Introduction
Citrus peel candies are processed fruit products that are consumed as packed beverages. The market for processed beverages exists in Uganda with major consumers such as: supermarkets, restaurants, hotels, wholesale and retail shops.
This business idea is to establish a citrus peel candy plant that can produce an estimated output of 3,000 litres of candy with an investment cost of US$21,590, generating an estimated annual revenue of US$374,400, with a net profit margin of 40% and a payback period of 6 months.
Production Capacity, Technology & Process
The production process is simple but takes a number of stages. Fruits such as oranges are collected, washed and rinsed. They are then culled to remove any damages and later graded into fruit sizes. The fruits are later passed to the juicing machine where they are squeezed and then passed on to the finisher. Here pulp and seeds are removed using filter sieves strainers.
The filtered concentrate now goes through the blending tanks that measure the natural sugar in the concentrate to ensure that the set sugar standard is reached. After blending, the concentrate is pasteurized to make the juice long lasting. The juice is now passed to the refrigeration room where it’s filled into the plastic or cardboard containers through the funnel and packed.
Capital Investment Requirements in US$
| Capital investment item | Qty | @ | Total |
|---|---|---|---|
| Fruit washing tanks | 3 | 109 | 327 |
| Culling &grading machine | 1 | 214 | 214 |
| Juice extractors(50 Ltr capacity) | 2 | 1,200 | 2400 |
| Steam Jacketed Kettles(30Ltrs) | 2 | 470 | 940 |
| Stirrer | 1 | 365 | 365 |
| Baby boiler(30kg capacity) | 1 | 1,250 | 1250 |
| Bottle washing and filling machine | 1 | 1,870 | 1870 |
| Testing equipments | – | 674 | 674 |
| Delivery Van(Refrigerated) | 1 | 12,000 | 12,000 |
| Furniture | – | 510 | 510 |
| Storage tanks | – | 315 | 315 |
| SS Utensils | – | 355 | 355 |
| Exhaust fans | – | 370 | 370 |
| Total | 21,590 |
Production and Operating Costs General Costs(Overheads)
| Cost Item | Units | @ | Qty/ day | Pdn cost/ day | Pdn cost/ mth | Pdn cost/ yr |
|---|---|---|---|---|---|---|
| Fruits (Oranges) | Kgs | 0.25 | 1,000 | 250 | 6,500 | 78,000 |
| Sugar | Kgs | 1.2 | 45 | 54 | 1,404 | 16,848 |
| Preservatives | Kgs | 2.6 | 10 | 26 | 676 | 8,112 |
| Packing materials | Pcs | 0.08 | 3,000 | 240 | 6,240 | 74,880 |
| Sub-total | 4,055 | 570 | 14,820 | 177,840 |
| Labour | 1,042 | 12,504 |
|---|---|---|
| Utilities | 471 | 5,652 |
| Rent | 1,000 | 12,000 |
| Administration expenses | 260 | 3,120 |
| Cleaning & toiletries | 308 | 3,696 |
| Selling & distribution | 288 | 3,456 |
| Miscellaneous expenses | 200 | 2,400 |
| Depreciation | 450 | 5,400 |
| Sub-total | 4,019 | 48,228 |
| Total Operating Costs | 18,839 | 226,068 |
- Production costs assumed are for 312 days per year with daily capacity of production of 3,000-250gms of peel candy.
- 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.
- Total monthly days assumed are 26-days.
- The valuation currency used is United States Dollars.
Project Product Costs and Price
| Item | Qty/day | Qty/yr | UP C | Pdn cost/yr | UPx | T/rev |
| Citrus peel Candy | 3,000 | 936,000 | 0.2 | 226,068 | 0.4 | 374,400 |
Profitability Analysis Table
| Profitability Item | Per Day | Per Mth | Per Year |
|---|---|---|---|
| Revenue | 1200 | 31,200 | 374,400 |
| Less: Production & Operating Costs | 725 | 18,839 | 226,068 |
| Profit | 475 | 12,361 | 148,332 |
Government Facilities and Incentives
There is a European Investment Fund and an Agricultural Fund that can be accessed when investing inR the agriculture sector.
Capital Investment Requirements in US$
| Capital Investment Item | Units | Qty | @ | Amount |
|---|---|---|---|---|
| Hammer mill | No | 1 | 4350 | 4350 |
| Pulverriser | No | 1 | 1200 | 1200 |
| Rotary Digester | No | 1 | 2670 | 2670 |
| Pelletzer | No | 1 | 1200 | 1200 |
| Tunnel dryer | No | 1 | 2100 | 2100 |
| Vibrating screens | No | 1 | 790 | 790 |
| Platform type weighing machine | No | 1 | 600 | 600 |
| High pressure steam boilers | No | 2 | 3800 | 7600 |
| Rotary Activation kiln | No | 1 | 415 | 415 |
| Activated carbon storage silo | No | 2 | 240 | 480 |
| Non corrosive materials | set | 1 | 635 | 635 |
| Tank filters press. Etc | No | 1 | 1750 | 1750 |
| Total | 23,790 |
