Feasibility Study on Fruit Juice Production in Nigeria

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Our Sample feasibility study on fruit juice production in Nigeria is up to date and can be used for proposal writing, access grants and loans in Nigeria and abroad. Furthermore,this article will be answer the following questions for you:

Also Read: Business Plan for Fruit Juice Production in Nigeria

Also Read: Business Plan for Yoghurt Production in Nigeria

Overview of the fruit juice production business in Nigeria
Starting up a fruit juice business in Nigeria

To get your sample feasibility study on fruit juice production in Nigeria, pay N10,000 to:

BANK NAME: FIRST BANK PLC

ACCOUNT NAME: CHIBUZOR TOCHI ONYEMENAM

ACCOUNT NUMBER: 3066880122

After payment, text your full name, email address and title (e.g. fruit juice business plan in nigeria) to 07033378184. Your business plan will be sent to your email within 15 minutes.

Read On!

CHAPTER 1 – EXECUTIVE SUMMARY

Fruit juice processing is one of the most lucrative businesses in Nigeria. So many people look down on this business but when you consider the profit churned out from fruit processing plants you will be amazed. The fruit juice business is easily comparable to other lucrative businesses like bottled water business. The probability for failure is almost zero. These businesses produce huge chunks of profit on a daily basis to the entrepreneur.

One of the major reasons for the success of the fruit processing business is the fact that Nigeria is one of the largest consumers of fruits worldwide. This is probably because we are one of the most populous nations in the world. This means that Africa’s biggest fruit market is domicile in Nigeria. With these facts it is proven that every entrepreneur in the fruit business, whether processing or selling raw fruits, is likely to make close to thrice the investment.

Statistics reveal that a minimum of 50% of the almost 200 million people in the country take fruit juice at least once a day. This is a very huge figure. An evidence why big fruit processing companies like Chivita, UAC foods and Coca Cola have gained rapid growth within the last few years on the Nigerian market. Government policies have made life easier for indigenous fruit processing companies. Recently the government has placed a ban on the importation of fruit juices into the country. This policy alone has more than tripled the profit of indigenous fruit processing companies. Of a truth if there is any time to be involved in the fruit processing business it is now.

A simple example of how the government policies have positively affected the indigenous fruit processing companies it the price of the famous apple drink, La Casera. Prior to the announcement of the government policy on importation of foreign fruit juices, the drink sold at just 50 naira. As soon as the policy was announced the price shot up a whopping 100% to 100 naira. With the hot weather of the country everyone will love to cool off after a hot day with a chilled bottle of fruit juice.

Reasons to invest in the fruit processing business

In reality the reasons are almost innumerable but here are a few that top the list:

The nutrients embedded in the drinks. A lot of people have no idea that fruit are a bank of nutrients. Fruits are one of the best sources of vitamins and minerals you could find anywhere in the world. These minerals and vitamins are necessary to keep the body metabolism balanced and ensure perfect health. To get a full dose of the nutrients embedded in fruits you need to consume the juices. This is one of the major reasons why fruit juices are desired worldwide.
There is a constant high demand for fruit juices. All over the world fruit juices are in high demand on a daily basis. Nigeria is the most populous black nation and we are known to love celebrations. Even if people do not drink fruit juices in their homes when there is a party they expect to be served fruit juices. There is hardly a weekend passing by without one form of celebration or the other. This does not go without saying the high number of people that consume fruit juices every day. In the heat season people get to drink double of what they consume usually.
Availability of Raw materials. The great part of investing in fruit processing is that the raw materials, fruits, are almost always available. Ou may wonder that you do not see oranges or mangoes all year round. That is true but there is also something called controlled farming. There are farmers who are able to create the exact environment needed for particular fruits to thrive. You can choose to learn these methods or locate these farmers to supply your fruit needs.
Government support is available. Government policies always support fruit processing entrepreneurs in any country in the world. This is usually necessary to ensure that local producers are encouraged. This is important because it has a major impact on the country’s economy. To this end the government provides loans and brings up certain policies which are geared at favoring these companies. If the government can effectively support these fruit processing companies there is a great chance of improving the country’s GDP since the profit made in the industry is humongous.
Exportation. Once you are able to effectively develop your brand and become a major force in the local industry, it is possible to begin the exportation of your products. To achieve this the entrepreneur must work hard to grow the brand, pay attention to detail and produce excellent products. You can begin exporting to neighboring countries and then beyond the African coast.

Steps to take in starting a fruit juice processing business

It is necessary to put this down as it will be a guide for us as we continue the process of setting up the fruit juice processing business. Just like any other business there are certain steps that must be followed to ensure that the business moves from being just an idea to becoming a reality. Outlined below are a few steps that we have taken and will still take to ensure that this business is fully established.

Feasibility study. Most businesses that end at startup stage fail majorly because the entrepreneur neglected the necessary feasibility study stage. We have taken time to study the market as well as other fruit juice production companies. From our findings we discover that to become a major brand we will need to come up with more creative ideas and promotional methods. We will also have to consider the prices of our products. It is important that we cut down on production costs drastically so as to provide our prospective customers affordable prices. To this end a lot of research has been carried out by our team and after much scrutiny we have adopted the best fruit juice production methods available.
Selecting a niche to focus on. Under the fruit juice processing industry there are several sectors. Some have existed for decades while others have recently cropped up due to technological advancement and research. We have decided to stick with producing regular fresh fruit juices. We look to later one dive into juices made from concentrates should the need arise.
Write a business plan. This is exactly what this piece of write up is about. A detailed map describing the business and stating clearly the projections for the nearest future. This business plan is meant to show the market survey, details about the company, the products and a bit about the production process, completion, financials and operational plan.
Company registration. This involves registering the business with the country’s register of companies. Asides this we will register with other regulatory bodies watching over the food and consumables industry. All of this is necessary to avoid unnecessary embarrassment which could hamper production in the future.

Other steps include the following:

Getting a good location for the business. The location determines to a large extent the success of the business at the end of the day.
Searching for suppliers. We have taken time to research the industry well and we have come up with a list of top notch and reliable suppliers. These business will work with us to provide the raw materials we need for the production process at a cost.
Define the target market. From our feasibility study we have been able to carve out a section of the market which is dire need of the products we plan to process and supply. We will rather do this than produce for all and sundry and which could lead to us running at a loss at the end of the day.
Acquiring the necessary equipment. There are several equipment needed for fruit juice processing. We have made a list after proper research and they are enumerated below:

Fruit washing tank
Industrial juicers/juice extractors
Boiler
Blending tank
Filling machine
Filter press

Marketing and publicity. This aspect is nonnegotiable and we intend to market with a rigorous approach. This is because we are looking at our business becoming a global brand in no time. To this end we intend on using as many means of propagating our products as we can find. They will be listed later in this plan.

Raw materials needed for fruit juice production

Here is a list of raw materials we will need as we progress with the fruit juice production business:

This is the chief raw material, all the juice needed is produced from here.
This is necessary to give our juice a unique taste to serenade the taste buds of our prospective customers.
This is necessary to keep the juice from spoiling for a very long time. The major preservatives in use today are:
1. Sodium benzoate
2. Sodium metabisulphate
3. Citric acid.

Most preservatives are not ideal for consumption but these stated above have been certified consumable by researchers.

Problem Statement

There are 2 major challenges that need to be fixed. The first is the ever increasing demand for fresh fruit juices in the country. There are several fruit juices produced from concentrates but research has shown that these are not healthy to be consumed on a daily basis. It is healthier to consume fresh fruit juices as they contain tremendous amounts of vitamins and minerals needed to keep the body well and maintain proper metabolism.

The second challenge is that lots of fruits are cultivated yearly by farmers in the country. This is asides the number of fruits that grow freely in the wild. Studies show that a large percentage of these fruits end up getting wasted at the end of the year. These losses have a negative toll on the economy seeing that a lot of funds and effort are expended in ensuring that they are cultivated.

Our proposal

According to the statistics released by the government spanning the last decade, it has been noticed that we use less than 20% of the total fruits produced in the country. The rest are left to waste. We intend to tackle this problem by processing most of these fruits to prevent waste.

The business plans to meet the needs of the low and medium income earners by producing fruit juices they can afford. This is why we have worked on our production processes to ensure that we produce quality at the cheapest price possible. This will ensure that everyone has access to their daily nutrient requirements from the juices we produce.

Get your sample feasibility study on fruit juice production in Nigeria today. To order the business plan, pay N10, 000 to:

BANK NAME: GUARANTY TRUST BANK (GTB)

ACCOUNT NAME: CHIBUZOR TOCHI ONYEMENAM

ACCOUNT NUMBER: 0044056891

BANK NAME: FIRST BANK PLC

ACCOUNT NAME: CHIBUZOR TOCHI ONYEMENAM

ACCOUNT NUMBER: 3066880122

After payment, send your full name, email address and topic (i.e. fruit juice business plan in nigeria) to 07033378184. Your business plan will be sent to your email within 15 minutes.