Groundnuts paste is made from grounding fried groundnuts into a paste. The paste is used as a sauce stew to accompany food. It is many times mixed with other sauce or mixed directly into food. It makes soup heavy, and tastes nice. It may also be used or pasted on bread and be used instead of butter. This proposal will produce a safe product using stainless steel machinery unlike the present products produced using cast-iron equipment, which end up laced with materials likely to cause cancer to those eating it. About 250 to 350 kgs of groundnuts can be processed daily. An investment capital of NGN 31,421,000would sufficiently start up this project. The project is estimated to generate annual revenue of NGN 46,800,000 with a net profit of 28%
Production Capacity, Technology and Process
The process begins with the cleaning and sorting of the sun-dried shelled groundnuts. Thereafter, the nuts are fried briefly to make a paste and give a good taste. It is then put into the grinding machine for processing into a paste and packed in plastic containers.
The process is quite simple and fast and a substantial amount can be processed in a day with modest equipment within a small space.
Capital Investment Requirements (CBN exchange rate -$1 to 415.26 NGN) as of 8th july 2022.
| Capital investment item | Units | Qty | Cost in
NGN |
Cost in USD | |
| Grinding Machine | No. | 1 | 46,000 | 110.77 | |
| Weighing scale | No. | 1 | 2000 | 4.816 | |
| Plastic Drum | No. | 2 | 15,000 | 36.122 | |
| Ladle | No. | 4 | 2000 | 4.816 | |
| Total cost of machinery | 65,000 | 156.528 | |||
Production and operating costs
| Cost Item | Units | @
NGN |
Qty/
day |
Pdn cost/ month in NGN | Pdn cost/ year
In NGN |
Pdn cost/ year
In USD |
| Groundnuts | kgs | 30,000 | 200 | 780,000 | 9,360,000 | 22,540.095 |
| simsim | kgs | 40,000 | 100 | 1,040,000 | 12,480,000 | 30,057.804 |
| Packaging | No. | 30,000 | 300 | 780,000 | 9,360,000 | 22,540.095 |
| Sub-total | 100,000 | 2,600,000 | 31,200,000 | 75,133.651 |
General costs (overheads)
| Cost Per Month
NGN |
Cost Per Year
NGN |
Cost Per Year
USD |
|
| Utilities(water and power) | 3,000 | 36,000 | 86.693 |
| wages | 10,000 | 120,000 | 288.976 |
| Sub –total | 13,000 | 156,000 | 375.668 |
| Total Operating Costs | 2,613,000 | 31,356,000 | 75,509.319 |
- Production is assumed for 312 days per year.
- Depreciation assumes 4 year life of assets written off at 25% per year for all assets.
- A production Month is assumed to have 26 days.
Project product costs and Price structure
| Item | Qty /day | Qty/yr | @ | Pdn cost /yr
NGN |
Pdn cost /yr
USD |
TR
In NGN |
TR
In USD |
| Peanut butter | 300 | 93,600 | 500 | 31,356,000 | 75,509.319 | 46,800,000 | 112,700.477 |
Profitability Analysis
| Profitability Item | Per day | Per month | Per Year
NGN |
Per Year
USD |
| Revenue | 150,000 | 3,900,000 | 46,800,000 | 112,700.477 |
| Less production and operating Costs | 100,000 | 2,613,000 | 31,356,000 | 75,509.319 |
| Profit | 50,000 | 1,287,000 | 15,444,000 | 37,191.157 |
Market Analysis
There is a ready market for Peanut Butter and outlets are spread all over because this is a household item used by all families throughout the year. It is stocked in markets, provisional shops and supermarkets etc.
