Saturday, 10 September 2011
Peanut Butter Processing; Earn More Money from Your Groundnuts and Sesame seeds
Peanuts (Arachis hypogea) are also known in other parts of the world as groundnuts, earthnuts, ground beans, and monkey nuts. Peanuts are the second most widely grown legume in Uganda, after beans and are grown all over the country but more so in the north (Page et al.,2002). It is one of the export crops of Uganda contributing only 0.09% of the total export earnings (FAO, 1997).
Peanuts represent an important contribution to the diet by providing a rich source of protein, oil and vitamins, especially for the poorer members of the community who cannot afford animal protein. An unspecified volume of peanut products (including blanched, roasted nuts, peanut butter and oil) are processed industrially for sale in supermarkets for consumption by an urban population (Sebunya and Yourtee, 1990). According to Ssemwanga (2007) peanuts are probably the third largest crop in importance in Nakasongola District. Peanuts are easily marketed and contribute to food security at household level thus they are dual purpose providing food and cash income (Ssemwanga, 2007).
In Uganda, peanut is the second most widely grown grain legume crop after beans and is grown all over the country but more so in the North (Mubiru, 2000). The crop is grown throughout the country, production being intense in eastern Uganda. Total production of peanuts in Uganda is estimated at 148,000 tonnes (USDA, 2004) as indicated in table 1 below.
Table 1: Groundnut (shell) Production Trends in Uganda
Source: USDA, 2004.
According to Salunkhe et al. (1992) peanut kernels are considered as one of the most concentrated foods because of their high oil and protein contents. They are however low in carbohydrate and ash contents (Salunkhe et al., 1992). The nutritional composition is as indicated in table 2 below.
Table 2: Proximate Composition of Raw and Roasted Peanut Kernel
Proximate Composition, %
Moisture 5.6 1 .8
Protein 26.0 26.2
Fat 47.5 48.7
Carbohydrates 18.6 20.6
Fiber 2.4 2.7
Source: Salunkhe et al., 1992
Lipids are the major constituents of peanut kernel triglycerides being the major fraction in peanut. The oil content in peanut seed may range from 36% to 56 %. Other constitutes are; phosphates, glycolipids, unsaponifiabels and phytosterols which constitute odour and flavour –causing compounds higher hydrocarbons (Salunkhe et al., 1992).
The protein content in peanut kernel ranges from 16.2 to 36 %. The major seed proteins (globulins) of peanut contain 18.3% nitrogen. The peanut proteins are relatively rich in amino acids such as aspartic, glutamic and arginine which account for about 45% of the total amino acids reported that lysine, methionine and threonine were deficient in groundnut proteins (Salunkhe et al., 1992).
The total carbohydrates in peanut kernel range from 10 to 20 %. The reducing sugars are the precursors of the compounds imparting flavour characteristic to roasted peanut. Sucrose, raffinose, stachyose and verbascose are the major sugars in peanut. The amount of sucrose varies from 2.86 to 6.35 % among the different cultivars of peanuts. The cultivation locations also have been found to influence the levels of the sugars in the cultivars. Other carbohydrates of peanut include starch (12.5%), hemicellulose (4%) and cellulose (4.5%) (Salunkhe et al., 1992).
Peanut contain primary elements such as calcium, magnesium, sodium, iron and certain trace elements such as manganese, copper, zinc and boron in appreciable amounts. The total mineral content ranges from 1.8 to 3.1 %. Of the 26 inorganic elements contained in peanut potassium, magnesium, phosphorous and sulphur are in higher quantities and virtually unaffected by heat. The mineral content varies between varieties, in raw and roasted peanuts. The roasted peanuts contain more minerals than raw seeds, probably due to the loss of moisture during heat treatment (Salunkhe et al., 1992).
Peanuts especially those produced in the developing countries have been used traditionally since the origin of humanity. Besides being rich in edible oil, peanuts are also a good source of dietary proteins, vitamins and minerals and have a high-energy value (Angucia, 2004). Peanuts can be processed into edible oil, peanut butter, salted peanuts and various confectioneries. Only a small proportion of peanut produced in the developing countries is processed for direct consumption as salted peanuts, sweetened products and in number of indigenous foods as a supplement. The non- food items include medicines, shaving creams, lubricants soaps, cosmetics and synthetic fibres (Salunkhe, 1992).
When peanuts are stored after harvest, storage time will affect carbohydrate and amino acid composition. Raw peanuts are subject to loss in quality during storage due to insect, bird, and rodent infestation, microbial activity, and mechanical damage, physical changes such as weight loss or shrinkage. Farmers stock peanuts, or peanuts which have only been picked and threshed, are stored anywhere from one week to as long as 10 months (Lolayo, 2002).
The composition and quality of the peanut crops is affected by climatic variations as well as difference in harvesting and handling techniques. When the peanuts are roasted at temperatures over 85 °C, final moisture content of 6% or lower is attained. The testa contains mainly protein, fibre and carbohydrates (Singh, 2005).
In Uganda peanuts are very popular especially in the eastern and northern regions of the country, where it has become part of the people’s culture are mostly consumed locally. They are mostly cooked and pureed into a thick, rich sauce and spooned over plantains, rice and different kinds of animal staples. The seeds are also consumed as roasted peanuts. The flour is used in preparing different dishes. Groundnut cake, after extracting oil, is used as animal feed (USAID, 2004).
Sesame (Sesame indicum L.) is an oil seed crop that bears fruits with two chambered capsules, brown or purple with a smooth or rough surface that belongs to the family pedaliaceae (Purserglove,1987). Sesame also known as sesamum, gingelly, beniseed and sim-sim is an important annual oilseed crop (Salunkhe et al., 1992). It is grown in the tropics and temperate climates (Litzenberger, 1974).
Sesame seed is rich in oil, protein, and calcium and phosphorous and has a high food value (Salunkhe et al., 1992). The nutritional composition is as indicated in table 3 below.
Table 3: Proximate Composition of Whole Sesame Seeds.
Source: Salunkhe et al., 1992
Sesame seeds contain more oil than any other oilseeds. The oil content varies with genetic and environmental factors. A wide range of oil content of sesame seeds from 37 to 63% has been reported (Salunkhe et al., 1992). White or light –coloured seeds usually contain more oil than the dark seeds and smaller seeds contain more oil than larger seeds. Rough-seeded cultivars generally have more oil content smooth-seeded types. Sesame oil contains about 80% unsaturated fatty acids. Oleic and Linoleic acids are the major fatty acids and are present in approximately equal amounts. Sesame seeds contain 44 % Linolenic and 42% Oleic acids and 13% saturated fatty acids and thus important source of essential fatty acids in the diet. The oil is reach in vitamin E and contains sesamin and sesamolin which protect the oil from oxidative rancidity (Salunkhe et al., 1992; Unal & Yalcın, 2007).
The oil of sesame seed, known as teel or benne oil is very resistant to rancidity especially after hydrogenation due to the presence of natural anti-oxidants such assesamolin, sesamin and sesamol. It is therefore useful in increasing the shelf life of margarine and other vegetable oil products (Litzenberger, 1974). It has been suggested that sesame oil could have a positive effect on cholesterol levels because of its remarkable antioxidant function. Also sesame oil has a very high level of unsaturated acids, which is assumed to have reducing effect on plasma cholesterol, as well as on coronary heart disease (Mbah & Akueshi, 2006).
The proteins of sesame seeds are mostly located in the outer layer of the seed. The average protein content in sesame seeds is 19.3% (Litzenberger, 1974). According to Salunkhe et al. (1992) it ranges from 17 to 32%. Sesame proteins are rich in sulphur-containing amino acids particularly methionine and tryptophan. Even though, sesame proteins are deficient in lysine making it a complement to other plant proteins (Salunkhe et al., 1992).
The carbohydrate content of sesame seeds is comparable to that of peanut seeds and is higher than that of soybean seeds. Sesame seeds contain 21 to 25% carbohydrates. The seeds contain about 5% sugars, most of which is of reducing type. A sesame seed contain 3 to 6% crude fibre and is present mostly in the seed coat (Salunkhe et al., 1992; Unal &Yalcın, 2007).
Sesame is a good source of particularly calcium, phosphorous and iron. The seed contain
5 to7% ash and it is very rich in minerals such as Ca, P and vitamin E. Calcium is mostly present in the seed coat, which is lost during dehulling. The bioavailability of calcium from sesame is less than that from milk or bread probably because of the high concentration of oxalate and phytate in the seed (Salunkhe et al., 1992; Unal &Yalcın, 2007).
The world production of sesame seeds are almost wholly utilized for culinary purposes. In India, most of the seeds (about 78%) are used for oil extraction, and about 20% are used for domestic purposes such as preparation of sweetmeats and confectionary. Sesame oil is mostly used as a cooking medium; only a small proportion of low grade oil is used to manufacture soaps, insecticides, paints and perfumes (Salunkhe et al., 1992).
Dehulled sesame seeds are used directly in different types of food. In various parts of the world sesame is used in the manufacture of traditional confections such as Laddus, Chikki, Bajar, and Ragi and sesame butter paste. They are also eaten whole after roasting. The seeds and kernels are used in commercial bakeries for the preparation of quick breads, rolls, crackers, coffee cakes, pies and pastry products. The seeds are slightly roasted and used in salads dressing. The seeds could be consumed either through oil, roasted or as animal feeds (Salunkhe et al., 1992).
Sesame, commonly known in Uganda as simsim is frequently consumed by farmers as food crop. Commercial uses for sesame seeds in Uganda are expanding and include use in oil extraction, confectionery, animal feeds, baking and candy making (APEP, 2004).
The peanuts are dry roasted by either batch or continuous method at a temperature of 350 F for about 30 - 40 minutes to produce desired colour and flavour intensity. The first effect of roasting is rapid drying; in which moisture content is reduced from about 5 to 0.5%. This is followed by development of oily translucent spots on the surface of cotyledons called “steam blisters”, caused by oozing of oil from the cytoplasm of free oil (Woodroof, 1983).
A change in colour is due to the cell walls becoming wet with oil. This stage is referred to as “white roast”. The skins too become wet with oil and darker in colour. The final stage of roasting is the development of a brown colour, at which time the peanuts are “brown roasted”. Colour and flavour of peanut butter is dependent on the extent of which brown roasting is allowed to proceed (Woodroof, 1983).
Heat should be removed from roasted peanuts as quickly as possible in order to stop cooking at a definite point and to produce a uniform product. Artificial coolers may be used. Blanching or whitening is the process of removing the red skin and germs from the kennels. Blanching also cleans the kernels of dust, moulds and other foreign materials. After the period of cooling, the peanuts are subjected to thorough but gentle rubbing between brushes. As a result the skins are rubbed off and blown into a container and the germs are separated off by screening (Woodroof, 1983).
The blanched nuts should be screened and inspected to remove scorched and rotten nuts, stones or other foreign or undesirable matter. This is preferably done on a conveyor belt. Light nuts are removed by blowers, discoloured nuts by electric eye, and metal parts by magnets. If all previous handling steps have been properly carried out, hand picking and inspecting can be done rapidly (Woodroof, 1983).
Various devises used for grinding peanuts into butter are referred to as attrition mills, homogenizers, disintegrators, hammer mills, or colloidal mills. Peanut butter is usually made by two grinding operations, the first reducing the peanuts to a medium grind and the second reducing to fine smooth texture. For fine grinding, clearance between plates is 0.032 to 0.003 inches. Other ingredients if any are added into the grinder with the peanuts. The heat generated during grinding may melt hydrogenated fat, or the fat may need to be pre melted (Woodroof, 1983).
Mixing must be completed before the product reaches the filler, since little can be done there. Recommended temperature for filling the jars is 29 C to 44 C. Filled containers should be disturbed as little as possible during the first 48 hours after filling while storage temperature should be about 10 C. After it is put in the final container, it should be allowed to remain undisturbed until crystallization throughout the mass is completed. The effects of improper cooling are cracking or shrinking in the centre or pulling away from the container (Woodroof, 1983).
Any procedure or temperature which disturbs the setting, and allows resetting, seems to increase firmness and separation of oil on the surface. This is the case when freshly filled containers of peanut butter are shipped within 48 hours. Vacuum packing of peanut butter results in reduced firmness, more uniform texture and less tendency for oil separation. The main factor in preventing oxidation is proper packaging to avoid oxygen in the head space. This could be achieved by completely filling the container to reduce oxygen in the head space (Woodroof, 1983).
The quality of peanut butter is influenced by a variety of factors that include the following; quality of materials used such as the salt which plays a considerable role with respect to rancidity of the oil or fat. It is essential that salt with minimum copper and iron impurities should be used. On average the best produces contain less than 1.5ppm copper and iron, maximum salt added being 2% (Willich et al, 1965).
The type and amount of stabilizers is also important and stabilizers include hydrogenated vegetable oil, monoglycerides, and diglycerides. The maximum level of stabilizers allowed is 5.5% while the most common level is 3.25% (Willich et al, 1965).
“Natural” peanut butter does not have the stabilizer so the oil will separate and should be stirred back in before using. All cells of the peanut embryo contain oil in an extremely fine emulsion. The oil molecules are linked with proteins and a wide range of carbohydrates like starch. During roasting of the peanuts, the proteins are inactivated thus causing them to release the oil molecules (Woodroof, 1983).
When the kernels are broken or ground, a sufficient number of cells are injured to cause tiny drops of free oil to ooze out and collect on the surface of the cells. When the peanuts are reduced further, the thick cell walls which surround the cell contents are opened and the protein and oil are released. Since the oil has a low density it slowly rises to the top during standing to make a layer of oil on top of peanut butter leaving the meal phase below (Woodroof, 1983).
The separation of oil leads to hardening of peanut butter at the bottom as the oil collects on the top of the paste. The problem of separation of the oil and meal phases can be solved in several ways, but the solution most commonly used is the use of hydrogenated peanut oil as a stabilizing agent. Other stabilizing agents that may be used include Lecithin, dextrose and powdered sugar (Woodroof, 1983).
Rancidity is the change that lipids undergo leading to an undesirable flavour and odour. When fats get in contact with air, they react with oxygen producing products with undesirable characteristics. This is known as Oxidative Rancidity. This type of rancidity is promoted by heat, light, ionizing radiation, catalysts and enzymes mainly lipoxygenases. Usually fats with substantial unsaturation in the fatty acid are more prone to oxidative rancidity. Peanuts contain 45 – 50% lipids, eighty percent of which are unsaturated fatty acids (St. Angelo and Ory, 1975).
Autoxidation occurs in roasted peanuts and peanut butters in which high temperature treatment has eliminated enzyme activity. However, the stability of oils in peanut butter towards oxidative rancidity is quite high at the time of manufacture and remains high even after storage at 27oC in the absence of light for two years. Stability is reduced by oxygen in the headspace, especially after the container is opened (Woodroof, 1983).
Oxidation of food occurs when oxygen is added to unsaturated sites of molecules. Oxygen, light, heat, heavy metals, pigments, alkaline conditions, and degree of unsaturation are catalysts in this process. The oxidation of lipids, for example, occurs at the unsaturated sites of the fatty acids on a triglyceride. Off flavours and odours are the result of the formation of aldehydes and ketones that are produced by an oxidation reaction (Dziezak, 1986).
This rancidity of the fat not only results in food waste but also in the formation of potentially toxic by-products. Other deterioration reactions include the discolouration of pigments, loss of product flavour and odour, changes in texture, and reduction in nutritional value due to loss of vitamin activity (Dziezak, 1986).
The oxygen is taken up by the fat with the formation of hydro peroxides. These are usually referred to as peroxides. When the concentration of peroxides reaches a certain level, complex chemical changes occur and volatile products are formed that are mainly responsible for the rancid taste and odour. For Example, the peroxides may suffer further oxidation to form diperoxides, which lead to polymer formation, fission reactions forming aldehydes, semi-aldehydes, aldehydro-glycerides, hydroxyl compounds, and subsequently organic acids; dehydration reactions leading to keto-glycerides and dihydroxy – glycerides (Swoboda, 1973).
It is compounds such as these that produce rancid off-flavours. The initial oxidation of fat is usually slow and at a relatively uniform rate. This is known as the induction period. At the end of the induction period, when the amount of peroxide formation reaches a certain level, the rate of oxidation accelerates very rapidly. At this point or soon after, the fat begins to smell or taste rancid (Swoboda, 1973).
Fungal infection of seeds before and after harvest remains a major problem of food safety in most parts of Africa. Problems associated with this infection include loss of germination, mustiness, mouldy smell and aflatoxin contamination. These problems are however dealt with in most developed world where a careful commodity screening and improved storage conditions are provided. However, fungal species that produce mycotoxins are more common in the warmer, subtropical and tropical areas than in temperate areas of the world (Gachomo et al., 2004).
Uganda is known for Aspergillus isolates. Mubiru (2000) reported that, the original Aspergillus group isolates from Uganda was very dark green in color and corresponded closely to the description of Aspegillus paraciticus speare.
Inappropriate post-harvest practices have led to an increase in the chances of harvested produce becoming infected with Aspergillus and Fusarium sp., with favourable seasonal temperature and humidity conditions accelerating the infection of grains by fungi (Farombi, 2006). Peanuts (Arachis hypogaea) with their subterranean growth habit are invaded by both A. flavus and A. parasiticus. A. flavus is divided into two morphotypes: the typical L strain that produces large sclerotia >400 µm diameter and the S strain, described as variety parvisclerotigenus which produces numerous small sclerotia <400 µm (Youssef et al, 2008).
Other Aspergillus species belonging to section Flavi have been reported from peanuts, including A. caelatus and A. tamarii. None of these other species forms aflatoxin, although A. tamarii produces cyclopiazonic acid and A. alliaceus produces ochratoxin A (Kaaya & Warren, 2007).
Soil serves as a reservoir for primary inoculum of A. flavus and A. parasiticus and peanut pods are in direct contact with soil populations of aflatoxigenic fungi. Two modes of infection are possible in peanuts. First, seeds from pods without visible damage may be invaded by aflatoxigenic fungi when plants are drought stressed although undetected microscopic pod damage might account for some of this infection. Second, pod and seed damage allows for direct invasion from soil. The highest levels of A. flavus and A. parasiticus infection and aflatoxin contamination are associated with seed damage (Youssef et al, 2008).
Insects are the most serious pests of stored grains and pulses. They cannot easily be excluded from stores and infestation results in weight loss and deterioration in quality. Heat, moisture and waste products produced by insects may also result in further deterioration and the growth of moulds. Store hygiene is therefore essential to prevent re infestation of newly stored grain (ICRISAT, 2007).
Coliforms are gram negative asporogeneous rods that ferment lactose within 48 hours and produce dark colonies with a metallic sheen on Endo type Agar. They are represented by four genera of the family Enterobacteria-ceae; citrobacter, Enterobacter, Escherichia, Klesbsiella and probably Aeromonas and Serratia. (Jay, 1996; Ray, 1997).
The main reason for grouping them is their many common characteristics. They are nonspore forming rods; many are motile, are facultative anaerobes surface –active agents and ferment lactose to produce acids and gas at 32 or 35˚C. All are able to grow in foods except in the pH ≤ 4.0 (a few that are acid resistant can grow or survive) and are sensitive to low- heat treatments and are killed by pasteurization (Ray, 1997).
Coliforms were historically used as indicator microorganisms to serve as a measure of fecal contamination, and thus potentially of the presence of enteric pathogens in foods. Although coliform bacteria themselves are not pathogenic, their presence indicates possible fecal contamination and the corresponding presence of intestinal pathogens responsible for a variety of diseases (Ray, 1997). Within the coliforms Escherichia coli is of interest since when present it indicates that recent fecal contamination has occurred with the possibility of accompanying enteric pathogens. According to Kay & Fricker, (1997) foods treated by heat, the coliform test is a useful means of assessing evidence of inadequate processing, poor sanitary practices or post –process contamination.
Coliforms are expected in many raw foods and tissues of animal and plant origin. In some plant food, they are present in large numbers because of contamination from soil. The occurrence of some coliforms of nonfeacal origin and ability to grow in many foods reduce the specifity of coliforms of feacal contamination in raw foods. In contrast, in heat processed products, their presence is considered post-harvest treatment contamination or improper sanitation. In heat processed foods, their presence (in small numbers) is viewed with caution. Thus in heat processed foods, their presence as an indicator is considered favorably more as an indicator of improper sanitation than contamination (Ray, 1997).
To develop a business one has to make strategic decisions that would ensure microenterprise survival in the market whose future is uncertain. The process entails developing the appropriate business strategy, marketing strategy and operations strategy. This can be done by analyzing the external environment in which the microenterprise would operate on a continuous basis. The issues that need to be analyzed included customer needs, tastes and preferences, competitors, economic changes such as investment rates. The process also involves determining the business market, determining the level investment and production, designing appropriate pricing and distribution, and determining strategic assets like brand name and capital equipment.
A SWOT (Strength Weaknesses Opportunity and Threats) analysis must be used to define the relevant business in which the microenterprise would operate. This is done through identifying unmet needs of customers in your area of interest, understanding competitors and determining profitability of the business. The process of planning and budgeting can be carried out by identifying the goals to be achieved, making an inventory of the resources available, identifying alternative plans and making decisions on which plans to implement. Evaluation has to be performed by ensuring that performance conforms to plans, a process that requires comparing actual performance to predetermined standards. If there is a significant difference, corrective action has to be taken. It is also vital to determine whether the original plan needs to be revised given the actual situation on the ground. If working with a farmer group, farmers have to be taught the different aspects of the business planning through interactive sessions.
The hand grinder can be procured from agricultural equipment dealer in Kampala like Tasha Agro near the Tamales in Kikuubo, China north machines at Jinja Road, Chinese machines at Lugogo UMA grounds. Packaging Jars can be procured from Rwezori Plastics Store in Industrial Area, 6th Street and Afro-plast industries old Port Bell Road, Luzira. Equipment like weighing scales, water tank, buckets, and cutlery can be purchased from shops around Kampala. For non farming groups or individuals interest in this business, Peanut and sesame can be purchased from markets like Owino, Kalerwe and other shops. Construction of a processing area is a necessity but different building material like iron sheet, nails, timber, cement and bricks can be procured from nearby sellers and dealers.
Processing can commence with your team carrying out prototype development. About five different ratios (recipes) can be first tried out to determine the most suitable for commercial production. This can then be followed by sensory evaluation of these prototypes to choose the best.
The raw materials (sesame seeds and peanut kernels) of good quality have to be used.
Sample formulation for Peanut Butter
The peanut kernels are dehulled to remove the shells in order to obtain clean peanut seeds. The dehulling process can be done manually by hand, or by machine if available.
Peanuts and sesame seeds are cleaned to remove dust, twigs, parts of packages and discoloured and broken nuts. This is achieved by hand picking to remove heavy particles and winnowing to get rid of light particles.
Roasting of the groundnuts and sesame seeds is done on open aluminium pans placed over firewood fire at 160˚C for 30 minutes with constant stirring. Care is taken to avoid burning on the nuts that would result in blackening and over drying of the nuts (this would make grinding difficult and inefficient). For peanuts are well roasted the shells/coatings are easily removed by rubbing between the hands while for sesame, they produce a characteristic sesame roast odour.
The roasted peanut and sesame seeds are allowed to cool before proceeding with the next step.
The skins are removed from the roasted peanut seeds by rubbing the seeds between the hands since the skins were brittle thus can be removed easily. The discoloured and burnt seeds are removed by hand picking. The skins are then removed by winnowing.
10kg of peanuts, 200g of sesame seeds and 50g of salt are weighed and mixed in a clean food grade plastic bucket. The mixing process is done in a clean food grade plastic bucket thoroughly to obtain peanut butter of uniform quality upon grinding.
The mixed ingredients are grinded using an electrical grand (hand grinder for areas with no electricity as shown in the picture below). The grinder is well cleaned and adjusted before use. For hand grinders, grinding is done in batches of about 200g for easy operation and to ensure efficient grinding to obtain a crunchy peanut paste. In the initial stages, grinding can be done twice when the adjustments are being made while for the subsequent batches it can be done once.
The peanut butter is packaged in 400g capacity plastic jam jars. The jars are cleaned and sterilized using chlorinated water (sodium hypochlorite is added to chlorinate water) and well dried using clean towels before use. The jars are filled using clean stainless steel table spoons. It is important to ensure that there are no air pockets within the product as these can cause the oil in the peanut butter to oxidize and produce rancid /off-flavours. The jars are filled to within 2.5cm off the top of the container and closed tightly with sterilized self-sealing lids. The filled jars are then labelled and stored in cool dry place waiting for transport and sell.
The Flow Chart for Peanut Butter Processing Procedure.
10kg of Peanut 200g of Sesame seeds
Dehulling and cleaning Winnowing
Roasting, Sorting and Polishing Roasting and Sorting
Mixing peanut, sesame with 50g of salt
Grinding using a hand grinder
This involves coming up with a product name and a label that suits the product. The features of a good label include; the brand name, manufacturing firm, ingredients, storage and use, firm location, manufacturing date and expiry date.
The planning process here forces the planning individual/ team to systematically consider all facets of the business thus the team became more knowledgeable of the business, the industry, and the market environment in which the business will operates. The process also helps to define business goals and to assess the impact that uncertainty may have on the future business outcomes. Perhaps most importantly, if the plan is written, can provide a well-defined direction for the business. Completing a business plan is a time consuming activity but very important for business prosperity.
Since businesses operate in an ever changing environment, the plan should be revisited periodically to be sure that the business is headed in the proper direction or to formally alter the course of action when circumstances dictate that this is necessary. Planning helps the business owners to make informed decisions and is used to keep all actors moving towards the common goals established with in the business plan. It is important to describe the market niche that the business is expected to fill.
The owner(s) can develop a comprehensive marketing plan to deal with the business short-run and long-run future for example can defined the channels of distribution and distribution plan, sales compensation, pricing strategy, and promotional concepts. The business plan helps the owners summarize the extent of manufacturing or processing activities. It also helps the owner(s) to bring together all of the business sales, market, and cost projections in a summary financial format that can be easily interpreted.
A simple business plan is given below:
The objective of the company is to ensure profitability of the microenterprise which will lead to improved youth income and employment.
The product is peanut butter which is popular among the Ugandan population and therefore there’s a potential market for it.
The marketing strategy involves the use of flyers, posters and promotions. The major market segments are selected shops and supermarkets within Kampala and other urban districts of Uganda. Other markets are identified with time and the products are sold at affordable prices. The vast opportunities we have are affordable raw materials, use of inexpensive technologies and untapped markets for the products. The major risks are seasonality of the raw materials, pest and diseases.
Commercial production required capital input of UGX 3,029,000 to be used as start up expenses. The break-even point was calculated at 5333units and the payback period was 1.7 years of continuous production. The projected revenue for the first financial year was UGX 9,000,000 with a gross profit of UGX 1,800,000.
The products are sold in units of 400g which will go for UGX 3,000 on average. The prices will be adjusted accordingly to cater for the different consumer purchasing power and input costs. To produce a unit it requires UGX 1,380 for raw materials, UGX 200 for packaging, UGX 452 fixed cost and UGX 400 on labour. Price = fixed cost + variable cost + profit. Thus the projected profit per unit is UGX 568.
· If interested, start now because the time is now. Some studies have shown that the microenterprise development projects provide many benefits to local food systems and in a variety of community sectors.
· Value-addition enterprises also hold significant income and risk diversification benefits for growers across wide spectrum of agricultural production.
· Expanding of the production levels is a necessity so as to enjoy the advantage of the economies of scale that is reducing the cost of production and improve the profits of the enterprise.
· Diversifying production by introducing new products as a means of increasing incomes and improving food security is best.
· There is need for the workers to maintain a high level of hygiene conditions especially by using only portable water for cleaning and maintaining proper personal hygiene. Proper waste management is vital.
· Peanut butter should be periodically taken to food laboratories for analysis for the presence of salmonella and aflatoxins to ensure it is totally safe for human consumption.
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Ahmed Elmeleigy Yousef, Carolyn Carlstrom
H. Michael Wehr, Joseph F. Frank, American Public Health Association
James Monroe Jay, Martin J. Loessner, David Allen Golden
Ahmed Elmeleigy Yousef, Carolyn Carlstrom
H. Michael Wehr, Joseph F. Frank, American Public Health Association
James Monroe Jay, Martin J. Loessner, David Allen Golden