Product: Commercially prepared bread is an everyday mass consumed food item. It is a convenient fast food consumed with popular meals like pasta or alone. Bread is prepared in bakeries and distributed to consumers in urban areas.
Rationale: Significant number of residents temporarily lives in many towns of the region. They consume food items that are prepared outside their homes like bread and pasta products. This is reflected in many restaurants in small towns. Other urban dwellers, like students want to have bread for breakfast and lunch time. Modern small bakeries in small towns of the region will cater to the need of the urban population.
Market Potential: There is an apparent need for convenient fast food like bread in most towns of the region. The number of people that eat outside their home in small restaurants are main customers of bread. In addition town dwellers also consume bread, particularly during break fast-time. The demand grows with the increase of the population in the urban areas.
Source of Raw Material: The main raw material for bread is wheat flour processed in near by flour mills.
Production Technology: Basically bread making involves the preparation and mixing of ingredient dough making, cutting, moulding and baking. Apart from baking, the other process can be performed manually.
Product Technology: The following baking machine and equipment are essential:
- Mixer (Electric) - Sieves
- Oven (Electric) - Metal Trays
- Roller - Scale
- Divider - Work table
- Mould - Bread boxes
Estimated Investment: For a bakery which will produce 1500 quintals of bread per year, the estimated investment will be:
- Building 200m2 at Birr 2000/m2 = Birr 400,000
- Plant and machinery = Birr 100,000
- Working capital = Birr 50,000
= Birr 550,000
Location: A modern small scale bakery has to be established in all small towns of the region.