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Juice Up Your Bank Account

Published by Guardian on Sat, 09 Jun 2012


Producing, Marketing Natural Fruit JuicesTHERE is no gainsaying the fact that cottage and small-scale industries hold the key to the future of industrialisation of any country especially developing ones like Nigeria. Apart from offering self-employment opportunities, improving the standards of living of the people, engaging in small-scale or cottage industries also develops the rural areas by stemming the tide of rural-urban migration, enhancing technological skill acquisition and acting as a veritable catalytic support and source of raw materials for the bigger industries.With particular reference to Nigeria, establishment of profitable small-scale industries will serve as an escape valve for a lot of people with small amounts and who therefore might not meet the loan requirements of banks to establish these industries on their own. These people include the retired, unemployed graduates seeking NDE loan, those currently working but who plan to retire soon, those who want to combine manufacturing with their current lines of business, and/or even those who have money but do not know one good profitable small-scale industry to invest in.Natural fruit juice is a refreshing non-alcoholic beverage. It is extracted from such fruits as oranges, mangoes, cashew fruits, lime, grapes, pineapples, pawpaw, lemon, tomatoes, etc. The juice from one fruit can be packaged all alone or in combination with two or more others. It is very nutritious and those who no longer drink alcoholic or carbonated drinks go for it because of its freshness and thirst-quenching capability. The fruits from which the juices are extracted contain a lot of vitamin C otherwise known as ascorbic acid the daily intake of which helps the body build up a defence mechanism against diseases. Deficiency in it causes scurvy, body malfunctioning and malnutrition. High doses of vitamin C can extend the life expectancy of terminal cancer patients. Up to 6 gm per day of vitamin C can also reduce cold symptoms by one-third. Natural juices also have vitamins and fibres which are good for the body.Fruit Juice MarketFruits juice drinks are everybody's favourite and are cherished in homes, restaurants, hotels, etc. When packaged in small containers and chilled they are sold to school children and the general public especially during the dry season when thirst is at its peak. These can also be packaged in bigger containers for family use and export to earn scarce foreign exchange. Furthermore, when the juices are concentrated and preserved, soft drinks bottlers have a ready and steady source of their raw materials. Processing these fruits into juice will help add value to them before their being sold.It is a matter of public concern that our fruit farmers and sellers year in year out suffer huge losses of the farm produce due to lack of better preservation technology or non-processing of these fruits into juices and concentrates during harvest time when they are plentiful and cheap for off-season consumption and marketing. This waste, conservatively put at 50% of the quantity of the fruits grown annual can be turned into a money-spinning venture by aggressive entrepreneurs establishing small-scale factories to process, preserve, and market fruit juices. Doing this ensures that during the off-season period the freshness of the juice is not sacrificed.A casual observer will notice that many people are now disengaging from the stranglehold of alcoholic drinks. And during the dry season fruit juices serve as a refreshing drink and thirst quencher. During parties, social gatherings and weddings, in townships and rural areas, hotels, fast food joints, restaurant and other eateries, fruit juices are a special delight. Club houses, educational institutions, the health conscious etc. also form the potential market for natural fruit juice industry.Economic FactorsThe establishment of this factory in any area will encourage the farmers to grow more at reasonably stable prices as they will be assured of ready and steady demand for their fruits.. It will also create employment opportunities for farm helps, and stem the tide of rural-urban migration with all its disadvantages. The other spin-off effects are many'foreign exchange generation, kick-starting and catalysing of rural industrialisation, value addition to the harvested fruits before their marketing, helping to make the juice available to areas far from those of production etc.Machinery And EquipmentThe plant and machinery needed to process these fruits into juice comprise of the sorting tables, washing, machines, extractor(s) mixer/homogeniser, pasteuriser, and corking machine. The entire equipment is locally fabricated. This has a lot of advantages going with it and can produce all the fruits mentioned earlier on. And since these grow at different times of the year, the plant will be busy for a substantial part of the year. On a micro level, it can produce 1,200,000, litres p.a. of 250 working days. The quantity can be doubled or trippled (once the fruits are abundantly available and there is increase in demand) by working extra shifts.The scope of the plant i.e. whether it is going to be cottage, small or medium scale will be dictated by the steady supply of fruits in commercial quantity and the availability of finance to implement the project. The other two key factors (market and technology) are settled. The Nigerian market for fruit juice is large, assured and expanding. It is even more assured for new entrants especially now that the frivolous importation and dumping of the product has been banned in the country The fruit juice extraction technology is known, proved and has been with us. It therefore presents no problem of availability, acquisition and operation.Production ProcessesThe production of fruit juices involves such processes as the sorting of the ripe and fit fruits received from suppliers, washing, peeling and feeding them into the installed machinery to extract the juice. This is then pasteurized, bottled and corked in appropriate quantity. Preservatives are normally added to prolong the shelf life of the juice and prevent the juice from going bad before its expiry date. However, the use of these additives has to be minimal so as to ensure the retention of the fruit juice's original taste and freshness. Adding some essential vitamins in quantities recommended by nutrition experts can further enrich this.Apart from citrus fruits, pawpaw, cashew fruits, tomatoes and pineapples, other essential raw materials are bottles, easily discarded containers of aluminium, cardboard boxes, cellotape, wrappers and abundant supply of water of tolerable hardness. The target market and cost will largely determine the type of packaging to be employed. For instance, some fruit juice processors package it in cellophane like pure water and then mass-sell to the public. Similarly tin and cardboard packs, because of their relative cheapness and non-contamination of the processed products are also used.This being a food/beverage business, it needs strict adherence to top hygiene conditions. Quality control should therefore not be compromised but should stringently be monitored in order to ensure that defective goods do not get passed onto the consumers. NAFDAC and SON approvals are needed.LocationBecause the fruits are heavy, transportation cost and risk of perishability are important factors that should not be glossed over by a prospective fruit juice extractor. He is therefore advised to site the factory in or very close to a fruit growing area and there are many of such areas in the country today. To ensure self-reliance in fruit supply, incorporating a nucleus plantation in the long run should be seriously considered.Space requirement for a micro plant is about 400 square metres. The plant can be small scale, medium scale or large scale as desired by the investor.Project CostA realistic estimated cost of establishing a small scale plant is N7.150,000 million and is made up of:N'000Machinery and equipment2,500Rented premises (3 years)1, 260Preliminary expenses450Office furniture and equipment460Other utilities1,4/80Take-off working capital750Contingency (to cover cost overruns) 2507,150A cottage plant will cost about half of the above amount.FundingBeing a lucrative and attractive agro-processing project with the raw materials and relevant technology locally available, it can easily be funded by the Bank Of Industry Ltd, the NAC&RB Ltd, a group of compatible investors or an individual. A well-packaged and bankable feasibility study is essential to facilitate such loan requirement.ImplementationImplementing the above project needs the registration of the company, preparation of a bankable feasibility report; ordering, installing, test running and commissioning the plant, staff recruitment and training and proper book-keeping.Interested entrepreneurs are advised not to hesitate on this project. This is because its raw and packaging materials, the process equipment and spare parts are 99% locally available and technology involved is relatively simple. It will contribute significantly to the gross national product and guarantee good return on investment for the investor. The payback period of the project is short.For assistance in setting up this lucrative project, interested serious investors should please contact DON. ABRAHAM through P. O. Box 2919 , YABA 101011, Lagos , Nigeria . Emails : letustalkwealth@yahoo.com ; talk2dco@gmail. Telephones : 0812-478-3187 ; 0704-149-5314 ; 0803-725-1974 ; 01-8755-405) ; 0818 ' 555 - 1655
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