Full Fat Soya cake/concentrate production is one type of projects that can readily contribute to Nigeria ’s agricultural development. This is its relevance.
Investment justification
Full Fat Soya cake concentrate is a highly proteinous product used in compounding animal feed. It is in very high demand and there is a great deficit in its supply to the users. At present, local consumption is being complemented with importation. The price for Soya cake is good. Raw materials are available and can be grown abundantly in Nigeria (Nigeria has the potential to be the largest producer of Soya bean in the world). It therefore, beholds on investors to capitalise on this viable business opening.
Production technology/implementation procedure.
To set up a Soya Cake processing factory in involves pre-investment operations such as company formations, preparation of feasibility studies and finance sourcing. After pre-investment operations, project site will be acquired. This can be done through rented accommodation or construction of new factory. This is followed by machinery sourcing cum installation. Recruitment of appropriate personnel and raw materials procurement will follow. Commercial production then takes off after all the above have been achieved.
The production process involves pre-treatment of Soya Bean Seeds. This is achieved by subjecting the seeds to a very high temperature. After treating the seeds, they are then fed into the extruder/expeller where they are processed into Soya Cake/Concentrate. The end product is later sold to livestock feed millers.
The plant and machinery with utilities can be financed through equity financing, whole working capital can be sourced through overdraft. Investors have to be equipped with detailed feasibility study on the project when finance is being negotiated. This can be provided on request. With the new policy of Federal Government of achieving 10% growth rate in the agric sector, An Agric Loan Support Scheme (ACSS) has been established with the active support of Bankers committee by providing credit facilities to farmers at a single digit interest rate. This project qualifies for funding under this scheme subject to provision of feasibility study on the project.
Genuine and serious minded investors can be assisted to access this fund.
Profitability
The plant will have the capacity of producing a minimum of 500 metric tonnes of cake per annum. This sells for a minimum of N70, 000 per Tonne. Turnover of N35 million is achievable while % return on Investment based on profit After Tax is more than 50%. This is no doubt a stable source of livelihood for Nigerians and foreign investors. The author can assist serious minded investors in the realization of the project.
The author’s contact – 08023058045, e-mail – [email protected].
OLUMAKINDE ONI
