UNIVERSITY OF PORT HARCOURT
FACULTY OF AGRICULTURAL SCIENCE
DEPARTMENT OF ANIMAL SCIENCE
A FEASIBILITY REPORT
TITLE
GARRI PRODUCTION AND PROCESSING BUSINESS
BY
EGBULEFU CHINYERE
LECTURER: PROFESSOR OLATUNJI
JULY, 2021
FEASIBILITY REPORT ON GARRI PRODUCTION AND PROCESSING IN ABUA,
RIVERS STATE, NIGERIA
EGBULEFU CHINYERE
Department of Animal science, faculty of agriculture, university of port Harcourt,Port
Harcourt,Rivers state, Nigeria
1.1 Business overview
Garri is one of the major products from processed cassava the staple food for almost all
Nigerians, as about 75% of Cassava is processed into Garri. According to statistics, about
130 million people – both in rural and urban areas – consume 12 million tons of garri
annually.
This is the reason why most entrepreneurs are going into the garri processing business
especially as this product is recession proof. The recent economic downturn in the
country has seen more and more people turning to Garri.
According to reports, any entrepreneur going into this business will make immense
profit, as the reports show that demand for this product is not only stable but increasing
even though there are few close alternatives to Garri. Garri can be consumed in two
ways – the cold process and the hot process, and while there is no substitute for the garri
consumed via the cold process method, the few substitutes available for garri taken
during the hot process are expensive, which leaves consumers with no alternative than
to stick to garri.
Also, another factor in favor of the garri demand is the growth the population which has
pushed the demand for garri and has also caused more garri processing businesses to
crop up to be able to meet the growing demand
2.0 Introduction
Unemployment is definitely one of the biggest economic problems in Nigeria. It is the root
cause of poverty, youth restiveness, robbery, lawlessness, kidnapping and all sorts of deviant
behaviors. The number of unemployed youths so much and among them are over five million
young boys and girls with NYSC discharge certificates roaming about the nooks and crannies
of the country searching for jobs that do not exist. The situation is not totally hopeless
because governments, communities and civil society organizations are coming up with
strategies that can alleviate poverty and empower citizens by creating wealth. Some of them
are Improved Garri Production Plants, Cottage Industries, and Entrepreneurship and so on.
2.1 Our Vision Statement
Our vision is to be the best in what we do for our customers
2.2 Our Mission Statement
Our mission is to ensure we process garri of the highest quality using the best machines and
resources. We also intend to ensure that our processed garri does not only meet the
needs of our household clients but become a profitable business for our partners and
distributors.
2.3 Key Success Factor
The key success factors are:
1) The use of quality breedsof cassava free from pest and diseases
2) The enrichment with vitamin A
3) The packaging of the product in sachet
4) The high demand of garri as an important inclusion in the diet of the people of the
southern Nigeria.
5) In this era of growing middle class in the country, garri comes in handy to very busy
housewives who combine their roles as mothers and workers and who scarcely have
enough time to engage in daily pounding of cassava fufu as was done when women have
enough time
2.4 Inherent risk
Regular electric supply would not be guaranteed.
Business ownership
The business is sole proprietorship owned and managed by chybest
2.5 Location and Facilities
The business will be located at two places in firm park Nsukka. Facilities such as closeness to,
target market, solar power supply and electricity informed the choices of these locations.
2.6 Available market
The population in Nsukka urban enugu state and entire onisha is up to 1,000,000 and
70% of them consumes garri. In an interaction with 20 different garri sellers in ogige
market, I found out that the most easily and frequently sold garri. Thus the number
people that will need our services are 700,000. The demand figure is expected to
increase with the population increase.
3.0 Product and services
In chy best Garri Processing Company, we plan to deliver these products and servicesa to our
customers in an affordable prices.
Some of the products and services we intend to indulge in as a business includes;
• White garri (Ijebu and normal, packaged )
• Yellow garri (packaged)
• Consultancy Services
• Training and Coaching
3.1Product description
The cassava will be bought from the farmers and then pealed, washed very well, grind jack
and left to ferment very well for 3 days followed by sieving and frying.
4.0 Market analysis
MJ company has an existing opportunity since there is a huge markets around where
garri is retailed in Abua and Rivers at large. The increase in population and also the
packaging will help to attract more costomers.
4.1 Customers/market segmentation
Retailers who sell in local markrts
Super markets
Households and students
5.0 Marketing plan
There are no major garri processing company that package their garri in Abua Rivers
state, hence reduced or no commendable competitor. Therefore, if MJ company
commences operation as planned, it will be a market leader in no distant time.
5.1 Promotion strategy
There will be awareness creation both on the radio and news papers to attract people’s
attention to my product.
5.2 Marketing strategies
Discount will be given to first 20 customers.
Organizing of promos.
Giving of gifts to customers at the end of the year.
5.3 Market Positioning
MJ garri producing company will position itself as the leading market in garri marketing in
Rivers and it’s environ particularly Abua. The venture will create peculiar leading edge
profile for itself. Below is how the firm will be seen; as
1) A provider of the best quality garri
2) As a firm that is customer oriented providing clean and cost effective quality garri at an
awesome delivery system
3) As a trust worthy provider of consistently reliable sachet garri
5.4 Projected sales
Year
Note: 3% discount will be given to regular customer in other to push up sales
Technical analysis, management and organization
6.0 Technical analysis
i. POS (Point of Sale Terminal) will be used for payment. This is to enable customers who
are not with cash to use their ATM card to pay.
ii. Customers phone numbers and email account will be collected so that the farm owner
will send those messages on their birthdays, on special occasions and any important
information.
Customers will also have the farmer’s complimentary card and Facebook account to
order for supply and to give their suggestions in order to make the farmer serve them
better
6.1 Schedule of operation
Knowing how our vision is to be best for our customers, we have decided to ensure that
we draft a business structure that will allow us not only achieve all our intended goals and
objectives but also enable us build a solid business foundation as well.
One of our top priorities is to ensure that we hire the best professional hands that have the
required necessary experience, are dedicated and that will ensure that the business runs
smoothly. We intend to ensure that our employees get the best training obtainable in this
industry and also have welfare packages that will place our companies as one of the best
places to work in.
We also intend to provide excellent customer service by hiring those with the experience of
handling customer orders and complaints efficiently. We know how important it is to get the
right fit for this task as they will be communicating and representing the brand to our various
customers.
Those we intend to employ to handle various tasks with assigned roles and responsibilities for
the growth of our company include:
• Management team
• Accountant/Cashier
• Cleaner
• Van Driver
• Operator
Their roles and responsibilities
Management team
• Makes strategic decision on behalf of the company and ensure its implementation
• Represents the company especially in areas of contracts and negotiation with high level
clients
• Controls overall resources and expenditures
• Ensure that the business is financially secured
• See to the day-to-day running of the business
• Handles the sourcing and recruitment of able hands to run the business
• Communicates the vision and corporate culture of the business to employees
• Sees to the welfare and promotion of employee
• Create a workable marketing strategy and plan for Koko garri business
• Develop a workable budget in collaboration with the Managing Director and
Accountant
• In charge of store and inventory by keeping an accurate logbook detailing stock levels
• Ensures that the store is conducive and well maintained
• Ensures that the racks and shelves are stocked properly so that products do not fall off
unnecessarily
• Ensures that the store is well secured to prevent theft
• Responsible for using conventional and non-conventional means to attract clients
• Carry out market research so as to have a better understanding of the target market
• Sources for reliable vendors and suppliers for the business
• Prepare purchase orders and requisitions on behalf of the company to suppliers and
vendors
• Maintain accurate report of goods ordered for and those received
• Develop a workable budget for the purchasing department in collaboration with the
Managing Director and Accountant
Accountant/Cashier
• Carry out a thorough analysis of the income and expenditure of the business
• Works with the Managing Director to prepare a workable budget for the business
• Resolve discrepancies that have occurred by reconciling bank statement with cash
statement
• Work with the purchasing manager and offer advices and suggestions where necessary
Cleaner
• Peal and wash the cassava
• Ensure that the premises is kept clean at all times
• Ensure that the restrooms are clean for staff and customers
• Replenish restroom with necessary facilities
• Report broken or spoilt facilities to management
Van Driver
• Ensure that the products are transported and delivered to its proper destination
• Keep detailed records by maintaining a log book recording distance traveled and fuel
consumed
• Ensure that van is in good shape to take the journey
• Carry out regular maintenance and light repairs on the delivery van
6.2 Organizational Structure
Management Team
Cashier
Driver
cleaner
6.3 Management Team
The management team is made up of 4 people, Mr Ugwu John and Mss ogbonna
Chinenyenwa , Eze Abel and Abugu Ifeanyi are members of the management team.
6.4 Personnel Plan
The skills needed are expertise in handling the company. The operator of the machine, driver
and individual that will help in pealing will be recruited for the success of the company
Category Number of Staff Salary per month Salary per annum
Manager 1 15,000 180,000
Management Team 4 24,000 288, 000
Pealers 3 15,000 180,000
Driver 1 6000 72,000
Total 60,000 720000
NB: Personnel salaries for the subsequent year will increase as our profit margin increases.
6.5 Values and norns of the company
Workers are to resume work by 8.00 am Mondays to Saturday
Lateness to work is highly Prohibited
Cleaningness is our priority
Legal, Environmental, Social and Regulatory Issues.
7.0 Legal Issues
The business is a sole proprietor and it will be registered under the cooperate affair
commission.
7.1 Environmental Issues
The business will not cause any hazard to the environment.
7.2 Social Issues
The business will provide employment opportunity to youths
7.3 Regulatory Issues
The business will abide by all the regulation of the cooperate affair commission
PART 8
8.0 Risk Analysis
The inherent risks were identified and appropriate measures generated to prevent the
business from being disrupted are shown in the table below:
Identified Risks Measures
Animal invasion Fencing of the farm
Competitors Quality products, services and incentives.
Fire outbreak Provision of fire extinguisher.
Initial low demand Advert and promos.
Labour Migration Care for employees and increment of
salary.
8.1 SWOT Analysis
A SWOT analysis carried out on the project reveals the following
Strengths
1) The location of the business makes it easier to reach the target market
2) The ability to enrich the crayfish nutritionally with Vitamin A
3) Packaging in processe makes it different and safe from contaminants convenient for use
4) Enough land already available to site the business ( family land; a plot)
Weaknesses
1) Initial problem of raising adequate capital for the project anticipated
2) The proprietor has limited experience and expertise in the business
3) Transportation challenge
Opportunities
Currently, there is no sachet garri product in the market. Therefore, the introduction of
sachet crayfish enriched with Vitamin in the market will arouse the need for convenience
which will enhance patronage and hence a major advantage.
Threats
There is still a campaign on the reduction in the consumption of such processed products
due to likely cancerous properties in such food items. This may discourage continuous
patronage.
8.2 other considerations, conclusion and recommendation
Economic Justification:
“From the point of view of our study and analysis of the findings embodied in this plan,
the project offers good benefit to the economy as it create job and wealth, is consistent
with the spirit of Vision 2020 and the Millennium Development Goals.
Commercial Viability:
“We have found this project to be commercially viable, having shown through our financial
projections, a conservative but impressive turnover, cash flows, profit line and investments
appraisal metrics.”
9.0 Financial Plan 9.1 Summary of Project cost
The project will be executed with the total sum of #5000,000 only. Broken down #3000,000
fixed capital and #2000,000 working capital.
Fixed Capital Investment
Working Capital and other Operating Expenses
Items
9.3 Funding Plan
To finance the required investment outlay, the company plan to raise an equity capital of
#2,000,000, from the contribution of 2 members of her family. each member will
contribute the sum of #1,000,000 this will be added to her savings of #1000000 while
#2,000,000 will be borrowed from the bank making it a total of #5,000,000.
Source
9.4 Funding Requirement
The fund requirement for this project is #2,000,000 since four family members are
contributing #1,000,000 into the business.
9.5 Interest and Loan Repayment Schedule (10%)
Year
9.6 Projected Cash Flows Statement
Inflows Year 1 Year 2 Year 3
Owners Capital 1,000,000 - Bank Loan 2,000,000 - 1,000,000
Revenue 2,000,000 3,400,000 2,500000
Total Cash Flow 5,000,000 3,400,000 3,500000 Outflow Year 1 Year 2 Year 3
Machinery 200,000 -
Fixed Cost year 1 50,000 depreciation
Interest 50,000 28,33.4 88,334.6
Operating Expenses 2,224,000 2,436,400 2,708,040
Loan Repayment I66,666 166,666 166,667
Total Outflow 2,690,666 2,631,399.4 2,963,041.6
Net Cash Flow 3,309,334 768,600.6 986,958.4
Opening Cash Balance - 3,309,334 4,077,934.6
Closing Cash Balance 3,309,334 4,077,934.6 5,064,0893
Items
10.0 Key Competitors and Players
Local garri producers in the markets, semovita production, wheat producers but greater
chance exist for me r acceoted by people because of the quality and packaging my product
will be cheaper than those product even though they will be of the same quantity. To the
other garri producers, my garri will be bet of the better accepted because of the quality and
packaging. Also the retailers of packaged garri will have to come and buy from my company at
a cheaper rate.
.
10.1 Quality Assurance
I am out to provide a good garri that is of high quality therefore customers are assured
that they will get the best. A trial will convince each consumer
10.2 Competitive Edge
The sale of freshly prossesed and packaged garri and also the closeness of the farm to the
market and use of modern technology like POS give me an edge over others.
10.3 Sustainability and expansion strategy
Every established business’ aim is to make enough profit that will sustain the company
and also ensure that growth and expansion takes place. However, before we can make this
profit, we know that certain factors need to be in place to ensure that we have a chance at
sustainability.
The reason why most businesses exist is because of its customers, as without having any
customers, one’s business might not only remain stagnant but fail in the end, because
customers inject money into the business that will keep it running.
Due to this fact, we intend to ensure that we treat our customers’ right by ensuring we
promptly attend to their requests, orders and complaints. We also intend to ensure that our
loyal customers and those who refer us are given discounts on certain quantity of garri they
buy from us.
Having customers isn’t enough, but hiring the right people into the right positions is also
paramount to us. Our employees will not only be professionals with vast experience, we also
intend to ensure that they have the best welfare package necessary to improve their
productivity, and also the best training to enhance their skills and make them better than
their peers in the same industry.
Aside having the required start-up capital necessary to start the business, we know that if the
above factors are correctly done, we will be successful at not only sustaining the business and
also expanding the business in the long run as well.
10.4 Conclusion and Recommendation:
“Having found this project technically feasible, commercially viable and economically
desirable, we therefore strongly recommend it for funding and implementation.”
