Processed Cheese Production by adding value to the local Hard and Semi-Hard Cheese to maximize opportunities
ByMUKAMWIZA Honoree, Bsc FSTManagingDirector Local Cheese Promotion Ltd
CHAP 1. BACKGROUND OF THE COMPANY
The background of the Local cheese Promotion Ltd is composed of the following:Business driversNature of the businessCapital investmentTarget marketTurnover
I. Business drivers
Cheese making in Rwanda is still at low and informallevelCheese processed in Rwanda get spoilt fast and this causes considerable losses to the processors.Lack of practical skillsand knowledgeforexisting cheeseprocessors.Small market for hard cheese on the Rwandan market.Employment opportunity to young people
II. Nature of the business
Local Cheese Promotion Ltd is an agro- processingcompany,It has the aim of processingLocal Gouda Cheese into a higher healthycheese.The nutritive values of our cheese are 28% fat, 14.5% proteins, 1.8% calcium and otherminerals.It iswell packed, ready to eat and with an extended shelf life.
III. Capital investment
Grant from Rwanda Innovation Endowment Fund (RIEF) of US $50,000equivalent to 31MRWFIt willbereceivedin 3installments and invested in three phases.Current investment in place isUS$30,000 (18M RWF)as first installment.
IV. Target market
Our target market is thedairy products consumers specifically cheese consumers who like medium fat cheese (KRAFT cheese)Super markets, restaurants and barsHotels, shopsand bakeries in Rwanda
The company’scurrent annualturnover is estimated to beUS$10,000 by processing 120kg per month.This turnover is expected to increase as the company grows and gets more markets as we have the capacity to produce 440kg per month and this could give annual turnoverofUS$35,000
CHAP 2.IMPACT AND SOCIAL BENEFITS
Asolution for dairy productsconsumers as our cheese isa fully natural, safe, nutritive and healthy product (28% fat, 14.5% proteins, 1.8% calcium and other minerals)extended shelf-life of 4monthsPackaged in an environmental friendly plastic material which facilitates transport and storage
Itis sold at an affordable priceof US$0.8/100gr comparedto the importedcheese which is sold at US$1.9/100grThecompany contributes to the capacity building of uncompetitive youth and fresh graduates lacking experience through provision of internshipWe provide regular market to local cheese producers.
The company has offered job to 7 young people.It is a model of small scale enterprises achieved by a young entrepreneurWe cooperate with the Ministry of Education in sensitizing the youth to join agri-business through different Radio and TV presentations
CHAP 3.CHALLENGES AND STRATEGIES TO OVERCOME
Lack of financial meansLike other young entrepreneurs, Local cheese promotion also facedthesamechallenge at the beginning which resulted in its closure for a couple of years (May 2012 to August 2013).To over come this we participated in competition by RwandaInnovation EndowmentFund(RIEF) and we won a grant of US$50,000
2. High cost and shortage of ElectricityandwaterAs solution to this, the company hasinstalleda water tank andis planning to install powergenerators.3. Lack of reliable market due Rwandancultural foodhabitsThe company has started a campaign to promote public awareness about the health benefits of processed cheese and this will eventually attract more consumers and hence increased market
4. Lack of strong property rights policyThis facilitates someone to copy your innovationTo reduce on this, the company will open a research and development department which will continuously introduce new products to always compete and sustain the market.
4.HOW TO ATTRACT AND RETAIN YOUTH IN AGRO-PROCESSING BUSINESS
With the partnership of all the stakeholders i.e. Government, youth, financial institutions and NGO’s the following can attract more:Providingentrepreneurship training to theyouthThey should be taught to do well presentable business plans to attract banks and all other funding institutionsThey should be guided and supervised on how to start smallscale business with low financialmeans
Different presentations and shows on Radios andTelevisions on agriculture should be reinforcedMore Seminars,agri-businessforums and business development centers should be organized and set up respectively.More Doing business reforms should be made to create a conducive environment for investors.
Morefunds should be allocated inagri-businessThe government of Rwandashould sensitizethe youthabout the opportunities in agri-businessBothuniversities and institutions should changestudent’s mindset.
THANK YOUFOR YOUR KIND ATTENTION.