Creation of an enterprise for packing natural honey,  capacity of 300 tons per year

Individual entrepreneur Horbonos Andrii, Founder of SpravdiMed TM
Investment amount, USD
Region Dnipro
Sector Food and processing industry
Location Dnipro
Opportunity joint venture; direct investment; credit financing
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Creation of an enterprise for packing natural honey,  capacity of 300 tons per year

The initiator of the project seeks to develop and expand its own production by acquiring the necessary equipment for packing honey. 

Currently, honey is packed in glass and plastic containers with subsequent sale to individual consumers in Ukraine (through social networks, advertising products, etc.) up to 5 tons of finished products per year. For this purpose honey is bought as traditional Ukrainian varieties – acacia, linden, sunflower, buckwheat, and author’s honey – “Amber potion”, “Carpathian power” with available certificates of origin and quality of honey. 

In order to increase the volume of honey packing it is planned to install the production line with the capacity up to 300 tons/year. Besides, the project provides creation of the line of unique method of honey packing “A drop of honey”. Now the industrial sample of honey packing container is already patented and includes packing not only honey, but also other products – sauces, jams, etc., including medicines – mixtures, powders, medicinal syrups, etc.

Project goals:

  • creation of an enterprise with a modern line for the preparation of blending and packaging of honey in containers of a wide range of nomenclature;
  • Supporting the domestic beekeeping industry by ordering honey of traditional varieties, which will create value-added chains, in particular, advanced processing of honey;
  • to provide the domestic and European markets with natural honey at competitive prices;
  • become a reliable source of filling the state budget of Ukraine with funds from taxes and export operations;
  • To create 10 workplaces.

Total project cost: $ 82 thousd.

  • Net Present Value (NPV) – $ 106 thousd
  • Profitability index (PI) – 2,5
  • Internal Rate of Return (IRR) – 125 %
  • Payback period (PP) – 3,5 years 
  • Project return on equity (ROE) – 127 %
  • EBITDA – $ 421 thousd

Duration: 12 months

Premises characteristics:

  • space area: up to 250 m², which includes a separate area of up to 50 m² for honey storage;
  • intended use: production of food products;
  • condition of the premises: in good working order;
  • disposer: the landlord is a legal person.

Engineering infrastructure:

  • electric power: city power networks
  • Water supply and sewage: centralized; 
  • gas supply: on the territory;
  • Heating system: electric;
  • Ventilation system: available.

Logistics infrastructure:

  • 100 m – territorial highway;
  • 500 m – national highway;
  • 500 m – railway station.

Initiator resources:

  • Premises up to 250 m²;
  • assortment of honey;
  • tare, packaging materials;
  • patented technology of production;
  • advertising materials, Internet resources;
  • human resources;
  • client base.

At the expense of the profit, there are plans to develop social projects:

  • “Ukrainian Clear Speeches” – creation of methodological materials for children with speech defects (disabilities) with their subsequent free transfer to specialized educational and training institutions;
  • “Honey Heart” – aimed at providing temporarily displaced persons from the war zones with the things of prime necessity and foodstuffs;
  • “Children’s Honey Hub” – children’s creativity center.

Required equipment for honey packaging according to the project:

  • packing and packaging unit – 2 pcs (with a capacity of up to 25 packs per minute);
  • batcher – 1 pc (up to 25 packs per minute)
  • mini table with dosing unit – 1 pc (up to 6 packs per minute);
  • honey dosing and pumping device (up to 27 packs per minute);
  • belt conveyor – 1 pc;
  • tables for working with food products – 3 pcs and chairs – 6 pcs.

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