MAKING DECORTICATED CASHEW NUT

Introduction

This business idea is for Production and marketing of edible cashew nuts, the business idea is premised on production of 5,200 kgs of cashew nuts per month which translates into 62,400 per year. The revenue potential is estimated at US$500 per year. The project cost is US $ 53,280

 Production Process

In the mechanized system, the raw cashew nuts are decorticated using a hand operated machine, mounted on a work table. The decorticator splits the nut when placed between two horizontally mounted blades, especially spread to suit the contour of the raw nut. The outer shell is conveniently split by sliding and splitting action of blades. An operator can process 25-30 kg nuts per day.

 Production Capacity

The plant can have a capacity 9000 kgs per year 

Land Requirement

Rent for a year would cost about 1,200 US Dollars

Market Analysis

Cashew nuts are highly demanded on the world market. Local market also exists although cashew nuts are not very common in all the areas of Uganda. This could turn out to be the turning factor in the marketing of cashew nuts as they have an open market, with limited competition. This sector is still informal in Uganda.

 

 

Capital Investment Requirements in US Dollars.

Item     Unit 

 Quantity 

 Unit Cost

 Total  

Cashew Decorticator

 No. 

1

1,000

1,000

Other equipments

 No. 

1

100

100

Delivery van

 No. 

1

2,500

2,500

Total cost of Machinery



3,600

 Source of Supply of Equipment and Raw materials

Profitability item

 per day 

 per month 

 per year 

Revenue

 

 

 

Cashew nuts

250

6,500

78,000

Less Prod & Operating Costs

159

4,140

49,680

Profit

91

2,360

28,320

 Production and Operating Costs in US $

Direct Materials, Supplies and Costs

 

Item

 

Unit cost

 

Qty/day

 

Prod. Cost/day

 Prod. Cost/ month 

 Prod.

Cost/ year 

Cashew nuts 

 Kgs 

0.5 

300 

150 

3,900

46,800

Sub-total

 

 

3,900

46,800

General costs (Overheads)



Utilities (power)

15

180

Utilities (water)

15

180

Salaries

60

720

Rent

75

900

Depreciation (Assets write off) Expenses

75

900

Sub-total

240

2,880

Total Operating Costs

4,140

49,680








 

 

 

Production and Operating Costs in US $

Direct Materials, Supplies and Costs

 

Unit item

 

Qty

Unit cost

 

Unit Qty

 

Prod. Cost/day

 

 Prod. Cost/ month 

 Prod.

Cost/ year 

Cashew nuts 

 Kgs 

0.5 

300 

150 

3,900

46,800

Sub-total

 

 

3,900

  46,800

General costs (Overheads)

 

 

Utilities (power)

    15

  180

Utilities (water)

  15

180

Salaries

60

     720

Rent

  75

     900

Depreciation (Assets write off) Expenses

   75

900

Sub-total

240

2,880

Total Operating Costs

4,140

49,680

 

Production costs assumed 312 days per year with a daily capacity of 200 kgs of cashew nuts.   

Depreciation (fixed assets write off) assumes 4 years life of assets write off of 25% per year for all assets. 

Direct costs include: materials, supplies and other costs that directly go into production of the product.

Project Product Cost and Price Structure in US$

Item

 

Qty/ day 

 Qty/ yr 

 

Unit

Cost 

 Prod.

Cost

/year

 Unit price 

 Total revenue 

Decorticated

  

  

  

  

 

 

cashew nuts

200 

62,400 

0.5 

31,200 

1.3

78,000

 

 

 

 


 




 

 

Item     Unit 

 Quantity 

 Unit Cost

 Total  

Cashew Decorticator

 No. 

1

1,000

1,000

Other equipments

 No. 

1

100

100

Delivery van

 No. 

1

2,500

2,500

Total cost of Machinery



3,600

 Source of Supply of Equipment and Raw materials

Profitability item

 per day 

 per month 

 per year 

Revenue

 

 

 

Cashew nuts

250

6,500

78,000

Less Prod & Operating Costs

159

4,140

49,680

Profit

91

2,360

28,320

 

 

 

 

 

  

  

Production and Operating Costs in US $

Direct Materials, Supplies and Costs

 

Uni

t

Cost   Co        Qty/  Prod.

Item     Units  st         day    cost/ day  Cashew

 Prod. Cost/ month 

 Prod.

Cost/ year 

nuts 

 Kgs 

0.5 

300 

150 

3,900

46,800

Sub-total

 

 

3,900

  46,800

General costs (Overheads)

 

 

Utilities (power)

    15

  180

Utilities (water)

  15

180

Salaries

60

     720

Rent

  75

     900

Depreciation (Assets write off) Expenses

   75

900

Sub-total

240

2,880

Total Operating Costs

4,140

49,680

 

Production costs assumed 312 days per year with a daily capacity of 200 kgs of cashew nuts.   

Depreciation (fixed assets write off) assumes 4 years life of assets write off of 25% per year for all assets. 

Direct costs include: materials, supplies and other costs that directly go into production of the product.

Project Product Cost and Price Structure in US$

Item

 

Qty/ day 

 Qty/ yr 

 

Unit

Cost 

 Prod.

Cost

/year

 Unit price 

 Total revenue 

Decorticated

  

  

  

  

 

 

cashew nuts

200 

62,400 

0.5 

31,200 

1.3

78,000