Starting a Rearing of silkworms for silk business in Uganda

 Starting a Rearing of silkworms for silk business in Uganda

Introduction

This business idea is for sericulture. Sericulture is the rearing of silkworms for silk. It is a major income generating activity based on cocoons cultivation in rural areas. However, there is high risk of death of some silkworms, which can be managed by employing high disease resistant and high yielding strain of mulberry silk worms. The business idea aims at production of 31,200 yarns of silk annually. The revenue potential is estimated at US $ 93,600 annually. The total capital investment cost for the project is US $14,718. The net profit is at 36% in a payback period of 1 year and 6 months.

Production Capacity

The envisaged project is production of 31,200 yarns of silk annually.

Technology and Processes Description

The technology needed is as in the table for fixed capital investment requirements below. The raw materials include silk worms and mulberry leaves. Silk worms are reared in trays in rooms with controlled and humid temperatures and regularly fed on mulberry leaves. At a certain stage the silkworms convert themselves into cocoons. These cocoons are made from a single filament of material secreted by the pupa and wrapped around itself for protection. These filaments upon hardening constitute silk. Reeling is then done by first cooking them in water to remove the gum, which holds it together, and then unwinding the filaments. Prior to weaving, the raw silk is boiled in water to remove the remaining gum, dyed and bleached, and then woven into the garment usually on a handloom.

Capital Investment Requirements

Capital Investment Item Units Qty @ Amount
Trays 10 70 700
Stands 100 45 4500
Feeding Stands 50 16 800
Leaf chambers 50 31.5 1575
Leaf chopping boards 5 70 350
Thermometers 10 60 600
Hygrometers 10 35 350
Foot operated sprayers 1 3245 3245
Mats No 332
Reeling machine No 1 250 250
Hand looms No 266
Twisting machine 1 1100 1,100
Warping machine No 1 650 650
Total 14,718

Production and Operating Expenses General costs (Overheads)

Cost Item Units @/day Qty/ day Pdn Cost/day Pdn Cost/ month Pdn Cost/ Year1
Direct costs
Mulberry Leaves Kgs 1.5 50 75 1,950 23,400
Medicine Ltrs 9 1 9 234 2,808
Packaging Materials Pieces 0.26 3 0.78 20 243
Sub-total 2,204 26,451
Labour 700 8,400
Utilities 700 8,400
Selling and Distribution 200 2,400
Administrative expenses 200 2,400
Shelter 700 8,400
Depreciation (Asset write off) Expenses 307 3,680
Sub-total 2,807 33,680
Total Operating Costs 5,011 60,131
  1. Production is assumed for 312 days per year.
  2. Depreciation assumes 4 year life of assets written off at 25% per year for all assets.
  3. A production Month is assumed to have 26 days.

Project Product Costs and Price Structure

Item Qty /day Qty/yr @ Pdn/ yr UPx T/rev
Silk 100 31,200 2 60,131 3 93,600

Profitability Analysis Table

Profitability Item Per day Per Month Per Year
Revenue 300 7,800 93,600
Less: Production & Operating Costs 193 5,011 60,131
Profit 107 2,789 33,469

Sources of supply of Equipments

All equipments and raw materials needed can be got in Uganda from Bushenyi.

Market analysis

The market for sericulture is assured both in rural and urban areas. There is tremendous market in Uganda especially with the growth of the textile sector. Government facilities

Farming costs 20% farm work, labour quarters, immovable buildings, other necessities for the farm. A silk processing factory is available in Mbarara. The NAADS and the prosperity for all programmes can consume products from this project.

Tools and Equipment in US$ Product Cost and Price Structure in US$

 

Leave a Reply