TURKEY PACKING BUSINESS IN UGANDA

Introduction
There is high demand for turkeys during festive seasons from customers such as Supermarkets, Canteens, Universities, Schools, and Hotels that seek for reliable and consistent suppliers.
The business idea for packing turkeys is a very promising venture with a capital investment cost of US$14,500 and yielding estimated revenue amounting to US$ 116,813 annually, with a net profit margin of 42% and a payback period of 1 year and 3 months.
Process, Capacity and Technology
The birds are obtained from farmers rearing and healthy turkeys are taken to the slaughter house for slaughtering and dressed and dissected. The turkeys are sorted according to sizes and before they are packed, some are cut into pieces for packaging. Some are packed whole, or half or quarter pieces. While others are packed as specific parts of wings, breasts, bulbs, gizzards etc. It could also be packed as de-boned turkey meat.
Item Unit Quantity Cost Total
Slaughter Machine No 1 2500 2,500
Defeathering machine No 1 200 200
Guillotine, shelves, computers, No 1 800 800
Refrigerated delivery Van No 1 8000 8,000
Deep freezer No 1 1500 1,500
office chairs/ desk No 1 1000 1,000
Parking machine No 1 500 500
TC of Machinery & Tools 14,500

Production and Operation costs in US$(a) Direct materials, supplies and costs

Cost Item Units @ Qty/ day Pdn cost/ day Pdn cost/ mth Pdn cost/yr
Direct Costs
Turkeys kgs 10 16 160 4,160 49,920
Packaging boxes Pcs 0.26 16 4.16 108 1,298
Packaging polythene bags Pcs 0.19 32 6.08 158 1,897
Sub-total 170.24 4,426 53,115

General Costs (Overheads)

Labour 300 3,600
Selling & distribution 200 2,400
Utilities (Water, power) 188 2,256
Rent 217 2,604
Depreciation 302 3,624
Sub-total 1,207 14,484
Total Operating Costs 5,633 67,599
  1. Production costs assumed 312 days per year with daily capacity of 48 Boxes
  2. Depreciation (fixed asset write off) assumes 4 year life of assets written off at 25% per year for all assets.
  3. Direct costs include materials, supplies and all other costs that directly go into production of a product.
  4. A production month is assumed to have 26 days.
  5. Currency used is US Dollars.
Item Qty/ day Qty/yr Unit cost Pdn cost/yr UPx TR
Packed turkey pieces 48 14,976 4.51 67,599 7.8 116,813

Profitability Analysis in US$

Profitability Item Per day Per month Per year
Revenue 374.4 9,734 116,813
Less: Production and operating costs 217 5,633 67,599
Profit 157 4,101 49,214

Source of Equipment

These can be obtained locally from the fabricators like John Lugendo & Co Ltd Ndeeba, Masaka Rd, email lugendojohn07@ yahoo.com as well as importing from India or China. Turkeys will be purchased locally from Soroti, Kumi, Katakwi, Bukedea and Kaberamaido and Northern Uganda while starting farm locally.

Government Incentives available:

Uganda Investment Authority- Provides guidelines on investment and government incentives, policies and security matters

 

1 Comments

  • I want to join the turkey supply business. I have them

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