Tuesday, September 22, 2015


Providing employment for a large section of the population, agriculture remains a major source of economic activity in Nigeria. Nigeria produced 242 000 tonnes of cocoa in 2008. The National Cocoa Development Committee (NCDC), made up of the 14 cocoa producing states in the country, has distributed new high yield cocoa seedlings to cocoa farmers, and continues to allow the purchase of chemicals and inputs at 50% subsidy.

Cocoa ( Theobroma cacao L. ) is a native of Amazon region of South America. The bulk of it is produced in the tropical areas of the African continent. There are over 20 species in the genus but the cocoa tree Theobroma cacao is the only one cultivated widely.

Cocoa is the second major non-oil foreign exchange earner in Nigeria after leather. It is produced in fourteen {14} states of the federation namely Ondo, Cross River, Oyo, Osun, Ekiti, Ogun, Edo, Kogi, Akwa Ibom, Delta, Abia, Kwara, Ebonyi and Rivers with an annual production rate of 240,000 metric tons {MT}.

Over 98% of the product is exported and it's provides means of livelihood and employment to over five million {5,000,000} people.

In the year 2005 alone, export revenue from the sales of cocoa amounted to US $ 136.7 Million with Netherland, UK, France, Germany, Spain, Italy, USA and Japan being the major export destination. Other emerging markets include China and India.

Between 1962 and 1968, Nigeria’s major foreign exchange earner was the agricultural sector. However, even though trade was liberalized during this period, agricultural exports declined and the sector did not benefit from the relaxed trade environment. Thus the kind of liberalization at that time (which favoured import substitution and consumption of foreign made goods), reduced the threat that an expanding agricultural exports sector may have had on the environment.

Nigeria realized $882,812,813 from the exportation of Cocoa and cocoa products in 2010, as against $662,295,907 realized in 2009.

Nigeria is third largest cocoa grower in Africa and producing about 400,000 MT of the commodity.

This report seeks to examine the financial viability or otherwise of establishing cocoa processing plant in Nigeria which involves the sourcing of raw cocoa seed and processing same to yield cocoa liquor, cocoa butter and alkalized cocoa powder with fat percentage 10-12% after pressing in the cocoa cake.

The project entails the treatment of the cocoa beans, separating the shells from the nibs, roasting the cocoa nibs, pre-grinding to liquor, fine grinding, pressing, butter filtration / packaging and the cake crushing.

The plant size is laid out for 96 T/d based on working in 3 shifts of 8 hours, though the plant would operate at 90% of the installed capacity working 300 day per annum processing 4,320 ton of raw cocoa seed bi-monthly, producing 405 tons of cocoa liquor, 879 tons of cocoa butter and 968 tons of alkalized cocoa powder bi-monthly for export with fat percentage 10-12% after pressing in the cocoa cake.

The offered plant consists of the equipment mentioned in following sections Cocoa beans treatment section, Cocoa liquor grinding section, Liquor blocking section, Cocoa pressing, Butter filter section, Butter filtering and blocking section, Cake handling section, Pulverizing section.

The equipment would also include the scada control concept - This control system can be equipped with an overall monitoring and management system that links all the control areas. This kind of system makes it possible to control a plant from one control room. The operators get all information they need to control the production facilities. The system comprises control for all equipment, production reports and integrated alarming.

Utilities and lab equipment- A complete set of utilities existing of generator, fuel tank, LPG tank, steam generator, air compressor, chiller and cooling tower, pipes for utilities, un-interruptible power supply, power transformer (10 kVA), distribution cabinets and laboratory equipment.

Piping and cabling - A complete set of materials for product pipes, auxiliaries, valves, field components, cables, cable ducts etc, based on a standard lay-out. 

Report Details:

Report Type: Pre- Feasibility Report

Formats of Delivery: PDF / MS WORD

No. of Pages: 54 Pages (Text Part) / 6 pages (Financial Part)

Publisher: Foraminifera Market Research

Release Date: 30/08/2015

Language: English

Delivery time: 24– 48hours

Table of Contents:


1.0 Business Overview
1.1 Description of the Business
1.2 Vision and Mission Statement
1.3 Business Objective
1.4 Value Proposition
1.5 Critical Success Factor of the Business
1.6 Current Status of Business
1.7 Description of the Business Industry
1.8 Contribution to Local and National Economy

2. Marketing Plan

2.1 Description of product
2.2 Product Packaging and delivery
2.3 The Opportunity
2.4 Pricing Strategy
2.5 Target Market
2.6 Distribution and Delivery Strategy
2.7 Promotional Strategy
2.8 Competition

3. Technical Analysis

3.1 Description of the Location
3.2 Raw Materials
3.3 Production Process
3.3.1 Pre-Export Documentations in Nigeria
3.3.2 Post-Export Documentations (Exchange Control Documents)
3.4 Machinery and Equipment
3.5 Production Cost
3.6 Stock Control Process
3.7 Pre-Operating activities and expenses
3.7.1 Operating activities and expenses
3.8 Project Implementation Schedule      
4.0 Organizational and Management Plan

4.1 Ownership of the business
4.2 Profile of the promoters
4.3 Key Management Staff
4.3.2 Management Support Units
4.4 Details of salary schedule

5. Financial Plan

5.1 Financial Assumption
5.2 Start -up Capital Estimation
5.3 Source of Capital
5.4 Security of Loan
5.5 Loan Repayment Plan

6.0 Business Risk and mitigation factor

6.1 Business Risks
6.2 SWOT Analysis

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