CASHEW PROCESSING BUSINESS PLAN IN NIGERIA
INTRODUCTION
Cashew with the botanical name (anacardium occidentale) is originally from Brazil and was introduced by the Portuguese traders In the late sixteenth century for soil preservation and aiding of forestation.
Beginning as a crop planted to reduce soil erosion cashew has rapidly become a major foreign exchange next only to tea and coffee.
Cashew nut is one of the most important nuts grown in the world and it’s ranked the first among various nuts such as groundnut, almond and hazelnut, cashew nuts’ market relevance position is still very enviable in West Africa.
EXECUTIVE SUMMARY OF SMARTEAGLE CASHEW PROCESSING BUSINESS PLAN IN NIGERIA
This business plan idea of cashew farm is based on the research work of SMARTEAGLE ENTERPRISES a business solely owned by Mr. Richard, an astute entrepreneur, a business analyst and farmer.
He has over 8 years experience in this field, he studied Agricultural economics and rural development.
He is a passionate entrepreneur and committed team builder.
This business will benefit from SMARTEAGLE’s CEO’s
- Vast business and leadership experience and understanding of business development and growth,.
- Wide research knowledge carried out on cashew and cashew nuts.
- Business consulting and Business maintenance capabilities.
- Market control tactics.
OBJECTIVES OF SMARRTEAGLE CASHEW PROCESSING BUSINESS PLAN IN NIGERIA
- This business plans is aimed at comparing the success or failure of a proposed action through critical observation of the cost and opportunities involved.
- This business plan will help to understand if a proposed action will produce the expected result.
- To come up with strategies that will position us to compete favorably with our numerous competitors.
VISION
- To build a business that will be on the best 5 sought after cashew products brand in Nigeria.
MISSION
- We are fully committed to contribute our quota towards improving the nation’s economy through foreign exchange of cashew products.
- We are interested in training and mentoring intending cashew products enthusiast in a practical and interactive environment through the help of specialist in the field.
- We are committed to the processing of cashew fruit juice that’s easily available and affordable.
- Actively involved in propagating value addition to Nigeria’s cashew and also encourage increased planting of cashew trees across Nigeria to reduce erosion and promote soil preservation.
OUR TARGETED CUSTOMERS OF SMARTEAGLES CASHEW PROCESSING BUSINESS PLAN IN NIGERIA
- Confectioneries
- Nutritionist
- Bakeries/catering houses
- Households
- Individuals
- Celebrities
- Sport men and women
- Wholesalers
- Retailers
- Workout enthusiast
SUCCESS FACTORS FOR CASHEW PROCESSING BUSINESS PLAN IN NIGERIA
COST FACTORS
- -Cost and availability of labor
- -Cost of energy, shipping and packaging
- -Cost and efficiency of processing machinery
- -Volatility of prices
- -Prices for broken kernels relative to wholes
- -Price for by-products such as cashew nuts shells and sludge
CUSTOMER DRIVEN FACTORS
- Food security and safety
- Traceability requirements
- Labeling and packaging demands from customers
- Changing market structures: few customers with high demand for kernel volumes
OTHER ENABLING FACTORS FOR SUCCESSFUL PROCESSING OPERATIONS
- Good quality source and well-dried raw cashew nuts
- Detailed investigation into existing cashew processing factories
- Working capital at a competitive interest rate
- Technical understanding of the process and equipment
- A process which gives an out-turn of whole kernels at a minimum of 80%
- Attention to food safety standards
- A market for the less valuable and broken grades
- Availability of labor
- Business climate and government policies in the cashew sector
- Market information on raw cashew nuts and on cashew nut processing.
- Making early and timely decisions on the above factors is important for the success of the cashew processing factory.
OPERATIONAL STEPS IN PROCESSING OF RAW CASHEW NUTS (RCN)
The six (6) commonly adopted steps in raw cashew nut processing are:
- Drying of RCN
- Pre-treatment of RCN (warehousing, calibration and heat treatment)
- De-shelling (removal & separation, oven drying and humidification of kernels)
- Peeling (removal of the testa from the kernel)
- Grading of the kernels (classification of kernels into different quality grades)
- Packaging the kernels for storage and shipment
KEY PARAMETERS TO BE MONITORED IN A CASHEW PROCESSING FACTORY FOR SUCCESSFUL PROCESSING AND COMPETITIVENESS
1) DOCUMENTATION: The processors should make records at all stages of the processing process.
It is especially important to record weight loss of the kernel throughout the process to make informed decisions in process management to improve efficiencies.
Every section of the factory must keep records of daily processing information which are fed into a centralized reporting system for management.
- Productivity/quantities
- Yield (per kilo / percentage of wholes / percentage of whites)
- Quality consistency (percentage of whites / color / grades / moisture content)
- Processes
- Critical control points related to food safety
- Utilities (e.g. electricity / water / ICT)
- Traceability from stored raw cashew nut to packaged high quality kernel
- Efficient use of materials (e.g. oil / gloves / packaging materials)
- Machinery and Technology.
2 ) QUALITY CONTROL: Quality assurance is important at all stages of the processing process and is an integral part of the process.
An efficient Quality Management System (QMS) serves as a quality assurance tool.
Quality inspections take place at each step of the processing process to achieve food safety and high quality kernels.
- Cashew is directly consumed, therefore, food safety is important to minimize contamination and thus food poisoning. Consequently, the international food safety standards prescribe guidelines for food safety that also apply to cashew.
- A cashew processor needs to be aware of these standards for a consistent approach to food safety management.Beyond the basic food regulations and acceptable workplace practices, the cashew processor must make contingency plans for potential crises such as product recalls or outbreaks of food poisoning.
- An efficient Food Safety Management System (FSMS) on factory level contributes to compliance with national food safety regulations and ensures that the finished product is safe for consumption and in accordance with international guidelines on food safety.
- Examples of FSMS that are applicable to cashew processing are:
ACA seal: www.africancashewalliance.com
3) SUPERVISION: Cashew processing is a sequence of technical processes.
It can take up to 7 days for raw cashew nuts to go through all the steps of the processing process.
Mistakes at any stage of the process can reduce kernel quality or quantity and thus loss of revenue.
Efficient daily supervision is, therefore, required to ensure high volumes of quality kernels result from the processing process.
RISK ANALYSIS AND MITIGATION ON CASHEW PROCESSING BUSINESS PLAN IN NIGERIA
RISKS
- Cost of cashew nuts processing is no-exorbitant.
- Insufficient funds.
- Equipment maintenance and management
- Marketing and sales cost
- Sudden depreciation in market value of cashew nuts.
- Pests and diseases invasion of crops
- Thefts
TO MINIMIZE
- Creating of a website
- Advertisement on social media platforms
- Provision to source for sponsors
- Equipment insurance and employment of able hands to manage the equipment
- Employing the service of security experts.
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