The following table shows the calculation of fixed costs. Table 3. Fix costs # Products unit 1 Depreciation year Quan Tity 10 Price of equip ment, TJS 1000 Total, TJS Table 4. Net profit and payback period Total revenue per day Total variable costs per year Total fix costs per year 15000 6740 120 Total costs (total variab + total fix costs) 6860 Net profit per season (total costs – total revenue) 8140 (net prof/day / 4 monts) 2035 A simple economic calculation of the efficiency of breaking the pits and separating the kernels of apricots at home 100 Net profit per month 2 Other costs Total 1 20 20 120 According to the two tables above (Table No. 2 and No. 3), based on our above example, we have as variable costs such as purchase apricot pits, bags, transportation of apricot pits from the field or market and other costs (cleaning costs, repair of equipment, transportation costs to/from the market. etc.) To identify the costs, the quantity is multiplied by the price and thus, the total variable costs are 6740 somoni per season (year). As for the fixed costs, we have just depreciation and other costs. Depreciation is the deduction of part of the cost of assets (in our case, a apricot pit breaker) to compensate for their depreciation during their service life. To calculate, the purchase price of a pit breaker is divided by its service life, which in our case is 10 years and in total, as the table shows, it equals to 100 somoni per year. Taking into account 20 somoni additional other fixed costs we will have 120 somoni per year. Thus, summing up both variable and fixed costs per year, we can freely identify the total costs, which in our case is 6860 somoni per season (year). Taking in to account above results, it can be identified the net profit and the payback period of the business, which is showed in following table. (in case if household together with the family members will be engaged 4 months) Payback period days 15 As can be seen from the table above, the net profit per month is 2035 somoni, for which requires 4 months for one household per year, mainly during the autumn and winter time, for the entire process including marketing of ready products. This means that the investment in simple hand driven apricot pit breaker will pay back in 14 days. Taking into account the above figures, it can be concluded that the current business is considered costeffective and payable. 2023 Processing of apricot pits at home condition The apricot culture in Tajikistan is very ancient, dating back many years to the prehistoric era. Even before 1930, apricots were the main sugar substitute. The attention of the President of the Republic of Tajikistan Emomali Rahmon to the production of apricot gave impetus to the development of this crop. Today, almost all rural residents who live in the valleys have at least one apricot tree. This crop is an export crop. In addition, apricot kernels are also in great demand outside the country, and in order to prepare them for export, it is necessary to extract the apricot kernel from the pit. More than half of the kernel produced is made by hand. This activity is mainly carried out by women housewives in rural areas, and it is also a good source of income for them. To process apricot pits at home, existing household appliances are sufficient. But the purchase of simple hand driven equipment will increase labor productivity and thereby income. In the condition of households in Tajikistan that have and opportunity to be engaged or already doing this business, not everyone has such a manual driven apricot pit breaker. By purchasing this type of equipment and using it to process apricot pits, the family’s income can be increased. above, for processing apricot pits at home, purchasing a simple equipment will support to increase income. In our case, our investment is to purchase an apricot pit breaker, which is approximately 1000 somoni. We proceed from this amount for our further calculations. As mentioned already, on average, 1 household has at least one apricot tree, and the pit harvest from one tree is not sufficient for such a business. But an apricot pit can be gathered from the neighbors and neighboring villages as well as from dehkan farms for the small tips and\or cheap price. There is an opportunity to collect at least 2000 kg of apricot pits per season. It should be emphasized that extracting of apricot kernels from the pit is the sessional work, which is caried out during the winter-time when in rural areas there is almost no need for labor. Therefore this kind of business can be a good opportunity to be engaged with the business in a winter time. The economic calculation of all businesses begins with an idea and, of course, an initial investment. As mentioned Thus, 2000kg x 30% = 600 kg apricot kernels accordingly income: 600kg x 25 somoni = 15000 somoni. 3 To calculate total costs, it is necessary to determine all costs associated with processing. For all types of business, there are two types of costs that must be considered separately. First, variable costs are costs that are associated with the volume of production (costs of purchasing raw materials, water, etc.). Secondly, fixed costs are costs that do not depend on the production of products and the volume of processing. (depreciation, loan costs, etc.) Table 2 Variable costs Apricot pit Apricot pit shell Picture # 2. Raw material and ready product Calculation of economic efficiency of milk processing Available pits: 2000 kg Output of kernels: 30% The following two tables show example of calculations. Apricot kernels Picture # 1 Hand driven apricot pit breaker It can be assumed that one household collect 2000 kg of apricot kernel during the summer and autumn, which will be processed further and sold as kernel. According to people who are already involved in this business, the yield of kernels from an apricot pit is about 30%. Thus, the revenue will be as follow: The processing process involves breaking down the pits using equipment and separating the kernels from the shell by hand. After processing, the apricot shell and kernel remain. The shells are used as fuel to heat houses or cooking during winter and the kernels are sold on the local market in a higher price. # 1 2 3 4 Products Unit Quantity Apricot pits kg 2000 Bags piece 40 Transportation time 5 Other costs 1 Total Price, Total, TJS TJS 3 6000 1 40 100 500 200 200 6740
