1.0 Executive
Summary
Spices like ginger, garlic, pepper and vegetables
are major crops produced in Nigeria. They are perishable in nature and have a
limited shelf life. It is seasonal and become very scarce and expensive during
its off season, its short life and inadequate processing and preservation leads
to revenue loss to the farmers.
Nigeria is the second largest producer of
tomato and spices in Africa and 13th largest in the world. Currently
our production is about 1.170 million tonnes of tomatoes at an average of 25 to
35 tonnes per hectare. Despite this advantage Nigeria still imports processed
spices to the tune of 65,809 tones value at N11.7 billion in 2010.
The reason for this is well known, as not
less than 50% of the spices and other crops produced in the country is lost due
to lack of preservation, poor storage, transportation risk and absence of
technology to harness these resources.
The
market for spices is national. Nigeria has a large market for spices, with a population
of over 160 million people and an estimate national population growth rate of
5.7% per annum, an average growth rate of 3.5% per annum in the past five
years.
Tomato is rich in vitamin A and C and also
fibre, and it is cholesterol free. Tomato fruit boast of only 10 calories in
every 42.28 grams. You can now see that Tomatoes is very important in our diet.
Tomato
and pepper and other spices being a seasonal crop sells between N450 to N1200
in it season and between N3000 to N7000 at off season. This huge price
differential makes it glaring that there will be huge return on investment in
this sector.
Materials
required for primary processing:
Grinding machine, filter, thermometer, Refract
meter, pH meter or papers, tables, knives, vessel, pots, water source etc.
ii.Vision
Our
vision is to be one of the largest producers of spices and other food products
in Nigeria, Africa and world at large.
1.2 our mission statement:
It is our mission to offer
quality and excellent services that our customers will not be able to get
anywhere else by making use of the best equipment and competent manpower. We
also intend to provide the best customer service so that our customers not only
come back, but refer new client to us as well, thereby giving us an edge over
our competitors.
div style="margin: 0in 0in 0pt;"> 1.4 OUR CORE VALUE:
We believe that the first
essential component of social justice is adequate food for all mankind.
We believe also that
satisfying our customers is the essence of our existence.
1.5 KEY TO SUCCESS
The
key to success are:
·
Satisfy
our customers so they will return again and again.
·
Maintain
low overhead and operating costs.
·
Provide
better prices than all our competitors.
The
Products:
1. Tomatoes
powder
2. Onion powder
3. Ginger
powder
4. Garlic
powder
5. Dry locust
beans/powder
6. Black pepper
7. Dry herbs
8. Dry
vegetables
The above listed products will be packaged in
powdered form and in:
i.
5g
ii.
10g
iii.
100g
iv.
250g
v.
Vegetables – ugu, spinach, lettuce
1.1 Necessary Steps to Undertake in Production of Processed Tomato
(weighing)
Selection of raw materials for processing:
Fresh,
matured and uncontaminated tomatoes, pepper, onion, ginger and garlic are used
for processing. Especially without infected bruises, mould and must be of high
quality (good specie). According to United States Department of Agriculture
(USDA)(2011) Roma VF (and UTC Tomato) verity have been identified to be the
best for processing into powder because they are fleshy and have relatively low
water content.
Handling:
All raw food
and materials should be handled with care in order to avoid bruises and
damages. Foods should be kept off the ground and protected from insects. Raw
materials should be kept cool by storing them away from moisture. Bruised but
not infected tomatoes can also be processed but putting in mind that bruises
encourage infestation
Weighing:
Correct
weighing of raw materials and ingredients is critical in processing. This step
together with adequate mixing of ingredients has the most important effect on
both quality of the product and uniformity of the batches of products.
Sorting:
Food is
sorted by maturity and colour. Sorting should be done as early as possible by
picking to remove any mouldy or rotten tomato.
Cleaning:
Washing in
clean portable water.
Drying:
The raw
materials and ingredients are dried in the sun or using machine.
Grinding:
The dried
raw materials are grinded and packaged.
1.3Packaging
Packaging
is one of the most efficient ways to tell a product’s story; the information of
the package is the only massage that stays with the product all the way from
the producer to the consumers. Packaging agricultural produce means wrapping or
containing it in some form of material that will protect it during storage,
transport, or and distribution (Fellows, 2011). A well designed graphics and
clear information on a quality packaging material can make a strong connection
and creates a brand identity. The main aim of packaging is to keep food in good
condition until it is sold, or consumed (FAO, 1992). Packaging materials protects
the product by providing tampering resistance and special physical, chemical
and biological needs. It also shows the nutritional information on the food
being consumed. A proper, standardized package of standard weight and suitable
quality will create a better consumer appeal and a higher return to the
processor.
Why Packaging and Labeling
Packaging is a means of providing the correct
environmental conditions for food during the length of time it is stored and or
distributed to consumers; a good package according to Ackerman (1997) has to
perform the following functions among others:
1. For
physical protection: The production enclosed in the package may require
protection from mechanical shock, vibration, compression, temperature etc.
2. Barrier
Protection: It is a bars oxygen, water, vapour, dust; it keeps product clean,
fresh, sterile and safe for the intended shelf life.
3.
Containment: small objects are typically grouped in one package for reason of
efficiency. For example, a single box of 50 ticks of matches requires less
physical handling than 50 single sticks. Liquids, powders and granular
materials need containment.
4.
Information Transmission: Package and labels communicate information such as;
how to use, ingredients, name of producer, production site, production date,
expiry date, net weight, how to dispose package or product etc.
5. Marketing: The packaging and label is use
to encourage potential buyers to purchase the product
6. Security:
Packaging can play an important role in reducing tampering risk in shipment,
and reduce the risk of pilferage
7.
Convenience: Package can have features that add convenience in distribution,
handling, stacking, display, sale and disposal.
8. Portion
control: Single serving or single dosage packaging has a precise amount of
contents to control usage. Bulk commodities such as sugar can be divided into
packages that are more of a suitable size for house hold.
1.4Types of Packaging
Packaging
are categorized by their layer or function hence, we have:
i.
Primary Packaging:
This is the
material that first covers the product and holds it, this is usually the
package that is in direct contact with the content
ii. Secondary packaging:
This packaging
is outside the primary packing, it is often used to group primary packages
together. iii. Tertiary packaging: This is used for bulk handling and for ware
house storage and ship transport
2.0
PRODUCTION
CAPACITY
Expected
Yield from Raw Material
Yield
specifies the percentage of output (Finished Product) as compared to the input
(Raw Material). Yield is mainly dependent on the following factors:
1.
Strict quality control on raw material and production processes.
2.
Type of plant
3.
Processing methodology
3.0
Project Cost
N100, 000
4.0
Project Implementation Period
1 year
5.0. Market Analysis: The analysis provides the
minimum marketing targets the entrepreneur should aim to achieve. It is
expected that these targets will be surpassed easily.
Potential
customers: Walk-in-customers, Restaurants, hotels, and Boarding schools,
wholesalers and mail order customers (export).
Competition
Company
Ownership: Ownership models recommended for this type of business are:
Sole
proprietor: in which the business is owned by an individual, the
owner-manager. If you already have some skills in this field and have acquired
basic education, then this is the best option for you.
Partnership:
this form of ownership arrangement involving 2 to 4 partners (we do not
recommend more than 4 partners) it may be necessary where you do not have the
right mix of skills to run the business successfully. The partners could come
with required skills.
Partners can also be taken into the business in order to raise
additional funds for its operations.
5.1
Market Analysis: The analysis provides the minimum marketing targets the
entrepreneur should aim to achieve. It is expected that these targets will be
surpassed easily.
Potential customers: Walk-in-customers, Restaurants, hotels, and
Boarding schools, wholesalers and mail order customers (export).
Our
Target Market
In carryout a thorough research, we were able to site our business
in Lagos state, Nigeria due to the various hotels, restaurants, boarding
schools and wholesalers in the state. The location also brings us in close
proximity to other states within the region where there are several
agricultural farms.
Our
competitive Advantage
From thorough research which we carried out and due to the profit
viability of this business, several agricultural products processing businesses
have sprung up not only in Lagos but in other regions to offer stiff
competition as well.
Our research did not look into what sort of competition we were
likely to have but also what their weaknesses were so that we could come up
with strategies that would ensure we have competitive advantage over them and
become the best spices processing plant for our target customers.
One of our competitive advantages is ensuring that we are
strategically located. Our production plant is not only located close to good
roads, making it easier for our customers to reach us, but our storage
facilities which are spread all over also located in strategic points enabling
us to attract and retain customers.
We also intend to hire the only best hands to help run the
business, but also employees that understand the vision and philosophies of our
business and know how this translate to offering the best customer service to
our clients. We intend to ensure that our working conditions are the envy of
other employees from our competitors.
5.2 REQUIREMENTS FOR SPICES PROCESSING CENTRE
S/n
|
Materials
|
Quantity
|
Cost (N)
|
1
|
Grinding Mill (Stainless steel)
|
1
|
170,000
|
2
|
Big Bowl
|
2
|
300
|
3
|
Small bowl
|
1
|
500
|
4
|
Big Pot
|
1
|
8000
|
5
|
Packaging (Bottles, stickers and cartons)
|
17,000(monthly)
|
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