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
Year 1 =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/waleagro

nice research. One can use this to attract youwin .

eunisam: nice research. One can use this to attract youwin .

Yes,you can but figures changes quickly with location.Some figures might need to be changed.

Your figures are totally flawed. Let me ask you a few questions:

a) What is the cost of all the machinery required to produce 1 ton of garri daily?
b) Where will you be sourcing your cassava from? Will you depend on your own cassava farm or you will depend on cluster farms?
c) How do you compensate for fluctuations in supply and prices from cluster farms?
d) What is the cost of transportation?
e) There is an internationally accepted building model for a cassava processing factory, which differentiates the wet and dry areas, and caters to appropriate drainage of used water and any wastes generated. This requires a fully functional borehole. What is the cost of putting up such a building?

I have lots of questions to ask which will show that at N5,600,000, your valuation for setup costs for a commercially viable gari processing factory is flawed. You should be looking at at least N10,000,000 for such a plant.

Thanks for the questions.
The total cost of a modern gari production factory is between 5 - 15million depending on the capacity of gari to be produced from.small scale to medium scale and to large scale production
NOTE:The feasibilty study above is a small scale production.capacity and not a medium scale or large scale.
A well constructed Deep well can replace borehole to reduce cost of production.
Internationally, there is no disparity between a deep well and borehole.
Infact,recently we co-manage Two Gari processing project with IITA and CFC (both international organizations).
Shaback Gari processing and Joe Begg Bajju Processing plants to be precised both located in Abuja(Kuje area) and Nassarawa (Masaka) state repectively.
Location of processing plant is expected to be sited in the rural area with abundance source of rawmaterials and farmers are supose to supply at a fixed price to hedge against price instability and ensure market for their produce.

Gari is a major staple food consumed by most Nigerians.
There is need to transform and eradicate traditional methods of processing Gari prevalent in most rural areas in Nigeria.
Feasibility study of starch production....coming soon
.....Stay connected

There is slight Difference between proposals,feasibility study and business plan

There is slight Difference between proposals,feasibility study and business plan.
Coming soon

Please i have a 5hectares farm land and looking at cassava plantation in terms of starch production. also i need cost and pix of the necessary machines needed for garri processing. i am a student and currently writing a biz plan for prospective investors

Lesgupnigeria: Thanks for the questions.
The total cost of a modern gari production factory is between 5 - 15million depending on the capacity of gari to be produced from.small scale to medium scale and to large scale production
NOTE:The feasibilty study above is a small scale production.capacity and not a medium scale or large scale.
A well constructed Deep well can replace borehole to reduce cost of production.
Internationally, there is no disparity between a deep well and borehole.
Infact,recently we co-manage Two Gari processing project with IITA and CFC (both international organizations).
Shaback Gari processing and Joe Begg Bajju Processing plants to be precised both located in Abuja(Kuje area) and Nassarawa (Masaka) state repectively.
Location of processing plant is expected to be sited in the rural area with abundance source of rawmaterials and farmers are supose to supply at a fixed price to hedge against price instability and ensure market for their produce.

The bolded statement is a lie. CFC selected three cassava processing factories in Nasarawa state (including Joe Begg Bajju) in 2010 for an intervention and has since exited the country on the completion of that project. I can tell you the A-Z of that intervention because I am privy to the information.

So how can you come out here to say that you are "co-managing" the project?

You need to start telling the truth and stop making bogus claims. I don dey suspect you seriously!

stagger:

The bolded statement is a lie. CFC selected three cassava processing factories in Nasarawa state (including Joe Begg Bajju) in 2010 for an intervention and has since exited the country on the completion of that project. I can tell you the A-Z of that intervention because I am privy to the information.

So how can you come out here to say that you are "co-managing" the project?

You need to start telling the truth and stop making bogus claims. I don dey suspect you seriously!

'Managed'-Past tense is different from 'co-managing'- present continuous tense.
I advise you consult your English textbooks for more understanding.

We co-managed and not co-managing with IITA-CFC with deep-well water used as a source of water for Gari production.
The names of the Gari processing companies was intentionally placed there so as to enable you make your research on google and get information on the projects and to be rightly informed on whats trending both nationally and internationally in the Gari processing industry.
Kindly let people enjoy this thread and stop being cynical
Thanks.

Lesgupnigeria:

'Managed'-Past tense is different from 'co-managing'- present continuous tense.
I advise you consult your English textbooks for more understanding.

We co-managed and not co-managing with IITA-CFC with deep-well water used as a source of water for Gari production.
The names of the Gari processing companies was intentionally placed there so as to enable you make your research on google and get information on the projects and to be rightly informed on whats trending both nationally and internationally in the Gari processing industry.
Kindly let people enjoy this thread and stop being cynical
Thanks.

One of my factories is in Masaka and I do a lot of business very close to Joe Begg Bajju. I don't need any Google for such research. You are making bogus claims and I will prove it to you now. The so-called deep well technology was only constructed by the CFC in the Shaback factory. For Joe Begg Bajju, CFC constructed a brand new borehole along with a water tank and the accompanying scaffolding as part of the total rehabilitation of that plant, which was in a near comatose state prior to that intervention. CFC also renovated Ehaloko Marke cassava factory in Lafia Nasarawa state. All projects were commissioned in 2009.

So what kind of management were you doing in two facilities without any source of safe water for production before CFC came in? I will really like to know. I have done a lot of business in an around all these areas in Nasarawa state so I know what's up.

stagger:

One of my factories is in Masaka and I do a lot of business very close to Joe Begg Bajju. I don't need any Google for such research. You are making bogus claims and I will prove it to you now. The so-called deep well technology was only constructed by the CFC in the Shaback factory. For Joe Begg Bajju, CFC constructed a brand new borehole along with a water tank and the accompanying scaffolding as part of the total rehabilitation of that plant, which was in a near comatose state prior to that intervention. CFC also renovated Ehaloko Marke cassava factory in Lafia Nasarawa state. All projects were commissioned in 2009.

So what kind of management were you doing in two facilities without any source of safe water for production before CFC came in? I will really like to know. I have done a lot of business in an around all these areas in Nasarawa state so I know what's up.

If you Cannot make a simple,verified and correct claims, or add value to people by contributing meaningful and wise ideas, you can find a better job to do.

FEASIBILITY STUDY OF CASSAVA FLOUR
Cassava flour is made from cassava pieces that
have been dried, then crushed. For producing
good cassava flour, cassava that used must be
good and old enough. Cassava that harvested
after 6 months cultivation have still very high
water so that the flour substance is only a little.
Cassava flour is commonly used as ingredient to
make many kind of foods.
High quality cassava flour is simple unfermented
cassava flour. The IITA production process
minimizes the capital investment requirements
for flour production by making use of simple
equipment already used for gari processing.
Production of high quality unfermented cassava
flour in Nigeria.
This technique is suitable for preparing cassava
flour from both sweet and bitter varieties.
Mini-chippers were also tried in place of the
mechanical grater but were found to be
unsuitable for bitter varieties because the
concentration of cyanogenic glucosides was not
reduced sufficiently during processing.
.....to be contined
stay connected.

[quote author=stagger]

One of my factories is in Masaka and I do a lot of business very close to Joe Begg Bajju. I don't need any Google for such research.
I would like to know more about the processes. sent you a pm Sir.
Thank you

@prologue: kindly check your mail box sir.

Feasibity study and business plan is not only important it is also necessary to know whether the business will be profitable in the location you want to site your processing plant or start that business.
Profitability varies from locations to locations.
Do your business plan before starting that business

A good business plan.should have the following:

Executive summary
Introduction
Business overview
Description of business
Vision statement
Mission statement
Market and industry analysis
Description of the products
Objectives and goals of the company
Competition and competitive advantage
Operational plan
Location Of Factory
Raw materials
Labour Requirements
Equipment and Machineries
Marketing plan
Marketing strategy
sales strategy
SWOT Analysis
Ownership and Management structure
Right structural Management Models
Future Expansion Plan
Tax Rebate Plan
Benefits created by the company to the Nigerian
Economy and its Citizens
Milestones
Financial plan
Revenue and cost estimation
Sales projections
Cost estimation
Implementation strategy
Internal control plan
Projected income statement
Cash flow forecast
Forecasted balance sheet
Ratio analysis

A good business plan.should have the following:

Executive summary
Introduction
Business overview
Description of business
Vision statement
Mission statement
Market and industry analysis
Description of the products
Objectives and goals of the company
Competition and competitive advantage
Operational plan
Location Of Factory
Raw materials
Labour Requirements
Equipment and Machineries
Marketing plan
Marketing strategy
sales strategy
SWOT Analysis
Ownership and Management structure
Right structural Management Models
Future Expansion Plan
Tax Rebate Plan
Benefits created by the company to the Nigerian
Economy and its Citizens
Milestones
Financial plan
Revenue and cost estimation
Sales projections
Cost estimation
Implementation strategy
Internal control plan
Projected income statement
Cash flow forecast
Forecasted balance sheet
Ratio analysis
Coming soon....How to.write a bankable business plan and.feasibility report

WHY YOUR BUSINESS MAY FAILED

A bankable business plan is important to attract finance from investors or banks.
It shows how your idea will be able to deliver value and generate profits.
Banks and investors look for,most importantly for management plan, Financial plan (how their money will.be recovered back with profit)
Feasibility study and business plan is.not only needed for when money wants to be borrowed from bank or investor but also needed to know how your business venture is progressing relatively with your business plan.
Therefore bankable business plan should be more.details in term of cost of production,the customers you are going to.reach and.your competitors
As blood is important to the flesh so business plan is important as to your business

You Can start making millions through processing agro-products.
HOW TO MAKE MILLIONS BEFORE DECEMBER STARTING A MINI PROCESSING PLANT WITH ABOUT 1.7M......coming soon
....Stay connected

INVESTMENT PROFILE FOR MICRO-PROCESSING HIGH QUALITY CASSAVA FLOUR PLANT

Capacity 400kg/day
Output per annum 112t/annum
Price (Naira/t) N75000
Number of working days 280
Conversion factor 4:01
Raw material required/annum 448ton

Fixed Cost

Grater N40,000
Press N25,000
Rotary dryer 400kg/day output N400,000
Mechanical sieve N20,000
Bag sewing machine N55,000
Water borehole N150,000
Processing building N800,000
Weighing Scale N25,000
Installation & other expenses @10% N 186,500
Interest on capital @ 22.5% N 461,587.50
Total cost = N 1,701,500

INVESTMENT PROFILE FOR MICRO-
PROCESSING HIGH QUALITY CASSAVA FLOUR
PLANT
Capacity 400kg/day
Output per annum 112t/annum
Price (Naira/t) N75000
Number of working days 280
Conversion factor 4:01
Raw material required/annum 448ton
Fixed Cost
Grater N40,000
Press N25,000
Rotary dryer 400kg/day output N400,000
Mechanical sieve N20,000
Bag sewing machine N55,000
Water borehole N150,000
Processing building N800,000
Weighing Scale N25,000
Installation & other expenses @10% N
186,500
Interest on capital @ 22.5% N 461,587.50
Total cost = N 1,701,500

To succeed,there are three things you must know through your feasibility study and business plan
1.Your competitors
2.Your customers (the 5 most important customer to reach)
3.Your business SWOT analysis
S-strenght
W-weakness
O-opportunities
T-threats
If this is not included,or researched then you are not good to start that business.

Competitors-
These questioms must be answered in respect
to your competitors

What products are they offering?

How are they offering it?

What means or channel are they using?

How can you differentiate yours from them?

WHY YOUR AGRIBUSINESS MAY FAILED
A bankable business plan is important to
attract finance from investors or banks.
It shows how your idea will be able to deliver
value and generate profits.
Banks and investors look for,most
importantly for management plan, Financial
plan (how their money will.be recovered back
with profit)
Feasibility study and business plan is.not
only needed for when money wants to be
borrowed from bank or investor but also
needed to know how your business venture
is progressing relatively with your business
plan.
Therefore bankable business plan should be
more.details in term of cost of
production,the customers you are going
to.reach and.your competitors
As blood is important to the flesh so
business plan is important as to your
business.

5 Reasons You Have Not Make YOur First Million In Agribusiness.

5 Reasons You Have Not Make YOur First Million In Agribusiness.......coming soon
.......stay connected.

ming is good but processing is better
Farming is lucrative but processing is more
lucrative and sustainable,infact the future
and prosperity of agribusiness in developing
nations lie in the capacity to process their
agrocommodities.

The below figures shows the cost of starting
small scale cassava flour.

COST AND PROFIT ANALYSIS FOR SMALL
SCALE HIGH QUALITY CASSAVA FLOUR PLANT

Capacity 3.5t/day

Output per annum 980t

Price (Naira/t) 75000

Conversion factor 04:01

Number of working days 280

Labour Cost 200,000

Raw material required/annum 3920t

FIXED COST ITEMS

Grater (2t/hr) 190,000

Hydraulic Press (500kg/hr) 400,000

Flash dryer 3.5t/day output 3,000,000

Hammer Mill 150,000

Pneumatic sieve 180,000

Bag sewing machine 55,000

Water borehole 500,000

Processing building 5,000,000

Weighing Scale 25,000

Installation & other expenses @15% 600,000

Interest on capital @ 22.5% 2,252,250

TOTAL COST 12,552,250

Minimum output of 980tons/year

Annual Total Cost =labour cost +rawmaterial
cost+ miscellaneous
= 2,400,000+47,040,000(3920
tons@#12,000/ton) + 1,000,000
= #50,400,000

Revenue for a year = 980*75,000 =
N73,500,000

Annual Profit = Revenue - Total cost =
N73,500,000 - 50,400,000
= N23,100,000

2nd Year

Total cost = N40,500,000

Revenue = N80,100,000

Profit = N80,100,000 - N40,500,000
= N39,600,000

Kindly Drop your comment ,questions For
technical advice,

To write business plan, feasibity study
and setting up Flour factories, ethanol and
any other processing plant, call
01-7910494,08164628081 or e-mail
yusuffgbenga@gmail.com
like us on www.facebook.com/lesgupnigeria
for more agribusiness wealth creating ideas

Farming is good but processing is better
Farming is lucrative but processing is more
lucrative and sustainable,infact the future
and prosperity of agribusiness in developing
nations lie in the capacity to process their
agrocommodities.
The below figures shows the cost of starting
small scale cassava flour.

COST AND PROFIT ANALYSIS FOR SMALL
SCALE HIGH QUALITY CASSAVA FLOUR PLANT

Capacity 3.5t/day

Output per annum 980t

Price (Naira/t) 75000

Conversion factor 04:01

Number of working days 280

Labour Cost 200,000

Raw material required/annum 3920t

FIXED COST ITEMS

Grater (2t/hr) 190,000

Hydraulic Press (500kg/hr) 400,000

Flash dryer 3.5t/day output 3,000,000

Hammer Mill 150,000

Pneumatic sieve 180,000

Bag sewing machine 55,000

Water borehole 500,000

Processing building 5,000,000

Weighing Scale 25,000

Installation & other expenses @15% 600,000

Interest on capital @ 22.5% 2,252,250

TOTAL COST 12,552,250

Minimum output of 980tons/year

Annual Total Cost =labour cost +rawmaterial
cost+ miscellaneous

= 2,400,000+47,040,000(3920
tons@#12,000/ton) + 1,000,000
= #50,400,000

Revenue for a year = 980*75,000 =
N73,500,000
Annual Profit = Revenue - Total cost =
N73,500,000 - 50,400,000
= N23,100,000

2nd Year

Total cost = N40,500,000
Revenue = N80,100,000
Profit = N80,100,000 - N40,500,000
= N39,600,000

Kindly Drop your comment ,questions For
technical advice,

To write business plan, feasibity study
and setting up Flour factories, ethanol and
any other processing plant, call
01-7910494,08164628081 or e-mail
yusuffgbenga@gmail.com

Hmm

Oh! Sorry i've seen ur contacts.