New Business Idea MAKING BANANA WAFERS Production and Marketing with Costs in USD

 MAKING BANANA WAFERS

Introduction:
Banana Wafers are a popular snack eaten world over. They are made by cutting bananas into thin slices.  Wafers can simply be eaten directly or as desserts and puddings. It is a cross cutting venture as it can be undertaken in both rural and urban settings. The project initial cost is US$ 1,318 producing 46,800kgs of banana wafers per year giving an estimated revenue of US$ 35,100 annually with a profit margin of 475 and a the Return on Investment(ROI)period of about 4 month.

Production,Capacity and Technology:
The Bananas can be peeled manually or using a peeling machine. They are then sliced and rapidly dehydrated to reduce the moisture content and then deep fried in cooking oil. 

Excess oil is extracted and the fried banana wafers are seasoned with salt and other spices as may be deemed necessary. The plant capacity is 150kg per 8 hours but there are also equipments with bigger capacity if needed.
The technology involved can be locally accessed within Country, which makes it affordable.

Capital Investment Requirement in US $:

Item	Units	Qty	Price	Total
Peeling machine	No	1	500	500
Slicing machine	No	1	300	300
Deep fat frying pans	No	1	150	150
Impulse sealer	No	2	34	68
Salt mixing drum	No	1	125	125
Weighing balance	No	1	50	50
Oil extraction machine	No	1	125	125
Total Cost of Machinery & Tools	1,318

Production and Operating Costs in US $

Cost Item	Units	Unit cost	Qty/ day	Pdn cost/ day	Pdn cost/ month	Pdn cost/ year
Direct material Costs
Bananas	Kgms	0.003	150	0.45	11.7	140.4
Cooking oil	Litres	2	10	20	520	6,240
Spices & Flavour	Kgs	4	1	4	104	1,248
Polythene bags	Packets	1	0.01	0.01	0.26	3.12
Sub-total	24.5	636	7,631

General Costs (Overheads)

Labour	260	3,120
Selling & distribution	100	1,200
Utilities	250	3,000
Rent	120	1,440
Miscellaneous expenses	150	1,800
Depreciation	27	329
Sub-total	907	10,889
Total Operating Costs	1,543	18,520

1. Production costs assume 312 days per year with daily capacity of 150 Kgs.
2. Depreciation of fixed asset is assumed at 25% per year.
3. Direct costs include: materials, supplies and all other costs incurred to produce
the product.
4. A production month is 26 work days
5. Currency used is US Dollars.
Project Product cost and Price Structure in US $

Item	Qty/ day	Qty/yr	@	Pdn cost/yr	UPx	TR
Wafers	150	46,800	0.40	18,520	0.75	35,100

Profitability Analysis in US$

Profitability Item	Per day	Per month	Per year
Revenue	112.5	2,925	35,100
Less: Production and operating costs	59	1,543	18,520
Profit	53	1,382	16,580

Market
Banana wafers are common among the urban population. With an
increased shelf life, the wafers can be supplied to supermarkets,
schools, hotels, hospitals, and with aggressive marketing, they
can capture a lot of consumer attention even in the international
market. They can also be produced in different styles or designs.
Source of Equipment and Raw Materials: 
 Bananas areeasily available in the local market all over the country.