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Shea butter is a vital native commodity in Nigeria and other African countries. Shea butter is derived from the sedes of shea trees that occur in the Savannah area of East and West Africa.
Shea butter production has been going on for generations in Africa. People in this region mostly utilize shea butter for skin treatment and cooking oil.
Shea butter is increasingly a popular organic component in cosmetics. It is used as a moisturizer or lotion, as well as natural butter with no added components. It may be used on all types of skin and on all regions of the body, from the scalp to the foot.
We have created a comprehensive shea butter processing/production business plan that you may use to get loans, grants, and other financial assistance on a national and worldwide scale. It contains all of the necessary material, sections, and information regarding shea butter manufacture.
Are you seeking a feasibility study for shea butter?
Do you require information on the shea butter marketing strategy and all of the necessary machines? This comprehensive feasibility analysis addresses all of these issues.
TABLE OF CONTENT
- Executive Summary
- Overview of the Shea Butter Industry
- Company Overview
– Location and Facilities
– Our Objectives
– Our Vision
– Our Mission
– Responsibilities and Qualifications of Management Staffs and Workers
- Industry Analysis
- Market Analysis
- Marketing and Sales Strategy
- Marketing & SWOT Analysis
- Shea Butter Start-Up Asset Cost Requirements
- Shea Butter Production and Raw Materials Estimate
- Statement of Financial Forecast
- Shea Butter Cash Flow Statement
- Shear Butter Projected Balance Sheet
- Sources of Startup Capital for Shear Butter Processing Factory
- Viability summary/Conclusion and Opinion
FEASIBILITY ANALYSIS FOR SHEA BUTTER PROCESSING BUSINESS PLAN
1.0. EXECUTIVE SUMMARY
The major goal of this paper is to create and present a bankable shea butter processing business plan in Nigeria. The financial profitability, commercial viability, and technological feasibility of establishing a small to medium-sized shea butter processing enterprise in Nigeria are also covered in this paper. We provide an overview of the shea butter business in general, as well as profitability indices and financial needs.
We also showed you how to build up the structure, marketing activities, and manufacturing procedures that would ensure lucrative and effective shea butter processing, implementation, and sales. You’ll also receive an in-depth operational guide for creating the framework that will support the business’s activities and operations.
READ – HOW TO START A SHEA BUTTER PRODUCTION BUSINESS
2.0. SHEA BUTTER INDUSTRY OVERVIEW
Aside from hydrocarbons, Nigeria is also quite active in the agricultural sector, where it produces a variety of goods due to its outstanding soil conditions, favorable climate, and the fact that more than 70% of Nigeria’s total landmass is arable.
When it comes to the cultivation, manufacture, and export of raw shea butter, Nigeria has a competitive edge over her African peers. This is due to our wide arable area for processing and our favorable environment.
Nigeria is now the world’s leading exporter of shea butter and nuts, with a total transaction valued at $400,000.
Shea butter is an ivory or yellowish-colored organic fat obtained by breaking and boiling the seed of the African shea tree. It is often used as a salve and moisturizer in cosmetics. It is mostly grown in Central and West Africa’s semi-arid Sahel region, sometimes known as the “Shea Belt” by traders.
Obtaining dried nuts from suppliers is required for the production of shea butter. Then they are placed in the machine to remove the fats. The fats are then collected and stored in containers. The cake is then packaged in bags and ready to be sold to feed millers.
Nigeria now exports approximately 50,000 tonnes of shea butter per year, accounting for a huge 60% of the entire supply of ahead butter worldwide, with an allied derivative value of around $3.8 billion per year.
The government’s desire to diversify the country’s earnings from crude oil exports can be realized if it is able to recoup losses of around $2.166 billion (approximately 750 billion naira) every year through smuggling of Shea butter across the Nigerian border.
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