MAKING DECORTICATED CASHEWNUT

 MAKING DECORTICATED CASHEWNUT
Introduction
This business idea is for production and marketing of edible cashew nuts, the business idea is premised on production of 5,200 kgs of cashew nuts per month, which translates into 62,400 per year. The revenue potential is estimated at US$ 6,500 per month, translating into 78,000 per year.
The project cost is US $ 27,254 with the net profit of 28% and payback period of 3 years and 5 months.
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 the sliding and splitting action of blades. An operator can process 25-30 kg nuts per day.
Production Capacity
The plant can have a capacity of 9000 kgs per year
Land Requirement
Rent for a year would cost about 1,200 US Dollars
Capital Investment Requirements In USD

Item Unit Quantity @ Total
Cashew Decorticator No. 1 1,154 1,154
Other equipments No. 1 100 100
Delivery van No. 1 28,000 26,000
TC of Machinery 27,254

Production and Operating Costs in US $ Direct Materials, Supplies and Costs

Cost Item Units @ Qty/ day Prod. cost/ day Prod. Cost/ month Prod. Cost/ year
Cashew nuts Kgs 0.5 300 150 3,900 46,800
Sub-total 3,900 46,800

General costs (Overheads)

Utilities (power) 15 180
Utilities (water) 15 180
Salaries 60 720
Rent 75 900
Depreciation (Assets write off) Expenses 567.8 6813.5
Sub-total 732.8 8,794
Total Operating Costs 4,633 55,594

Production costs assumed 312 days per year with a daily capacity of 200 kgs of
cashew nuts.
Depreciation (fixed assets write off) assumes 4 years life of assets write off of
25% per year for all assets.
Direct costs include: materials, supplies and other costs that directly go into
production of the product.

Project Product Cost and Price Structure in US$

Item Qty/ day Qty/ yr @ Prod. Cost /year UPx TR
Decorticated cashew nuts 200 62,400 0.9 55,594 1.3 78,000

Profitability Analysis in US$

Profitability item per day per month per year
Revenue
Cashew nuts 250 6,500 78,000
Less Production & Operating Costs 178 4,633 55,594
Profit 72 1,867 22,407

Market

Cashew nuts are highly demanded on the world market. A small local market also exists although cashew nuts are not very common in 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.

 

Leave a Reply