GARRI PROCESSING BUSINESS PLAN TEMPLATE
First and foremost, you should be aware that Garri is one of the most essential Nigeria diets because not only is it less expensive or cheap irrespective of the economy situation of this country, but it is easy to make and can be taken in majorly two ways that are fast to prepare.
Are you planning on starting a Garri processing business? I already have it prepared for you so you don’t need to search any longer for any Garri processing feasibility study.
Those in the Garri business know that this is the quickest way to make money especially in the agro processing industry. Here us a Garri processing business plan sample for your guide.
Here is a sample business plan for starting a Garri processing plant.
BUSINESS NAME: Johnson Quality Garri Processing Ventures
Table of Content
- Executive Summary
- Vision Statement
- Mission Statement
- Business Structure
- Products and Services
- Market Analysis
- Target Market
- Sales and Marketing Strategy
- Financial Plan
- Sales forecast
PROPOSAL FOR PRODUCTION OF GARRI – SETTING UP A PROCESSING PLANT
Johnson Quality Garri Processing Ventures is a business that has been registered under the Corporate Affairs Commission (CAC) and also legally licensed by the National Agency for Food Drug Administration and Control (NAFDAC) here in Edo State. We have also acquired the necessary licenses needed to run a plant without running afoul of the law here in Edo State.
Our aim of starting this business is to ensure that our clients both domestic and international get processed garri of the finest quality. We intend to process for sale white garri and yellow garri so as to be able to cater to our teeming customers.
We know how important it is to be located in a place that is convenient most especially in terms of proximity for both our customers and employees. Our garri processing business/plant is therefore located in a conspicuous area and close to the road, which makes the location very strategic for our suppliers and distributors as well as our customers.
We also know how valuable our customers are to us and so we intend to treat them right by offering them excellent customer service of a standard never seen before in this industry.
Our client will be able to reach us physically and even online as we will be available through all venues to be able to attend to their inquiries, orders, suggestions and complaints.
Johnson Quality Garri Processing Ventures is owned and managed by Dr. Wilson John Mathew has a B.sc in Agric Extension from the University of Kwara state and his presently running an MBA from the University of Jos. He has vast experience in the agro processing industry and will therefore bring his knowledge to bear in this lucrative business.
Our vision is to be the preferable garri for customers in Opkella, Edo and the whole of Nigeria as well to meet their demand.
Our mission is to ensure we process Garri of the highest quality using the best machines or tools and resources. We also intend to ensure that our processed garri does not only meet the needs of our house hold clients but become a profitable business for our partners and distributors.
Knowing how our vision is to be the most preferable garri for our customers, we have decided to ensure that we draft a business structure that will allow us not only achieve all our intended goals and objectives but also enable us build a solid business foundation as well.
One of our top priorities is to ensure that we hire the best professional hands that have the required necessary experience, are dedicated and that will ensure that the business runs smoothly.
Those we intend to employ to handle various tasks with assigned roles and responsibilities for the growth of Johnson Quality Garri Ventures include:
• Managing Director
• Admin Manager
• Marketing and Sales Executives
• Purchasing Manager
• Store Manager
• Front Desk Office
• Security Guard
• Van Driver
PRODUCTS AND SERVICES
Johnson Quality Garri Venture is a business that has been licensed by the National Agency for Food Drug Administration and Control to process garri that will be used in households as well as in commercial places.
We have also registered with the Corporate Affairs Commission and have fulfilled all other necessary obligations that will enable us make profit and grow as a business.
Some of the products and services we intend to indulge in as a business includes;
• White Garri
• Yellow Garri
• Consultancy Services
• Training and Coaching
• Market Trends
Garri is one of Nigeria’s staple/essential diets and is taken in every home. If you intend starting your own garri processing business, then you will need a land where you will not only install your facility, but it must also be near as possible to your source of raw materials
A second trend in the business is having several storage facilities in strategic locations all around Edo State and Nigeria in general, this is so as to be close to customers, increase awareness about the brand and also increase patronage for the business, thereby boosting revenue.
The target market for Garri is very huge as almost every home and everyone takes this product. However, more people are likely to take one color of garri than the other depending on their location. We intend to carry out a thorough market survey that will allow us determine the quantity that would be needed to be processed for each color of garri.
Even though almost everyone takes garri in one form or the other, we are still required to market our product so as to become a preferable brand to our customers, either existing or potential.
Our target market includes;
• Single males and females.
SALES AND MARKETING STRATEGY
At Johnson Quality Garri Ventures, we intend to ensure that we adopt several marketing strategies towards ensuring that our existing customers are aware of our drive towards success. Also, our sales strategies will be done in such a way as to ensure we penetrate the market, therefore creating a wide reach.
Setting the right price for a product is very important as this can either draw more customers to ones business or make them go to over to competition instead.
Garri is priced depending on the quantity that is bought by the customer. We intend to have different pricing options for our bulk buyers and normal buyers.
At Johnson Quality Garri Ventures, we intend to ensure that we have a payment policy that caters to all our different customers regardless of the category. Our payment options are in line with financial regulations of the Edo State government and that of Nigeria as a whole.
The payment options we intend to make available to our teeming customers include:
• Payment via point of Sale (POS) machine
• Payment via Cheques
• Payment via Cash
• Payment via Bank Transfer
• Payment via Bank Draft
Total sum of estimated amount of ₦3,200,000 (₦3.2 million) will be needed to start – up our Johnson Quality Garri Venture business (including the salary of our employees for the first three months).
Sources of Capital
₦1,600,000 of the total startup cost will be generated by the Johnson (from their personal savings and investments).
The other part will be gotten by securing a loan from the family bank as well as obtaining soft loans from friends and relatives.
Haven carried out a feasibility and viability study and a market survey, we have been able to make a sales forecast for our Johnson Quality Garri Business for the next few years.
For the first three years, the following is the estimate of what we stand to realized:
• First Fiscal Year: ₦5,500,000
• Second Fiscal Year: ₦9,000,000
• Third Fiscal Year: ₦16,000,000
N.B: The above sales projection is totally in line with what is obtainable in the industry.
The projections are also based on the fact that all factors that were considered during the analysis for this Garri processing business plan remain constant – such as the economy, lack of strong substitutes, and the arrival of no major competitors.
GARRI PROCESSING BUSINESS PROPOSAL SAMPLE + FEASIBILITY STUDY
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There is no doubt that one of the biggest problems confronting our nation today is unemployment. It is the root cause of poverty, youth restiveness, gangstarism, bank robbery, outlandish assassinations, lawlessness, kidnapping and all sorts of deviant behaviours.
The number of unemployed youths is mind-boggling and among them are over five million young boys and girls with NYSC discharge certificates roaming about the nooks and crannies of the country searching for jobs that do not exist.
The situation is not totally hopeless because governments, communities and civil society organizations are coming up with strategies that can alleviate poverty and empower rural folks by creating wealth. Some of them are Improved Gari Production Plants, Cottage Industries, and Entrepreneurship etc.
We encourage state governments, Local Governments, Community Development Bodies and others to join in the task of creating jobs by establishing and expanding projects in their localities that will use local raw materials in creating wealth and jobs.
Cassava is God’s gift to the tropics because it can grow in poor soil with inadequate rainfall. The starchy roots of cassava are major source of food for more than 700 million people all over the world. It ranks third in order of staple food crops in developing countries after rice and maize. It is called Manic in French, Tapioca in Latin America, Mandioca in Portuguese and Yucca in Spanish. It has universal applications.
Nigeria is the world largest producer of Cassava. We produce over 41 million metric tones per annum and we are followed by Brazil, Thailand, Zaire (now Democratic Republic of Congo), and Indonesia. Thailand does the largest global business in cassava because it is not part of their food security. They export over $20 billion worth of cassava products annually.
Nigeria has tried to expand the local cassava business through the Composite Flour Initiative and the Cassava Empowerment Fund but so far, they have attained little or no success. Cassava is produced in all the Southern and Middle Belt States of Nigeria.
It is produced from Cassava Tubers and is the commonest stable food in Nigeria consumed by over 130 million people. We consume about 7.7 million tons of gari per year and it comes to about 30.7 million tons of our cassava production.
This shows that about 75 percent of our cassava out put is consumed as staple while only 25 percent is used as raw materials for starch, chips, pellets and flour which are industrial raw materials that can be exported. Our actual annual demand for gari is 12 million tons but to accomplish this, the production facilities must be improved and up graded and Cassava Product must also improve.
Our population grows at the rate of 3.5 percent annually and this means that the food capacity must also grow commensurately. Gari is produced in the rural areas by local women and the process is full of drudgery and stress thus most of them are giving up the trade and the younger ones are not interested because they prefer life in the cities. The modern Gari Processing Plant is designed to fill this void.
4. EQUIPMENT AND PRICE
The heart of this Modern Gari Processing Plant is the Roasting or Frying Pot which is made of Stainless Steel and insulated with fiberglass to absorb heat from the fire. It is powered by 2HP gear motor that rotates the paddles that continuously turn the frying gari mash. The full lists of the equipment are:
1 (NO) Stainless Steel; HAMMER Mill with 15 HP Electric Motor Capacity – 1 ton / hr.
4 (NO) Fermentation Racks
4 (NO) Hydraulic Jack (Mechanical) Press Capacity 1 ton / hr.
1 (no) Stainless CAKE Granulator with 7.5 HP, Motor, 1 ton / hr.
2 (NO) Gari Roasting / frying Pot with 2 HP Gear Motor, Exhaust Pipe and can be fired with Firewood, Charcoal etc. 2 tons / day.
4.1 PRODUCTION CAPACITY
The Hammer Mill or the Cassava Grating Machine and the Granulating Machine have capacities of 1 ton per hour.
This means that within one day of 8 hours, they will process 8 tons of cassava mash. The two frying machines will then roast or fry them into two tons of gari or 40 bags of 50kg per day. Four tons of cassava tubers produce one ton of gari. The capacity of the plant is therefore 2 tons of gari or 40 bags of 50kg per day of 8 hours. Output will increase if production hours increase.
4. 2 THE PRICE OF THE PLANT
The price of the plant is N5 million (Five Million Naira). It is rugged, resilient and made of stainless steel to satisfy both SON and NAFDAC requirements. It reduces drudgery and stress which are the bane of local gari production.
The gari has moisture content of 10 percent, sand of less than 1 percent and hydrocyanic acid of less than 10 percent.
The shelf life is over six months and the gari is hygienic and free of microbial contamination and infestations.
5. TERMS AND CONDITIONS OF PURCHASE
80 percent of the price will be paid at commissioning, 10 percent after delivering, and before installation and 10 percent after installation and test run.
Civil works for the mounting of the machines and electrical connections will be the responsibility of the client.
Delivery Period: Delivery of the machines shall be 8 weeks from the payment of the 80 percent and the clearing of the cheque.
Transportation: The transportation will be born by the client. We envisage that one 911 truck or 20 feet container can carry one plant.
Installation: Our technicians will install and test run the plant. The client will provide the central gear switch of about 100 amps, motor starters and gear switches. We will do the bases for the hammer mill and the granulator but the client will provide the materials. It will take a maximum of 1- 2 weeks if the electrical connections, water, power etc are in place. The client will take care of their accommodation, transportation, feeding etc. The production space should be about 200 squaremeters and frying pots should be located in a well ventilated location.
Test run: About 5 tons of cassava tubers shall be required for the test run and it will be provided by the client.
Training and commissioning: Your operators: Technician (1), welder (1) and electrician (1) will be trained during the installation. They are therefore encouraged to participate in the installation and commissioning.
Warranties: 6 months for any production problem excluding changeable parts affected by aging, misuse and accidents.
Technical support: Supply of spare parts at short notice, maintenance, quality control to ensure standard and consultancy services when needed.
Validity: This quotation is valid for 90 days from the date of submission after which the price may change.
6. PROFITABILITY OF THE PROJECT
1. The conversion rate of tubers to processed gari is 4 tons of cassava tubers to 1 ton of gari.
2. That 1 ton of cassava tuber delivered to the plants is N 5,000 per ton.
3. That the other costs of production are not more than 50 percent of the cost of cassava tuber .i.e. 50% of N 20, 0000 which is N 10,000.
4. That the selling price of one 50kg bag of gari is N5,000
6.2 Profit forecast
2 Tons per day of 8 hrs N
Cassava tubers (8 tons x N5,000) 40,000
Other costs of production (50%) 20,000
Net profit per day 20,000
Profit per year (working 6 days
Per week or 313 days in a year
(313 x N20,000) N 6,260, 000
The project will retire all debts after the first year of operation and return a profit of about N 1,260,000. This shows that it is viable and feasible. It can also retire the debt within six months if it operates on two shifts per day.
7. OTHER APPLICATIONS OF THE PLANT
The plant can also be used in processing unripe plantain flour which is consumed mostly by diabetic patients. About 15 percent of our populations are diabetic and the number is increasing rapidly because of our eating habits.
Most states that produce cassava also produce plantain. Plantain is manually peeled, grated in the hammer mill and pressed in the hydraulic jack to dewater it. It is then granulated, roasted and finally milled again in the hammer mill to reduce it to the appropriate particle size. The demand for hygienically produced plantain flour is high because doctors often prescribe it for patients. It does not contain carbohydrate. It also has high export potential.
Garri processing Plants can also incorporate it in their activities to maximize profit during the plantain season. The unripe plantain must not be more than four days old before it is processed.
The plant is robust and versatile and will help in creating employment in the rural areas while enhancing the availability of gari. It will reduce the drudgery and stress in gari production and will also attract unemployed graduates to gari processing.
The profitability is impressive since it can retire all debts within the first year of operation and return a net profit at N1.26 million profitability will also increase if the shifts are increased. The plant can also be used in processing unripe plantain flour.
It is highly recommended to state governments, local Government and community Development Agencies who should use it in poverty alleviation, rural empowerment, employment creation and revenue generation.