Flour
At 33% capacity utilisation, the flour milling industry requires about 200,000mt of cassava flour per annum. This will require 200 plants of about 1000t capacity per year. This is a business opportunity for investors and agro processors. A 1000t per annum output plant is considered a small-scale plant. There are also higher capacity plants especially flash dryers that can be imported from Brazil and other countries. Nothing stops investors with means to put up large-scale plants (of 2000 to 10,000t/day). But there are obvious supply chain problems for very large-scale HQCF plants. For equity reasons small-scale plants of 1000t per annum may be more appropriate. There is local capacity for the development of small-scale plants in Nigeria using locally fabricated machinery. Machinery can also be imported. High quality cassava flour can also be produced at the micro level (i.e. 100t/year output). Following is an investment profile for both levels of investment with options for imported equipment in the case of a small-scale plant.
Investment profile for small scale odorless cassava fufu flour plant
Installed capacity:
2 t/day
Conversion factor: 30%
Market price packaged fufu N180/kg
Estimated Internal rate of return: 24%
| Items | Unit |
Unit
Price |
Total
Cost |
Useful life years |
Depreciation
(N/year) |
| Hammer mill with 7.2 hp petrol engine | 1 |
180000 |
180000 |
10 |
18,000 |
| Motorised grater stainless steel with 6 hp diesel engine & accessories | 1 |
80000 |
120000 |
10 |
12,000 |
| Extra grating sheets | 12 |
3000 |
36000 |
10 |
3,600 |
| Motorised chipping machine in stainless material with 2 hp engine | 1 |
60000 |
60000 |
10 |
6,000 |
| Rotary Dryer | 2 |
450000 |
900000 |
10 |
90,000 |
| Packaging/sealing machine | 2 |
5000 |
10000 |
10 |
1,000 |
| Packaging materia | 100,000 |
10 |
0 |
||
| Weighing scale 200kg capacity | 2 |
170000 |
170000 |
10 |
17,000 |
| Sensitive weighing scale 5kg capacity | 2 |
5000 |
10000 |
10 |
1,000 |
| Installation costs | 150000 |
10 |
0 |
||
| Water supply | 520000 |
20 |
26,000 |
||
| Double screw press | 2 |
65000 |
130000 |
10 |
13,000 |
| Building and land costs | 6000000 |
20 |
300,000 |
||
| Total | 8386000 |
487,600 |
Investment profile for small scale high quality cassava flour plant
Locally
sourced flash dryer |
Imported
flash dryer |
|
| Capacity | 3.5t/day |
6.0t/day |
| Output per annum | 980t |
1680t |
| Price (Naira/t) in year 2005 | 75000 |
75000 |
| Conversion factor | 04:01 |
04:01 |
| Number of working days | 280 |
280 |
| Raw material required/annum | 3920t |
6720t |
| Fixed cost items | ||
| Grater (2t/hr) | 190,000 |
190,000 |
| Hydraulic Press (500kg/hr) | 400,000 |
400,000 |
| Flash dryer 3.5t/day output (or 6t/day for import option)* | 3,000,000 |
8,500,000 |
| Hammer Mill | 150,000 |
150,000 |
| Pneumatic sieve | 180,000 |
180,000 |
| Bag sewing machine | 55,000 |
55,000 |
| Water borehole | 500,000 |
500,000 |
| Processing building | 5,000,000 |
5,000,000 |
| Weighing Scale | 25,000 |
25,000 |
| Installation & other expenses @15% | 600,000 |
1,500,000 |
| Interest on capital @ 22.5% | 2,252,250 |
3,712,500 |
| Total cost | 12,352,250 |
20,212,500 |
* Cost for imported flash dryer includes shipping cost.
Investment profile for micro processing high quality cassava flour plant
| Option 1 | Option 2 | |
| Capacity | 400kg/day | 400kg/day |
| Output per annum | 112t/annum | 112t/annum |
| Price (Naira/t) | 75000 | 75000 |
| Number of working days | 280 | 280 |
| Conversion factor | 4:01 | 4:01 |
| Raw material required/annum | 448t | 448t |
| Fixed Cost | ||
| Grater | 40,000 | 40,000 |
| Press | 25,000 | 25,000 |
| Rotary dryer 400kg/day output | 400,000 | 400,000 |
| Mechanical sieve | 20,000 | 20,000 |
| Bag sewing machine | 55,000 | 55,000 |
| Water borehole* | 500,000 | 150,000 |
| Processing building | 800,000 | 800,000 |
| Weighing Scale | 25,000 | 25,000 |
| Installation & other expenses @10% | 186,500 | 186,500 |
| Interest on capital @ 22.5%* | 461,587.50 | |
| Total cost | 2,513,088 | 1,701,500 |
*If the investor does not borrow money and builds a deep
well instead of a borehole, the enterprise will be profitable
| Enterprises |
| Cassava production |
| Flour |
| Starch |
| Glucose syrup |
| High quality cassava flour |
| Gari |
| Glue |
| Ethanol |
| Confectioneries |
| Chips |
| Livestock feed |
| Links |
