characteristic of fresh taste and smell.

Production Capacity

This plant will be established on the premise that at least 4,000 litres of yoghurt will be produced per day leading to 1,248,000 litres per year.

Production Process:

Yoghurt is made through the process of fermenting milk by the addition of bacteria, stabilizers, flavours and colour. The milk may be whole full fat, semi skimmed or low fat skimmed depending on the type of yoghurt you intend to make. It is normal in commercial yoghurt production to homogenise the milk prior to its fermentation.

Raw Materials:

The major raw materials used to make yoghurt include: Milk, Milk powder, Stabilizers, Sugar, Flavour, color and lactic cultured.

Equipment:

The major Equipment needed in the making of yoghurt includes: Packaging machine, Milk tanks, & Refrigerators. Capital Investment Requirements: The total investment cost of the Project is estimated at USD 38,440. It is expected to yield an estimated revenue of US$4,992,000.

Market Analysis & Projected Demand:

There is a ready market for Yoghurt among the Youths and Children who cherish the product.

Project Costs in US$

Capital Investment Requirements:

Capital Investment Item Units Qty @$ Amount $
Delivery Van No. 1 12,000 12,000
Milk Truck No. 1 12,000 12,000
Refrigerators No. 2 400 800
Packaging Machine No. 1 13,000 13,000
Milk Tanks No. 2 320 640
Total Amount 37,720 38,440

Operating Costs in US$ Project Product Costs and Price Structure in US$

Item Units @ Qty/ day Prod. Cost/ day Prod. Cost/ month Prod. Cost/ Year
Direct Costs
Milk Litres 1 500 500 13,000 156,000
Starter Litres 2 5 10 260 3,120
Flavour Kgs 1 5 5 130 1,560
Food Colour Kgs 1 5 5 130 1,560
Sub total 14,040 365,040 4,380,480
Rent 250 3,000
Packaging 500 6,000
Labour 600 7,200
Utilities (Power &Water) 500 6,000
Repair & Maintenance 200 2,400
Fuel 250 3,000
Depreciation (Asset write off) Expenses 250 1,500
Sub – total 2,550 29,100
Total Operating Costs 367,590 4,409,580
Item Qty/day Qty/yr @$ Pdn Cost/yr UPx Total /rev
Yoghurt 4,000 1,248,000 3.5 4,409,580 4 4,992,000

Profitability Analysis in US$

Profitability Item Per day Per Month Per Year
Revenue 16,000 416,000 4,992,000
Less: Production & Operating Costs 14,763 383,834 4,409,580
Profit 1,237 32,166 582,420

Sources of Supply of Raw materials

Milk, which is the prime raw material for Yoghurt making will be supplied locally from milk collecting centres especially in Western and Central parts of Uganda.

Government Facilities and Incentives Available

The Government has tried to improve on the Transport and Communication Network, it has also removed tax levy on agricultural products in a bid to promote the Agro-processing industry in Uganda.

 

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