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CIP • SOCIAL SCIENCES WORKING PAPER 2010-1
Table 20. Economic profitability of processing 100 kg of potatoes into chips in Rwanda.
Designation Unit Value (Frw)
Cost
Purchase of potato RWF 8000
Labor cost RWF 1000
Transportation RWF 200
Additives (cooking oil) RWF 11200
Total cost RWF 20400
Benefits
RWF
Sale of one kg of fried chips on average RWF 1500
Quantity of chips obtained from 100 kg of potatoes RWF 60
Gross benefits RWF 90000
Net benefit in local currency RWF 69600
Net benefit in hard currency USD 126.09
One USD = 552 FBU (2006).
4.5.5 Import and export status of frozen chips in ECA countries
Although domestic processing is the major source of chips in the ECA countries, limited quantity
of frozen chips is imported in Ethiopia, Kenya, Uganda and Tanzania from Europe and South
Africa. Companies import frozen chips and distribute to retail outlets, mainly higher star hotels
and supermarkets. In Ethiopia, very limited amounts of frozen chips, not exceeding 25 tons, is
imported from Europe (mainly from Belgium, Holland and Germany) each year to be used in only
two five-star hotels. However, no imported frozen chips is available in supermarkets or other
retail shops. In the case of Kenya, Uganda and Tanzania, relatively large quantities of frozen chips
are imported from South Africa and it is also easily available in big supermarkets, such as Uchumi
and Nakumatt in Kenya, Shoprite in Uganda and U-turn in Tanzania. For instance, only one
company in Tanzania imports about 73 tons of frozen chips per annum and distributes to hotels,
restaurants, supermarkets and fast food retail outlets. Importing will remain an important option
as far as there is no competitive enterprise in the ECA countries that can process and supply
quality and adequate amounts of frozen chips to domestic market in a sustainable manner.
Import of frozen potato chips is also a common experience of other ASARECA member countries,
such as Sudan. Processing and marketing of frozen French fries are not a strong practice in Sudan
and the domestic demand is almost entirely fulfilled by imports from Egypt, Saudi Arabia,
Malaysia and European countries (NL EVD International, 2009). It was also reported that Sudan is a
promising market potential for Frozen French fries as import is increasing from year to year.
Burundi and Rwanda did not import frozen chips at the time of this study (2005/06). Burundi,
rather, imports potatoes from Rwanda for chips processing. One hotel in Rwanda (Hotel des
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