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.
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.
The plant can have a capacity of 9000 kgs per year
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.
