Starting a Peanut Butter Manufacturing Business
by StartupBiz Global
Peanut butter is a highly nutritive product which is used as bread spread and added to food like rice, relish, smoothies, sauces, cookies and porridge. It’s high in proteins and contains low calories, thus it’s considered a healthy food. Peanut butter manufacturing is a very profitable business which can even been done at a small scale using little capital. Many entrepreneurs from all over the world are making money from peanut butter production business. This article will outline how to start the peanut butter business, and the peanut butter business plan – PDF, Word and Excel.
Peanut butter production is a lucrative business, providing income for millions of families, but there are some essential things you need to do before you venture into the peanut butter business. You have to decide on the size of your peanut butter manufacturing project i.e. the amount of peanut butter that you want to produce daily; location of the peanut butter manufacturing business e.g. a peanut butter plant/factory , and your target market. These choices will be affected by the amount of capital you have, and the size of your target market.
If you do not have a lot of capital, you can always start small and grow your peanut butter project overtime. You also need to carry out market research (Who are you going to sell the peanut butter to? At what price?) and write a peanut butter business plan before you start the peanut butter production project.
What You Will Need
For medium to large scale peanut butter manufacturing, there is need of finding industrial premises for the peanut butter plant. The premises should have sufficient electricity supply to power all the peanut butter machines. It is advisable to locate your peanut butter plant closer to the target market so as to minimise transport costs. Other factors which may determine the location include: proximity to raw materials, availability of affordable labour and electricity. Small scale peanut butter production can even be carried from residential premises.
Machinery & Equipment For a Peanut Butter Manufacturing Business
Peanut Butter is produced from peanuts/groundnuts. However, the shells of the peanuts need to be removed first. This is done using a Sheller Machine. Peanut shellers clean, shell and sort peanuts prior to further manufacturing process. A sheller is optional, as you can buy shelled peanuts/groundnuts instead of unshelled ones. The shelled groundnuts/peanuts will then have to be roasted. Roasting is a process by which heat is supplied to the groundnuts. This is done using a Roaster Machine. The roasted peanuts are then passed through a blancher machine which emoves the remaining outer skins of the peanuts that still remain after roasting.
The peanuts/groundnuts are then fed into a peanut butter grinding/milling machine. This the main machine needed for the peanut butter production business. It grinds the roasted groundnuts till smooth peanut butter is produced. After the peanut butter is produced, it will then be packed into the peanut butter jars using a peanut butter filling machine. So you need to also have peanut butter jars, which can be of different sizes to cater for different customer needs. The peanut butter jars will need to be labeled. This is usually done by self-adhesive paper which is printed and wrapped around the peanut butter jars. Your peanut butter business plan should take into account the costs of purchasing the machinery and equipment.
Raw Materials for Peanut Butter Production
The major raw material used to make peanut butter is peanuts/groundnuts. They are roasted and milled to produce peanut butter. The cost and quality of the groundnuts which you use play a significant role in determining the profitability and success of your peanut butter manufacturing business. Peanuts which are big are the ones which make good quality peanut butter. Before you start the peanut butter business, you should take into consideration the price of peanuts/groundnuts and the selling price of the peanut butter. If the groundnuts are too expensive, your business will encounter heavy losses. Our peanut butter production business plan comes with excel financial statements which will assist you in determining the profitability of the business, taking into consideration the price of the peanuts and other raw materials. Other raw materials include salt, emulsifier, stabilisers, additives, and sweeteners.
Factory workers are needed to carry out the actual production of peanut butter, acquiring the raw materials, operating the machines, and packing the peanut butter. Of importance is quality control: sorting and grading groundnuts/peanuts before and after roasting, as well as checking the quality of peanut butter produced. Employees are also needed for accounting, sales, marketing, logistics, supervisory and management roles. The number of employees you need will depend on the size of your peanut butter production business. Your peanut butter making business plan should take into account the costs of purchasing the machinery and equipment.
Capital for Peanut Butter Business
The amount of capital required for the peanut butter manufacturing business depends on the scale of the project. You can get a loan from the bank, or funding from investors, to use as capital to start your peanut butter production business. If you plan to raise capital from investors and a loan from the bank, you need a good peanut butter production business plan. If you don’t have access to investors and bank loan, you can use your personal savings and start small, and grow your business overtime. Peanut Butter business is very profitable, so if you reinvest the profits you get, you can quickly grow. Even if you are not planning to get a loan, you should still get a peanut butter business plan to guide you in starting and operating the business. It is essential for you to have a peanut butter manufacturing business plan before you venture into the business, so that you know all the costs involved and you make an informed decision.
The market for peanut butter is very huge and is ever increasing. Increasing working population, rising disposable income, rising demand for nutritious products, and rapid urbanisation, have resulted in increasing demand for peanut butter. You can supply your peanut butter to supermarkets, wholesalers, tuckshops, individual households, schools, restaurants & fast food outlets, companies, organisations and events etc. For large scale production of peanut butter, you can also end up exporting it to other countries. The peanut butter production business plan ought to include a proper marketing plan to use in your peanut butter business.
Pre-Written Peanut Butter Manufacturing Business Plan (PDF, Word & Excel)
For an in-depth analysis of the peanut butter production business, we encourage you to purchase our well-researched and comprehensive peanut butter manufacturing business plan. We introduced the business plans after discovering that many were venturing into the peanut butter making business without enough knowledge and understanding of how to run the business, lack of understanding of the financial side of the business, lack of understanding of : the industry, the risks involved , costs and profitability of the business; which often leads to disastrous losses.
The StartupBiz Global peanut butter manufacturing business plan will make it easier for you to launch and run your peanut butter production business successfully, fully knowing what you are going into, and what’s needed to succeed in the business. It will be easier to plan and budget as you will be aware of all the costs involved in setting up and running the peanut butter business. For uses of the peanut butter business plan and contents of the peanut butter business plan click here.
Click here to download the Contents Page of the Peanut Butter Manufacturing Business Plan (PDF)
You can find all the information and buy the plan on their website: startupbizglobal.com
Buying a Peanut Grinding Machine at Basils Business Opportunities
Basils Business Opportunities is located in Bloemfontein in South Africa. The peanut grinder that can process 30 kg per hour. This amazing cormall plate mill is able to mill virtually any product, including oily products such as peanuts for peanut butter. Maintenance running costs are extremely low. The fineness and coarseness of milling can easily be adjusted.
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Article Source: startupbizglobal.com
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