Post: PROCESING COCOANUTS (DESICCATED COCONUTS)

PROCESING COCOANUTS (DESICCATED COCONUTS)

Introduction

The business idea is for the production and marketing of desiccated coconuts. The dehydrated shredded flesh of coconut known as desiccated coconut is often used as a substitute to grated coconut in food preparations such as curries, cakes, sweets and chutneys. Confectionery and bakery units are the main consumers of desiccated coconut. Desiccated Coconut Powder is obtained by drying ground or shredded coconut kernel after the removal of brown testa. From the survey, it is revealed that coconut products are highly demanded by both the middle class and upper class families residing in cities and towns. The TC for this project is US$ 156,362 per year with revenue estimated at US 182,520 per year.

Production Process

The process consists of the removal of coconut shell, de-husking, shelling and paring. The nuts are then washed, disintegrated, dried and packed for the market.

Capital Investment Requirements in US$

Capital investment item Units Qty @ Amount
Disintegrator No. 2 98 196
De-husking and paring tool No. 1 5,000 5000
Sieving machine No. 1 400 400
Grinder No. 2 250 500
Weighing scale No. 1 300 300
Hot air tray No. 1 4,300 4300
Total cost of machinery 10,696

Production and Operating costs in US$

Cost Item Units @/ day Qty/ day Pdn cost/ day Pdn cost/ month Pdn cost/ year
Fresh mature coconuts kg 1 400 400 10,400 124,800
Sub-total 400 400 10,400 124,800

General costs(overheads)

Utilities(water and power) 150 1,800
Labour 906 10,872
Rent 150 1,800
Miscellaneous costs 50 600
Distribution costs 260 3,120
Depreciation(Asset write off)Expenses) 214 2,674.00
Sub -total 1,730 20,866
Total Operating Costs 12,130 145,666
  1. Production costs assumed 312 days per year with a daily capacity of 300 packets of desiccated coconuts.
  2. Depreciation (fixed assets 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 production of the product.

Project product Costs and Price Structure

Item Qty/ day (kg) Qty/ yr @ Pdn cost /yr UPx TR
Desiccated Coconuts 300 93,600 1.6 145,666 1.9 182,520

Profitability Analysis in US$

Profitability Item Per day Per month Per Year
Revenue 585 15,210 182,520
Less production and operating Costs 466.88 12,139 145,666
Profit 118.12 3,071 36,854

Market Analysis

Desiccated coconuts are on high demand because they are mainly used in bakeries and confectioneries production.

Sources of raw materials:

Raw materials are locally available.

Government Facilities and Incentives Available

The government has set up incentives in a bid to boost agricultural sector.

 

John Doe
John Doe

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Hi, jenny Loral
Hi, jenny Loral

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