In trying to address government’s quest to promote industrialization, processing of Soya beans into flour is one of those investment ideas that have been identified as profitable by Uganda Investment Authority (UIA).
Soya bean, the raw material used in the production of the flour, can be got across the country but particularly in the districts of Pallisa, Soroti and Kumi where it’s widely grown on commercial basis.
Investment
According to Mr John Musajjakawa, senior investment officer at the UIA, a project such as this could be set up as a one integrated unit or a cluster of small units.
“The capital investment for the proposed product mix is estimated at $11,020 (Shs39 million),” he shared.
He adds that once this plant starts operating with raw materials available, it will be able to process up to 1 tonne (1,000 kilograms) of Soya flour per day. This translates into 30 tonnes of Soya beans per month that is required.
Mr Musajjakawa shares: “This idea is estimated to yield annual revenue of $312,000 (Shs1.1b) with a net profit margin of 36 per cent and a payback period of four months.”
Market
Apart from being a source of edible oil, Soya is rich in proteins, and the defatted or whole Soya is used to make innumerable products such as Soya milk, Soya flour, Soya coffee and nugget.
The potential markets for Soya flour are in the school feeding programs and social welfare feeding programs, confectionery industries, baking industries for nuggets and chunks manufacturing as a supplement for wheat flour.
These products have gained consumer acceptance and the market continues to grow.
Mr Musajjakawa says: “There are several government programs through which finances are allocated to the agro-processing industries and provide technical support.”
He said this is aimed at promoting industrialization which then creates jobs for the people.
However, Ushs.39million is required as minimum investment capital for a soya flour processing factory to be able to produce at least one tonnes of the flour per day.
(Daily Monitor Uganda)
