Establishment of a multipurpose cassava processing plant
Nigeria is about the largest producer of cassava in the world with annual production of over 40 million metric tonnes. Establishment of a multipurpose cassava processing center will no doubt enjoy good supply of raw materials. Currently, there is a glut in cassava production in Nigeria simply because of absence of adequate processing of the crop into many products. Establishment of this product will solve this problem. It will at the end of the day encourage farmers to cultivate more since they would have ready-made market for their crops: The implication of this is that there will be increased farm activities.
Recently, the Federal Government passed into law that 10 percent of composite flour used by bakers should be made of cassava. By this, the implication is that the demand for cassava flour in Nigeria is now in thousands of tonnes annually. This is to say that the proposed project is bound to enjoy tremendous patronage.
There is bound to be constantly demand for the products of this factory as it is multifarious in nature. Since there would be more than 3 products from the factory, we are sure of getting regular demand for any of the products daily.
Social and Economic benefits derivable from the project among others are employment generation, poverty alleviation, improved rural income, diversification of the economic base and optimal utilisation of resources.
To establish a multipurpose cassava processing centre, you will need to procure and install machines that will be able to produce cassava flour, cassava chips, starch, fufu powder and garri. Cassava chips can be sold to both local and international markets, starch can be sold to textile industries and other users of starch. Fufu powder and Garri are consumed locally and internationally as main source of energy providing food by Nigerians and Africans in general. Flour is also consumed by human beings or can be supplied to industries that utilize them to make biscuits and bread. Production process involves chipping, milling, rasping, dewatering, sieving, frying, drying and packaging. Each product has its own production process to follow.
Implementation procedure includes pre-investment activities, procurement of accommodation, installation of plant and machinery, recruitment and training of personnel, test running of equipment and commercial take-off.
An estimated sum of N11,750,000 will be required to establish the project. This is broken down as follows:
Accommodation (factory building) N3,500,000 (depending on location)
Plant and Machinery N5,000,000
Utilities (Generator- 30kva) N1,750,000
Working capital N1,000,000
The following profitability indicator have been computed:
Annual turnover: N95 million
Payback period: One year
Annual Profit after tax: N45 million
% Return on Investment Over 300 percent
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