MAKING DECORTICATED CASHEWNUT BUSINESS IN UGANDA

Introduction

This business idea is for Production and marketing of edible cashew nuts, the business idea is premised on production of 6,680 kgs of cashew nuts per month which translates into 56160 per year. The revenue potential is estimated at US$ 5408 per month, translating into 64896 per year. The project cost is US $ 64,896

Production Process

In the mechanized system, the raw cashew nuts are decorticated using a hand operated machine, mounted on a work table. The decorticator splits the nut when placed between two horizontally mounted blades, especially spread to suit the contour of the raw nut. The outer shell is conveniently split by sliding and splitting action of blades. An operator can process 25-30 kg nuts per day.

Production Capacity

The plant can have a capacity 9000 kgs per year

Land Requirement

Rent for a year would cost about 1,200 US Dollars

Capital investment requirement in US $

Item Unit Quantity @ Total
Cashew Decorticator No. 1 1,000 1,000
Other equipments No. 1 100 100
Delivery van No. 1 2,500 2,500
TC of Machinery 3,600

Production and operating costs in US $

Cost Item Units @ Qty/ day Prod. cost/ day Prod. Cost/ month Prod. Cost/ year
Cashew nuts Kgs 0.6 300 180 4,680 56,160
Sub-total 6,680 56,160

General costs (Overheads) Project cost

Utilities (power) 15 180
Utilities (water) 15 180
Salaries 60 720
Rent 75 900
Depreciation (Assets write off) Expenses 75 900
Sub-total 240 2,880
Total Operating Costs 6,920 59,040
Item Qty/ day Qty/ yr @ Prod. Cost /year UPx TR
cashew nuts 320 99,840 0.5 49,920 1.3 64,896

Profitability analysis in US$

Profitability item per day per month per year
Revenue
Cashew nuts 208 5,408 64,896
Less Prod & Operating Costs 189.2 4,920 59,040
Profit 18.8 488 5,856

Market

Cashew nuts are highly demanded on the world market. Local market also exists although cashew nuts are not very common in all the areas of Uganda. This could turn out to be the turning factor in the marketing of cashew nuts as they have an open market, with limited competition.

Government Incentives

Government is encouraging small scale business that would provide employment to natives by giving them funds, subsidies and land.

Equipment Suppliers

Equipment can be imported from Asia and Europe

 

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