INTRODUCTION TO CASSAVA NOODLES PRODUCTION
Over the years noodles have become an acceptable and domineering food component of most Nigerian homes because of its unique taste and ease of preparation, with the first noodle brand introduced into the country more than 20 years ago. It is a staple food which originated from Asia in the 9th century and then spread to Europe, the far east and the rest of the world with the major primary ingredient of production being wheat.
In the noodle industry of the country, there are about 17 players in noodle manufacturing with more than 30,000 people directly employed in the industry and more than 200,000 distributors employed. This has created a huge avenue for supplies for the flour milling companies, the refineries, the palm oil plantations, the packaging companies and the carton manufacturers with the consumption rate around 260 to 280 thousand tonnes per annum.
One of the challenges faced by the industry is the rising cost and availability of its primary raw material in this case which will be wheat powder. There is a global demand for wheat in the international market from the brewing industries, confectionary industries and also competition from the local industry. This places pressure on the commodity subjecting it to erratic price fluctuations.
However, The Federal Institute of Industrial Research Oshodi has researched into the use of roots and tubers as partial substitutes for wheat semolina in noodle production. The process technology developed has been perfected and is available for transfer to entrepreneurs.
CASSAVA NOODLES PRODUCTION PROCESS (Courtesy of FIIRO)
- Pre-gelling- cassava is pre- gelled
- Mixing- The pre-gelled mixture flour is mixed with other ingredients
- Dough Extrusion- the dough is extruded into desired shapes
- Resting and Conditioning- The noodle is conditioned
- Drying- The conditioned noodle is dried
- Cooling and Packaging- The dried noodle is cooled and packaged in bi-axial oriented polypropylene films (BOPP).
PRODUCTION FLOW CHART
RAW MATERIALS SUPPLIES AND UTILITIES
The major raw materials for cassava-based noodles are cassava flour, wheat flour, salt, vegetable oil, and noodle improver.
The main items of supply are packaging materials and factory wears such as boots, coveralls, gloves, etc. the major utilities are electricity, diesel, and water. A 40KVA generator is needed as back-up for power supply.
LABOUR REQUIREMENTS- Labour requirements consist of both skilled and unskilled labour. The manpower is made up of production, marketing, administrative and accounting personnel. About twenty-nine (29) personnel are required.
MACHINE AND EQUIPMENT-
The machinery and equipment for cassava noodle can be fabricated locally. The equipment list is as follows:
- Gelatinizer
- Extruder
- Tray dryer
- Packaging machine
- Weighing scale and other accessories
The total cost of machinery and equipment is about N5, 650, 000.00 including 10% installation, of course, this depends on the capacity. Please note that the price may vary.
CAPITALIZATION
The estimated total initial investment is N13, 666, 720.00. this is made up of N10, 363, 750.00 initial fixed capital, N2,750, 000.00 initial working capital and N552,970.00 pre-production expense.
SPACE REQUIREMENT
One plot of land is required for this project. The actual space required for factory construction is about 15m X 15m.
PRODUCTION PROGRAMME
Production Days/Week 5
Production Week/Annum 50
Production Days per Annum 250
Production Volume /day 2 tonnes
Production Volume /annum 500 tonnes
PROFITABILITY
Sales revenue from 325T (team) N60, 937, 500.00
Total production cost N51, 097, 860.00
Profit before Tax N9, 839, 640.00
Tax@ 30% N2, 951, 892.00
Net profit N6, 887, 748.00
Gross profit 16.1%
Net profit to sales 11.3%
Return on investment 50.4%
Return on equity 126%
NPV @25% N6, 045, 318.00
Break-even point (team) 39.8%
Payback period 1.4 years
Profitability index 2.1
The figures presented above are credited to Federal Institute Of Industrial Research, Oshodi (FIIRO)
For more information contact: senceagric@senceworld.com
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