This document proposes producing a sweet potato pudding product. It would complement an existing sweet potato fry line and use potatoes more quickly, saving on storage costs. A small-scale operation producing 1,000 cups/hour would cost $665,000, while a large-scale operation producing 10,000 cups/hour would cost $6.65 million. Capital costs, operational costs, profits, and payback periods are estimated for each option. The proposal includes process flow charts, timelines, budgets and financial projections.

1. Sweet Potato
Pudding
Heather Carbon
Fall 2017 Proposal

2. Why Should We Implement This Product?
 Sweet Potatoes are rising in popularity
 The product would complement our existing
Sweet Potato French Fry Line
 Save on storage costs for sweet potatoes currently
used for the fries since we would be using them
faster

3. Two Options for the Scale of Operation
Option 1: Small-
Scale Operation
Produces 1,000
cups per hour
Costs $665,000 in
capital costs to
begin production
Option 2: Large-
Scale Operation
Produces 10,000
cups per hour
Costs $6,650,000 in
capital costs to
begin production

4. Receive Raw
Potatoes
Rock Trap Raw Blending Steam Peeler
Wash, Trim,
and Inspect
Preheat
Potatoes
Cut PotatoesBlanching
Addition of
Other
Ingredients
Mixing
Heat
Exchanger
(Kill Step)
Aseptic
Filling
Cold StorageShipping
Flow Chart of the Process Line
(Where
separate
line
begins)

5. Timeline of
the Process Jan. 1 2018
Purchasing
Equipment
Feb. 15
The installation
period
June 16
Test batches ran
July 1
Validation of the
process line
Aug. 1 2018
Production
Begins

6. Capital Costs:
Heat Exchange System: $10,000
Mixer: $20,000
Aseptic Filling Machine: $125,000
Installation: $10,000
Facility modification: $500,000
($5,000,000 for large scale)
Total: $665,000 (or $6,650,000
for a large-scale operation – 10 of
each)
Budget

7. Budget
Operational Costs: (cost per unit produced)
Energy: $0.0468 per killowatthour (U.S. EIA 2017) - $6,000 annually = <$0.01 per cup
Maintenance: $20,000 annually = $0.01 per cup
Labor: $184,320 annually (4 workers @ $12.00/hr) = $0.02 per cup
Ingredients:
Sweet Potatoes (from French fry line): $0.79/lb = $0.19 per cup
Maple syrup: $1.98/lb = $0.02 per cup
Sea salt: $0.55/lb = <$0.01 per cup
Vanilla Extract: $5.37/lb = $0.02 per cup
Condensed Coconut milk: $5.84/lb = $0.29 per cup
Packaging costs: $0.71 per unit
Total: $1.28 per cup (Total operational costs)

8. Profits and Investments to Consider
 Product Selling Price (per unit): $1.59 per cup = $0.31 profit per cup
 Annual profit: $1,343,800 for the small-scale processing line
$13,438,000 for the large-scale processing line
 Sweet Potato French Fry Selling Price: $2.78 - $2.50 (Cost to produce) =
$0.28 profit per bag
 Time to recover profit for both large-scale and small scale lines: 120 days

9. Questions?

10. Works Cited
 Naeve L (2015) Sweet Potatoes. In: Ag Marketing Resource
Center. https://www.agmrc.org/commodities-
products/vegetables/sweet-potatoes/. Accessed 1 Nov 2017
 U.S. EIA (2017) U.S. Energy Information Administration - EIA -
Independent Statistics and Analysis. In: EIA - Electricity Data.
https://www.eia.gov/electricity/monthly/epm_table_grapher.p
hp?t=epmt_5_6_a. Accessed 1 Nov 2017