Budget for Cassava Production
Assumption; The conversion of cassava root to processed
garri is 4 tons of cassava root to 1 ton of garri. Note; 1 ton
of cassava root =10 wheelbarrows (100kg).
Land Acquisition (3 plots in rural area) N1,500,000.00
Factory building N2,000,000.00
Processing Plant 1ton/hr capacity N6,000.000.00
Vehicle fairly used N1,000,000.00
Office Furniture/Stationaries N100,000. 00
Accessories N200,000.00
Staff Salaries N3,600,000.00/yr
Machine capacity 2 tons of garri/day. Cost of inputs; 1 ton
of cassava root will be measured in wheelbarrows
(100kg). 1 wheelbarrow cost N1,500.00 x 10 =
N15,000.00. Thus 1 ton of unprocessed cassava cost
N15,000.00 x 8 tons/day = N120,000.00 6 work days per
week or 313 days x N30,000.00 =N9,360,000.00.
Diesel; 20 litres per day at N180.00/litre =
N3,600.00/day.
Plant maintenance at 2 percent total cost =N2,400.00/day
Other sundry expenses= N24,000.00.
Revenue; Using 2 tons of garri/day production capacity.
50kg of garri=N5,000.00. 1 ton of garri (20 bags) =
N100,000.00 x 2 = N200,000.00. Therefore, revenue
minus expenditure = profit. N200,000.00 (N120.00 +
N3,600.00 + N2,400.00) Netprofit =N200,000.00 N126,000.00 = N74,000.00/day.