Sunday, 9 June 2019

How to Start, Starch Production Business

 Starch is a byproduct of cassava. It can be processed to extract edible content or as industrial (cloths like brocade, linen and cotton materials). The edible starch is a staple food and
delicacy in places like Edo and Delta States; hence the need for mass production need not be over emphasized. It is a business that can conveniently be handled on small scale.
                 Market Competition
   This market is so vast that all category of products are well accommodated. Competition sets in the areas of quality and packaging certain qualities may pass for export there by greatly expanding the market.
The main material is the cassava root. Bowels, sifts, grinding machine, knives etc. All material/machinery are locally sourced and are available in local materials and forms.
Cost/Profit Estimates
Solid starch
The materials required include:
Cassava          1000
Knives for peeling 3000
Grinding machine (could be hired) 45000
Sift (net-like clothe) 3000
Bowels   2000
Water 150
Brilliant milling blue 200
Dryer(optional) 20000
Fixed asset 67,750
Variable Cost 1,200
Packaging ( for powder starch) 1.50k each
The profit margin on starch generally is estimated at over 300%.
This largely depends on individual's areas and size of production and target market, for commercialization. How ever, production and sales distribution staff are needed.
For mass production of edible start NAFDAC approvals.
Knowledge of the production area can be obtained by simple participation and interest, practice makes perfect one must also be able to identify the species of cassava needed.

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