BUSINESS OF THE WEEK: MECHANIZED GARRI PRODUCTION

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Product Description

Garri is a fermented Cassava product, produced by garifying fermented cassava mash. Garri is produced mainly by traditional cassava processors, which are low shelf-life and usually unhygienic. The mechanized process technology for Garri production has ensured it is hygienic and safe for consumption.

            Market Potential

There is high demand for Garri in Nigeria. Its consumption cut across social strata, ethnicity, gender, religion, etc. It is a staple in Nigeria. It is as popular and essential as rice or any other staple food in Nigeria. It is a common food item in kitchens of most Nigerians. Different brands of Garri are found in Nigeria market. The popular brands are: Garri Ijebu, Garri Ibe, Garri Bendel, etc. The annual national demand estimate for Garri is about 2 million metric tones. Garri also has high export potential in Europe, America, Asia and other continent of the world. 

Machinery and Equipment

            The major machinery for production of Garri are: 

•          Grater

•          Hydraulic press

•          Hammer mill with cyclone

•          Cone blender

•          Granulator

•          Garri fryer

•          Packaging machine and weighing machine 

•          Vibro  sieve

ESTIMATED COST OF MACHINERY AND EQUIPMENT

*The estimated cost for 3 tons per day as proposed is #7,592,230.00. The estimated total investment #23, 802,280.00. This cost include the initial fixed capital of #18,629,650.00 ( factory building, machinery and equipment, generator, project vehicle, office furniture and equipment, and bore hole). Initial working capital #3,202,310.00 and pre-production expenses #1, 970,120.00.*

            Profitability 

            Return on Investment             93.6%

            Return on Equity                     233%

            Payback period                       0.9 years

            Break-Even Point                   39.9%

            Profitability index                  3.8%

            Net Present Value @ 25       #36,554,180.00

            Internal rate of Return         45%