Production of Cassava Chips, Pellets for Exports By Godwin Uba The purpose of this write-up is to educate/enlighten Nigerians and potential investors on the commercial viability of cassava chips and pellets production for export. The Federal Government of Nigeria has in recent times taken a number of bold steps to encourage the exportation of Nigerian products in order to enhance the nation’s foreign exchange revenue and discourage over reliance on petroleum products export as the main source of earning foreign exchange. Nigeria is the third world’s largest producer of cassava tubers after Zaire and Brazil, with total annual output of over 18 million metric tonnes per annum. There has also been an improvement in cassava varieties in Nigeria which has led to this phenomenal growth in its production. Cassava chips and pellets are the acceptable form through which cassava can be exported. Cassava chips/Pellets are used in producing Ethanol, Glucose, Flour, Livestock feed, Starch, Biscuits, Bread, Adhesives etc. The demand for cassava chips and pellets is worldwide. The first large scale commercial user of cassava chips as a livestock farmers of the United Kingdom; the Federal Republic of Germany (FRG), Netherlands and France. The products are also widely demanded in Taiwan, Asia and USA. The local market demand is also very encouraging. Research findings indicated that demands for cassava chips and pellets are as high as over 10 million metric tonnes annually. Supply of the product on the other hand is inadequate and falls short of the above demand figure. This is because there are very few companies producing these products in Nigeria and world-wide presently. Precisely, supply of cassava chips and pellets is just 30 per cent of the total demand. In 2009 ending, a shortfall in the supply of 10.5 million tonnes existed and this increased to 12.6 million as at mid 2010. The figure has doubled in the year 2012 and bound to increase further as demand increases everyday all over the world. This points to the fact that there is large opportunity existing in the industry for wise investors. The demand for cassava chips/pellets is intensified in Nigeria as a result of the Government directive to Flour Millers of increasing the application of cassava flour from 10 per cent to 20 per cent, and cassava chips/pellets is the main raw materials for producing of cassava flour. The main machinery/ equipment required for this project consists of Cassava peeling machine, Automatic Washing machine, Cassava grater, Motorised machine, Grinding and dryer, Automatic chipping system machine, Automatic pelleting machine, Weighing scales, Washing tanks and Packaging bags. The only raw materials are cassava tubers (which is 100 per cent available and abundantly found in the country) and water. The required machinery for this project is locally available. The spare parts can also be procured locally. We provide the required plants and machinery with guaranteed after-sales- services. The normal capacity of the plant is over five tonnes of chip per day and five tonnes of pellet per day in one shift of eight hours. The plant will at full capacity process 1,500 tonnes of chips and pellets per annum, working for 300 days in a year. FINANCIAL PROJECTIONS (N’000) Pre-Investments 100 Space Rentage (variable) 350 Plants & Machinery 2,000 Fixtures & Fittings 100 Working Capitals 1,800 Utilities 500 Contingency 250 N5,100 It is important to mention that this project can be sited in any part of the country preferably where accessibility of cassava is assured. The production process is very simple. The raw cassava tubers are automatically peeled, washed and then followed by chipping or pelleting and drying to required moisture level. Weighing and bagging complete the processing. The finished product can be bagged in 50kg jute bag. Since the products are always demanded in metric tonnes by the end user, it is advisable to package as such. The packaging materials are 100 per cent locally available. The international prices of chips & pellets fluctuate between $1,200 and $1,300 per metric tonne. It should be noted that this price keeps on fluctuating. It is pertinent to mention that it is very important to adhere strictly to the international standard. Failure to do so may result to rejection of the processed products by foreign buyers. Locally, it is sold for N120,000 per tonne mostly by cassava flour producing plants, who in turn sell to Flour Millers in Nigeria. Since the machine will process 1,500 tonnes of pellets and chips per annum, working for 300 days, the total sales revenue is $93.6 million from which total inputs of N5.10 million is deducted, thus realising a gross profit of N88.5 million in the first year of operation. In conclusion, this project has been found to be socially desirable, economically worthwhile, technically feasible and highly profitable. Detailed information on the project in the areas of comprehensive & Bankable feasibility studies/ Reports, Export information’s in respect of foreign buyers and international standard required, Procurement & Installations of the machines, packaging requirements etc are available on demand. thisdaylive/articles/production-of-cassava-chips-pellets-for-exports/148037/
Posted on: Mon, 29 Jul 2013 14:25:35 +0000
Trending Topics
Recently Viewed Topics
© 2015