Cassava starch factory cost analysis

Raw material, supplies and utilties

Fresh cassava root is the only raw material for production of Cassava Starch. Cassava is grown in almost all the states in Nigeria and Nigeria has been rated the highest producer of cassava in the world.

Cassava starch factory machinery and equipment

The major equipment for production of Cassava Starch are: Hammer Mill Grater, Starch Extractor, Sedimentation Tank, Hydraulic Press, Granulator, Flash Dryer, Packaging Machine and Weighing Machine.

Labour requirement

Both skilled and unskilled labour is required for this project. A total of about 42 workers are required for production, marketing and administration. 

Capital Requirement

The estimated total initial investment is N31, 185,650. This consists of the initial fixed capital N23, 316,360 (including factory building, machinery and equipment, generator, project vehicle, office furniture and equipment and bore hole), initial working capital N5,602,070.00 and pre-production expenses N2,267,220.00.

Hydrocyclone machine for cassava starch processing

Two plots of land are adequate for the project.

The cassava starch processing factory 

PRODUCTION PROGRAMME

Production Days/Annum                 -                300

Production Volume/Day                 -                 4 Tonnes

Production Volume/Annum            -                 1,200Tonnes

Input Output Ratio                         -                 1 : 0.15

PROFITABILITY                                               N’’000

Total production Cost                                       97,755.00

Gross Profit Before Tax                                    28,244.66

Tax @ 30%                                                       8,473.40

Cassava starch processing plant 3D picture

NET PROFIT                                                    19,771.26

Gross Profit to Sales                                         22.40%

Net Profit to Sales                                             15.70%

Return on Investment (Year 1)                          81.40%

Payback Period                                                 1.20Years