- Introduction
Garri is a common staple food widely consumed by Nigerians. Garri is creamy-white, granular flour with a slightly fermented flavor and a slightly sour taste made from fermented, gelatinised fresh cassava tubers. It is the most widely traded cassava product, accounting for more than 75 percent of produce extracted from cassava.
The by-product obtained from the production of garri is called ‘cassava peels’. cassava peels are mostly used as an ingredient in the production of feeds for poultry, cattle and other livestock.
- Industry Analysis
The annual national demand for garri is estimated to be about 1,000,000 tonnes while the national supply estimate is about 250,000. In recent times due to the other products (Cassava Starch and Flour) that can be gotten from cassava tubers, the production of garri in Nigeria has witnessed a reduction in volume thereby prompting a shift in the demand-supply equilibrium in favour of garri producers.
With a population of about 200 million people and an estimated national population growth rate of 2.56% per annum, an average economic growth rate of 2.5% per annum in the past ten {10} years, Nigeria has a large and growing market for garri.
The growth of the middle class in Africa in general, and Nigeria to be specific, has led to a need for hygienically processed, easy to prepare and well packaged food products like, garri.
- Raw Materials Requirement
The basic raw material for the production of garri is cassava tubers. Cassava is a perennial woody shrub with an edible root, which grows in tropical and subtropical areas of the world. Cassava originated from tropical America and was first introduced into Africa in the Congo basin by the Portuguese around 1558. Today, Cassava supports the livelihood of over 500 million Africans.
It is rich in carbohydrates, calcium, vitamins B and C, and essential minerals. However, nutrient composition differs according to variety and age of the harvested crop, and soil conditions, climate, and other environmental factors during cultivation.
Nigeria is currently the largest producer of cassava in the world with an annual production of over 55 million tonnes of tuberous roots. Cassava is largely consumed in many processed forms in Nigeria. The demand for cassava and its constituents is high in the domestic economy. However, the supply has been unable to meet the huge demand.
Benue and Kogi states in the North Central Zone are the largest producers of cassava (IITA, 2004). Cross River, Akwa Ibom, Rivers and Delta dominate state cassava production in the South South. Ogun, Ondo and Oyo dominate in the South West and Enugu and Imo dominate production in the South East.
Other raw materials that will be needed in a garri production business are water, additives and packaging materials.
- Machinery & Equipment Requirements
The major equipment needed in a small-scale garri production plant are: garri processing machinery(peeling and washing machine, grater, hydraulic presser, sifter, hammer mill, frying machine), Weighing Scales and Sealing Machine.
| Equipment | Function | Picture | Price |
| Cassava Peeling & Washing Machine | Peels & washes the cassava |  | N1,200,000 |
| Grater | Grates the peeled cassava |  | N400,000 |
| Automatic Presser | Presses the grated cassava to expel water out of it |  | N600,000 |
| Sifter 2 Units | For sifting |  | N200,000 per unit |
| Hammer Mill With Cyclone | For grinding/crushing |  | N600,000 |
| Frying Machine3 Units | For frying the final product |  | N650,000per unit |
| Automatic Packaging Machine.(This machine is optional because manual packaging is possible) | For packaging |  | N3,000,000 |
| Weighing Scale | For weighing products |  | N100,000 |
| Sealing Machine | For sealing final products in bags. |  | N50,000 |
| Sealing Machine | For sealing final products in sachets |  | N70,000 |
Notes: The above prices are estimates and are applicable as at the time of writing this report.
- Production Process
Typically, when cassava tubers comes into the mill, it goes through the following steps:
A. Peeling & Washing
Cassava tubers are passed through the peeling and washing machine which peels and at the same time wash the cassava.
B. Grating
Peeled and washed cassava tubers are grated into a mash using the grating machine. The mashed cassava is then allowed to ferment for about 24hours.
C. De-Watering
The fermented cassava mash is packaged in bags and transferred to the presser machine. This machine presses the mash and expels the water content of the mash.
D. Granulating
The cake obtained after granulating is passed to the hammer mill machine to grind and reduce it to smaller particle sizes usually called grits.
E. Frying
The grits are then roasted or fried using the frying machine to form the final dry and crispy product. The fried garri is then spread and allowed to cool.
F. Sieving
The Gari is sieved using the sifter machine to produce fine granules. The larger granules are transferred to a grinder to reduce the particle size.
G. Packaging
The final product is then packaged into desired packs of 25Kg, 10Kg, 5Kg, etc.
- Profitability
The profitability of garri production largely depends on the cost of the primary raw material, cassava. The price fluctuates with season, demand and supply. As the price of cassava changes, so also does the price of garri.
- As of the time of writing this report, the average cost of cassava is N60,000 per ton. Depending on the quality of cassava, an average of 1,000Kg of garri is obtainable from processing 4 tons of cassava. This implies that it will cost N240,000 to produce 1 ton of garri.
- The average factory price for garri is four hundred and fifty naira (N450) per kilogram.
This implies that a revenue of (N450 X 1000) = N450,000 is obtainable from processing 4 tons of cassava to produce 1 ton of garri..
Gross Profit is calculated by subtracting the cost of production from the sales.
Gross Profit = N450,000 – N240,000 = N210,000
Assuming operating expenses (including cost of packaging) takes 40% of profits, profit realisable from producing 1 ton of garri will be one hundred and twenty six thousand naira (N126,000).
The proposed setup will have the capacity of producing 20 tons of garri per month. This will translate to a profit of N126,000 X 20 = N2,520,000 per month..
If the factory works at 50% of the installed capacity, this will translate to a profit of N1,260,000 per month.
- Capital Requirements
The estimated total required capital for setting up a small scale garri production plant is put at seventeen million five hundred and fifty thousand naira (N17,550,000). This includes the cost of factory rent, machinery procurement and installation, staff training, and working capital.
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