Introduction
The business idea is for the production and marketing of desiccated coconuts. The dehydrated shredded flesh of coconut known as desiccated coconut is often used as a substitute to grated coconut in food preparations such as curries, cakes, sweets and chutneys. Confectionery and bakery units are the main consumers of desiccated coconut. Desiccated Coconut Powder is obtained by drying ground or shredded coconut kernel after the removal of brown testa. From the survey, it is revealed that coconut products are highly demanded by both the middle class and upper class families residing in cities and towns. The TC for this project is US$ 156,362 per year with revenue estimated at US 182,520 per year.
Production Process
The process consists of the removal of coconut shell, de-husking, shelling and paring. The nuts are then washed, disintegrated, dried and packed for the market.
Capital Investment Requirements in US$
| Capital investment item | Units | Qty | @ | Amount |
| Disintegrator | No. | 2 | 98 | 196 |
| De-husking and paring tool | No. | 1 | 5,000 | 5000 |
| Sieving machine | No. | 1 | 400 | 400 |
| Grinder | No. | 2 | 250 | 500 |
| Weighing scale | No. | 1 | 300 | 300 |
| Hot air tray | No. | 1 | 4,300 | 4300 |
| Total cost of machinery | 10,696 |
Production and Operating costs in US$
| Cost Item | Units | @/ day | Qty/ day | Pdn cost/ day | Pdn cost/ month | Pdn cost/ year |
| Fresh mature coconuts | kg | 1 | 400 | 400 | 10,400 | 124,800 |
| Sub-total | 400 | 400 | 10,400 | 124,800 |
General costs(overheads)
| Utilities(water and power) | 150 | 1,800 |
|---|---|---|
| Labour | 906 | 10,872 |
| Rent | 150 | 1,800 |
| Miscellaneous costs | 50 | 600 |
| Distribution costs | 260 | 3,120 |
| Depreciation(Asset write off)Expenses) | 214 | 2,674.00 |
| Sub -total | 1,730 | 20,866 |
| Total Operating Costs | 12,130 | 145,666 |
- Production costs assumed 312 days per year with a daily capacity of 300 packets of desiccated coconuts.
- Depreciation (fixed assets write off) assumes 4 years life of assets written off at 25% per year for all assets 3 Direct costs include materials, supplies and other costs that directly go into production of the product.
Project product Costs and Price Structure
| Item | Qty/ day (kg) | Qty/ yr | @ | Pdn cost /yr | UPx | TR |
| Desiccated Coconuts | 300 | 93,600 | 1.6 | 145,666 | 1.9 | 182,520 |
Profitability Analysis in US$
| Profitability Item | Per day | Per month | Per Year |
|---|---|---|---|
| Revenue | 585 | 15,210 | 182,520 |
| Less production and operating Costs | 466.88 | 12,139 | 145,666 |
| Profit | 118.12 | 3,071 | 36,854 |
Market Analysis
Desiccated coconuts are on high demand because they are mainly used in bakeries and confectioneries production.
Sources of raw materials:
Raw materials are locally available.
Government Facilities and Incentives Available
The government has set up incentives in a bid to boost agricultural sector.
