SheaButter Production and Processing Business Plan
Shea butter is a fat extracted from the nut of the African shea tree by crushing and boiling. It is widely used in cosmetics as a moisturizer and salve. Shea nuts are primarily grown in West and Central Africa in the semi-arid Sahel, referred to by traders as the “Shea Belt”. It is usually yellow in color when raw, but ivory or white when refined. Sometimes, the chocolate industry uses shea butter mixed with other oils as a substitute for cocoa butter, even though the taste is noticeably different.
Shea butter is mostly used in the cosmetics and beauty care industry for skin and hair-related products (lip gloss, skin moisturizers, and hair conditioners). It is also used by soap manufacturing companies, but in small amounts (5–7 percent of the oils in the recipe).
The demand for domestic and industrial application of Shea Butter has continued to increase. Shea butter processing company is classified under the cosmetic production industry and as a matter of fact, unpredictable incomes do not really affect cosmetics. The revenue generated in this industry has increased steadily in recent years as some of the industry’s largest export partners began to experience post – recessionary growth. Going forward, the industry’s diverse product lines and commitment to research and development will keep revenue growth stable. Shea nut butter extraction involves procurement of dried nuts from suppliers. The nuts are fed into the machine to remove the fats. The fats are then collected and stored in appropriate containers. Shea nut cake (SNC), the residue that remains after the extraction of shea butter, serves as excellent fuel. It is a good ingredient for livestock feed formulation as well as for the treatment of skin diseases. The cake is also ideal for use as manure and fertilizer production. The cake is also packed in bags ready for sale to the feed millers.
Description
Executive Summary
Overview
PATILAD Shea Butter is a start-up Shea Butter production and processing farm that is involved in production, sales and distribution of quality and affordable Shea Butter and other derivatives targeting consumers in the local and international market. We also involve in export services of Shea products to countries outside Nigeria. We have unique method of packaging, brand and permanent label to promote our products to meet international standard. PATILAD Shea Butter also organizes unique periodic training programs on Shea value, processing and quality improvement skills for women cooperatives within our local communities.
We are located in Saki, Oyo State.
The Company
PATILAD Shea Butter is established as a limited liability company owned by Dayo Adetiloye, Adebayo Tijani, and other investors. The farm is managed and directed by Dayo Adetiloye, a veteran in the Agric industry with 8 years’ experience and Adebayo Tijani, an experienced Agro-allied specialist with over 15 years’ experience.
Products and Services
PATILAD Shea Butter specializes in the production, processing and sales of shea butter and other related products like shea nut cake, shea butter cream and others. We will also offer hiring services of equipment to other Shea Butter millers. We also have a standard processing plant as a modern technique for producing and processing our shea butter.
We produce, process and package to meet standard organization of Nigeria and international standard. We are concerned about providing products that suit the many use of Shea Butter either for edible or industrial uses.
The Market
The Shea butter industry in Nigeria is dominated by small scale with production capacity of less than 0.1 tons per day. The production plants are usually found in south western part of Nigeria, where there is a large market for the product. Nigeria, the leading producer of Shea butter in the world with a production capacity of about 500,000 metric tons produced mainly from the use of crude implements is yet to fully realize her potentials in the processing and export of Shea butter owning to a number of reasons. Nigeria, currently exports about 50,000 tons of shea butter annually, is believed to account for almost 60 per cent of the world’s supply of shea butter and allied derivatives valued at about $3.8 billion every year.
Competition
Competitors for PATILAD Shea Butter are Dokun Global Resources Limited, Sokaiko shea butter farm, Shea Butter Ventures, etc.
PATILAD Shea Butter’s competitive edge includes the use of modern equipment and techniques which turns out high quality products, excellent customer service, the expertise of its founders, etc.
Financial Considerations
PATILAD Shea Butter seeks N5 million in long-term financing to cover start-up costs, equipment, building expenses, and working capital. Funding for the launch of the business is provided primarily by equity from the partners and investors.
The business will reach positive cash flow in its 10th month of operation, allowing for expedited repayment of its loan obligations, as well as for dividends to be paid to the owners. Revenue will top N14,500,000 and profit will reach about N3,843,950 in the 1st year of operation.
Be the first to review “SheaButter Production and Processing Business Plan”
Related products
-
Restaurant Business Plan
Original price was: $ 99.$ 15Current price is: $ 15. -
Printing and Multimedia Business Plan
-
Plantain Chip Production Business Plan
Original price was: $ 99.$ 15Current price is: $ 15. -
Patilad Media Business Plan
Original price was: $ 99.$ 15Current price is: $ 15.
Reviews
There are no reviews yet.