Introduction
This Business Idea is for the manufacturing and marketing of fish pickles. This is a ready-to-eat product in form of sauce made out of fish. With the increasing demand for non-vegetarian pickles, making preserved ready-to-eat fish would be a lucrative activity. This business idea is premised on the production of 2,600kgs per month, which translates into 31,200 kgs per year. The revenue potential is estimated at NGN 6,500,000 per month translating into NGN 78,000,000 per year and a total investment requirement of NGN 31, 992,000 for the first year of project operation.
Production process
After cleaning, the fish is placed in a salt solution or brine to increase the shelf life. Later, the fish is fried, mixed with spice powders, salt, vinegar, and oil, and finally packed for the market.
Capital Investment Requirements (CBN exchange rate -$1 to 415.12 NGN) as of 22nd April 2022.
| Capital investment item | Units | Qty | Cost in
NGN |
Cost in USD | |
| Grinder | No. | 1 | 7,500 | 18.067 | |
| Frying Equipments | No. | 2 | 4,700 | 11.32 | |
| Containers | No. | 5 | 3000 | 7.22 | |
| Ice box | No. | 2 | 10,000 | 24.089 | |
| Gas stove | No. | 1 | 12,000 | 28.907 | |
| Total cost of machinery | 37,200 | 89.613 | |||
Production and operating costs
| Cost Item | Units | @
NGN |
Qty/
day |
Pdn cost/ month in NGN | Pdn cost/ year
In NGN |
Pdn cost/ year
In USD |
| Fish | Kgs | 80,000 | 100 | 2,080,000 | 24,960,000 | 60,127.192 |
| Spices | Kgs | 2000 | 10 | 52,000 | 624,000 | 1,503.179 |
| Vinegar | Liter | 4000 | 5 | 104,000 | 1,248,000 | 3,006.359 |
| Cooking oil | Liter | 8,000 | 15 | 208,000 | 2,496,000 | 6,012.719 |
| Packaging | No | 8000 | 100 | 208,000 | 2,496,000 | 6,012.719 |
| Sub-total | 102,000 | 2,652,000 | 31,824,000 | 76,662.169 |
General costs (overheads)
| Cost Per Month
NGN |
Cost Per Year
NGN |
Cost Per Year
USD |
|
| Utilities(water and power) | 2000 | 24,000 | 57.814 |
| Labour | 5000 | 60,000 | 144.536 |
| Rent | 2000 | 24,000 | 57.814 |
| Distribution costs | 5000 | 60,000 | 144.536 |
| Sub –total | 14000 | 168,000 | 404.702 |
| Total Operating Costs | 2,931,200 | 31, 992,000 | 77,066.872 |
- Production costs assumed are for 312 days per year with a daily capacity of 100 Kilograms of fish Pickles.
- 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 the production of the product.
- A production month is assumed to have 26 workdays.
Project product costs and Price structure
| Item | Qty /day | Qty/yr | @ | Pdn cost /yr
NGN |
Pdn cost /yr
USD |
TR
In NGN |
TR
In USD |
| Pickled fish | 100 | 31,200 | 2500 | 31, 992,000 | 77,066.872 | 78,000,000 | 187,897.475 |
Profitability Analysis
| Profitability Item | Per day | Per month | Per Year
NGN |
Per Year
USD |
| Revenue | 250,000 | 6,500,000 | 78,000,000 | 187,897.475 |
| Less production and operating Costs | 102,000 | 2,931,200 | 31,992,000 | 77,066.872 |
| Profit | 148,000 | 3,568,000 | 46,008,000 | 110,830.603 |
Market Analysis
The marketability of fish pickles would mostly depend on the quality of the product and the Price. Points of supply would be Supermarkets, Hostels, Fast Food Centres, Canteens, Private and Government establishments like railway stations, the military, etc. Therefore, fish pickles may have a wider market and high demand if the plant is set up.
Supply of Raw materials and Equipment
Raw materials and equipment can be procured locally.
