Introduction
The business idea is for smoking and marketing fish. This business idea is premised on smoking of 208 batches of fish per month which translates into 2,496 batches of fish per year. The revenue potential is estimated at NGN 520,000 , translating into NGN 6,240,000 per year. The project cost is the NGN 378,000 for the first month of operation.
Production Process
Fresh fish is cleaned and left to dry in the sunshine for some time. It is then put on a wire mesh and covered with banana leaves in the oven for smoking. After some time, the fish is changed over to allow both sides to dry. Fish is then removed from the oven or kiln and left to cool before being packed for dispatch.
Capital Investment Requirements (CBN exchange rate -$1 to 415.26 NGN) as of 14th,may 2022.
| Cost Item | Units | @
NGN |
Qty/
day |
Pdn cost/ month in NGN | Pdn cost/ year
In NGN |
Pdn cost/ year
In USD |
| Fish batches | batches | 10,000 | 10 | 260,000 | 3,120,000 | 7513.365 |
| Firewood bundles | batches | 2000 | 1 | 52,000 | 624,000 | 1502.673 |
| Sub-total | 364,000 | 3,744,000 | 9,016.038 |
Production and operating costs
| Capital investment item | Units | Qty | Cost in
NGN |
Cost in USD | |
| Oven/ kiln | No. | 1 | 24,000 | 57.795 | |
| Wire mesh | No. | 1 | 10,000 | 24.081 | |
| Fish Baskets | No. | 2,000 | 4.816 | ||
| Total cost of machinery | 46,000 | 110.774 | |||
General costs (overheads)
| Cost Per Month
NGN |
Cost Per Year
NGN |
Cost Per Year
USD |
|
| Utilities(water and power) | 2000 | 24,000 | 57.795 |
| Labour | 5000 | 60,000 | 144.488 |
| Rent | 2000 | 24,000 | 57.795 |
| Distribution costs | 5000 | 60,000 | 144.488 |
| Sub –total | 14000 | 168,000 | 404.566 |
| Total Operating Costs | 378,000 | 3,912,000 | 9,420.604 |
- Production is assumed for 312 days per year.
- Depreciation assumes 4-year life of assets written off at 25% per year for all assets.
- A production Month is assumed to have 26 days.
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 |
| Smoked fish | 8 | 2,496 | 2500 | 3,744,000 | 9,016.038 | 6,240,000 | 15,026.730 |
Profitability Analysis
| Profitability Item | Per day | Per month | Per Year
NGN |
Per Year
USD |
| Revenue | 20,000 | 520,000 | 6,240,000 | 15,026.730 |
| Less production and operating Costs | 12,000 | 364,000 | 3,744,000 | 9,016.038 |
| Profit | 8,000 | 156,000 | 2,496,000 | 6,010.692 |
Market
Smoked fish is a delicacy to all tribes; it is consumed in almost all regions of the country. Smoked fish can be supplied to
colleges and schools, armed forces, hospitals, and homes.
Availability of Raw Materials
All the raw materials can be obtained from the local market; fish can be purchased from the nearby lake shores.
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