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Cost of starting Cassava Processing Business in Nigeria

Cost and Equipment for starting Cassava Processing Business

One of the basic foods eaten in Nigeria is Cassava root tuber.

Cassava root tubers can be process to different products that include garri, starch, flour, chips and so on.

Cassava processed products are fast selling consumer products in Nigeria.

So, cassava processing business is a lucrative business anyone can venture into especially those living in sub-urban and rural areas.

The cost of starting cassava processing business in Nigeria may vary depending on the level of your factory automation.

In this article, we’ll talk about the detail cost of starting Cassava Processing business in Nigeria.

Meanwhile, let’s first look at some of the machines/equipment require for starting a cassava processing business in Nigeria

Machines/ Equipment Require for Cassava Processing Business

Some of the machines/ equipment to be purchase for cassava process business include;

  1. Cassava Washer: used for washing cassava root tubers to get clean cassava.

     2. Cassava Peeler: use to peel off cassava cover after washing.

 

  1. Cassava Grating machine: used for crushing the cassava into smaller pulp.

 

  1. Hydraulic press: used to dewater cassava pulp to lower its moisture content to 45% -50%.

 

  1. Local made Presser: this is used to dewater cassava after grating.

 

  1. Cassava Auto Fryer: use for frying wet cassava to desired quality for storage.

 

  1. Cassava Hammer mill with Cyclone (Milling Machine): used for cassava milling.

 

  1. Sieve: used to sieve and remove lump after grinding.

 

  1. Cassava Cabinet Dryer: Cassava used to dry the moisture content of cassava so that bacteria, yeasts, and moulds cannot grow on it.

 

  1. Manual Fryer: used for manual frying of cassava to garri.

 

  1. Cassava Chipper: used for chipping of the cassava root tubers.

 

  1. 25 KVA generators: use as an alternative to power supply

 

There are some other equipment/machines not included in this list because they are optional. Examples are tractor, trolley etc.

 

Read also: Cost of Starting Fish Farming in Nigeria

 

Cost of starting Cassava processing business in Nigeria

 

After our research on cassava processing business in Nigeria, we’ve come up with cost of starting a cassava processing business.

So, the detail cost of starting cassava processing business is as follows;

 

Factory Building ————— N6, 500,000.00 (for large commercial factory)

Cassava Peeler —————– N1,500,000.00

Cassava Auto Fryer ———– N1,700,000.00

Cassava Washer —————- N400,000.00

Cassava Hydraulic press —— N1,400,000.00

Cassava Grating Machine —– N500,000.00

Cassava Sieve ——————- N550,000.00

Cassava Cabinet Dryer ——– N500,000.00

Manual Fryer ——————– N150,000.00

Cassava Chipper —————- N220,000.00

25 KVA generator ————– N450,000.00

Installation costs —————- N750,000.00

Logistics ————————— N250,000.00

Subtotal                                   =  N14,870,000

Admin Start-up Expenses

Incidental expense ————– N5,500,000.00

Others —————————– N6,500,000.00

Subtotal                                   = N12,100,000

Grand total                              = N26,970,000

This is just a rough estimate of the cost of starting a cassava processing business. It may less or high than this. It all depends on your financial capacity and level of automation.

 

Cassava flour as a good substitute of wheat flour generated over N25 billion from 125,000 tons contributing to Nigerian economy in 2014.

FAO in 2014  report that Nigeria imported over N635 billion worth of wheat flour from USA losing minimum of $2 billion per annum in foreign exchange for local preference of wheat flour to cassava flour.

Imagine if Nigerians could produce cassava flour that could substitute this quantity of wheat flour imported from USA in 2014, our GDP would have been improved tremendously.

 

Read also: Full Detail Cost of Starting Business Center in Nigeria

 

How profitable is cassava processing business?

 

Cassava processing business is profitable venture. An investment of N26million on Garri and Cassava starch can yield N5.5million plus net profit after tax. So, you can actually make 5 times your investment in less than 6 years of your business.

Read more on..how to start cassava processing business in Nigeria

 

If you have any questions or comment relating to this article, feel free to use the comment box below.

10 thoughts on “Cost of starting Cassava Processing Business in Nigeria”

  1. Ur reply to my request is very satisfactory. The only thing that remains is the cost of flashdryer for sombdy who wants to produce lafun, fufu etc.

    1. Thanks Your write up is very educative though this is just small industry surprising some what a loan from abroad where they can only loan out $10m what do we do as to arrive at that amount, l have been to Adoawaye at spaltry Farm where they produce cassava starch in large quantity own by a lady she planted cassava on his own despite that she also have farmers that do supply her in a large quantity her sales every year is above $12m now what is your advice in this directiong

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