Starting a Business in Banana Chips Processing

Banana chips are under-ripe bananas that am cut into slices, dipped in syrup solution, dried under the sun or by artificial means, fried and eaten as snack food or dessert. These can be sold both in the local and export markets.

Estimated Investment Costs (Php based on 2009 prices)

a. Utensils and Equipments:

  • Slicing knife  –  100.00
  • Chopping board  –  100.00
  • Plastic bucket for soaking –   50.00
  • Plastic sieve for draining –   30.00
  • Frying pan/wok  –  500.00
  • Frying mesh basket –   100.00
  • Weighing scale  –  300.00
  • Bag sealer  –  300.00
  • 5 pcs drying tray (bilao) @ 80.00/each – 400.00

b. Ingredients:

  • 100 pcs Under-ripe green bananas @ 3.50/pc –  350
  • 2 kg Brown sugar @ 30.00/kg –  60.00
  • 1 bottle Honey  –  150.00
  • 50 pcs Lemon @ 50/pc  –  25.00
  • 5 bottles Cooking oil @ 15.00/bottle –   75.00

c. Packaging:

  • 50pcs [email protected]/pc (for packaging)    100.00

d. Others:

  • Cooking gas  –  550.00
  • Electricity  –  2110
  • Water  –  8.45
  • Labor Cost –   285.00
  • Transportation cost –   100.00

Estimated Total Investment Costs  –  P3,604.55

Procedure

  1. Peel under-ripe green bananas and evenly slice crosswise into 5-8 mm thick. Saba, latundan or lakatan varieties may be used as raw material.
  2. Immediately soak the sliced banana chips into citric acid solution (made by mixing 1 part lemon juice with 2-3 parts water) for 3-5 minutes to prevent them from turning brown. Note: Solution can be used twice.
  3. Drain chips from the solution using plastic sieve.
  4. Dip the drained chips in syrup solution (done by mixing 1 cup of sugar with 3 cups of boiling water and adding 1 cup of honey) for 3-5 minutes.
  5. Drain the chips from syrup solution and place them in drying tray.
  6. Let the chips dry under the sun for 2 days until texture becomes rubbery soft.
  7. Heat vegetable oil in the frying pan to 180°C – 200°C degrees Celsius and dip the chips until they turn golden brown.
  8. Drain the oil from the chips and allow to cool to room temperature.
  9. Place the chips in moisture-proof polyethylene bags, label, and seal the bags. Place them in a cool place away from direct sunlight.
  10. Banana chips are now ready for market

Estimated Costing and Pricing

  • A. Direct cost (ingredients, gas, electricity, water) – 836.22
  • B. Indirect cost (utensils, equipments) – 390.15
  • C. Total production cost (A+B) – 1,226.37
  • D. Product pricing (C+10% markup) – 1,349.01
  • Estimated selling price/pack (D/50 packs of 100 gm per pack) – P26.98

Assumption: 100 pieces bananas of about 10 kg can produce 5 kgs of fried banana chips, which yield 50 packs.

Registration Requirements

  • Business name registration (www.bnrs.dti.gov.ph)
  • Mayor’s/Business Permit (check your local municipality/city)
  • BIR TIN (www.bir.gov.ph)
  • BFAD Certificate (www.bfad.gov.ph)

Financing Facility

  • People’s Credit and Finance Corp (www.pcfc.gov.ph)
  • Small Business Corp. ([02] 751-1888)

Technical Assistance (Training and Seminar)

  • DOST-STII ([02] 837-2191 to 95, www.stii.dost.gov.ph)

source: dti.gov.ph, photo from bignutco.com

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