If you’re looking for a profitable business opportunity in Kenya, consider the production and marketing of edible cashew nuts. With a monthly production capacity of 5,200 kg, which amounts to 62,400 kg annually, the revenue potential for this venture is estimated at US$6,500 per month or US$78,000 per year. The project cost is US$27,254, with a net profit margin of 28% and a payback period of 3 years and 5 months.
Production Process
In the mechanized system, raw cashew nuts are decorticated using a hand-operated machine mounted on a work table. The machine splits the nut by placing it between two horizontally mounted blades that are specially designed to match the shape of the nut. The outer shell is easily split by the sliding and splitting action of the blades. An operator can process 25-30 kg of nuts per day.
Production Capacity
The plant has a production capacity of 9,000 kg per year.
Land Requirement
To set up the production facility, you would need to rent land, which would cost approximately US$1,200 for a year.
Market Potential
Cashew nuts are highly sought after on the global market. While the local market for cashew nuts in Kenya is relatively small, there is an opportunity for growth as cashew nuts are not very common in the country. This limited competition can be a turning point in the marketing of cashew nuts, as there is an open market with untapped potential.
Government Incentives
The Kenyan government is actively supporting small-scale businesses that provide employment opportunities to locals. They offer funds, subsidies, and land to promote entrepreneurship.
Equipment Suppliers
Equipment for the production process can be imported from Asia and Europe.
By venturing into the production and marketing of decorticated cashew nuts, you can tap into a lucrative market with significant growth potential. To maximize your chances of success, consider the following strategies:
1. Quality Assurance: Ensure that your cashew nuts meet high-quality standards to appeal to customers and build a strong reputation.
2. Market Research: Conduct thorough market research to identify target customers, understand their preferences, and tailor your marketing efforts accordingly.
3. Branding and Packaging: Invest in appealing branding and packaging that stands out on the shelves and attracts consumers.
4. Distribution Channels: Explore various distribution channels, including supermarkets, local shops, and online platforms, to reach a wider customer base.
5. Government Support: Take advantage of government incentives and support for small-scale businesses to reduce costs and access funding opportunities.
References
1. Kenya National Bureau of Statistics
2. Kenya Investment Authority
(https://www.invest.go.ke/sector/manufacturing/)
Note: The information provided is based on available resources and should be further researched and verified for specific project implementation.
