PROFILE ON BISCUIT PRODUCTION


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SUMMARY

This profile envisages the establishment of a plant for the production of biscuit with a capacity of 1,500 tonnes per annum.
The present demand for the proposed product is estimated at 14,798 tonnes per annum. The demand is expected to reach at 20,141 tonnes by the year 2020.
The plant will create employment opportunities for 19 persons.
The total investment requirement is estimated at about Birr 16.19 million, out of which Birr 6.8 million is required for plant and machinery.

MARKET STUDY

Past Supply and Present Demand
Biscuit is a family of the candy group which is largely consumed by children and teenagers. Biscuits can be savory, sweet, plain – baked, filled or coated (or a mixture of several of these options). Some biscuits supply special dietary needs, such as those for high fibre, protein or extra vitamins ( as in infant rusks). Biscuits also contain fat and often sugar, and are cut or moulded into thin layers and baked rapidly and thoroughly. If packed in a moisture proof material, biscuits can have a long shelf life.
In every village in urban as well as rural areas where there are shops there are one or two types of biscuits on the shelf. Biscuits are very popular for they are sweet and ready to be served and above all affordable. Biscuits are, therefore, in demand both in urban and rural areas. With the growth in population and income there is potential market for the product in a country of 77 million population.

PLANT CAPACITY AND PRODUCTION PROGRAMME

Plant Capacity
Based on the market study, the envisaged biscuit plant will have annual production capacity of 1,500 tonnes. The plant will operate in a single shift, 8 hours a day, and for 300 days a year.
2. Production Programme
Production will commence at 75%, and then will grow to 85% and 100% in the second year, and the third year and then after, respectively. Detail production programme is shown in Table 3.4 below.

RAW AND AUXILIARY MATERIALS

Various types of biscuits do exist depending on the ingredients used and manufacturing process employed. The envisaged plant will produce hard biscuit. The raw materials used to produce hard biscuit are wheat flour, sugar, shortening, salt, Sal volatile, sweet jelly, glucose, and starch. The plant also needs packing materials like pp film and cartoon. Annual consumption of raw and auxiliary materials at full production capacity is given in Table 4.1 below. The total cost of raw and auxiliary materials is estimated at Birr 7,858.3 thousands, out of which Birr 1746.2 is required in foreign currency.