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
Confectioneries
Chips
Livestock feed
 
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