Spice manufacturing

Spice manufacturing businessDried spice manufacturing business plan

DRIED SPICES PRODUCTION from ginger, onions, chilly, garlic, nutrient, sesame seed, curry and thyme.

This template on how to start a spice manufacturing in Nigeria, will give you needed guide on how to start and profit from spice production business. The cost of starting spice manufacturing business in Nigeria, The cost of the different spice manufacturing machine and equipment needed for the commercial production of spices. The packaging of the spice manufactured and the feasibility report on spice manufacturing business are discussed in this spice production plan template.

Introduction:

Spices are generally used in the food industries in order to impart flavour and piquancy (taste) to food. Although some spices are known to posses high medicinal value, their great use are in homes, restaurants and other places where preparation of food and food products are undertaken.

In spices production, pepper, turmeric, curry, ginger, garlic, chilies, onion and other of their likes can be needed. Most of the spices required in Nigeria today can be one hundred percent produced locally, particularly in the northern part of the country.

This spice production business plan will show you how To Start A Spice Manufacturing And Packaging Business in Nigeria

Market Potentials of spice manufacturing business:

Spices are essential condiments in food and soup preparation. Spices are used in food industry to impart flavour to food. Hotels, restaurants, food manufactures are some of the users of spices. The market will continue to expand since spices are particularly desirable because of their stimulating effects. The market potential is already there most especially during harmattan; moreover nursing mothers are encouraged to use a lot of spices in food.

Production Capacity: – 60 tones per annum (input).

Production Process of dried spices:

Spices are washed in clean chlorinated water. Some of them require peeling and slicing (e.g. ginger). They are bleached in boiling water for a few minutes before drying. The drying is carried out at a temperature that will ensure that particular spices do not lose their flavour. After attaining a moisture content of about 8-13 percent, the hydrated spices are cleanied and graded.

Machinery and Equipment for spice manufacturing

Washing tank, peeling and slicing devices, Currying unit, dryer, hammer Mill Grading table unit, bagging Facilities.

In our next article we would give an analysis of spice manufacturing plant project and spice manufacturing plant project report

RAW MATERIALS for spice manufacturing:

Depending on the kind of dried spice you wish to manufacture, red chili, black pepper, cloves, coriander seed, cumin seed, fenugreek seed, ginger, and turmeric are common spice raw materials needed for the manufacturing of spice

INVESTMENT COSTS (N’000)
Land and building (rent)
Machinery & Equipment 250.00
Prelim. & Pre-operational expenses 500
Contingencies 12.00
Working Capital (one month) 70.00
Raw Materials 6.00
Salaries & Wages 6.00
Utilities 4.20
Rent 86.20
TOTAL INVESTMENT COST N353.90
PRODUCTION COST for the first year
Raw Materials: 42 tons of ginger, 840.00
thyme at N20,000/MT curry (at 70%
Capacity utilization)
Utilities: Power 40.00

 

Fuel 20.00
Water 10.00
Fuel 20.00
Water 10.00
70.00
Salaries and Wages: Manager (1) (1) 24.00
Skilled worker (2) 24.00
Unskilled” (4) 72.00
Maintenance and Repairs (10% of cost 25.00
of machinery and equipment)
Admin. & Marketing expenses 15.00
Overhead 10.00
Rent 50.00
Depreciation 28.00
Interest on finance 16.00
TOTAL COST OF PRODUCTION 1,126.00
FINANCIAL RATIOS
Turnover: 30 T/annum at N50,000/T 1,500.00
Profit per year 374.00
Rate of Return on total Investment 105.7%
Rate of Return on total Sales 24.9%
Break-Even-Point 35.00%

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