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Metacloud Store - BUSINESS IDEA FOR MAKING DECORTICATED CASHEW NUT

Introduction This business idea is for Production and marketing of edible cashew nuts, the business idea is premised on production of 5,200 kgs of cashew nuts per month which translates into 62,400 p

March 25, 2025 · 2 min read

UIA BUSINESS IDEAS

BUSINESS IDEA FOR MAKING DECORTICATED CASHEW NUT

Introduction

This business idea is for Production and marketing of edible cashew nuts, the business idea is premised on production of 5,200 kgs of cashew nuts per month which translates into 62,400 per year. The revenue potential is estimated at US$ 6,500 per month, translating into 78,000 per year. The project cost is US $ 53,280. Production Process

In the mechanized system, the raw cashew nuts are decorticated using a hand operated machine, mounted on a work table. The decorticator splits the nut when placed between two horizontally mounted blades, especially spread to suit the contour of the raw nut. The outer shell is conveniently split by sliding and splitting action of blades. An operator can process 25-30 kg nuts per day. Production Capacity

The plant can have a capacity 9000 kgs per year

Land Requirement Rent for a year would cost about 1,200 US Dollars

Market Analysis

Cashew nuts are highly demanded on the world market. Local market also exists although cashew nuts are not very common in all the areas of Uganda. This could turn out to be the turning factor in the marketing of cashew nuts as they have an open market, with limited competition. This sector is still informal in Uganda. Capital Investment Requirements in US Dollars.

Item Unit	Quantity	Unit Cost	Total
Cashew Decorticator	No.	1	1,000	1,000
Other equipments	No.	1	100	100
Delivery van	No.	1	2,500	2,500
Total cost of Machinery			3,600

Production and Operating Costs in US $ Direct Materials, Supplies and Costs

	Uni	t	Cost Co Qty/ Prod.	Item Units st day cost/ day	Prod. Cost/ month	Prod.	Cost/ year
Cashew	nuts	Kgs	0.5	300	150	3,900	46,800
Sub-total			3,900	46,800
General costs (Overheads)
Utilities (power)	15	180
Utilities (water)	15	180
Salaries	60	720
Rent	75	900
Depreciation (Assets write off) Expenses	75	900
Sub-total	240	2,880
Total Operating Costs	4,140	49,680

Production costs assumed 312 days per year with a daily capacity of 200 kgs of cashew nuts.

Depreciation (fixed assets write off) assumes 4 years life of assets write off of 25% per year for all assets.

Direct costs include: materials, supplies and other costs that directly go into production of the product.

Project Product Cost and Price Structure in US$

Item

Qty/ day

Qty/ yr

Unit

Cost

Prod.

Cost

/year

Unit price

Total revenue

Decorticated cashew nuts

200

62,400

0.5

31,200

1.3

78,000

Profitability Analysis in US$

Profitability item	per day	per month	per year
Revenue
Cashew nuts	250	6,500	78,000
Less Prod & Operating Costs	159	4,140	49,680
Profit	91	2,360	28,320

Source of Suppply of Equipment and Rawmaterials

Equipment can be imported from Asia and Europe; however, Rawmaterials can be sourced from local farmers especially in Northern Uganda.

Government Incentives

Government is encouraging Agro-processing Industries that would provide employment to natives by giving them development Funds and Subsidies.