STARTING A RICE HULLING PLANT IN UGANDA

 STARTING A RICE HULLING PLANT IN UGANDA

Introduction

This business idea is for hulling and selling of rice. It is premised on processing 7,200 Kg per day, which translates into 187,200 Kg per month. The revenue potential is estimated at US$ 198,800 per month translating into US$ 2,277,600 per year. The total investment is estimated cost at USD 10,865. The project is also estimated to yield a net profit margin of 50%.

Production Process

Dried and cleaned paddy is de-husked by aspiration, and the de-husked brown rice is got. The brown rice is placed in a polisher where the polished rice and bran are separated. After sieving the polished rice, the broken rice is separated and the sieved rice is then packed in bags for dispatch.

Capital investment requirements in US$

Item Unit Qty @ Total
Combined Rice huller No. 1 3000 300
Electric Motor No. 1 400 400
Truck No. 1 10,000 10,000
Weighing scale No. 1 165 165
Total 10,865

Production & Operating Cost in US Dollars Direct Materials, Supplies and Costs

Cost Item Units @/ day Qty/ day Prod. cost/ day Prod. Cost/ month Prod. Cost/ year
Rice (super) Kgs 0.5 3,000 1,500 39,000 468,000
Rice (Kaiso) Kgs 0.5 2,200 1,100 28,600 343,200
Up land rice Kgs 0.5 2,000 1,000 26,000 312,000
Sub-total 93,600 1,123,200

General costs (Overheads)

Utilities (power) 200 2,400
(Utilities (water) 20 240
Salaries 400 4,800
renting 200 2,400
Depreciation (Assets write off) Expenses 74 888
Sub-total 894 10,728
Total Operating costs 94,494 1,133,928
  1. Production costs assumed are for 312 days per year with a daily capacity of 7,200
    kgms per day.
  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 products.

Project Product Cost and Price Structure

Item Qty/ day Qty/ yr @ Prod. Cost /year ($) UPx TR
Rice (super) 3,000 936,000 0.5 468,000 2 936,000
Rice (Kaiso) 2,200 686,400 0.5 343,200 3 1,029,600
Up land rice 2,000 624,000 0.5 312,000 1 312,000
= 2,277,600

Profitability analysis in US$

Profitability item per day per month per year
Revenue 7300 189800 2,277,600
Rice (Kaiso) 1,100 28,600 343,200
Up land rice 1,000 26,000 312,000
Less Prod & Operating Costs 3,634 94,484 1,133,808
Profit 3666 95,316 1,143,792

Market

Locally produced rice has potential to be supplied to both the domestic and foreign markets. Although it is said to compete with imported varieties the demand still outstrips the supply especially with the opening up of the Southern Sudan market. There is also a market to supply to supermarket chains, retailers, wholesalers and the Armed Forces.

Equipment Suppliers

Agro Sokoni Limited, Plot 15/17 Nassar Road P.O .Box 22793 Kampala. Tel: 0414-257445

Auto Sokoni Limited, Nkurumah Road, Kampala opposite Charm towers.

 

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