REVOLUTIONALIZING CASH CROP PRODUCTION THROUGH INTEGRATION, MECHANIZATION AND PROCESSING OF THE WHOLE VALUE CHAIN-MANGO PULP, MANGO NECTAR, CASHEW FRUITS, NUT AND NECTAR. This write up summarizes the feasibility, viability and job creation potentials of establishing Mango pulp/nectar production factories in Okigwe Zone/Isukwuato/Umunneochi Area. It begins with a brief overview of the international markets for Mango pulp. It then describes the processing steps and equipment required to establish a Mango pulp production facility and discusses packaging options for both bulk Mango pulp and fruit juice nectar in pouches. Finally, it offers a brief financial analysis for both the Mango pulp line (including optimistic and pessimistic scenarios) and a Mango pulp line coupled with a nectar packaging operation. The market for Mango pulp has been growing steadily since the 1990s and this trend is expected to continue. India is the largest grower of the most widely recognized variety of Mango (Alphonso) used in pulp manufacture. The country also dominates the world market for Mango pulp with over 113,000 MT of production and a 67% share of world exports. The largest share of Mango pulp (25%) goes to the Middle East, followed by Southeast Asia and North America. The European Union buys relatively small quantities, just 4% of world exports. Mangoes are a major crop in Okigwe Zone/Isukwuato/Umunneochi i Area. It is estimated that the current mango fruits production in Nigeria is at 850,000MT per annum. If we extend our markets for raw materials (mango feedstock) across the neighboring towns of, Ogwu, Enugu and Obolafo axis with huge mango resources that are wasted we would have at least 20% of the raw mango materials needed for the production plant, which will also assist to create extended jobs for our neigbours (Ndi Igbo Ibe anyi), which will translate to production of about 170,000 MT of raw mango fruits per annum, albeit much of that total includes less popular varieties of the fruit. If we just limit our market for Fresh Mango fruit within the Okigwe Zone/Isukwuato/Umunneochi axis, spanning just a radius of about 40 square kilometer, we would have a supply market of fresh mango fruit of about 85,000MT per annum (5% of National supply size) There is very little value addition to the Mango crop. Okigwe Zone /Isukwuato/Umunneochi Area produces no Mango pulp and exports nothing of its fresh Mangoes and the prices for fresh Mangoes in the local Okigwe Zone/Isukwuato/Umunneochi Area markets during the high season are barely remunerative. Mango pulp production is possible in Okigwe Zone /Isukwuato/Umunneochi Area. The process is relatively simple, involving seven basic steps; washing, destoning, thermal treatment, homogenization, deaeration, pasteurization and packaging. Packaging is typically done aseptically and the equipment for packaging represents one of the primary investment costs. It is possible to set up a turnkey Mango pulp production line in Okigwe/Isukwuato/Umunneochi Area with a 2.5 MT fresh-fruit-per-hour capacity for approximately $840,000. Based on the supply of mango fruits production available in this localities, we can actually establish 10 units of such production facilities within the 8 Local governments that comprises of Isukwuato, Umunneochi, Okigwe, Onuimo, Obowo, Isiala Mbano, Ehime Mbano and Ihitte Uboma, to spread the economy and job created amongst the constituents that we represent at total cost of USD8.4million/N1.3billion under a Private Public Partnership initiatives counter funded by credible development financial institutions –USAID, DFID, CDC etc. Such facilities are very profitable and can generate annual profits of between $2,500,000 - $4,500,000andN405-N729million per annum, while creating over 30,000 direct and indirect jobs through the whole value chain, from cash cropping to plant processing. This revenue of N729million per annum by the processing plants excludes the sum of between USD85million-USD102million/N13.77billion- N16.5billion in revenue that will be generated along the raw material (Mango Fresh fruit supply chain), from the plantation farmers, to middle men buyers to the processing plant. It is also technically and financial feasible to add a hot fill nectar packaging line to the Mango pulp facility. The end product of this line would be 200ml pouches of Mango nectar. The additional investment costs for the pouch filling line are estimated at $3,850,000 for the ten facilities. The price point of the product in the local market is seen to be the major determinant of success for the operation. Kindly note that the Cost of 200ml of Chivita Mango Juice is about N200 per 200ml. The same for other range of Nectar Mango Juice product in the open market in our super markets. At a projected whole sale selling price of (US$0.42/N68.00) per 200ml pouch, and possible retail price of (US$0.60/N98). At this price, the product will be accessible to the mass market while also producing a reasonable profit margin for the company. This additional processing line to the last end products in the value chain will increase the revenue available to the production plants in the region of between N1.2b-N1.5billion per annum with great rooms for further massive expansions. Imagine the addition revenues that will accrue to the government by way of all manner of production and consumption taxes. This same production line and value chain will be replicated for our other major cash crop, the almighty CASHEW NUTS AND FRUITS. In conclusion, with the world market for Mango pulp/CASHEW NUTS/FRUITS is expected to continue its growth and there is an excellent potential nectar market in Okigwe/Isukwuato/Umunneochi Area, South East, Nigeria and the West Africa sub-region. Therefore, the integrated Mango pulp and nectar production line is considered a good investment for Okigwe/Isukwuato/Umunneochi Area. Just do a little study of the kind of profits being declared annually by the Lebanese that produces the Chivita range of products and you will appreciate the potentials of what we plan to do. How are we going to finance the promoters seed capital of 20% of the total production cost that will attract the counterpart funding of the 80% from the Global DFI’s in line with the UN MDG 2015? This is my area of specialty as a globally renowned Financial Engineer that has been involved in capital raising of over N500billion for governments and corporates within and outside Nigeria over the last decade. I have already pledged that the salaries that will be due to me as a Senator of the Federal Republic of Nigeria representing Okigwe Zone, 2015-2019, would be directly debited into a specially designed Ring Fenced Trust Fund for the benefit of the Youths and women of Okigwe Zone. I will arrange a futures collection, direct debit and domiciliation arrangement between the NASS admin office and some of the credible local banks that will serve as agent bank to the project. The average income of about N160million per annum, coupled with the proprietary investments from my flagship company, Taurus Capital & Advisory Services Limited and other interested investors that may desire to reap from the wind fall that will come from this very profitable venture will take care of that. We would attract the best and the classiest of the global investment community to come to our constituencies and establish these plants under a turn key arrangement. This is just one out of the 7 programmes and schemes outside our normal legislative works that we have lined up to make our constituents leap for joy because Daniels have gone to the National Assembly to represent them. As the days unfold, we would document in readable brochure and upload in our websites clearly defined timelines, strategic and tactical work plans and deliverables, which will provide a clear guide/road map to our people to measure our performances and grade us. We bring to the table New Ideas, New Thinking, New Ways of Representations never seen before in this clime. Representations built on strong erudition, credibility, capacity, unquestionable competences, genuine scholarship and impeachable character. We present to you representations not based on grandstanding and empty political promises, but one that will arm you with clear and measurable promises that will enable you develop a governance and representative marking schemes that even a kindergarten can interpret and examine us whether we pass or fail. Support the New Wind of Positive Change. Support this emerging team of volunteer change agents. Youths Preserve Your Tomorrow. Register, Support, Vote and Project, Ikuku Oma Okigwe. Embrace the All Progressives Grand Alliance (APGA), Anyi Agaba! Onye Aghala Nwanne Ya. Aka Chukwu Di ya. Dr. Nnaemeka Onyeka Obiaraeri, MRA, FICA. #MostDistinguishSenator, Okigwe Zone, 2015-2019 (APGA)
Posted on: Wed, 20 Aug 2014 22:58:37 +0000
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