Shea Butter Production Business Plan in Nigeria

Shea Butter Production Business Plan in Nigeria

Our sample shea butter production business plan in Nigeria can be used to access bank loans, proposal writing and grant applications. This business plan was complied after a proper feasibility study on shea butter in Nigeria was carried out. Furthermore,this business plan will be answer the following questions for you in shea butter production in Nigeria:

Also Read: Cashew Nut Processing Business Plan in Nigeria

• Shea butter processing equipment.
• Shea butter processing plant.
• Shea butter producing states in Nigeria.

To get your own shea butter production business plan 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 (shea butter production pdf) to 07033378184. Your business plan will be sent to your email within 15 minutes.

Now Read On…………..

In the organic production of agro product, one product that has been under-produced and not given due consideration when deciding to start a business venture is the shea butter processing factory or plant. There is an increase in the demand of shea butter in the nation and all over the world, which predicts a growing and glowing future for both the farmers of shea nuts, manufacturers of shea butter and the exporters too.

The process of extraction involves purchasing the dried shea nut from an available source usually this product is common in the south-west region of Nigeria. Nigeria is responsible for the exporting over 50,000 tons of shea butter annually which accounts for approximately 60% of the total products found in the world market. This generates annually the sum of 3.8billion dollars. As demand rises worldwide we find out that Nigeria which is the biggest manufacturers of shea butter still has a production capacity of less than 0.2 tons per day this is mainly because the implements used in such production are still less than the quality used all over the world which accounts for the non-realization of Nigeria’s full potential in this area.  Shea butter has pharmaceutical, cosmetic and confectionary benefits.

The global market for the use of shea butter in confectionery products stands at an all-time high of 200billion USD and for cosmetics and toiletries ingredients at about 40billion USD all in the year 2016.

The raw material for shea butter can be gotten from kwara state, Kogi, Niger and some southern states like Oyo state and Ogun.

Two species of this product have been identified in the market which are:

• Vitellaria paradoxa is one and is found or produced mainly in the western part of Africa
• Vitellaria nilotica is grown in the northern Uganda and also in the southern part of Sudan

PROCESS

• The dried shea nuts are collected from farmers and stored until you get the required amount that can be transported to the plant for processing. Note: it is advisable that your production plant is not too far from your collection point to avoid hazards during transportation.
• These nuts are fed into a fat removing machine. The fat is collected and stored in appropriate containers leaving the residue which is called Shea Nut Cake (SNC).
• This residue SNK serves as excellent bio-organic fuel, it is great for livestock feed formulation and also good skin disease treatment, it can also be used for fertilizers and manure production. This can be bagged and sold to feed millers and other manufacturers in need of this as their raw materials.
• There are several methods of extracting shea butter from its raw material. You can use either the refined method, raw or cold press. All these methods vary in processes and the yield capacity. The quantity product gotten or extracted is directly proportional to the method used for extraction. The refined shea butter is now the most sort after product because of several reason which will be listed below:
  • It is white, odorless and hard: this is because during it processing it is subjected to extreme heat which alters the state which includes eradicating the offensive odour and unpleasant appearance. The color is been stripped away by a hexane compound added to it.
• There are several chemicals used to achieve maximum quality of the oil and they are: Alkali, Phosphorus and bleaching earth.

Phosphorus 0.5-1.0kg per ton oil

Bleaching earth 3-20 which is depending on the color requirement per ton oil

Alkali requirement is by range value of 1.6-2.2 per 1 ton oil

In general the amount or quantity of chemicals used is dependent on the amount of oil produced.

• The raw production method is also a good method of production which produces Shea Butter of light beige which tends towards creamy yellow; the color is dependent on the process and certain impurities. It has a smooth touch and is absorbed easily by the skin and has roasted fragrance to it. It has anti-aging and therapeutic properties that is naturally high in vitamin A and E, has more antioxidant than Green.
• The next is the Cold pressed. Cold pressed this is lighter in shea scent but still retains all the nutrients of the former. Cold pressing has to do with the extraction of the oil and nutrients from the Shea Nut with an equipment called expeller press. And this is done by exerting high pressure and continuous friction which presses out the oil.

USES:

• Shea butter can be used as cooking oil
• Shea butter can be also used in making chocolates and candles
• The cosmetic industry uses shea butter as moisturizers
• It can be used also used in the treatment of various skin diseases and disorders namely rashes, burns, eczema, stretch-marks, wrinkles, acne, skin discoloration, itching and many more not listed here.
• It provides a screen layer of protection from the sun’s Ultra-violet rays.
• It is used in skin softening.
• It can also be used for hair moisturization especially in the softening of dry hair.

 STEPS TO A GREAT START UP

• DO PROPER FEASIBILITY STUDIES ABOUT FIELD

There are several businesses that start up wonderfully but because they didn’t do adequate feasibility studies they get stuck at a point or struck by a risk in the business they didn’t plan for or foresee. This halts the business before they ever get the chance to get off the ground; don’t assume you know what the business entails.. So I advise you to do a proper home work in the following areas before you start this business.

• PLANTING – It is important to know as much as possible about the raw material that you want to be using for manufacturing. This will help you to keep track of the up-times and down-times, you will also know the price of the raw material, when it is cheap to buy and when it becomes scarce. This helps you plan properly so as not be cheated by farmers.
• PRESERVATION – It is important also to take note that since you may want to buy this raw material when it is available and you also want to keep up production on when the commodity is scarce, you will need to know how to preserve this raw material to get the best result.
• PROCESSING – This is also very important to take note. Make sure you are acquainted with everything that there is to know about the processing of the raw material. How to get the best yield and pitfalls to avoid in the processing.
• RISK INVOLVED – Know all the risk involved in business; don’t just venture into the business hoping that you will learn on the job. That a costly mistake and risky move in itself.
• START UP CAPITAL – Plan all the finances involved in the business from the ground breaking to finish product. Don’t leave out any financial detail from your calculation because you may pay dearly for it in the near future.
• THERE IS ALWAYS A BETTER WAY: No matter how well you are doing a thing one thing you must have at the back of your mind while doing this business is that there is always a better way of doing it and don’t stop to dare doing it better. Don’t get used to the ordinary and remain a mediocre, strive for mastery in any way possible. This will give you the needed edge to excel in this business.
• CALCULATE RETURN ON INVESTMENT (ROI) – They say “don’t count your chick before they are hatched” I say have an expectation and also know exactly how much or approximately how much you will gain from this business. Make proper plan and breakdown every penny you put in the business and how much it will yield back to you.

 GET A BUSINESS NAME AND YOUR BUSINESS REGISTERED

Having a business name gives your business identity; this is to differentiate your business and product from every other that may be around at the time of your startup. Have a name that is attractive, one that tells a story and also provides solution the needs of people. After this is done you will need to take ownership of this name by going to the nearest CAC (Cooperate Affairs Commission) to get the business name registered.

• RAISING CAPITAL: Except you have huge amount of money stored up in the bank for this business you may need to seek out loan facility from any bank of your choice and to do this you must have collateral. If all your paper work is in place then you can be assured of the loan within 6months to one year of your application.
• GET LEGAL HELP – It is also important that you get legal advice from qualified legal advisers and help for this process to guard against legal pitfalls and possible lawsuits and also guide you through the process of securing your business and ideas.
• GET LOCATION FOR YOUR PROCESSING PLANT – In starting the plant you must situate your processing plant not too far from the farm or your suppliers. Get adequate space and build your structure to taste and up to standard. Ensure the construction is also done by seasoned professionals.
• PURCHASE MACHINERIES – There are locally build machines but they don’t give you the best result and if you plan to have international repute then it is important to get imported machines. This will ensure the maximum productivity and best quality.
• EMPLOY COMPETENT STAFF – You can have the best car but if you give it to a bad driver; give it a short time it will become junk. So I advise to get competent hands to run the factory. Ensure that they have some years of experience in the field and how to ensure this is to give them three kinds of test.
  • Oral test – where they tell you about themselves and where they have worked in the past.
  • Written test – This is to test their intellectual strengths.
  • Practical test –  This is to test their skill set (hands-on) to know if they are capable of handling/ operating the machines. If not and you still wish to employ them then they have to undergo some form of training on the job.
• GET CUSTOMERS – Make sure you get a stand-by customer to supply the product to, this could be locally or internationally or both.
• START PRODUCTION AS SOON AS POSSIBLE – Don’t waste much time as soon as you have all the above listed point taken care of, you can start you production and start enjoying your money.
• QUALITY CONTROL – There are professionals in this field that specializes in quality control checks. Your product may sell in Nigeria but for it to be accepted in the international market it has to meet a particular standard for quality assurance purpose. In the end of the whole business plans if your product is not accepted in the market then you just wasted your time entirely.
• HAVE SALE AND SUPPLY OUTLETS – With adequate marketing consumers should soon get to know and love your product but you also need sales outlets and supply warehouses. This will help to get your product from the manufacturing plant to the end user.
• MARKETING: All manufacturers that plans to excel know the need for marketing of their goods and services. This helps to put the products out there and this can increase sales by over 50% especially if your product is what they say it is.

CONCLUSION: Though not a very popular venture, the processing and manufacture of shea butter is lucrative and because allot of people are unaware of this business you can leverage on that and make a whole lot of money before it attracts attention to the wealth possibility there. Do all necessary ground work so that when you start it will just be like riding a bike as you glide your way to wealth.

Get your shea butter production business plan 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

OR

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. shea butter production pdf) to 07033378184. Your business plan will be sent to your email within 15 minutes.

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