Fruit juice concentrate business plan


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Fruit juice concentrate business plan

Introduction

fruit juice concentrate businessThis free fruit juice concentrate business plan template will give you needed guide on how to start and profit from fruit juice concentrate business. The cost and source of quality fruit juice concentrate producing machine and equipment needed for the commercial processing of fruit juice concentrate business. The packaging of the finished product and the feasibility report on fruit juice concentrate business are discussed in this fruit juice concentrate business plan template.

The products which can be produced using available fruits in Nigerian include citrus, pineapple, mango and tomato single strength juices and concentrates of about 50.60o Brix.

Market Potential of Fruit juice concentrate business plan

Natural fruit juices and squashes are normally preferred to the carbonated drinks by most Nigerians on health grounds. Nonetheless, the presently consumed single strength and concentrated fruit juices are still largely imported into Nigeria, in spite of the abundant fruits grown in all part of the country. This situation therefore creates a very conducive market for whoever goes into the production of natural fruit juices.

Production of fruit juices is no longer particularly difficult in Nigeria, since the basic technology is known. However there is a high possible of partial fabrication of the necessary equipment.

Nigeria with a large potential markets of about 100 Million people, demands more than 10,000 tonnes of fruit juice per year. This production figure could be increased with the possibilities of an ECOWAS common market

Raw Materials of Fruit juice concentrate

The major raw materials needed for this project are:

Fruit

Sugar/Sweeteners

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Citric Acid

Preservative (Probable)

It is worth noting that there is no state in Nigeria that does not produce one fruit or the other in sustainable quantities. In addition, different types of fruits are grown throughout the entire year in the country. The estimated levels of production of various fruits in Nigeria are as follows:

Fruits Tonnes/Annum
Citrus 7, 5000.00
Mango 3,000.00
Tomatoes 32,000.00
Guava 8,000.00
Pawpaw 7,000.00
Pineapple 5,000.00

Availability of raw materials will therefore present no problems for a fruit juices processing project in the country.

The quantity of sugar required in pure fruit processing is little because of the natural sweetness obtained in the fruit themselves. Sugar requirement can therefore be met by existing companies in Nigeria.

Preservatives would only be needed if pasteurization is not adequate. In a situation where it is required, Sodium benzoate though imported, could be locally purchased.

Production Process of Fruit juice concentrate

Single strength fruit juices are usually prepared using the understated processes:

  • The fresh fruits are usually sorted, and thoroughly washed to remove the coated wax and chemicals
  • The washed fruits are scalded to facilitate peeling
  • The peeled fruits are put into the juice extractor where the fruit juice is separated from the pulps.
  • The juice is homogenized with the necessary syrup
  1. The extracted juices decorated and clarified to prevent oxidation of the oil in the juice and loss of vitamin C, flavour and colour.
  1. The above treated juice is then bottled and pasteurized in situ.

To produce concentrated fruit juice the desecrated and clarified fruit juice is pasteurized and passed into a falling film evaporator

where vacuum concentration is done up to 55o Brix before being packed into plastic containers for freezing if so desired. The most important technological point in fruit juice manufacturing is how to treat the fruit without losing their natural flavour, colour and taste by freezing or pasteurization.

Machinery And Equipment for Fruit juice concentrate

  1. Boiler, 200kg Steam/.hr 100
  1. Fruit washing tanks
  1. Fruit grading machine
  1. Hydraulic press
  1. Pulper machine (2MT/H)
  1. Blending tanks (SS)
  1. SS Jacketed vessel titling type
  1. Crown cocking machine
  1. Filter
  1. Bottle press
  1. Vacuum pump, scales, laboratory equipment etc
  1. Vacuum evaporator (Cap. 500L)
  1. Reforming Unit
  1. Can Sealing machine
  1. Lid embossing machine
  1. Retort etc.

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Production Capacity

The production capacity of the proposed plant per annum is expected to be thus:

  1. Pineapple juice 200MT (660,000 bottles of 30 Cl each)
  1. Orange juice 300MT (990,000 bottles of 30 Cl each)
  1. Pineapple Juice concentrate 45MT (45 Brix)
  1. Orange Juice Concentrate 60MT (5Brix)
  1. Tomato Juice Concentrate/Paste 55MT (29% solids)
INVESTMENT COSTS =N=000
Land 250.00
Buildings 1,500.00
Machinery and Equipment 3,000.00
Process Vehicles 1,000.00
Utilities 850.00
Empty Bottles (300, 00) returnable) 1,000.00
Preliminary & the Operational Expenses 400.00
Contingencies (10%) 800.00
8,800.00

WORKING CAPITAL (3 MONTHS)

Raw Materials 4,950.00
Salaries and Wages 582.00
Utilities 200.00
Total Investment Costs 5,732.00

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TOTAL PROJECT COST = US$121,100 at N120 1 US $ Residual value (After 10 years)

(a) Land (100%) 250.00
(b) Building (50%) 750.00
(C) Equipment (10% 385.00
1,385.00

COST OF PRODUCTION (1ST YEAR)

RAW MATERIALS COST

A Pineapple 700 MT at N10, 00MT 7,000.00
B Oranges 600mT at N12, 000MT 7, 200.00
C Tomatoes 500MT atN6, 000MT 3,000.00
D Cartons, Labels etc 600.00
d Containers (metal, plastics and glass) 2,000.00
19,800.00
  1. UTILITIES
Power 250.00
Fuel 450.00
Water 100.00
800.00
  1. SALARIES AND WAGESS
Manager (1) 200.00
Accountants (1) 180.00
Food Technologist (2) 320.00
Production Sup (2) 320.00
Skilled Workers (7) 588.00
Unskilled Worker (10) 720.00
2,328.00

 

  1. MAINTENANCE AND REPAIRS
30% of the cost of plant and machinery 191.00
  1. OVERHEAD COSTS
1.5% of the preceding costs production 327.00
F MARKETING EXPENSES 624.00
G DEPRECIATION (10% of fixed cost less land) 855.00
H INTEREST ON TOTAL INVESTMENT (25%) 3.633.00
Total production costs 28,596.00
TURNOVER (1ST YEAR)
A 660,000 bottle @N20.00 bottle pineapple juice 13,200.00
B 990,000 bottle @ N20 bottle orange juice 19,800.00
C Pineapple juice concentrate (42 Brix) 5,200.00
D Orange juice concentrate (42 Brix) 10,300.00
e Tomato Juice concentrate/paste (29% solids) 15,700.00
64,200.00
PROFIT BEFORE TAXATION 3,504.00
RETURN ON TOTAL INVESTMENT (%) 24.0%
RATE OF RETURN ON SALES (%) 5.5%
BREAK EVEN POINT (%) 16.6%

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