YAM FLOUR PRODUCTION-The business plan template

YAM FLOUR PRODUCTION

This free yam flour processing business plan template will give you needed guide on how to start and profit from yam flour manufacturing business. The cost and source of quality yam flour processing machine and equipment needed for the commercial processing of yam flour. The packaging of the finished product and the feasibility report on yam flour making business are discussed in this yam flour business plan template.

Market Analysis of yam flour processing business

Yam flour production - the business plan templateIn Nigeria, yam flour is called pounded yam. This yam flour production business plan template will take you through the process of producing dried and packaged yam flour in commercial quantity and how to profit from it. Yam, which is the raw material for yam flour production is found in large (commercial) quantity in Obi town in Obi local government area of Nasarawa State. It is a premium food crop in Nasarawa State. However, yam flour production is a relatively small industrial activity. Industrial activities in this area are predominantly in the informal sector, where yam tubers are per-boiled and sun-dried into chips which are later processed into flour. Yam flour apart from serving as an outlet for preservation of yam has the possibility of making yam products always available.

The market for yam flour in Nigeria is very wide. The product is used mainly at homes, hotels, and starch derivatives factories. It is also exported to different parts of the world. This industrial sector can boost job creation and profit making.

Project Engineering of yam flour processing

Plant capacity: 150 tones/annum

Raw Materials Requirements: Yam

Quantity 12,000 metric tonnes
Quality Good
Cost 12,000 M/tonne at 120,000 N100/MT
Source Local

Production Process of yam flour

The process involved in yam flour production includes washing of the yam. The yam is then peeled and sliced into required shape. It is then dried using gas drier, milled, sieved and packaged. It is then ready for use.

Machinery and Equipment of yam flour processing

The basic equipments required include gas fire boiler, gas drier, grinding machine, B.H.P. diesel engine, auto sieving machine and bagging silo.

Cost N 145, 709,000
Sources Local and Imported
Spare parts Available
required
Cost Determined by the market
Sources Local and Foreign

Labour/Manpower Requirement for yam flour processing

Number of People Required: 33

S/No Category Number N ’000
Required
1 Manager 1 200,000
2 Supervisor 1 144,000
3 Accountant 1 200,000
4 Skilled workers 10 976,000
5 Unskilled worker 20 1,440,000
Total 33 2,960,000
Source: Local
Training Needs
In-plant = Yes
Out-plant = Yes
Both = Yes

2

Utilities

1 Power 2,445,000
2 Fuel 2,200,000
3 Water 3,410,000
Total 8,055,000

Other facilities

Telephone, transport

Preliminary Financial Analysis of yam flour processing business

Cost of Fixed Assets (Investment) N’000
1 Land and Building (rent) 500,000
2 Plant & Machinery 1,200,000
3 Pre-investment cost 100,000
Total 1,800,000

Working Capital

N’000
1 Raw materials 120,000
2 Salaries and wages 2,960,000
3 Overhead and utilities 240,000
Total working capital 3,320,000

Estimated Turnover of yam flour processing business

N ’000
12,000 M/tonnes at 120,000
N100/MT

Operating cost of yam flour processing

2.5% of preceding cost of production N64, 000 Gross margin (%) 24.0%

Source: RMRDC, Abuja 2003.

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