Indulging in Delicious Citrus Flavors
Citrus peel candies are delightful fruit products enjoyed as packed beverages. The market for processed beverages in Kenya is thriving, with major consumers ranging from supermarkets and restaurants to hotels and wholesale and retail shops. This blog explores the establishment of a citrus peel candy plant that can produce an estimated output of 3,000 liters of candy. With an investment cost of US$21,590, this venture has the potential to generate an annual revenue of US$374,400, with a net profit margin of 40% and a payback period of 6 months.
Production Capacity, Technology & Process: From Fresh Citrus to Tasty Candy
The production process of citrus peel candy is simple, but it involves several stages. Fresh fruits, such as oranges, are carefully collected, washed, and rinsed. Damaged fruits are culled, and the remaining ones are graded according to size. The fruits then go through a juicing machine, where they are squeezed, and the pulp and seeds are later removed using filter sieves and strainers.
The filtered concentrate undergoes blending in tanks to measure the natural sugar content and ensure it meets the desired standards. After blending, the concentrate is pasteurized to ensure its longevity. It is then transferred to refrigeration rooms, where it is filled into plastic or cardboard containers through funnels and packed, ready to be enjoyed.
General Costs: Considering Overheads and Direct Costs
To estimate the costs associated with citrus peel candy production, we assume production costs for 312 days per year with a daily capacity of 3,000-250 gms of peel candy. Depreciation is accounted for with a 4-year asset life, with assets written off at 25% per year. Direct costs include materials, supplies, and other expenses directly involved in the production process. By carefully considering these costs, entrepreneurs can ensure efficient operations and optimize profitability.
Government Facilities and Incentives: Support for Agricultural Investments
Kenyan entrepreneurs can access various government facilities and incentives to support their investments in the agriculture sector. The European Investment Fund and Agricultural Fund are among the resources available to promote growth and development. These funds provide financial assistance, technical support, and guidance to entrepreneurs, contributing to a conducive business environment and encouraging investment in the agricultural industry.
By establishing a citrus peel candy plant, entrepreneurs can tap into the Kenyan market’s love for delicious flavors and cater to the demand for processed beverages. With a simple production process, coupled with government support, the citrus peel candy industry in Kenya has the potential for growth and success.
