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The Analysis of Investment and Profits of  Sweet Potato Starch Pruduction

The Analysis of Investment and Profits of Sweet Potato Starch Pruduction

The processing of sweet potato starch in 2019 has come to an end, and we have to have a reflection and expectations, whether the deal on production of sweet potato starch is good or not. Therefore the analysis of investment and profits of producing sweet potato starch could be a necessity. Hope to help you arrange sweet potato starch processing in 2020.Investment-and-Benefit-Analysis-of-Sweet-Potato-Starch-Processing-1.jpg

Here, we will analyze in respect of the automatic sweet potato starch production line, because of greatly varying ways of process in some small workshops and the hardly quantitative index. Take production of one ton dry starch in automatic sweet potato starch production line for example, cost structure are as follows:

1. Raw materials (sweet potatoes): 5 tons of sweet potatoes with market price of 0.7-0.8 per kilogram. Cost: 5000 kg × 0.7 yuan / kg = 3500 yuan

2. Water: The cost is 3 yuan per ton. 5 tons of sweet potatoes need  to be processed with 10-15 tons of water. Water fee: 10t × 3 yuan / t = 30 yuan.


3. Power consumption: 150-200 kw per hour, 0.5-1 yuan per degree. Electricity cost: 150 kw / h × 0.5 yuan / degree = 75 yuan. Notice: The cost of agricultural and industrial electricity are quite different.

4. Labor: 6 persons / time × 100 yuan / person =75 yuan

5. Direct production cost = raw materials + water cost + electricity cost + labor + fuel = 3680 yuan


6. Other costs: The  processing of sweet potato starch also requires fuel, it's up to you. Take coal as an example. To dry 1 ton of starch, 100 kg of coal is needed. One ton of coal is around  1,000 yuan, so the cost is 100 yuan. It is better to choose energy-saving and environmentally friendly materials. In addition, depreciation and taxes are calculated based on the actual situation of  locations where users are.


After analyzing the cost, it is profit needed to deal with. However, the price of starch varies from place to place, so do prices of retail and wholesale. Consequently, the profit should be based on the actual sales, and the net profit is the profit minus the cost.

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