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Feasibility Study Of Gari Processing,Cassava Flour,Ethanol and Starch
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June 24, 2014, 08:32:58 PM
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  • Lesgupnigeria
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  • Occupation: Entrepreneur
       GARI PROCESSING
General Information:
A garri processing factory can be located anywhere, as long as you as you can get access to the raw materials mostly cassava tubers.
  Many micro and small factories of this kind were encountered in the rural areas during the field research for this article.
More than half of these factories were owned and operated successfully by women with little or no
education. The rural areas are ideal for garri
processing because that is where the cassava
farms are, and you do not need much else.
   Training requirement is basic education.
Additional training could be acquired in process
technology from a university or technical
institute.
  The business has the potentials to grow into a
major agro-allied processing business.

Products and Services:
The basic product is garri. However, it is possible to diversify with production of starch, especially in the long term.
Total Cost: N5, 000,000 to N15, 000,000
including cost of equipment and machinery,
materials, and labour at start up.
Summary of Startup
Startup Requirements Costs
1. Business registration and  Agency fees
2. Insurance
3. Others
1. 100,000
2. 100,000
3. 300,000
Total Startup Expenses 500,000
Startup Assets
1. Cash required at startup for recurrent
expenses (1 year forecast)
2. Startup Inventory/Stock (6 months)
3. Cost of other assets required at startup (office
furniture and  fittings, equipment/machinery)
1. 600,000
2. 2,500,000
3. 2,000,000
Total Assets 5,100,000
Total Requirements 5,600,000
Company Ownership: Ownership models
recommended for this type of business are:
Sole proprietorship: 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.

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:
Households,Restaurants, hotels, and Boarding schools

Strategy and Implementation Summary: SWOT
Analysis of Business Idea

Strengths

Huge demand
Availability of raw materials
Simplicity of idea
Easy to acquire technical and
management skills.

Weaknesses

Considerable competition
Production process is strenuous
Production is perishable, and preservation
technique is not developed

Opportunities

FUNDING AGENCIES BOTH PRIVATE AND
PUBLIC is prepared to facilitate access to
capital
LOCAL GOVT. is creating enabling
environment

Threats
Down turn in economy
Increasing world demand for starch cold
lead to higher cost of cassava

Competitive Advantage: The competitive
advantage here will stem from a combination of
the following factors:
Good quality  product
Good marketing and relationship management
Good pricing

Marketing Strategy: It is recommended that the
business owner market the product through
wholesalers of foodstuff in the major markets in
Rivers State, particularly Port-Harcourt, urban and
semi-urban cities.

Sales Strategy: A simple sales strategy that will
make for ease in paying and taking delivery of
product should be adopted. The business owner-
manager should be involved in the sales drive in
the first three years of the business.

Important Milestone: 4 weeks develop
business plan; 7 weeks get registered; 10 weeks
buy equipment, supplies, and set up shop; 12
weeks first products get to customers.

Number of Employees required at startup: 8 to
15 persons including the business owner-
manager.

Personnel Plan
Personnel Plan
1. Business Owner-Manager
2. Technical Assistant/Foreman
3. 3 Production staff
4. 3 Security officers/Cleaners
  YEAR 1
1. 300,000
2. 216,000
3. 432,000
4. 96,000
  YEAR 2
1. 360,000
2. 264,000
3. 540,000
4. 120,000
  YEAR 3
1. 420,000
2. 336,000
3. 648,000
4. 144,000
Total Payroll  For YeAr1 =1,044,000
Year 2 =1,284,000; Year 3= 1,548,000

Startup Funding and Investment Plan
Startup Funding Sources Amount (N)
1.Business Owner
2.others
3.Additional investment required (from financial
institutions and others
600,000
4,000,000
1,000,000
Total funding 5,600,000

Important Assumptions:
Additional investment required (from LOCAL
GOVT., financial institutions and others) will be
realized.
High quality of products to enhance easy
penetration into the market
The business will quickly develop a customer
base.

Revenue Projection (3 years):
Year        Output (Bags)    Total revenue(N'000)
1.             288                    1,440
2.             576                    2,880
3.             720                    3,600

Price @#5,000/bag
 Drop your comment or questions for
clarifications, more info and technical assistance. Remain blessed.
To help you write a business plan or feasibility study call 01-7910494 or 08164628081 or like us on.www.facebook.com.






 

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