Cost of starting Cassava Processing Mill in Nigeria

Are you interested in starting a cassava processing business in Nigeria. Below is the cost of starting Cassava Processing Mill in Nigeria.

Machines and Equipment required for cassava processing business

The machines and equipment to be purchase include;

  • Auto Fryer
  • Peeler
  • Presser
  • Grater
  • Hammer Cyclone
  • Sieve
  • Scales and Sealing machine
  • Cabinet Dryer
  • Manual Fryer
  • Cassava Chipper
  • 25 KVA generators
  • Truck (optional)

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Cost of starting Cassava processing business

The detail cost of starting cassava processing mill is as follows;

Factory Building N6,000,000
Auto Fryer N1,500,000
Peeler N1,000,000
Presser N850,000
Grater N600,000
Hammer Cyclone N500,000
Sieve N450,000
Scales and Sealing machine N290,000
Cabinet Dryer 550,000.00
Manual Fryer 200,000.00
Cassava Chipper 200,000.00
25 KVA generator N400,000
Installation costs N757,000
Logistics N200,000
Subtotal N13,294,000
Admin Start-up Expenses
Contingency N3,200,000
Others N9,400,000
Subtotal N13,600,000
Grand total N27,594,000

This is just a rough estimate of the cost. It may less or high than this depending on your financial capacity.

Cassava flour is wheat flour good substitute. Only it alone can generated over N25 billion from 125,000 tons contributing to Nigerian economy in 2014. Nigeria, however imported over N635 billion worth of wheat flour in 2014 from the USA losing minimum of $2 billion per annum in foreign exchange (FAO, 2014) for local preference of wheat flour to cassava flour.

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What is the return on investment, payback period and estimated first year sales?

An investment of N27.5 million can yield N6 million plus net profit after tax from Garri and cassava flour alone. This means you can regain your investment in 4 to 5 years based on projected first year sales of N164 million and 15% average year on year sales within same period.

 

 

 

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