Zimbabweans love peanut butter (dovi in shona, and idobi in Ndebele). Peanut butter in Zimbabwe is added to food like rice, relish, vegetables, bread and porridge. Peanut butter is delicious and loaded with nutrients and immense business potential. There is a high demand for peanut butter in Zimbabwe, and this is a viable business opportunity.
Before you start the peanut butter manufacturing business, you have to decide the scale of your production, business location, and your target market. The scale of your production will depend on the amount of capital you have, and also the size of your target market.Do not make the mistake of starting a peanut butter manufacturing business or any other business just because someone is doing it and he/she says it’s profitable. You should always carry out a feasibility study, market research and write a business plan before you venture into any business.This article will explain how to start a peanut butter manufacturing business in Zimbabwe and the peanut butter manufacturing business plan.
What you need
Peanut Butter Milling/Grinding Machine
You need a peanut butter grinding machine to process/mill the peanut butter. When purchasing a grinding machine, output size and the capacity of the machine has to be considered. Bigger machines are preferred because they have a higher output for example some produce 30kg per hour while others can go up to 80kg per hour, therefore size and scale of the operations will be a determining factor on the type and number of machines needed. It is advisable to purchase the grinding machine from big reputable engineering companies as they do offer after service and guarantees. Indigenous players also offer machines at affordable prices.
Peanut butter grinding machines can be bought from large engineering companies like Tanroy Engineering. The other source is from the indigenous entreprenuers, for example if you go to Magaba in Mbare, Harare, there will be plenty of the machines on sale. The prices of the peanut butter milling machines range from $300-$1000 if you are buying from the indigenous people, and above $1000 if you are purchasing from the engineering companies in Zimbabwe. The prices depend on the output capacity and electric motor type of the machine.
The groundnuts have to be roasted before you put them into the peanut butter milling machine. So there is need of purchasing a roaster, or you can use a microwave if you are doing it at a small scale. You can get the roaster from engineering companies or from the indigenous entrepreneurs. Some may opt to source unshelled groundnuts, and then shell them on their own. In that case there will be need of a groundnut sheller, which can be bought from from the local engineering companies . If you decide to source for shelled groundnuts, then there will be no need for you to buy the groundnut sheller.
You will also need to buy the containers for packing your peanut butter. Peanut butter is usually packed in 375 ml containers and 1 litre containers, though the 375ml containers are the most common. To make your peanut butter more marketable you will need branding. You will have to get a logo designed, and print the branding paper to wrap around the container, with information like the brand of the peanut butter (e.g Mama’s peanut butter), the volume of the peanut butter, ingredients, barcode etc.
Premises, Licencing and Labour
If you are producing peanut butter for your business at a large scale, you will have to find industrial premises for your peanut butter plant. The premises should have electricity supply to power the machines. You also have to get a business licence from the city council. The process of applying for the licence include first paying the administration fee at the city council offices, advertising your business in the daily newspaper, after which a health inspection team will come and take a look at your premises, and then you will be given a trading permit. If you operate without a licence, you will have a lot of trouble with the city council authorities, which will negatively affect your business.
You will need employees who will purchase the groundnuts, roast the groundnuts, operate the peanut butter milling machine, pack the peanut butter, and market your product. The number of employees you need will depend on the size of your business. You should train your employees so that they roast properly the groundnuts, process the peanut butter till it is smooth enough, and use the peanut butter milling machine properly.
This is one of the factors that determines the profitability of your peanut butter business. Are you able to get affordable groundnuts? Where are you planning to get your groundnuts from? Do they have good quality? You need big groundnuts in order to make good quality peanut butter. You can get the shelled groundnuts from market places like Mbare Musika in Harare. If you are going to make peanut butter at a large scale in Zimbabwe, it will be better for you to buy your groundnuts directly from the farmers, so that you increase the profitability by removing the middle man. Buying groundnuts from market places like Mbare Musika is more expensive, and will reduce your profitability.
Major local sources of groundnuts in Zimbabwe are Murehwa, Mutoko and Buhera. So you can make arrangements with farmers to buy the groundnuts in bulky. The groundnuts you buy can be shelled or unshelled. If you buy unshelled ones, you will have to shell them using a groundnut sheller. Groundnuts can also be imported from Zambia and Malawi.
What is your target market? How are you going to price the peanut butter? How are you going to market your peanut butter? Peanut butter in Zimbabwe is usually sold in 375ml bottles. If you are making peanut butter at a small scale, eg at your house, you can market it by placing a ‘Peanut Butter for sale’ sign at your gate. The price of this type of peanut butter is $1 and it does not need to be branded. You may supply your peanut butter at wholesale prices to vendors in your local neighbourhood, and in market places like Mbare Musika. This type of peanut butter is also not usually branded.
If you want to be really profitable in your peanut butter business, you will have produce peanut butter at a large scale, and target the wholesalers, supermarkets and organisations. You will have to brand your peanut butter, and obtain a barcode for your peanut butter. Supermarkets sell peanut butter at an average price of $1.50-$1.80 per 375ml bottle.
Pre-Written Peanut Butter Manufacturing Business Plan (PDF, Word And Excel) : Comprehensive Version, Short Bank Loan Version, Automated Excel Financial Statements
For an in-depth analysis of the peanut butter manufacturing business in Zimbabwe, purchase our peanut butter manufacturing business plan. We decided to introduce the business plans after noting that many Zimbabweans were venturing into the peanut butter manufacturing business without a full understanding of the industry, market, how to run the business, the risks involved, profitability of the business and the costs involved, leading to a high failure rate of their businesses.
Our business plan will make it easier for you to launch and run a peanut butter milling 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 the peanut butter business plan will lay out all the costs involved in setting up and running the peanut butter manufacturing operation. The business plan is designed uniquely for the Zimbabwean market.
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Uses of the Peanut Butter Production Business Plan (PDF, Word And Excel)
The peanut butter production business plan can be used for many purposes including:
- Raising capital from investors/friends/relatives
- Applying for a bank loan
- Start-up guide to launch your peanut butter production business
- As a peanut butter project proposal
- Assessing profitability of the peanut butter manufacturing business
- Finding a business partner
- Assessing the initial start-up costs so that you know how much to save
- Manual for current business owners to help in business and strategy formulation
Contents of the Peanut Butter Manufacturing Business Plan (PDF, Word And Excel)
The business plan includes, but not limited to:
- Market Analysis
- Industry Analysis
- Automated Financial Statements (income statements, cash flow statements, balance sheets, break even analysis, loan repayment calculations, start-up costs)
- Marketing Strategy
- Risk Analysis
- SWOT & PEST Analysis
- Operational Requirements (e.g. type of machinery, type and quantities of inputs required e.t.c.)
- Operational Strategy
- Why some Zimbabweans in the peanut butter manufacturing business fail, so that you can avoid their mistakes
- Ways to raise capital to start your peanut butter business in Zimbabwe
The peanut butter manufacturing business plan includes includes a mini-directory with contacts which will prove to be helpful in launching and running your peanut butter production business. E.g. We will provide the contact details of the companies that sell peanut butter machines e.t.c.
The Pre-written peanut butter manufacturing business plan package consist of 4 files
- Peanut Butter Manufacturing Business Plan – PDF file (Comprehensive – 62 pages)
- Peanut Butter Manufacturing Business Plan – Editable Word File (Comprehensive – 62 pages)
- Peanut Butter Manufacturing Business Plan – Editable Word File (Short version for applying for a loan – 36 pages)
- Peanut Butter Manufacturing Business Plan Automated Financial Statements – (Editable Excel file)
Business plan last updated in August 2018.
The financial statements are automated. This implies that you can change eg the amount of peanut butter produced daily, the price of peanut butter etc, and all the other financial statements will automatically adjust to reflect the change.
Get the Peanut Butter Manufacturing Business Plan (PDF, Word And Excel)
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