Kava making activity

Presentation 

Channavva Somappa Kurabar, client of Chaitanya, is living in the village of K.K. Koppa

She is doing the kava making activity with the help of her grandmother only since she lost her husband, and  is also working in Anganwadi as a school helper.                        

They are 30 other families involved in this business in her village, and they have been doing it for the past 80 years.            

Production steps

To make kava they boil some milk, using firewood, and stir it regularly for 5 hours off season to produce around 12kg. This corresponds to their daily activity off season. Then they sell it to the Belgaum market at the end of the day.

The conditions of production are quite exhausting, especially due to the heat.  

It is used to make final products such as peda (picture on the left), kunda and jamun (on the right) :

Economics of the activity

50 litters of milk, at 35 rupees the litter, are required to produce 12kg of kava. The costs of this activity are, daily and off season: 50 litters of milk at 35 rupees the litter, so 1750 rupees. And 200 rupees of firewood. Which makes 1950 of cost per day.    

           

Since they sell each kilograms 180 to 200 rupees, if with take the average of 190, we find that they make every day around 2280 rupees of sales off season.

This daily revenues and costs can be turned into a monthly profit. Multiplying by 30, we get a revenue of 68400 and a cost of 58500 rs, to which we have to add the use of the tools. Indeed, they use a big bowl and a stick, which they change every 3 years and cost respectively 3000 and 500 rs. So we have to add monthly 100 of cost to take that into account, getting then a total cost of 58600. The monthly off season profit is then of 9800 rupees. 

During the season, they double their output, producing around 24kg per day. The daily costs and revenues are then doubled: 3900 of cost and 4560 of revenue. Monthly, we have a profit of 19700 rupees. 

Yearly then, the profit is of 9800*8 + 19700*4 = 157 200. 

But it is not their only source of revenues: they get 2500 per month as a helper and 500 of pension so 7200 per month of total income. 

Per year then, when we add up all the revenues it makes in total around 243 6000 rupees.

The 25000 rupees loan taken in May 2015 was used to buy the milk and firewood in advance. This isa common need for loans in many activities.