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Establishing industrial starch plant for export

starch plant
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If the present policies of discouraging imports and encouraging exports are sustained, exports would continue to rise, which will in the long run strengthen agricultural sector to generate income for this country. The only area that government should do a lot of work is in the provision of infrastructure such as power supply, potable water, good roads, and research centers.

From our research, industrial starch (whether from corn, cassava, potato, rice etc) is one of the fast selling products in the international market. For this product to attract very high demand and higher prices, it must be well processed, maintaining very high acceptable international standards.

The demand for industrial starch is worldwide. This product is highly demanded in Netherlands, France, United Kingdom, and Federal Republic of Germany. It is also widely demanded in Taiwan, Asia, and USA. The local demand is also encouraging.

Prospective investors will be given detailed information on the foreign buyers of these products for further business relationships.

Starch can be produced in dry or wet forms. Both wet and dry starch is needed in the Europe.

Starch has a lot of industrial uses. It could be used as food in the preparation of bread, macaroni, custard, sauce, snacks, pap.

The industrial uses include textile, bookbinding, glue making, paperboard, batteries, cosmetics, paint and soap.

Starch is also used in weaving, spinning, dye works, paperboards, dressing paints, leather adhesive, paste stamps and carpets. It can also be used in artificial honey, fruit juice sweets, beer, and canned fruit confectionaries and in pharmaceutical industries.

Because of the wide uses to which starch can be put to, total global demand are over 18 billion metric tons per annum.

The supply on the other hand has not been encouraging in the international market.

Apart from Zaire and Brazil, which supplied a total of 18.2 million metric tons in 1999 and 26.5 metric tons in 2001, the gap has been longing for bridging. There is a wider gap of need for starch for industrial uses locally.

Therefore, there is plenty of cassava and other root crops or tubers in Nigeria, for the production of world starch requirement.

The major plants and equipment needed are cassava peeler, sifter, slicer, grater, extractor; pulveriser and dryer (if dry starch is required) hammer mill/disintegrator, automatic or semi-automatic weighing and packaging machine and sitches/seakers.

The production capacity of the machine under consideration is around 10 tons of starch per day of two shifts. This implies that about 75, 000 metric tons will be produced in a year.

It should be noted that this product is demanded in metric tons by end users. It is, therefore, advisable that the end product should be packed as such. It is also advisable to maintain the international market water content standard of about 8 percent.

The product is packaged in 100kg jute bags for export. How the products should be preserved to avoid producing irritating odours will be discussed when we are contacted for further clarifications by prospective investors.

Realizing however, that our industrial capacity utilisation cannot be full, the capacity is placed at 50 per cent, resulting in total annual income of $9.4 million (N752 Million).

Having considered the availability of raw materials, convincing technological position, government encouragement to non-oil export oriented investors and availability of human resources, as well as huge profit margin from exporting this product, it is clear that this is good business.

Investment Cost                                                  (N’000)

Preliminary Expenses                                              250

Plant & Machinery                                                       7, 560

Fixtures & Fitting                                                     250

Working Capital (3 months)                                              3, 000

Contingencies                                                               1, 500

Generating set                                                     2, 000

Utilities                                                                      500

Total                                                                       15,060

Funding

Implementation

To handle the implementation of this project professionally, prospective investors should embark upon a detailed and bankable feasibility studies. The writer is readily available for the feasibility studies and packaging of a bankable feasibility studies reports/ business plans.

Construction of the factory will take place, followed by procurement and installations of all the required machinery and other basic assets.

The writer will guide prospective investors professionally to ensure that good packaging, quality products and efficient/effective management are installed for profits.

The writer will also assist in the sourcing of the required funds (where necessary) and obtaining NAFDAC approval.

For further enquires, detailed & bankable feasibility studies, please contact.

 

Uba Godwin,

Global Trust Consulting Group,

56, Ishaga Road (1st floor), Surulere, Lagos

Tel: 01-4721550, 08023664368, 08034494437

Email:ubagodwin@yahoo.com

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