1. Product Description: Confectionery is a general term which includes candy, gums, caramels, chocolate, and other sweets. Most confectionery products are made from sugar, liquid glucose, gums, starch, cereal flowers, flavoring agents and food colors.
Market Potential: The market for confectionery in Ethiopia is supplied from domestic production and imports. Between 1999 and 2004, average annual domestic production of confectionery (all candy) was 1346 tons. An equal amount of confectionery in the form of gums, chocolate and other types of sweets is assumed to have been imported every year. Confectionery production in the Amhara Region is confined to very small candy making units which cater to their respective narrow local markets. The quality of their products is much below that of any standard candy produced by modern candy factories. Much of the confectionery products consumed in the Region is either produced in other regions of the country or is imported from other countries. If we take consumption of candy from domestic production, the consumption share of the Amhara Region is about 350 tons per year. This consumption volume from domestic production alone can justify the establishment of a modern confectionery producing plant in the Region.
3 Raw Material: Almost all the raw material for confectionery making (except chocolate) will be obtained form domestic sources.
4 Process and Technology: For making hard candies the mixture of the main ingredients (sugar, glucose, citric acid powder, oil of lemon, color…) is cooked in open pans or a steam jacketed kettle. A temperature of 150-1600c is maintained during cooking. The cooked mixture is transferred quickly to an oiled water cooled table and mixed with coloring and flavoring agent. The material is now ready for moulding into desirable shape manually or automatically. The moulded product is air dried and the finished candies are than twist wrapped for sale. Main types of equipment of a confectionery plant which will produce all types of confectionery products include: powder mixing machine, sugar grinder, copper pan for sugar boiling, working tables, pedal press, automatic rotary machine with cutter revolving coating pan, roller and cutter, sizing machine, coal fired furnace and other accessories.
5 Estimated Investment: For a plant which will produce about 4000 kgs of confectionery per month, estimated investment will be the following:
§ Building 200 m2 at Birr 2000/m2 = Birr 400,000
§ Plant and Machinery = Birr 200,000
§ Working Capital = Birr 125,000
Total = Birr 725,000
6 Benefits: Saves foreign exchange and regional financial resources, introduces new skills and technology, creates demand for sugar which strengthens the need of establishing a sugar factory.
7 Location: Bahir Dar or any town which the investor prefers….