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| sales Assistant at the factory canteen |
Introduction
This
report presents the activities that have taken place during the third quarter
of this project implementation. It’s important to note that it has been yet
another learning experience while at the same time making important changes and
adjustments to ensure that the project continues and it is sustained.
During
this reporting period, the project has been making of bread and doughnut production.
We have been also involved in making new products namely cookies and market
expansion. This is aimed at ensuring that we make constant sales.
Activities
during the 3rd quarter
1. Making
of doughnuts and bread
2. Marketing
and distribution
3. Repaired
open spaces in order to retain enough heat in the factory. This was after
discovering that doughnuts had been not expanding as expected due to lack of
enough heat inside the factory. Open spaces were allowing in a lot of air
circulation making it difficult for the doughnuts to expand and be ready for
frying in time.
4. Mobilization of women and youth
and training them to get ready for credit. We shall implement this starting
January 2022
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| Formerly open spaces that have been closed with iron sheets to retain enough heat in the factory for proper doughnut expansion |
Results /changes observed
Increased
demand of our bread and doughnut products due to continued making and looking
for more buyers.
Challenges mitigation and recommendations
for improvement
1. COVID-19
second wave lock down; This has greatly affected our
ability to have enough market. This is due to continued closure of schools
which form the majority of our market.
2. Increasing
prices of inputs; This is becoming a serious
challenge. The government increased taxes on products including fuel. And once
fuel prices increased transportation costs for raw materials namely wheat,
cooking oil, sugar among others has been increasing since the beginning of
2021. For instance, a 50kg bag of wheat which was at 126,000 Ugx in June is now
at 137,000 Ugx, a 20 litre jerrican of cooking oil which was at 112,000 Ugx in
June is now at 141,000 Ugx.
3. Limited
capital; We have learnt that we need to have much more
wheat and cooking oil in stock to produce bread and doughnuts to satisfy local
needs. Enough stock of raw materials will enable us to produce more products
for more sales.
4. Limited
means of transport to promote sales. We are
still operating with 2 motorcycles. We suspended the use of motorvan due to
high cost of fuel prices.
5.
Increasing fuel prices
for motorcycles and the engine running the mixer. A litre of petrol was at
3400Ugx in June and now it is at 4500 Ugx due to increase in tax. This is
limiting our capacity to grow and make savings for growth.
Mitigation
In order to address the challenges faced during
this period, SORAK management has done the following;
1.
Kept
production and low levels until the business situation normalizes. This is
expected to happened when lockdown is lifted.
2.
SORAK
is trying to reduce on the size of products being made in order to remain
producing and meeting production costs.
3. SORAK is considering looking for more funds for more
inputs/ raw materials
Recommendations and next steps
Acquisition of better automated machines for baking
and heat production
1.
Acquisition
of good means of transportation to deliver our products in the market in a
timely manner
2.
Construction of
heating rooms to boast fast doughnut growth
3.
Expanding and
sustaining the market.
4.
Organizing
beneficiaries such as youth and women by informing micro credit opportunities
that they can take on.
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| Products in the factory canteen ready for sales |
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| Factory supervisor verifying quantities packed before delivery to the market. |
Click on the following link to view the previous reports↓↓↓
