Model Business Plan For Shea Nut Processing To Butter

3
CHAPTER 1
EXECUTIVE SUMMARY
THIS CHAPTER COVERS:

1:1.
THE PROJECT [EXECUTIVE SUMMARY] 5
1:2.
INTRODUCTION AND BACKGROUND 5

1:3.
PROJECT GOAL AND OBJECTIVES 5
STANDARD OPERATIONAL MANUAL AND BUSINESS PLAN FOR THE ESTABLISHMENT

OF MEDIUM SIZE SHEA BUTTER PROCESSING FACTORY IN NIGERIA 4
1:1. THE PROJECT [EXECUTIVE SUMMARY]
The main objective of this study and report contain-there-in is to evaluate the technical fea-
sibility, commercial viability and the financial profitability of establishing a Medium size Shea
butter processing factory in Nigeria.
The study is also to assist in setting up of the structure, production processes and market-
ing activities that will assure successful and profitable product’s processing, implementation,
sales and also provide a reliable operational manual/work guide for the implementation of
the framework that will support the business operations and its activities.
1:2. INTRODUCTION AND BACKGROUND

The Nigeria Expanded Trade and Transport Program (NEXTT) seeks to improve trade policy,
support trade capacity building and remove bottlenecks to the free flow of goods, especially
agricultural goods. NEXTT seeks to contribute to food security and poverty reduction in Ni-
geria and support regional trade and transportation objective by facilitating trade flows. It
supports the African Growth and Opportunities Act (AGOA) and complements agricultural
productivity improvement efforts under the United States’ Government’s food security initia-
tive Feed-the-Future, with three program activities: transport corridor improvements, policy
reform and trade facilitation and expanded export support.
The NEXTT project includes a LAKAJI Project Development Facility (PDF) designed to mobilize
private capital for high priority investments along the corridor at a more rapid pace. The PDF
is envisioned as a catalyst for setting in motion many of the private investments required and
to capitalize on the corridor’s natural attributes as an investment magnet. Shea butter has
been identified as one of the agro-commodity products in the corridor with a great export
potential for investment in the corridor.
1:3. PROJECT GOAL AND OBJECTIVES

The goal of this project is to harness Nigeria Shea production and export potential with spe-
cial attention to addressing the constraint of rudimentary machinery and labour-intensive
techniques of Shea butter processing by cooperatives women processors which result to low
butter quality that do not meet export standard.

There is also the problem of access to finance from banks and other financial institutions (DFI,
angel investors’ e.t.c.) by the women processors. The project tends to solve this challenge by
creating an operational manual cum business plan that will spur investments in Shea process-
ing facilities by providing potential promoters with a comprehensive guide that details how
to set up and operate such a facility, demonstrating the financial viability of such venture to
attract banks, investors and other sources of financing.
This will lead to the establishment of modern medium size Shea butter processing factories
which will be managed by private investors or social entrepreneurs (along with local women’s
cooperatives as the case may be) that will produce export-quality Shea butter across the Shea
producing zones in Nigeria. The average size of the investment can be between $30,000 and
$40,000. The facilities may be Greenfield ventures developed on otherwise unused land or
they may involve upgrades to existing small-scale Shea processing centres. They will typically
be located close to villages where Shea is collected, but within easy access of good roads to
facilitate sales/exports.

CHAPTER 2
PLAN OF OPERATIONS

2:1. FORM OF OWNERSHIP 8
2:2. COMPANY STRUCTURE (ORGANIZATION CHART) 9
2:3. RESPONSIBILITIES AND QUALIFICATIONS OF MANAGEMENT STAFFS AND

WORKERS 10
2:4. RENUMERATION AND BENEFITS PACKAGES 14

2:1. FORM OF OWNERSHIP
The ownership structure of this processing factory may be in form of joint venture between
the interested private investor(s) and rural women Shea cooperative(s) in the community
where the factory is being sited or 100% own by the private investor. In a case where it is joint
ventures with the cooperatives, two or more women cooperatives may be part of this part-
nership arrangement after thorough assessment of such cooperative(s) on their membership
strength, degree of organisation and Shea nut supply potential. The equity (shares) owner-
ship may be based on an agreed percentage with the private investor having the majority of
the equity. The percentage ownership may be either 60% - 40%, 65% - 35%, 70% - 30%, 75%
- 25% or 80% - 20%. Company liabilities (profit and loss) will be shared between the parties
on the bases of this percentage ownership. There will be an organ (committee) in the organi-
zation like the board of directors which will comprise both the representatives of the private
investors and the women Shea cooperatives. This board will be the highest decision making
organ of the company. Each partner in this joint venture will play strategic roles based on their
areas of strength and experience in ensuring that the factory runs successfully and profitably.
For the private investor, she will play the lead and critical roles in the partnership arrange-
ment being the major shareholders and financiers of the investment. These include sourcing
for fund to purchase processing equipments, erection of factory building and factory running
cost (overhead). More importantly, the day to day management of the factory should be part
of her responsibility.
In the case of the women Shea cooperatives, they will provide the land where the factory will
be sited (since it is their community), and ensure regular supply of raw material (Shea nuts)
enough to process throughout the year for the factory. This will be achieved by individual
members of the cooperatives selling their nuts to the processing factory at an agreed com-
petitive market price. Other responsibilities may include some of these women to work in the
factory as contract staffs as the need may arise.

2:2. COMPANY STRUCTURE (ORGANIZATION CHART)
ORGANOGRAM OF THE COMPANY

2:3. RESPONSIBILITIES AND QUALIFICATIONS OF MANAGEMENT STAFFS AND WORKERS
1. Board Member
A member of the board is part of the highest decision making organ of the organisation.
She/he should be an experienced entrepreneurs and investor that is passionate about the
industry and ready to invest his/her money into the industry. In case of joint venture own-
ership with women cooperatives, such person should be the head of the cooperative or
deputy head.
2. Managing Director and Chief Executive Officer

She/he is the number one management staff of the organization and chief executive officer
of the company. She/he runs the daily affairs of the company and effectively manages both
human and material resources of the company which he translates to output. She/he deals
with both internal and external affairs of the company. She/he is co-investors, member of
the board of director, implements the decisions of the board and report back to the board.
3. Sales Consultant (Export Market)

She/he must have higher degree (MBA/MSc) in Marketing, Agribusiness, Business Adminis-
tration and International Trade. She/he will be engage on contract bases. She/he must be an
experienced person/firm that has worked in the Shea industry nothing less than 10 years.
She/he must understand the industry and have practical knowledge and skill in Shea prod-
ucts (Butter) export market. She/he must be able to broker supply contract and negotiate
better price, term and conditions of supply between the company and exporters/ off-takers/
foreign buyers and multinational companies outside the shore of Nigeria. Promote the com-
pany and her products at international trade fair both within and outside Nigeria with the
purpose of attracting new buyers/off takers.
4. Factory Manager
He/she must be a graduate (BSc/B.Eng/BTech/HND) in any of these disciplines Agric. Engi-
neering, Food Processing Engineering, Mechanical Engineering, Industrial Engineering or
Food Science and Technology. He/she must be an experienced person that has worked in an
agro-processing/food processing industry nothing less than 7 years with the last two years
at the senior level. He/She must be hard working, able to work independently with little su-

pervision, thinking outside the box, a good team player with excellent leadership and mana-
gerial skills, have good interpersonal and entrepreneurial skills.
5. Production and Maintenance Supervisor

He/she must be a graduate (BSc/B.Eng/BTech/HND) in any of these disciplines Agric. Engi-
neering, Food Processing Engineering, Mechanical or Production Engineering. He/she must
be an experienced person that has worked in an agro-processing/food processing industry
nothing less than 2 years. He/She must be knowledgeable in the operation and mainte-
nance of agro-commodity processing equipment like Miller, Crusher, Dryer, Filter, Expeller
etc. He must be able to supervise food processing and production line and ensure each
stage of the operation conform to laid down standard. Must be a good team player with
excellent leadership skills and must have good interpersonal relationship.
6. Quality Control and Warehouse Supervisor

He/she must be a graduate (BSc/B.Eng/BTech/HND) in Food Processing Science and Tech-
nology. He/she must be an experienced person that has worked in an agro-processing/
food processing industry nothing less than 2 years. He/She must have practical laboratory
knowledge on sampling techniques, sample testing and result analysis. Such person must be
familiar with stock taking technique and inventory control. Must be able to work indepen-
dently with little supervision, a good team player with excellent leadership skills and must
have good interpersonal relationship.
7. Marketing and Inventory Supervisor

He/she must be a graduate (BSc/B.Eng/BTech/HND) in Marketing, Agribusiness, Business
Administration or any social science discipline. He/she must be an experienced person that
has worked in an agro-processing/food processing industry nothing less than 2 years. He/
She must have practical knowledge in agro-products marketing. Understand Shea butter
product market in Nigeria and consumers behaviour. Such person must be familiar with
stock taking technique and inventory control. Must be able to work independently with little
supervision, a good team player with excellent leadership skills and must have good inter-
personal relationship.

8. Marketing Executives
He/she must possess National Diploma (ND) in Marketing, Agribusiness, Business Adminis-
tration or any social science discipline. He/she must be a goal getter and passionate about
the job. Must be able to work independently with little supervision, a good team player
with excellent marketing skills and must have good interpersonal skills.
9. Equipment Operator
He/she possess National Diploma (ND) in any of these disciplines Agric. Engineering, Food
Processing Engineering, Mechanical or Production Engineering. He/she must be an experi-
enced person that has worked in an agro-processing/food processing industry nothing less
than 2 years. He/She must be knowledgeable and be able to operate and maintain agro-pro-
cessing equipment like Miller, Crusher, Dryer, Filter, Expeller etc. She/he must be hardwork-
ing, a good team player with excellent leadership skills and must have good interpersonal
relationship.
10. Quality Control Officer

She/he must possess National Diploma (ND) in Food Processing Science and Technology. He/
she must be an experienced person that has worked in an agro-processing/food process-
ing industry nothing less than 2 years. He/She must have practical laboratory knowledge on
sampling techniques, sample testing and result analysis. Such person must be familiar with
stock taking technique and inventory control. Must be able to work independently with little
supervision, a good team player with excellent leadership skills and must have good inter-
personal relationship.
11. Inventory and Store Officer

Such person must possess National Diploma (ND) in Business Administration and be familiar
with stock taking technique and inventory control. Must be able to work independently with
little supervision, a good team player with excellent leadership skills and must have good
interpersonal relationship.
12. Account and Administration Officer

Such person must possess National Diploma (ND) in Accounting or Business Administration

and be familiar with basic accounting principle. She/he must be able to keep records of the
company financial transactions and staff records. Must be able to work independently with
little supervision, a good team player with excellent leadership skills and must have good
interpersonal relationship. She/he will work closely with CEO on human resource manage-
ment
13. Secretary
Such person must possess National Diploma (ND) in Secretariat Studies or Office Manage-
ment Technology. She/he must be able to keep records of mails, visitor book and also work
closely with the CEO. Must be able to work independently with little supervision, a good
team player with excellent leadership skills and must have good interpersonal relationship.
14. Driver
Must possess a valid driver’s licence with not less than 5 years driving experience must be
physical fit and mentally sound.
15. Factory Workers

They must be physically fit, mental sound and hard working.
16. Security
17. Cleaner

2:4. RENUMERATION AND BENEFITS PACKAGES
MANPOWER CONSIDERATION
[Including: Management + Factory / Operations + Support Staff]
US DOLAR @ 197 NGN

CHAPTER 3
PRODUCTS AND SERVICES
3:1. DESCRIPTION OF PRODUCT AND SERVICES 16
3:2. CUSTOMER BENEFITS AND ECONOMIC IMPACT 16
3:3. COSTS 17
3:4. KEY SUPPLIERS .17

3:1. DESCRIPTION OF PRODUCT AND SERVICES
Shea butter is an edible vegetable oil or fat extracted from sun-dried kernels of the Shea tree
(Vitellaria paradoxa syn. Butyrospermum paradoxum or parkii) recorded as indigenous to 16
countries of sub-Saharan West, East and Central Africa. Shea butter is processed to make a
cocoa butter substitute and is used in the cosmetic industry; it also represents a valuable
source of fat for cooking in the areas where it is produced. It is a natural fat with wide cosmet-
ics application as a moisturizer, salve or lotion that is extracted from the nut of the African
Shea tree by crushing, boiling and stirring. Apart from its traditional, domestic and commer-
cial applications at the village level, Shea butter also has industrial applications in the cosmet-
ics industry. It also has medical applications as it is used as a base for medicinal ointments
because of its healing properties. Anti-inflammatory and emollient properties are also some
features that distinguish Shea butter in comparison to other commodities.
3:2. BENEFITS AND ECONOMIC IMPACT
The impact and benefits of this project is directly felt by women and youths in the community
and also by extension the entire members of the community. Some of these benefits among
others include:
* Improvement in Shea butter processing skills among women
* Income generation and Wealth creation
* Women and youth empowerment
* Employment creation especially among youths that will work in the factory
* Improvement in standard of living
* Reduction of social vices caused by unemployment among youths
* Socio economic development and growth
* Industrial development and growth
* Effective natural resources management (Shea nuts)
* Increase in national GDP

3:3. COST PROFILE
Essential cost summary are highlighted below
3:4 KEY SUPPLIERS
The key suppliers of the raw materials (Shea nuts) to this processing factory are the mem-
bers of women Shea cooperatives. Since their cooperative(s) are joint partner and owner
of the factory. Other members of the community that are into Shea nuts collection are also
targeted as suppliers because Shea nuts will be purchased at a competitive market prices in
the community.
Other suppliers are the packaging companies that will supply packaging materials for prod-
uct packaging.

CHAPTER 4
BUSINESS AND INDUSTRY PROFILE
4:1. INDUSTRY ANALYSIS [BACKGROUND AND
OVERVIEW] 19
4:2. SIGNIFICANT TRENDS 19
4:3. KEY SUCCESS FACTOR IN THE INDUSTRY 21

4:1. INDUSTRY ANALYSIS (BACKGROUND AND OVERVIEW)
Shea fruit is a spherical, ellipsoid berry about 3-5 cm long. It consists of a thin brown shell
enclosing a single, dark-brown, egg-shaped seed embedded in a yellowish-green sweet pulp.
Shea trees are in the wild and grow easily in the savannah belt that separates the Sahara de-
sert from the verdant, tropical coast of West Africa. In a favourable environment, germination
of the nut takes place within 7 – 10 days. In places where nuts are planted the growth is slow
and seedlings take 2 -3 years to reach field planting. Gestation period lasts for 15 – 20 years,
which makes domestication difficult. Flowering starts at the age of 20 years, and the plant
matures at the age of 40 – 50 years and can fruit for more than 200 years. Average production
is between 15 and 20 kg of fresh fruit/tree, and about one tree in three is productive in each
year. On average, 50 kg of fresh nuts give 20 kg of dry kernels which contain 40-55% of a fat
which has the consistency of butter. The fatty acid composition of Shea butter is: palmitic acid
5-9%; stearic acid 30-41%; oleic acid 49-50%; and linoleic acid 4-5%.
4:2. SIGNIFICANT TRENDS

Shea tree is native to about 16 West African and African countries namely Senegal, Guinea,
Cote d’lvoire, Mali, Burkina Faso, Ghana, Togo, Benin, Nigeria, Niger, Chad, Cameroon, Cen-
tral African Republic, Sudan, Uganda and Ethiopia. It covers a swath of the continent, some
5,000km long and 400 – 750km wide. The West African production of Shea nut is estimated
at 900,000 metric tonnes which is based on traded volume. This estimate is less than actual
production since it does not include nuts collected from the wild and those consumed locally.
Nigeria accounts for over 50 percent of the production in West Africa (450, 000 metric tonnes).
In Nigeria, about 45 percent of Nigeria’s land area is suitable for the growth of Shea plant. The
rainfall requirement is 600 – 1,500mm annually. It thrives well within the Guinea and Savan-
nah areas as well as the lower Sahel regions of the country. Although the Shea tree appears
to be a rather obscure wild species, but it is widely known, valued and exploited by the na-
tives in all the areas where it occurs. It currently grows in the wild in many states including Ni-
ger, Nassarawa, Kebbi, Kwara, Kogi, Adamawa, Benue, Edo, Katsina, Plateau, Sokoto, Zamfara,
Taraba, Borno and Oyo. The English call it Shea, while the French call it Karate. In Nigeria, the
Igbos calls it Okwume; Yorubas call it Ori while Hausas call it Maikade.

A production figure for Nigeria compared to some major producing West African countries as
reported by FAOSTAT is indicated in Table 1 below:
Year Nigeria Mali Ghana Burkina Cote Benin Togo Total

Faso d’ivoire
2012 330,000 210,000 73,500 55,000 34,000 14,000 12,000 728,500
2011 326,000 208,000 72,000 53,847 33,216 13,000 11,200 717,263
2010 325,610 199,700 71,400 65,000 32,631 12,800 11,250 718,391
2009 332,770 232,149 69,913 47,210 29,820 14,971 10,900 737,733
2008 433,369 190,000 67,901 67,614 29,100 14,056 10,500 812,540
2007 425,000 182,202 58,841 53,978 28,874 14,281 12,000 775,176
2006 490,699 72,244 70,946 53,407 27,951 12,653 9,300 737,200
2005 450,350 181,689 68,679 64,180 27,058 17,964 9,000 818,920
2004 414,000 175,887 66,486 61,444 26,194 20,050 8,318 772,379
2003 410,000 174,242 65,864 65,000 26,078 19,282 8,231 768,697
The major challenge at present is that production in Nigeria is outstripping local demand,
though data for local demand and consumption are not readily available due to the fact that
majority of the local processors/suppliers are operating in the informal sector and there is no
documentation of their production and supply activities. However interactions with some of
these local processors revealed that they always experience situation where they produce
with low patronage from buyers, a situation that can be best described as a state of oversup-
ply. There is need to plan for more off takers.

4:3. KEY SUCCESS FACTORS IN THE INDUSTRY
These are the identified key success factors that should be upheld;
1. Effective Food Quality Management System (Internal quality control,

Assurance and traceability system)
2. Effective Marketing Strategy
3. Neat And Attractive Packaging System
4. Consistency in Supply of Quality and Quantity to our Off-takers
5. Product and Systems Certifications
6. Integrity as Corporate Business Values

CHAPTER 5
PRODUCTION PROCESS
5:1. GUIDELINES FOR APPROPRIATE SITING OF THE FACILITY (PROCESSING FACTORY IN

CLUDING WAREHOUSE) 23
5:2. PRODUCTION PROCESS AND PROCEDURE 24
5:3. PRODUCTION FLOW CHART / TECHNOLOGY 25
5:4. REGULATIONS, STANDARDS AND CERTIFICATION 26
5:5. QUALITY ASSURANCE AND CONTROL PROCESS 27
5:6. FACTORY DESIGN AND LAYOUT 33
5:7. SAMPLE CONTRACT FOR HIRING A CONSTRUCTION FIRM 37
5:8. PROCESSING EQUIPMENTS 37

5:1. GUIDELINES FOR APPROPRIATE SITING OF THE FACILITY (PROCESSING FACTORY IN-
CLUDING WAREHOUSE)
In establishing an agro-processing industry like Shea butter processing factory, it is impera-

tive to put some critical factors into consideration, that is due diligence, before the estab-
lishment this factory. Because these factors will form the cumulative determinants that will
inform the appropriate location in which the factory should be sited. If these factors are cor-
rectly identify and rightly assessed, it will go a long way in the smooth running of the factory
and contribute immensely to the profitability of the business venture. Some of these factors
include;
i. Nearness to Shea nuts producing communities. Volume of Shea nuts available to the pro-
cessing plant is very important and this is a function of the numbers of Shea trees and pick-
ers (especially women) in the communities.
ii. Nearness to main road for easy transportation of raw materials (Shea Nuts) and finished
products (Shea butter). This will ease the factory logistics, workers, and costumers and re-
duce cost on transportations.
iii. Accessibility to clean, safe and pure source of water. A lot of water is required in process-
ing. Shea butter, therefore water anticipated for the processing centre must be free from
contamination (both chemical and microbial contaminates). The presence of some metal
like Lead, Iron and Mercury in the water source use for kneading the butter will definitely
contaminate the butter. Such butter will not pass quality test. It is very important to carry
out water laboratory test for the processing centre source of water.
iv. Availability of warehouse to store kernels which will guarantee production and process-
ing through the year. The warehouse should have a capacity to store kernels for at least six
months. The capacity of the warehouse should be between 787.5MT (787,500 Kg).

5:2. PRODUCTION PROCESS AND PROCEDURE
Shea nut processing actually starts from the level of nuts collection/picking from the wild
which is always refer to as Shea-fruit harvesting. It is an activity of women in the Shea com-
munities. Butter is removed from the nut through wet extraction procedure. The outer pulp
of the berries, the Shea-fruit, is eaten at harvest time or parboiled to remove the pulp. The
resulting nut is been parboil and later dry. The kernel is removed by pounding and later
roasted in a large frying pot. The fried kernels is later pounded and ground in wooden mor-
tars to a paste or milled using an attrition mill. The milled Shea kernel is then thoroughly
stirred or mixed with water vigorously to break the emulsion and separate the fat. By cook-
ing the mixed paste the oil floats to the surface and is then skimmed off. There is an alter-
native processing method that skips some of these steps. This method does not use water
for extraction of butter, rather utilise oil expelling machine. Immediately the kernel is milled
into paste, the resultant paste is introduced into the expelling machine which will separate
the Shea butter in form of oil from the paste. The outputs of this process are Shea butter
in form of oil and Shea cake. The advantages of this method over water extraction are; it
shortens the steps/stages of processing using water, reduces frequency of hands contact
with butter which reduces risk of contamination. However the water extraction method still
adjudges the simplex, cost effective because it’s being power by small power machine and
produces best butter quality. The water extraction processing steps can be summarized as
follows:
1. Collection of fruits. 2. Depulping. 3. Washing of nuts. 4. Parboiling of nuts. 5. Drying of
nuts. 6. Cracking of nuts to remove kernels (dehusking) 7. Storing of kernels for processing,
8. Washing and drying of kernels 9. Sorting of kernels, 10. Crushing of the kernels. 11. Roast-
ing of kernels 12. Grinding/Milling of kernel into paste, 13. Kneading of paste (Extraction of
raw butter), 14. Boiling of raw butter, 15. Separation of butter from residue, 16. Filtration of
butter and packaging and 17. Storage of the butter

5:3. PRODUCTION PROCESS / PROCESSING FLOW CHART

5:4. REGULATIONS, STANDARDS AND CERTIFICATION
The following regulatory bodies will provide the standard on which our business will be set
upon from the very beginning:
• National Agency for Food, Drugs Administration & Control (NAFDAC) – standards for
processing, factory conditions, packaging and quality. The certification of NAFDAC on
our products will give it international acceptance as they are recognised as the regula-
tory body for such in Nigeria.
• Standards Organisation of Nigeria (SON) – as the body of government in charge of en-

suring that products meet required quality standards, we have commenced of testing
of our butter according to the quality parameters from SON to enable us perfect our
production process. We would not compromise on quality in our production, with SON
certification our products will be export ready.
• Nigeria Export Promotion Council (NEPC) – as a business that has interest in export, we
will adhere strictly to the guidelines from the NEPC to enable us penetrate the market
with ease. Export procedures and documentation are currently being studied and we
will imbibe the terms and conditions.
• Ministry of Trade & Investments – Our Business name and logo will be Trademarked
• Fair-trade – is a foreign certification, it will give our product appeal in countries such as
the United States and the United Kingdom among others. We hope to have this certifi-
cation as the business progresses.
• Other certifications as required will be achieved.

5:5. QUALITY STANDARD, ASSURANCE AND CONTROL
PROCESS
Standards Organization of Nigeria (SON) in line with her statutory responsibility of ensuring
that products both manufactured in Nigeria and imported into the country meet expected
quality standard, established Nigerian Industrial Standards (NIS) for Kernel and Shea butter
(Unrefined). This is contained in a document called ‘A Shea butter/kernel standard’ specifying
a set of requirements that concern Shea butter/kernel from the Shea kernel through pro-
cessing to the finished product. These standards specify quality requirements, packaging and
labeling requirements as well as sampling and test methods for Shea kernel and Shea butter.
It is also imperative that individual processing factory/company should have her own qual-
ity standard specification which is always a benchmarked or a bit higher than the national
industrial standard or international standard depending on the off-taker quality requirement
or international market/country intend to access.
For Nigerian Industrial Standard (NIS), the different terminologies associated with the prod-
uct are also stated in these standards.
SPECIFICATIONS ON QUALITY REQUIREMENTS
These standards for Shea products specify quality requirements on the following parameters:
Physical, Chemical and Microbiology properties.
i. Physical Properties;
Colour, Odour, Physical Characteristics, Spread Ability, Insoluble debris, Moisture Content
and Melting point
ii. Chemical Properties;
Lead, Mercury, Iron, Protein, Shelf life, Vitamin E, Vitamin A, FFA, Perioxide, Rancidity
value, Cinnamic Value and Bioactive FX.
iii. Microbiological Properties
Yeast, Coli form Count, Mold and Debris cult.

According to American Shea Butter Institute, microbial contamination can be potentially
harmful to the end user. The personal care industry strongly opposes the use of microbial
contaminated Shea butter. The most common microbial contaminant is mold, yeast and fun-
gi. The most dangerous microbial contamination comes from the Coliform organism, such
as E.coli, Salmonella, and Shigella etc. The presence of Coliform organisms is indicative of
unsanitary conditions during preparation. Whenever Coliforms are found, the entire opera-
tion must be shut down until the source of these pathogens are identified and corrected. Any
Shea butter found to contain microbial contamination automatically receives a quality Grade
F. Shea butter with microbial contamination of any types is not recommended for use in the
personal care industry.
Free Fatty Acid (FFA)

The amount of FFA present in a given Shea Butter tells us how much destruction and digestion
of the triglycerides and other nutrients has occurred. FFA above 2% is indicative of significant
destruction and breakdown of important ingredients, especially triglycerides. For this reason
the highest quality rating is awarded to those butters with the least amount of FFA.
FFA Lab Value Rating Lab Value Quality Point Awarded Based
FFA value
0 – 2 % Excellent 25 points
2 – 4 % Good 24 – 15 points
4 – 6 % Fair 14 – 6 points
Greater than 6 % Poor 5 points
In quality evaluation, the highest possible score a given Shea butter can earn is a total of 139
quality points. The FFA contribute to the 139 points is determined by the amount of FFA at
least testing. The maximum contribution of FFA is 25 points. Shea butter with a FFA of 2% or
less will earn all 25 points. The butter with FFA greater than 2% will earn a fraction of the 25
based on the actual laboratory value. For example Shea butter with FFA of 6% or greater is
awarded only 5 points.

INTERNAL QUALITY CONTROL
It is important to note that quality control start at the point of harvest of the fresh Shea fruit.
Handling and processing into Shea kernel determines the quality of the kernel and the quality
of the kernels in turn determines the quality of the Shea butter. This means that subsequent
methods /steps during the extraction of the butter have little or no effect on improving the
butter quality as it only maintains the quality of the kernel and if low quality, the butter would
have to be refined before use in the international markets hence the low market value of the
Shea butter. Therefore there is need to control the kernel quality in order to achieve the re-
quired/acceptable quality. The major indicators of degradation in Shea butter are Free Fatty
Acid (FFA) and Peroxide Value (PV). Formation often catalyzed by heat, certain metals (e.g.
iron and copper) and ultra-violet light. It is important that care is taken at the following units
operations and stages of the nuts processing:
A. The pre-extraction phase

B. The heating/cooking phase of extraction
C. The post extraction phase
A. The pre-extraction phase

Prolong Enzyme Step: Care must be taken (time watch if possible) to avoid allowing too much
time to elapse between nut crushing, milling, kneading and heating the milled paste. The
ideal time between nut crushing and heating the milled paste is 0-1 hour. The closer heating
is to milling the lower is FFA. Never allow the milled paste to sit overnight. The greater the
time between milling and heating is higher the fatty acid content. The time period between
milling and heating is referred to as the digestion time. When an oil seed cell is ruptured dur-
ing crushing milling/milling/kneading a large pool of destructive enzymes are releases. These
enzymes are Proteases, Lipases, amylases DNAase and RNAase. These enzymes are digestive
enzymes. If allowed to stand the digestive enzymes will digest and degrade valuable nutrients
and ingredient in the ruptured oil seed.
The digestive process is optimal and efficient in the temperature range of 30 – 600 C. Fortu-
nately, temperature above 600 C will inactivate and destroy these enzymes. The inactivation
temperature is achieved during the heating/cooking step. This information should help you
understand why the digestive time (is one of the many quality-determination steps encoun-
ters during the extraction process).

B. Factor that increase Free Fatty acids during Heating/Cooking phase:
• Prolonged digestion time, permits increase FFA content
• Cooking temperatures can be too high; High temperature causes increase triglycerides
hydrolysis thereby increasing FFA content. Maintain cooking temperature between 900 C
and 1000 C, closer to 900 C.
• Insufficient heat to inactivate digestive enzymes (this is a greater problem in cold press
extraction, when compared to traditional extraction).
• Using hard water for processing. Hard water has a higher metal content. Metal serve as
catalyst and increase FFA content.
C. Factors that increase Free Fatty Acid in the Post-Extraction Phase:

• Storage temperature above 700 F (210 C)
• Moisture content, greater than 1%
• Storage container open to air
• Storage container exposed to sunlight
• Microbial contamination
Metal Content
Metal contamination of any kind promotes and increases peroxide formation, rancidity, re-
duces shelf life and increase FFA formation.
To reduce iron content in your butter make sure all your utensils, pots and other instruments
are mare of stainless steel or wood or plastics. Check to make sure that the water used does
not have high iron content.
Water as a Major Source of Metals

The water used in Shea butter production is often overlooked the main contributing factor
to poor quality Shea butter. Water with high metallic content will produce poor quality Shea
butter.
The major sources of water in communities where Shea butter is made are ground water, rain
water and river water. Obviously, ground water is preferred over rain or river water.
Below are the most common metal found in Nigeria ground water. Any one of the agents

listed will promote quality reduction; Aluminium, Calcium, Manganese, Lead, Copper, Zinc,
Magnesium Iron and Cadmiun.
Deionized water is the best water for the production of high quality shea butter. Unfortu-
nately, deionized water is not readily available in Shea producing communities. When using
ground water, it is highly recommended to send a sample to laboratory for metallic analysis. If
metallic content is too high, identify another water source with less metal or consider a filtra-
tion system to reduce metallic content.
Peroxide Value (PV)

Peroxide gives Shea butter an unpleasant odour. For that reason the highest quality grade is
awarded to those butters with the lowest peroxide value.
On the day of extraction, the peroxide level is always zero or close to zero. One fundamental
law in Shea butter preparation is NEVER MIX OLD BUTTER WITH NEW BUTTER. One bad apple
spoils the barrel.
Fatty Acids that produce Perioxides

There are specific factors that must be understood to better manage your post extraction
Shea butter. Under proper conditions of heat, moisture, light and air, some of the fatty acids
in Shea butter will react with oxygen to form peroxides. Below is a list of the fatty acids found
in Shea butter known to form peroxide; Alpha Linolenic, Linolenic, Oliec and Eicosenoic.
Improper Storage Conditions Promotes Peroxide Formation

When your Shea butter is exposed to one or more of the conditions listed below, certain fatty
acid has increase opportunity to form peroxides.
i. Excess heat
ii. Excess moisture
iii. Light exposure
iv. Open air
v. Presence of any metal
vi. Mixining newly prepared shea butter with old shea butter

IN- PROCESS AND FINISHED PRODUCT ANALYSIS
In order to achieve quality Shea butter /kernel, in-process and finished products analysis is
very essential. Samples for the test are usually taken at different stages of the processing
and at different interval depending on the type of test to be carried out. This test will help
in detecting any quality defect before, during and after Shea butter processing which will
form the bases of the factory traceability system. Quality in Shea butter products can only be
defined with reference to the end use of the products (i. e for edible products or for cosmet-
ics). In each case the starting or basic materials will be subjected to certain tests in order to
determine whether they are suitable for the process concerned. The analysis to determine
the quality of Shea kernel and Shea butter consists of a group of selected tests, which are car-
ried out on the kernel before processing, in-process material (e.g. Shea paste) and finished
product butter, which together provides the best possible general insight into the usefulness
of the material. Part of this test can be carried out in the in-house factory laboratory provided
it is furnished with necessary laboratory equipment while the final test may be conducted in
bigger certified laboratory either in-country or abroad as the case may be.
The parameters to be analyzed for and the analysis are as specified in the standards for Shea
kernel and Shea butter respectively. On the basis of the results of these tests, quality is usu-
ally designated. All these tests help to determine the quality and therefore the commercial
value of the product. Thus high quality Shea butter products are those that meet the require-
ments specified in the relevant standards for Shea butter.

5:6. FACTORY DESIGN AND LAYOUT

5:7. SAMPLE CONTRACT FOR HIRING A CONSTRUCTION FIRM
Find attached the sample contract in Appendix 3.
5:8. RECOMMENDATIONS ON THE TYPE OF EQUIPMENT TO PURCHASE
Since the factory is a medium size factory with expected an annual Shea butter processing
capacity of 500 tonnes, therefore the type of equipment that will be recommended for usage
in the factory are semi automated process equipment powered by diesel/petro engine of 8
hp. The average daily combined Shea butter processing capacity of the factory will be on an
average of 3-5 tonnes of butter per day. If the factory runs for 20 days in a month and operate
at optimum capacity of 75% (that is 3 tonnes per day) this will translate to 60 tonnes every
month (20 days x 3 tonnes = 60 tonnes). Some of the recommended processing equipment
are;
i. Crushing machine with 8 hp diesel engine.

ii. Hand operated roaster machine
iii. Milling machine with 8 hp diesel engine
iv. Kneading machine
v. Filtering and packaging machine
On the alternative, a large scale processing factory will require equipment like;
i. Toaster with 12 ho electric motor

ii. Combine miller and butter expeller
iii. Filtering machine
iv. Packaging
These equipments depend heavily on electricity supply for operation.

PICTURES OF SOME RECOMMENDED PROCESSING EQUIPMENTS
CRUSHING MACHINE COUPLED TO A POWER

LISTER ENGINE
ENERGY SAVING HAND OPERATED ROASTING

MACHINE
MILLING MACHINE COUPLED TO A POWER ENGINE

BUTTER/OIL EXPELLER PRESS MACHINE
COMBINED NUT TOASTER, MILLER AND BUTTER/OIL

EXPELLER MACHINE
INDUSTRIAL BUTTER/OIL FILTERING MACHINE

BUTTER KNEADING MACHINE
COMBINED BUTTER/OIL FILTERING MACHINE
ENERGY SAVING BUTTER/OIL BOILING MACHINE

CHAPTER 6
MARKET ANALYSIS AND MARKETING STARTEGY
6:1. MARKET ANALYSIS AND TARGET MARKET 42
6:2. MARKETING AND SALES STRATEGY 44
6:3. MARKETING & SWOT ANALYSIS 46
6:4. ENVIRONMENTAL, HEALTH & SAFETY CONSIDERATION 47
6:5. RISKS AND MITIGATIONS 48
6:6. CHANNEL OF DISTRIBUTIONS 51
6:7. SAMPLE DOCUMENTS REQUIRED FOR EXPORT 52

6:1. MARKET ANALYSIS
Over the past five years, demand for Shea products has grown in the EU and the US, causing
Nigeria and other West African countries to begin exporting Shea products. In the US, cos-
metic and personal care companies have increased the use of Shea butter in their products.
For the EU, after the passage of the European Union’s Chocolate Directive in March 2003,
which permits the inclusion of Shea butter in the formulation of chocolate, demand for this
wild fat has more than doubled over the past five (5) years, as it is now possible to include
up to 5% of Shea butter in the form of cocoa butter equivalent (CBE) in chocolate and con-
fectionery products. An estimated 90% of the Shea exported from West Africa actually ends
up in processed food products, in particular chocolate and other confectioneries, where it is
used as a substitute for cocoa butter. The growth in the global market for chocolate confec-
tions has resulted in steadily increasing demand for CBEs, which grew nearly 90% from 2000
to 2011. CBEs are widely used in Europe, with significant growth coming from Latin America
and Southeast Asia and strong potential in the U.S. market, which is poised to allow their use
in the production of chocolate for the first time. Demand for Shea in cosmetics is also growing
as consumers are increasingly looking for products made with all-natural ingredients.
According to the Global Shea Alliance’s presentation “The Shea Industry’s Economic Impact
in Africa” the market for Shea in terms of exports from Shea-producing countries in West
Africa is estimated to be 350,000 metric tonnes. Among these countries, Mali was the lead-
ing exporter, accounting for around 21% (73,500 tonnes) of total exports, closely followed by
Burkina Faso with 70,000 tonnes (20%). Ghana 59,500 tonnes (17%), Nigeria 45,500 tonnes
(13%) and Côte d’Ivoire 38,500 tonnes (11%) also played a major role.
The export market performance of Nigeria’s Shea tree products is poor relative to the produc-
tion potential. Only Shea nuts (kernel) are exported, while the main product which is Shea
butter that is produced locally is of low quality.
The Nigerian Export Promotion Council (NEPC) in her estimation of Shea nut and butter ex-
ported in three years (2005 – 2007) recorded 2,011 metric tonnes of nuts value at $649,616.6,
while the volume of Shea butter exported at the same period is given as 199 metric tonnes
valued at $297,075 as shown in the table below;

Estimated Export Volumes and Values for Shea nut and Shea butter
YEAR SHEA NUT SHEA BUTTER

MT VALUE ($) MT VALUE ($)
2007 1, 294 516,045.60 179 277,575
2006 N/A N/A 20 19,500
2005 717 133,571 N/A N/A
TOTAL 2,011 649,616.6 199 297,075
The Global Shea Alliance estimates that, of the 140,000 MT of Shea kernels that are collected
annually in Nigeria, only 10,000 MT are exported. Leading countries involved in Shea nut im-
port include United Kingdom, France, the Netherlands, Sweden, India and Japan.
6:2. MARKETING AND SALES STRATEGY

The company will adopt multi-marketing and sales approach to fulfil the varying desires and
expectations of their target customers both nationally and internationally. This approach will
provide the firm with a major competitive advantage and significant additional commercial
opportunities compared to a single approach. It will involve the engagement of both market-
ing staff and sales consultants. The former will target customers in Nigeria while the latter will
focus on international customers.
The goal of the marketing strategy is to devise a marketing plan and formulate strategies,
which would help to achieve the marketing objectives of the company. For international mar-
ket, the sales consultant will leverage on her international contacts to promote the company
and her products at international trade fair both within and outside Nigeria with the purpose
of attracting new buyers/off takers.
For the local market (Nigerian market), special attention will be given to two market seg-
ments; cosmetic/soap manufacturers that uses the unrefined Shea butter for further produc-
tion, and end users of unrefined Shea butter. The selling strategy to the end users to purchase
our products will be based on three basic reasons: quality, uniqueness and affordability.

Specialized marketing and sales efforts will be geared towards corporate entities like mater-
nity home/hospitals, hair dressing salon and cosmetic shops. Strategic partnership will be
developed as well with retailers that can significantly improve the in-store experience for the
product. Establishing shop-in-shop formats or retail partnerships where the company is lead-
ing the industry. Such co-operations can be particularly effective in markets that are domi-
nated by price and lack of differentiation. Our products and services will be promoted via the
following mediums:
Website: up to date information on our products and services will be made available to our
customers. Orders can be made online through our web portal using an online payment sys-
tem.
Electronic and print media: Awareness will be created for our products and services through
the radio, newspapers and fliers
Direct Marketing: Proposal will be written to companies with the potential to patronise our
products and services e.g importing and exporting companies etc through our sales consult-
ant.
One-on-one marketing is easy when our service and products meet customers’ expectation.
We will therefore ensure good quality and excellent customer service in all we do.
Network marketing, commission based marketing are all marketing strategies that will be
considered in the course of our operations.
Training and Capacity building programmes will be held from time to time and this will also
serve as an avenue to publicise our products and services.

6:3. MARKETING & SWOT ANALYSIS
SWOT analysis helps the investment reach its objectives. This is a strategic planning tool. It helps the busi-
ness to focus on key issues and looks at the Strengths, Weaknesses, Opportunities and Threats involved in
the business.
Strength Weakness
● Availability of raw materials in abun- ● Non availability of international certified
dance laboratory for testing
● NEPC’s incentive for export processed ● Inadequate finance
products ● Poor infrastructural facility to support
● Very good Understanding of the market business (power)
● Having a state of the art facility factory/ ● High cost of production and doing busi-
machinery ness in Nigeria
● Dependable customer base ● High interest rate
Opportunity Threats
● Export market in USA, Europe, Asia and ● Felling of Shea tree for wood and char-
Middle East coal
● Growing acceptance of made in Nigeria ● Non establishment of commercially vi-
products able domestic Shea tree plantations in
● Few players in the Shea processing in- Nigeria.
dustry in Nigeria ● Climate change that may affect section-
● Growing customer base al/productivity or output of Shea trees
● Current favourable government policies ● Local level of insecurity in some Shea
for SME producing communities
● Nigeria and Africa countries have grow- ● Market forces i.e. fall in price of cocoa
ing middle class with growing disposable butter
income ● Wrong perception of made in Nigeria
● Volume commitments products (Nigeria’s poor image) in the
international community

6:4. ENVIRONMENTAL, HEALTH & SAFETY CONSIDERATION.
The environmental and social impact assessment will be carried out to reveal the effect
(both positive and negative) of the Shea processing activities will have on the immediate
environment.
The major environmental waste envisage during factory operations is Shea slug. This is typi-
cally generated from kneading process of Shea paste.
This slug can be collected and further process into organic fertilizer for farmers. Alternative-
ly, the collected slug can be de-watered to form Shea cake to feed livestock. The slug collec-
tion will be part of the original factory production layout and design.
Safety first will be the company policy and every factory staff will be supplied with protec-
tive equipment to be used in the factory during working period.

6:5. RISKS AND MITIGATIONS
S/N TYPE OF RISK RISK ANALYSIS RISK MITIGATIONS

1 OPERATIONAL Poor access or insuf- Raw materials could be sourced through
ficient raw materials rural women Shea nut collectors and
(nuts) supplies some retail aggregators
Insufficient supply of Establishing relationships with the rural

nuts by collectors/aggre- cooperative women in form of stake,
gators joint ventures or supply contract/pre-
finance supply contract
Irregular or non-availa- Storage of extra nuts in the warehouse

bility of nuts for supply for off-season processing
during off-production
season
Nuts supplier sells their Offer supplier an attractive price and pay
nuts to other buyers immediately
Build loyalty by involving the supplier in

the business.
Try to understand how the other buyers

are competing whether it is temporary
or permanent
Breakdown of processing Usage of equipment and machines that

equipment and industrial are among the best in terms of model,
accident supplier ratings, efficiency, cost effective-
ness and maintenance cost economy
Have an in-house technical team that

can carry out minor repairs on the ma-
chines
Major repair can be contracted to exter-

nal technicians/engineers
Top quality Safety measure will be put in

place to cope with any machine op-
erational risk that might occur during
operation

Hike in fuel prices or fuel Construction/Acquiring of fuel storage
scarcitys tank that can last for several months
Workers going on strike Adopting morale boosting and produc-

tivity enhancing personnel policies and
better remuneration packages.
Good employee relationship with man-

agement.
Product getting damaged Make sure that the container is well

or lost during export loaded (take the photos)
Make sure that the shipment is suffi-

ciently insured by the importer (if FOB
conditions) or by yourself (if CIF condi-
tions)
Stiff competition in the The use of market sensitive sales and

2 MARKET
market by other proces- pricing policies
sors of Shea nuts
Good distributor volume and value
incentives
Using price discounts as a market entry

strategy
The use of high quality raw materials

and production of high quality finished
products
Product certification
Top quality products at all times
Efficient production strategies to ensure

constant product availability and order
delivery
Demand for products Check out market trends before

entering into contracts.

slow down, no buyers Look into local and regional markets.
can afford
High product quality and standards
Sudden increase in local Communicate with your buyers in good

price time.
Decide together whether to sit out or
cancel the contract
Fluctuation in exchange Negotiate sales prices in local currency

rates or in a relatively stable currency (e.g.
Euro) sell back to back
Payment to nuts suppli- Handle payment via bank account.

3 FINANCIAL
ers disappear on the way
Involve nuts supplier cooperative groups
Margins are not sufficient Increase efficiency, reduce production

to cover operational cost cost per unit.
Calculate with leeway for unforeseen

cost and sufficient target margins
No loan can be obtained Organise trade loans in time, agree with

to maintain cash flow nut suppliers and other customers when
payment are to be made
The buyers do not pay or Know and trust your client (track re-
payless when after having cord).
received the products
Work with FOB, Letter of credit.

6:6. CHANNEL OF DISTRIBUTIONS

6:7. SAMPLE DOCUMENTS REQUIRED FOR EXPORT
Since the project aim at 70% export of Shea butter produce from these medium size pro-
cessing centres to the international market, therefore export documentation is crucial and
must be properly done. Some of the documents required to be shared with both your in-
country shipping broker and your international buyer/importer as soon as possible; some
processes require registration of these documents 14 days prior to shipping. These docu-
ments include;
i. Export licence. ii. Order Requirement iii. Document from Buyer (Document/Certificate).
iv. Nigerian Export Proceeds Form (NXP). v. Commercial Invoice. vi. Certificate of Origin.
vii. Request for Information Form. viii. Clean Certificate of Inspection (CCI). ix. Standard
Certificate (Certificate of Quality). x. Packing List. xi. Bill of Landing/Airway, xii. Electronic
Entry Declaration.
Nigerian Export Proceeds Form (NXP)

It is a document that the exporter must possess before shipment. NXP is the export equiva-
lent of form “M” and it is the form which lays the foundation for the smooth implementa-
tion of Nigerian Export Supervision Scheme (NESS). The document is printed by Central
Bank of Nigeria and it is used to monitor export proceeds and repatriation. It is also a vital
document for exporter to access Federal Government export incentives – Export Expansion
Grant (EEG).
The form which comprises of 6 copies can be collected by prospective exporters from any
commercial bank in Nigeria. There are clear instructions on how to fill it on the back side of
the form.
Commercial Invoice – This is a document used in foreign trade. It is used as a customs dec-
laration provided by the person or corporation that is exporting an item across international
borders.
Your responsibility to prepare in advance of shipping; basically a bill for the goods from the
seller issued to the buyer.

Certificate of Origin (CO) – It is an important international trade document attesting that
goods in a particular export shipment are wholly obtained, produced, manufactured or pro-
cessed in a particular country. COs also constitute a declaration by the exporter.
Available from National Association of Chambers of Commerce Industry, Mine and Agri-
culture (NACCIMA) for Nigeria. This is required by customs in the country of destination
to prove source of products. Must be completed in person with documentation of export
(invoice, etc).
Quality Certificate – Quality analysis as per buyer demands, and recommended that tests
show no hazardous contaminants shipped with the product. Check on importing country’s
regulations, e.g., U.S. Food & Drug Administration requirements.
Packing List – A packing list is a document that includes details about the contents of a
package. The packing list is intended to let transport agencies, government authorities, and
customers know the contents of the package. These details help each of these parties han-
dle the package accordingly.
It is the responsibility of the exporter to prepare it in advance before shipping.
Bill of Lading/Airway Bill – It is a detailed list of a ship’s cargo in the form of a receipt given
by the master of the ship to the person consigning the goods.
The exporter or agent/broker to deal direct with shipping line)
Electronic Entry / Declaration - The electronic customs declaration of goods, i.e. when
goods are declared at a customs office by submitting a customs declaration in electronic
form via the electronic communications channels, is widely practiced in the world today.
Broker to deal directly with customs, but only those registered can process. Note that all
export declarations are electronic; thus, we recommend that an exporter use a broker con-
nected to the CNET/CMS (Customs Automated System of Clearance) to render such a ser-
vice.

CHAPTER 7
FINANCIAL FORECAST
7:1. INCOME STATEMENT 55
7:2. CASHFLOW STATEMENT 56
7:3. BALANCE SHEET 57
7:4. BREAKEVEN AND RATION ANALYSIS 58
7:5. VIABILITY SUMMARY / CONCLUSION AND OPINION 61

OPTION 1 – OPERATING AT 100% PRODUCTION CAPACITY
7:1. INCOME PROFITABILITY STATEMENT [ASSUMPTIONS BASED ON N197 TO 1 USD]

7:2. CASHFLOW STATEMENT

7:3. BALANCE SHEET

7:2. INCOME AND PROFITABILITY STATEMENT


OPTION 4 – 10% FALL IN SALES AND 19% INCREASE IN COST OF SALES

NOTES TO ACCOUNT SCHEDULE 1A
SALES / SUPPLY ANALYSIS

[US DOLLAR]
ITEM YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 NOTES

A 538,800 592,680 651,948 717,143 788,857 AT 50% PRODUC-
TION CAPACITY
B 808,200 889,020 977,922 1,075,715 1,183,286 AT 75% PRODUC-
TION CAPACITY
C 1,077,600 1,185,360 1,303,896 1,434,286 1,577,714 AT 100% PRO-
DUCTION CA-
PACITY
NOTE:
1. Assuming all other scenario remains unchanged on the production basis

NOTES TO ACCOUNT SCHEDULE 2B
DIRECT COST ANALYSIS

[US DOLLAR]

A 199,800 219,780 241,758 265,934 292,527 AT 50% PRODUC-
TION CAPACITY
B 299,700 329,670 362,637 398,901 438,791 AT 75% PRODUC-
TION CAPACITY
C 399,600 439,560 483,516 531,868 585,054 AT 100% PRO-
DUCTION CA-
PACITY
NOTE:

NOTES TO ACCOUNT SCHEDULE 2C
OPERATING EXPENSES
[US DOLLAR]

A 518,597 569,575 625,653 687,334 755,188 100%
B 259,299 284,788 312,827 343,667 377,594 50%
C 388,948 427,181 469,240 515,501 566,391 75%
NOTE:

NOTES TO ACCOUNT SCHEDULE 2D
SALES ANALYSIS BASED ON 75%

[US DOLLAR]

A 808,200 889,020 977,922 1,075,715 1,183,286 Assuming
sales is at
75%
B 727,380 800,118 880,130 968,144 1,064,957 Assuming
there is 10%
fall in sales
C 299,700 329,670 362,637 398,901 438,791 Cost of sales
at 75%
D 356,643 392,307 431,538 474,692 522,161 Assuming
there is 19%
increase in
cost of sales
E 388,948 427,181 469,240 515,501 566,391 Operating
Expenses at
75%
F 350,053 384,463 422,316 463,951 509,752 Assuming
operating
expenses also
decreases by
10%

APPENDIX: 1 NOTE 1
[US DOLLAR]

Note: Daily Production Have Been Estimated to 2.4tons per Day; 200 Days working basis is
also projected per annum
Working basis:
* 15 -17 days a month

* 2.4 tons per day
* Production basis – 15 -17 days
* Annual production is 200 days x 2.4 tons = 480 tonnes per year
* Export market is expected to take 70% (336 tonnes) of the total production while the
local market take 30% (144 tonnes)
* Whole sale price is 2,350 USD for export market (336 tonnes x 2,350 USD)
* Whole sale price is 2,000 USD for local market (144 tonnes x 2,000 USD)
* Production days of 200 per year
* The Naira conversion rate used as the time of compiling this report is N197 to 1 USD

NOTE 2
DIRECT COST COMPUTATION SCHEDULE
[US DOLLAR]

NOTE 3
FIXED ASSETS SCHEDULE
[US DOLLAR]
ITEM YR 0 YR 1 YR 2 YR 3 YR 4 YR 5
FIXED AS- 67,970 ===== ===== ===== ===== =====
SETS
ADDITION ===== ==== ===== ===== ===== ======
TO FIXED
ASSETS
TOTAL 67,970 67,970 60,512 53,054 45,596 38,138
DEPRECIA- 7,458 7,458 7,458 7,458 7,458
TION
BALANCE 67,970 60,512 53,054 45,596 38,138 30,680
TAKEN TO
ACCOUNTS

NOTE 4
DEPRECIATION SCHEDULE
ITEM YR 0 DEP RATE YR 1 YR 2 YR 3 YR 4 YR 5
ASSETS IN- 26,346 10% 2,635 2,635 2,635 2,635 2,635
CLUDING
PLANT EQUIP-
MENT AND
MACHINERY
MOTOR VEHI- 18,274 20% 3,655 3,655 3,655 3,655 3,655
CLES
BUILDING 23,350 5% 1,168 1,168 1,168 1,168 1,168
TOTAL 67,970 7,458 7,458 7,458 7,458 7,458
[Depreciation is on straight line basis].
Depreciation rate applied: Amount

Machinery and Plant Equipment = 10% 26,346
Motor vehicles = 20% 18,274
Building = 5% 23,350

NOTE 5A
LIST OF ITEMS AND DEPRECIATION APPLIED
SN LIST ITEMS COST OF DEPRECIA- AMOUNT NOTES

ITEM TION RATE [NGN]
1 CRUSHER 600,000 10% 60,000
2 ROASTER 300,000 10% 30,000
3 MILLER 600,000 10% 60,000
4 KNEADER 720,000 10% 72,000
5 FILTER AND 400,000 10% 40,000
PUMP
6 LABORATORY 1,000 ,000 10% 100,000
FACILITIES
7 WEIGHING 200,000 10% 20,000
SCALE
8 CRACKER 300,000 10% 30,000
9 BOILER 300,000 10% 30,000
10 PACKAGING 150,000 10% 15,000
MACHINE
11 SEALING MA- 100,000 10% 10,000
CHINE
12 VEHICLES 3,600,000 20% 720,000
13 FACTORY 4,600,000 5% 230,000
BUILDING
AND FACILI-
TIES
14 INSTALLA- 520,080 == ==
TION, CON-
SULTANCY
AND CONTIN-
GENCIES
TOTAL N13,390,080 1,417,000

NOTE 5B
TOTAL SET UP COST AND OTHER SUPPORT FACILITIES
SN LIST OF ASSETS / NO SPECIFICA- UNIT COST TOTAL NOTES

EQUIPMENT TIONS [ USD / COST
NGN]
1 CRUSHER 2 300,000 600,000
2 ROASTER 3 100,000 300,000
3 MILLER 2 300,000 600,000
4 KNEADER 2 360,000 720,000
5 FILTER AND PUMP 2 200,000 400,000
6 LABORATORY 1,000 ,000
FACILITIES
7 WEIGHING SCALE 2 100,000 200,000
8 CRACKER 2 150,000 300,000
9 BOILER 3 100,000 300,000
10 PACKAGING 1 150,000 150,000
MACHINE
11 SEALING MACHINE 1 100,000 100,000
12 VEHICLES 2 1,800,000 3,600,000
13 FACTORY BUILDING 4,600,000
AND FACILITIES
14 INSTALLATION, 520,080
CONSULTANCY
AND CONTINGEN-
CIES
TOTAL N13,390,080
NOTE: THE CONVERSION RATE USED IS N197 TO 1 USD. THUS THE TOTAL SET UP COST IS 67,970 USD

7:1. INCOME PROFITABILITY STATEMENT [USING CURRENT OPEN MARKET PRICE AS THE
TIME OF COMPILING THIS REPORT]

7:2. CASHFLOW STATEMENT
PROJECTED CASH FLOW PROJECTION [5 YEARS]

7:3. BALANCE SHEET
FIVE [5] YEARS PROJECTED BALANCE SHEET

[US DOLLAR]
ITEMS Yr. 1 Yr. 2 Yr. 3 Yr. 4 Yr. 5 Notes

ASSETS:
Fixed Assets [Less 49,463 43,134 36,805 30,476 24,147
Depreciation]
CURRENT
ASSETS:
Stock and Bank 167,160 297,363 438,641 591,562 756,848
Balance
TOTAL ASSETS 216,623 340,497 475,446 622,038 780,995
LIABILITIES
Investment 55,792 55,792 55,792 55,792 55,792

Profit / Loss Re- 109,365 228,599 358,513 499,771 653,065
serve
TAXES 51,466 56,106 61,141 66,475 72,138
TOTAL LIABILI- 216,623 340,497 475,446 622,038 780,995
TIES


(FIVE [5] YEARS PROJECTIONS) [US DOLLAR]
Income YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 4 Notes

Sales [see note] 808,200 889,020 977,922 1,075,715 1,183,286 Schedule 1A
Cost of sales 294,840 324,324 356,756 392,432 431,675 Schedule 2B
Gross Profit 513,360 564,696 621,166 683,283 751,611
Less Operating 392,737 433,199 477,867 527,483 582,536 Schedule 2C [
Expenses 75% of total op-
erating expenses
already calculated
Profit / (Loss) B/4 120,623 131,497 143,299 155,800 169,075
Tax
Tax at 32% [Local 38,599 42,079 45,856 49,856 54,104
Taxes]
Profit after Tax 82,024 89,418 97,443 105,944 114,971
Retained profit 82,024 89,418 97,443 105,944 114,971
Profit B/D ==== 82,024 171,442 268,885 374,829
Retained profit 82,024 171,442 268,885 374,829 489,800
C/F

OPTION 8 – 10% FALL IN SALES AND 19% INCREASE IN COST OF SALES
Income YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 Notes

Sales [see note] 727,380 800,118 880,130 968,144 1,064,957 Schedule
2D
Cost of sales 350,860 385,946 424,540 466,944 513,693 Schedule
2D
Gross Profit 376,520 414,172 455,590 501,150 551,264
Less Operating Ex- 353,463 389,879 430,080 474,735 524,536 Schedule
penses 2D
Profit / (Loss) B/4 23,057 24,293 25,510 26,415 26,728
Tax
Tax at 32% [Local 7,378 7,774 8,163 8,453 8,553
Taxes]
Profit after Tax 15,679 16,519 17,347 17,962 18,177
Retained profit 15,679 16,519 17,347 17,962 18,177
Profit B/D ==== 15,679 32,198 49,545 67,507
Retained profit C/F 15,679 32,198 49,545 67,507 85,684

NOTES TO ACCOUNT SCHEDULE 5A
[US DOLLAR]
ITEM YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 Notes

A 538,800 592,680 651,948 717,143 788,857 AT 50%
PRODUC-
TION CA-
PACITY
B 808,200 889,020 977,922 1,075,715 1,183,286 AT 75%
PRODUC-
TION CA-
PACITY
C 1,077,600 1,185,360 1,303,896 1,434,286 1,577,714 AT 100%
PRODUC-
TION CA-
PACITY
NOTE:

NOTES TO ACCOUNT SCHEDULE 6B
DIRECT COST ANALYSIS
[US DOLLAR]

A 196,560 216,216 237,838 261,622 287,787 AT 50% PRODUC-
TION CAPACITY
B 294,840 324,324 356,756 392,432 431,675 AT 75% PRODUC-
TION CAPACITY
C 393,120 432,432 475,675 523,243 575,567 AT 100% PRODUC-
TION CAPACITY
NOTE:

NOTES TO ACCOUNT SCHEDULE 6C
OPERATING EXPENSES
[US DOLLAR]

A 523,649 577,598 637,156 703,310 776,715 100%
B 261,825 288,799 318,578 351,655 388,358 50%
C 392,737 433,199 477,867 527,483 582,536 75%
NOTE:

NOTES TO ACCOUNT SCHEDULE 6D
Sales analysis based on 75%
[US DOLLAR]

A 808,200 889,020 977,922 1,075,715 1,183,286 Assuming sales is at
75%
B 727,380 800,118 880,130 968,144 1,064,957 Assuming there is
10% fall in sales
C 294,840 324,324 356,756 392,432 431,675 Cost of sales at 75%
D 350,860 385,946 424,540 466,994 513,693 Assuming there is
19% increase in cost
of sales
E 353,463 389,879 430,080 474,735 524,536 Assuming operating
expenses also de-
creases by 10%
NOTE:

7:4. BREAKEVEN AND RATION ANALYSIS
BREAKEVEN AND RATIO ANALYSIS
RETURNS ON CAPITAL INVESTED
S/N ITEMS BASIS YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

1 A. RETURNS ON Profit After Tax X 221% 276% 353% 463% 634%
ASSETS EM- 100
PLOYED
Total Assets
Employed
2 B. RETURNS ON Profit After Tax X 196% 213% 232% 253% 274%
CAPITAL EM- 100
PLOYED
Total Equity
Capital Employed

RETURNS ON CAPITAL INVESTED [SUMMARY POSITION]
[US DOLLAR]
FACTORS YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

CAPITAL IN- 55,792 55,792 55,792 55,792 55,792
VESTED [ TAKEN
AS BASE FIGURE]
PROFIT BEFORE 160,831 175,330 191,065 207,733 225,432
TAX
PROFIT AFTER 109.365 119,224 129,924 141,258 153,294
TAX
RETURNS ON AS- 221% 276% 353% 463% 634%
SETS EMPLOYED
RETURNS ON 196% 213% 232% 253% 274%
CAPITAL EM-
PLOYED
CUMMULATIVE 113,234 [2,959] 62,370 116,847 175,202
CASH POSITION
SHAREHOLDERS 165,157 284,391 414,305 555,563 708,857
FUNDS

OTHER INDICES
S/N FACTORS YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

1. Net Margin 14.92% 14.79% 14.65% 14.48% 14.28%
2. Gross Profit 63% 63% 63% 63% 63%
Margin

7:5. VIABILITY SUMMARY / CONCLUSION AND OPINION
All the indices indicated a worthwhile, promising and profitable investment. However, it is
important to apply:
1. Careful and effective implementation.

2. Sound management
3. First class and consistent marketing programs and efforts
4. Needed and necessary stock, procedure and accounting controls
5. Good people and team management
6. Excellent personnel and human resources
7. Excellent and discipline investment practice and culture
8. Strong determination and commitment to make the project a success

NOTE 6 E
[US DOLLAR]
SALES YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 NOTES

EXPORT MARKET EXPORT 789,600 868,560 955,416 1,050,958 1,156,053 240 working
MARKET IS EXPECTED TO days per year
TAKE 70% OF THE PRO- 10%
DUCTION GROWTH
[336 X 2,350 USD RATE
FROM
YEAR 2
LOCAL MARKET 288,000 316,800 348,480 383,328 421,661

LOCAL MARKET IS EX-
PECTED TO TAKE 30% OF
THE PRODUCTION
[144 X 2,000 USD
TOTAL TO ACCOUNT 1,077,600 1,185,360 1,303,896 1,434,286 1,577,714

Note: Daily production have been estimated to 2 tons per day; 240 days working basis is
also projected
Working basis:
* 20 days a month
* 2 tons per day
* Production basis – 20 days x 2tons = 40 tons per month
* Annual production is 240 days x 2 tons = 480 tonnes per year
* Export market is expected to take 70% (336 tonnes) of the total production while the
local market take 30% (144 tonnes)
* Whole sale price per tonne is 2,350 USD for export market (336 tonnes x 2,350 USD =
789,600 USD)
* Whole sale price is 2,000 USD for local market (144 tonnes x 2,000 USD = 288,000
USD)
* Annual sales (local + export) i.e. 288, 000 USD + 789,600 USD = 1,077,600 USD
* Production days of 200 per year
* The Naira conversion rate used at the time of compiling this report is N240 to 1 USD

NOTE 2
DIRECT COST COMPUTATION SCHEDULE
[US DOLLAR]
COST YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 NOTES

RAW MATERIALS 393,120 432,432 475,675 523,243 575,567 10%
6TONS PER DAY X 240 GROWTH
WORKING DAYS A YEAR X IS AS-
273 US DOLLAR SUMED
FROM YR 2
TOTAL 135,000 148,500 163,350 179,685 197,654

NOTE 3
FIXED ASSETS SCHEDULE
[US DOLLAR]
ITEM YR 0 YR 1 YR 2 YR 3 YR 4 YR 5
FIXED AS- 55, 792 ===== ===== ===== ===== =====
SETS
ADDITION ===== ==== ===== ===== ===== ======
TO FIXED
ASSETS
TOTAL 55, 792 55, 792 49,463 43,134 36,805 30,476
DEPRECIA- 6,329 6,329 6,329 6,329 6,329
TION
BALANCE 55, 792 49,463 43,134 36,805 30,476 24,147
TAKEN TO
ACCOUNTS

NOTE 4
DEPRECIATION SCHEDULE
ITEM YR 0 DEP RATE YR 1 YR 2 YR 3 YR 4 YR 5

ASSETS 25,792 10% 2,579 2,579 2,579 2,579 2,579
INCLUD-
ING
PLANT
EQUIP-
MENT
AND MA-
CHINERY
MOTOR 15,000 20% 3,000 3,000 3,000 3,000 3,000
VEHICLES
BUILDING 15,000 5% 750 750 750 750 750
TOTAL 55,792 6,329 6,329 6,329 6,329 6,329

NOTE 5A
LIST OF ITEMS AND DEPRECIATION APPLIED
SN LIST ITEMS COST OF ITEM DEPRECIATION AMOUNT [NGN] NOTES

RATE
1 CRUSHER 600,000 10% 60,000
2 ROASTER 300,000 10% 30,000
3 MILLER 600,000 10% 60,000
4 KNEADER 720,000 10% 72,000
5 FILTER AND 400,000 10% 40,000
PUMP
6 LABORATORY 1,000 ,000 10% 100,000
FACILITIES
7 WEIGHING 200,000 10% 20,000
SCALE
8 CRACKER 300,000 10% 30,000
9 BOILER 300,000 10% 30,000
10 PACKAGING MA- 150,000 10% 15,000
CHINE
11 SEALING MA- 100,000 10% 10,000
CHINE
12 VEHICLES 3,600,000 20% 720,000
13 FACTORY BUILD- 4,600,000 5% 230,000
ING AND FACILI-
TIES
14 INSTALLATION, 520,080 == ==
CONSULTANCY
AND CONTIN-
GENCIES
TOTAL N13,390,080 1,417,000

NOTE 5B
TOTAL SET UP COST AND OTHER SUPPORT FACILITIES
SN LIST OF ASSETS / NO SPECIFICA- UNIT COST TOTAL COST [ USD / NOTES

EQUIPMENT TIONS NGN]
1 CRUSHER 2 300,000 600,000

2 ROASTER 3 100,000 300,000
3 MILLER 2 300,000 600,000
4 KNEADER 2 360,000 720,000
5 FILTER AND 2 200,000 400,000
PUMP
6 LABORATORY 1,000 ,000
FACILITIES
7 WEIGHING 2 100,000 200,000
SCALE
8 CRACKER 2 150,000 300,000
9 BOILER 3 100,000 300,000
10 PACKAGING MA- 1 150,000 150,000
CHINE
11 SEALING MA- 1 100,000 100,000
CHINE
12 VEHICLES 2 1,800,000 3,600,000
13 FACTORY BUILD- 4,600,000
ING AND FACILI-
TIES
14 INSTALLATION, 520,080
CONSULTANCY
AND CONTIN-
GENCIES
TOTAL N13,390,080
NOTE: THE CONVERSION RATE USED IS N240 TO 1 USD. THUS THE TOTAL SET UP COST IS 55,792 USD

APPENDIX: 2
CHARTS TO ACCOUNT

APPENDIX: 3
BASIC FINANCIAL ACCOUNTING AND INVENTORY MANAGEMENT SYSTEM
THE ESSENTIAL BOOKS

* General Ledger
* Cash Book
* Debtors Ledger
* Creditors Ledger
* Fixed Assets Register
* Stock Books
* Bank Books
* Assets Register
* Inventory Register
* Stock Requisition Books
* Stock Verification Books
* Inventory Control Books
* Cash Budget
* Sales Budget
* Production Budget
* Capital Budget
* Profit Budget
* Personel Budget
* Assets Budget
* Cost Budget
* Trading, Profit and Loss Account
* Cashflow Statement
* Balance Sheet

APPENDIX: 4
SAMPLE CONTRACT FOR HIRING A CONSTRUCTION FIRM
ARTICLES OF AGREEMENT
THIS AGREEMENT MADE THIS.......... day of................... 20.... BETWE

EN................................... (Hereinafter called “the Employer”) which expression shall
where the context so admits include its successors and assigns (Agents) in title on the one
part AND .............................. whose contact office is situate at......................................
(hereinafter called “the Contractor”) which expression shall where the context so admits
include his/its successors and assigns in title on the other part.
WHEREAS the Employer is desirous of erecting and....................... (herein called
“the Works”) at ..................................... and has caused Drawings and Cost Estimates
showing and describing the work to be done to be prepared by or under the direction of..
.............................. AND WHEREAS the Contractor has supplied the Employer with a De-
tailed copy of the said Drawings and Cost Estimates (which copy is hereinafter referred to
as “the contract Documents”). and the Contract Documents have been signed by or on
behalf of the parties hereto.
NOW IT IS HEREBY AGREED AS FOLLOWS:-

1. For the consideration hereinafter mentioned the Contractor will upon and
subject to the conditions annexed hereto carry out and complete the Works shown upon
and described by or referred to in the Contract Documents and in the said Condition.
2. The Employer will pay to the Contractor the sum of xxxxxxxxxxxxxxxxxxxxxxx
Million ,xxxxxxxxxxxxxxxxxxxxxx Thousand Naira, xxxxxxxxxxxxx Kobo (Nxxx, xxx,xxx.xx)
hereinafter referred to as “the Contract Sum”) or such other sum as shall become payable
hereunder at the times and in the manner specified in the said Conditions.
3. In the said conditions except where the context otherwise requires:-

i. “Acceptance” means written letter of award to complete a formal con-
tract on the terms and stated in the Contract Documents.
ii. “Approved” or “Approval” means approved or approval in writing by the Em-
ployer unless otherwise specified.
iii. The term “Employer’s Representative”, shall mean such person or persons
named in the Contract Documents or Such other person or persons as the Employer may
designate from time to time to act in these capacities, or as his appointed representative.
Provided always that no person or persons subsequently appointed
shall be entitled (except as hereinafter provided) to overrule any decision, direction or
instruction given in writing by a previous holder of that office.
iv. “Plant” means all appliances or things of whatever nature required in or
about the execution completion or maintenance of the Works or temporary works and
includes (without thereby limiting the foregoing definition) all machinery, tools, cover-
ings, patterns, templates, profiles, power of every kind, water, light, pumping, workshop,
sheds, buildings, stores, materials, and things fixed or movable.
v. “Contract” means the Articles of Agreement and Conditions of Contract with
Appendices, the Contract Drawings, Contract Programme and the Cost Estimates.
vi. “Month” means calendar month.
vii. “Practical Completion” means substantially completed, satisfactorily tested
and ready for occupation or use in the opinion of the Employer.
viii. “Prime Cost Sum” or “P.C.” means a sum of money included in the Contract
to pay for work or services to be executed by a nominated sub-contractor, statutory au-
thority or public undertaking, artists and tradesmen or for materials or goods supplied by
a nominated supplier. Such sum of money shall be deemed to be exclusive of profit re-
quired by the Contractor.
ix. “Provisional” means that the quantity, description or value of the work so
described may be varied or executed in whole or in part or omitted entirely from the Con-
tract as directed and shall be remeasured and valued in accordance with the Contract.
x. “Provisional Sum” means a sum of money included in the Contract for

work or costs which cannot be entirely foreseen, defined or detailed at the time the ten-
dering documents are issued and such amounts shall be expended in whole or in part as
directed by the Employer or shall be omitted entirely from the Contract if not required.
xi. “Rainy Season” means March to October in any year.
xii. “Site” means the lands and other places on, under, in or through which the
Works are to be executed or carried out and any other lands or places provided by the
Employer for the purposes of the Contract.
xiii. “Temporary Works” means all temporary work of every kind required in or
about the carrying out and completion of the Works.
xiv. “Writing” includes any manuscript, typewritten or printed statement under
or over signature or mark as the case may be.
In Witness of the parties herein set their hand and seals this day and year first.

1. Signed by the said;
.................... .................
.................... EMPLOYER
In the presence of
Name.....................
Address..................
.........................
Description..............
2. Signed by the said;

......................... ..................
......................... CONTRACTOR
In the presence of
Name.....................
Address..................
.........................
Description..............
* to be amended if not under seal.

APPENDIX: 5
REFERENCES
1. Development Status of Production and Processing Machinery of Shea Oil from a
Woody Oil Plant in Nigeria. J. O. Olaoye
Agricultural and Biosystems Engineering Department University of Ilorin, Kwara State, Nigeria
2. An Overview of Shea Nut and Shea Butter Industry in Nigeria - Paper Presented By
Engr. M. C. C. Eneh, Director, Federal Department Of Agriculture, At The National Semina Organised By
Central Bank Of Nigeria, In Collaboration with Federal Ministry Of Agric & Rural Development, and Nigeria
Export Promotion Council (NEPC); Held At Hydro Hotels Limited, Minna, Niger State, From 4 – 5 August,
2010.
3. A Two –Year Seasonal Survey of The Quality Of Shea Butter Produced In Niger State of Nigeria. Jude U.
Obibuzor, Roland D. Abigor, Ibiso Omamor, Vivien Omoriyekemwen, Emmanuel A. Okogbenin and Tonbra
Okunwaye.
4. Shea Butter Export Guide – USAID West African Trade Hub (WATH)
5. Quality and Compliance to Standards for Shea Products.

Louis. O. Njoku-Director (North Central Region), Standards Organisation of Nigeria
Paper Presented At A National Stakeholders Workshop Organized By Central Bank Of Nigeria For Stakehold-
ers In The Shea Industry Held At Minna On 5th August 2006.
5. CBI Product Fact Sheet: Shea Butter in the EU and EFTA ‘Practical Market Insights into your Products’
6. Global Shea Alliance: Industry Quality Standard for Shea Kernel – Proposal for General Assembly (GSA
001:2013)
7. Private Sector Development in Nigeria (PSDN): Shea Value Chain Interventions in Nigeria. Presentation
for Shea 2011, 6 -7thApril 2011 by Thompson Ogunsanmi, Petra Jacobi, Richard Ogundele & Walter Hunner.
8. Shea Nuts – Collection and Processing Report. by Dr. Joerg Amend Petra Jacobi, Richard Ogundele and
Thompson Ogunsanmi.
9. World Trade Orgaization/Standard Trade Development Facility.

http://www.law-union.com/stdf172/index.htm
10. Butter/Oil Expeller Press Machine

www.dsoilpress.en.alibaba.com


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3

THIS CHAPTER COVERS:

STANDARD OPERATIONAL MANUAL AND BUSINESS PLAN FOR THE ESTABLISHMENT

1:2. INTRODUCTION AND BACKGROUND

1:3. PROJECT GOAL AND OBJECTIVES

STANDARD OPERATIONAL MANUAL AND BUSINESS PLAN FOR THE ESTABLISHMENT

STANDARD OPERATIONAL MANUAL AND BUSINESS PLAN FOR THE ESTABLISHMENT

THIS CHAPTER COVERS:

2:2. COMPANY STRUCTURE (ORGANIZATION CHART) 9

2:3. RESPONSIBILITIES AND QUALIFICATIONS OF MANAGEMENT STAFFS AND

2:4. RENUMERATION AND BENEFITS PACKAGES 14

STANDARD OPERATIONAL MANUAL AND BUSINESS PLAN FOR THE ESTABLISHMENT

STANDARD OPERATIONAL MANUAL AND BUSINESS PLAN FOR THE ESTABLISHMENT

ORGANOGRAM OF THE COMPANY

STANDARD OPERATIONAL MANUAL AND BUSINESS PLAN FOR THE ESTABLISHMENT

2. Managing Director and Chief Executive Officer

3. Sales Consultant (Export Market)

STANDARD OPERATIONAL MANUAL AND BUSINESS PLAN FOR THE ESTABLISHMENT

5. Production and Maintenance Supervisor

6. Quality Control and Warehouse Supervisor

7. Marketing and Inventory Supervisor

STANDARD OPERATIONAL MANUAL AND BUSINESS PLAN FOR THE ESTABLISHMENT

10. Quality Control Officer

11. Inventory and Store Officer

12. Account and Administration Officer

STANDARD OPERATIONAL MANUAL AND BUSINESS PLAN FOR THE ESTABLISHMENT

15. Factory Workers

STANDARD OPERATIONAL MANUAL AND BUSINESS PLAN FOR THE ESTABLISHMENT

STANDARD OPERATIONAL MANUAL AND BUSINESS PLAN FOR THE ESTABLISHMENT

PRODUCTS AND SERVICES

THIS CHAPTER COVERS:

3:1. DESCRIPTION OF PRODUCT AND SERVICES 16

3:2. CUSTOMER BENEFITS AND ECONOMIC IMPACT 16

3:4. KEY SUPPLIERS .17

STANDARD OPERATIONAL MANUAL AND BUSINESS PLAN FOR THE ESTABLISHMENT

3:2. BENEFITS AND ECONOMIC IMPACT

STANDARD OPERATIONAL MANUAL AND BUSINESS PLAN FOR THE ESTABLISHMENT

Essential cost summary are highlighted below

3:4 KEY SUPPLIERS

STANDARD OPERATIONAL MANUAL AND BUSINESS PLAN FOR THE ESTABLISHMENT

BUSINESS AND INDUSTRY PROFILE

THIS CHAPTER COVERS:

4:1. INDUSTRY ANALYSIS [BACKGROUND AND

4:2. SIGNIFICANT TRENDS 19

4:3. KEY SUCCESS FACTOR IN THE INDUSTRY 21

STANDARD OPERATIONAL MANUAL AND BUSINESS PLAN FOR THE ESTABLISHMENT

4:2. SIGNIFICANT TRENDS

STANDARD OPERATIONAL MANUAL AND BUSINESS PLAN FOR THE ESTABLISHMENT

Year Nigeria Mali Ghana Burkina Cote Benin Togo Total

STANDARD OPERATIONAL MANUAL AND BUSINESS PLAN FOR THE ESTABLISHMENT

1. Effective Food Quality Management System (Internal quality control,

2. Effective Marketing Strategy

3. Neat And Attractive Packaging System

4. Consistency in Supply of Quality and Quantity to our Off-takers

5. Product and Systems Certifications

6. Integrity as Corporate Business Values

STANDARD OPERATIONAL MANUAL AND BUSINESS PLAN FOR THE ESTABLISHMENT

THIS CHAPTER COVERS:

5:1. GUIDELINES FOR APPROPRIATE SITING OF THE FACILITY (PROCESSING FACTORY IN

5:2. PRODUCTION PROCESS AND PROCEDURE 24

5:3. PRODUCTION FLOW CHART / TECHNOLOGY 25

5:4. REGULATIONS, STANDARDS AND CERTIFICATION 26