Plantain Chips are a popular snack eaten the world over. They are made by cutting plantain into thin slices. This project uses plantain (Musa Species), which are starchy fruits and are a staple food source in many tropical areas and is readily available in markets but can become scarce when it is out of season. 

Chips can simply be eaten directly or as desserts and puddings. It is a cross-cutting venture as it can be undertaken in both rural and urban settings.

The project initial cost is NGN 39,500 producing 46,800 sachets of Plantain Chips per year giving an estimated revenue of NGN 4,680,000 annually with a profit margin of 475 and a payback period of about 4 months. 

Production, Capacity and Technology

The Plantains can be peeled manually or using a peeling machine. They are then sliced and rapidly dehydrated to reduce the moisture content and then deep-fried in cooking oil.

Excess oil is extracted and the fried Plantain Chips are seasoned with salt and other spices as may be deemed necessary. The plant capacity is 150 sachets per 8 hours.

The technology involved can be locally accessed, which makes it affordable. 

Capital Investment Requirements (CBN Exchange rate – $1 to NGN 380 as of 10th of May, 2021)

Capital Item  Qty  Price Per One NGN Amount (NGN) Amount (USD)
Plantain Chip Cutter 1 2,000 2,000
Deep Fryer 1 5,000 5,000
Impulse Sealer 1 12,000 12,000
Salt Mixing Bowl 1 2,000 2,000
Kitchen Weighing Scale  1 8,000 8,000
Iron Sieve 1 2,500 2,500
Total Cost 39,500

 

Production and Operation Costs

Direct Materials, Supplies and costs

Cost Item Unit Cost NGN Qty/ Day Pdn Cost/Day NGN Pdn Cost/Mth NGN Pdn Cost/Year NGN Pdn Cost/Year USD

Direct Costs
 Plantain 50 100 5,000 130,000 1,560,000
Cooking Oil 1,500 2 3,000 78,000 936,000
Spices & Flavour  50 5 250 6,500 78,000
Packaging Nylon 10 100 1000 26,000 312,000
Sub-Total 240,500 2,886,000

 

General Costs (Overheads) 

Cost Per Month NGN Cost Per Year NGN Cost Per Year USD
Cooking Gas 2,700 32,400
Miscellaneous Expenses 2,000 24,000
Selling & Distribution 2,000 24,000
Sub-Total 240,500 2,886,000
Total Operating Costs 247,200 2,966,400

 

  1. Production costs assume 312 days per year with a daily capacity of 150 sachets 
  2. Depreciation of fixed assets is assumed at 25% per year. 
  3. Direct costs include materials, supplies and all other costs incurred to produce the product. 
  4. A production month is 26 workdays

 

Project Product Costs and Price Structure 

Item Qty/Day Qty/Yr Unit Price TR/YR NGN Total Revenue(USD)
Chips 150 46,800 100 4,680,000

 

Profitability Analysis Table

Profitability Item  Revenue Per Year NGN Per Year

Revenue Per Year USD
Revenue 4,680,000
Less Prod & Operating Cost 2,966,400
Profit 1,713,600

 

Market

Plantain Chips are common among the urban population. With an increased shelf life, the wafers can be supplied to supermarkets, schools, hotels, hospitals, and with aggressive marketing, they can capture a lot of consumer attention even in the international market. They can also be produced in different styles or designs. 

Source of Equipment and Raw Materials

Machinery can be gotten from local stores. Plantains are easily available in the local market all over the country.

 

 

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