This is a pre feasibility and Business plans for the production of Coconut chips in Nigeria. the Venture qualifies for funding under the various funding windows.


1.0 Introduction

The Business Plan is on on Crunchy baked Coconut Chips production in Nigeria

This business plan is to take advantage of  the abundant and availability of Coconuts in Nigeria with value chain investment in commercial production and sales of Coconut Chips.

2.0 Value proposition and addition in coconut

Coconut has been used as staple part of the diets in Nigeria for centuries. It is used as food, as flavoring and made into beverages. Today’s urban Nigerian consumers depend heavily on conventional food. It is in this sector that coconut has a good chance to increase its use.

Coconut (tender and mature) within the value chain are applicable and usable for bye products Some of the value added products from coconut includes:

Coconut Milk
Coconut Flour
Coconut Oil
Coconut candy
Coconut Chips
Coconut shell charcoal:
Activated Carbon:
By-Products from husk:
Mushroom Cultivation
Coconut bunch waste in leaf stalk and coir pith
Handicrafts items like ladles, forks, show piece, shell buttons, ice creams cup are prepared from coconut shells.
The coconut wood is used for making wall panels, furniture’s


3.0 Coconut chips as a value added

The business plan is on the Coconut chips production within the value chain. The core advantage of investment in the coconut chips includes

 Raw materials are 100% available in the Country.
The investment accommodates both the micro, mini and large scale investors
The product comes under the overall huge savory snacks category in Nigeria.
Machinery are locally available
Nigeria is predominantly a mass market and highly price-sensitive—it demands more of low priced spirits.
Changing demographics including greater urbanization, and changing lifestyles of the large youth population are expanding potential market
Increasing market similarity and ease of transaction with Nigeria’s growing middle-class and western-style retail sector, rising incomes and a trend toward greater demand for healthy Snacks

4.0 Key to Growth

•        Brand fundamentals are important  to  growth
•        drive awareness and consideration important
•        Drive consumption within the top three segments, “Meal Replacers”  (29%), “Emotional uplift” (17%) and “Little Break” (17%) 
•        Ensuring brand availability in neighborhood stores and supermarket.



4.0 Industry Analysis

In Nigeria, coconut bye products has the potential of generating over N20 billion annually for farmers and agribusiness entrepreneurs .

Currently, the production output of dehusked nuts in Nigeria is about 350,000 metric tonnes which is used in the production of less than 1,700 metric tonnes of coconut oil. According to the United States Department of Agriculture, Nigeria coconut oil domestic consumption alone is about 7,000 metric tonnes thus leaving a supply gap of about 5,500 metric tonnes per year. The export potential within the value chain is valued about $500 Million USD annually if harnessed.

In Nigeria, Lagos state has the potential for the production of more than 10 million coconut trees with annual production of over 1 billion husked nuts worth over N45 billion. The state is the only in Nigeria with programs for coconut expansion and product development with funding for entrepreneurs and growers.

UAC foods pioneer the commercial production of coconut chips in Nigeria with its fun time Coconut chips brands. Fun time achieved nationwide spread within 6 months of its launch. There are about 7 other packaged coconut chips in the Nigerian market although each comes with its own varieties and preparation however fun time coconut chips is the largest most commercially sold Coconut chips in the market. un-registered coconut chips that sells in the market

5.0 Plant location

Coconut is a cash crop that is grown in 22 of Nigeria’s 36 states and its production is limited to the south-western part of the country, with Lagos State having the largest production area. Although the coconut palm is not indigenous to Nigeria, 15,000 ha of land are estimated to be under coconut cultivation in the country, mostly in the coastal areas of Lagos and Ogun State, the delta areas of Rivers, Cross Rivers, akwaibom, Bayelsa and Delta State, northern states of Niger, Taraba, plateau, Nasarawa, kebbi, Sokoto, Kaduna, Yobe and Zamfara.

Lagos State is the most preferred location for the plant .


6.0 Product Planning and process

The plant is designed as a 200kg per 8 hours working day working for 200 days in a year with allowance created for fresh coconut sourcing and transportation and down time. However commencement capacity output would be 40% or 80kg one work day shift and increasing yearly until full capacity is met.

The Plant will produce 2 SKUs of Coconut chips in 30g and 60g in to the Market

7.0 Material requirement

coconut
cassava starch or tapioca or potato starch  or corn starch
sugar or honey
nutmeg
cinnamon
Natural Preservatives

 
8.0 Production Process

Coconut Chips are prepared from the young coconuts  with pleasant coconut flavor and does not leave any fibrous feeling after taste. It is processed by following standard quality production process with allowance for quality testing.

The process of production is as follow

The coconut is de-shelled and washed
The white meal is grated through the grating machine
With the help of a mixer the grated coconut meal is mixed with Mix the starch or flour, nutmeg, cinnamon, water and sugar or honey in the right production mix ratio.
The mixture is milled or Flatten with the use of a miller or manually done.
The dough being thinly placed is put it on a baking tray with baking
With the help of a cutter the dough is cut into desired shapes
The oven is preheat oven to 302 F (150 C) and baking takes between 20 and 25  minutes per batch of 5 to 10kg per batch.
The baked chips will passed through a cooling conveyor and straight to the packing section where they are packed into nylons and stored.

9.0 Technical

The Plant is been designed to use Nigerian Locally fabricated equipment. It would produce packaged crunchy coconut chips  according to laid down international standards and follows general manufacturing practices as approved by NAFDAC and the STANDARD ORGANISATION OF NIGERIA (SON).

10.0 Machinery Requirement

Grating machine( Stainless Type)
Mixing machine 25KG capacity
Milling machine ( Stainless Type)
Baking trays and sheets
Shape Cutter mold
Industrial Oven
Cooling conveyor
Stainless work tables
Packing machine

11.0 Finance

Total cost of machinery is about 3million Naira excluding generator, tools and minivan for distribution. The setup machinery cost can be scaled lower or higher depending on scale of production and Technology adopted. The machinery would be semi automatic.

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