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close this bookSmall Scale Processing of Oilfruits and Oilseeds (GTZ, 1989, 100 p.)
View the document(introduction...)
View the documentAcknowledgements
View the documentPreface
Open this folder and view contents0. Introduction
Open this folder and view contents1. Oil Plants and their Potential Use
Open this folder and view contents2. Target Groups and Technologies
Open this folder and view contents3. Case Studies
Open this folder and view contents4. Financial Analysis of the Case Studies
Open this folder and view contents5. Selected Equipment
View the document6. Ongoing Research and Development Work
View the documentAnnex

Annex



1. Guidelines for the preparation of oil fruit or oil seed processing projects

1. Determine the target group (or target persons), as for instance: women's groups, pre-cooperative or co- operative, individual entrepreneur or family enter- enterprise.
2. Clarify the organization of the target group and the responsibilities of the persons involved.
3. Clarify the needs of the target group and the way they are fulfilled at present (by selling the raw material and buying oil from elsewhere or by carrying out a traditional process).
4. Investigate the present and the future availability of the rawmaterial.
5. Define possible alternative processing systems (including the traditional or a slightly modified traditional system) for processing the available raw material.
6. Investigate the availability of the equipment, estimate the required investments and determine the possibilities for maintenance and repair.
7. Determine the market potential of the main product and the by-products.
8. Investigate possible sources of finance and the possibilities for organizational, managerial and technical support.
9. Prepare for an evaluation of alternative solutions by making feasibility calculations, in consultation with the target group.
10. Present the information to the target group and evaluate the possible alternative solutions.

2. List of abbreviations and addresses

NOTE FROM THE CD-ROM EDITORS: These addresses are ten years old.

Many of these addresses are likely to have changed.

AAB:

AFRICA ASIEN BUREAU
Schildergasse 93-101
Postfach 100 193
D-5000 Koln 1, Federal Republic of Germany

APICA:

B.P. 5946
Douala Akwa, Cameroon

ATDA:

Appropriate Technology Development Ass.
P.O Box 311
Lucknow - 226 001, India

ATI:

Appropriate Technology International
1331 H Street, N.W.
Washington, D.C. 20005, USA

CEPAZE:

18, Rue de Varenne
75007 Paris, France

CECOCO:

P.O. Box 8
Ibaraki City
Osaka Pref., Japan

CONGAT:

Conseil des Organismes Non-Gouvernementaux en Activite au Togo
B.P. 1857
Lome, Togo

DMA:

Division du Machinisme Agricole
Ministere de ['Agriculture
B.P. 155
Bamako, Mali

ENDA:

B.P. 3370
Dakar, Senegal

GTZ/GATE:

German Appropriate Technology Exchange, in: Gesellschaft fur Technische Zusammenarbeit (GTZ)
Postfach 5180
D-6236 Eschborn 1,
Federal Republic of Germany

GRET:

Groupe de Recherche et d' Echanges Technologiques
34, Rue Dumont d'Urville
F-75116 Paris, France

IBE:

Institut Burkanibe de l'Energie
B.P. 7047
Ouagadougou, Burkina Faso

ICCO:

Interchurch Coordinating Committee for Development Cooperation
P.O. Box 151
NL-3700 AD Zeist, The Netherlands

IGB

Monforts & Reiners GmbH & Co:
Postfach 20 08 53
D-4050 Monchengladbach 2, Federal Republic of Germany

ILO:

International Labour Organization
CH- 1211 Geneva 22, Switzerland

IPI:

Institute of Production Innovation
P.O. Box 35075
Dar Es Salaam, Tanzania

Karite Projects

Projet Karite
(Ministere de ['Agriculture et de l'Elevage)
B.P. 58
Koudougou, Burkina Faso
Projet Karite
(GTZ/GATE/DMA)
B.P. 100
Bamako, Mali

MRN:

Maschinenfabrik Reinartz
Industriestr. 14
D-4040 Neuss, Federal Republic of Germany

KIT:

Koninklijk Instituut voor de Tropen
63 Mauritskade
NL-1092 AD Amsterdam, The Netherlands

NIFOR:

Nigerian Institute for Oilpalm Research
Benin City
Nigeria

OPC:

Outils Pour Les Communautes
B.P. 5946
Douala Akwa, Cameroon

Simon-Rosedowns Ltd

Connon Street
GB-Hull HU2 OAD, United Kingdom

SPEICHIM: B.P. 12

F-93140 Bondy, France

TCC:

Technology Consultancy Centre
University of Science and Technology
Kumasi, Ghana

TDAU:

Technology Development and Advisory Unit
University of Zambia, Lusaka Campus,
P.O. Box 32379, Lusaka, Zambia

TOOL:

Entrepotdok 68a/69a
NL-1018 AD Amsterdam, The Netherlands

UNATA:

Unie voor Aangepaste Technologische Assistentie
G.V.D. Heuvelstraat 131
B-3140 Ramsel-Herselt, Belgium

UNIDO:

United Nations Industrial Development Organization
Vienna International Centre
A-1400 Vienna, Austria

Usine de Wecker:

LUX-6868 Wecker, Luxembourg


3. Calculation of internal rate of return (IRR)

The internal rate of return (IRR) is the discount rate at which the present value of cash inflows is equal to the present value of cash outflows; put another way, it is the rate at which the present value of the receipts from the project is equal to the present value of the investment, and the net present value is zero. The procedure used to calculate the IRR is the same as the one to calculate the net present value (NPV). The same kind of table can be used and, instead of discounting cash flows at a predetermined cut-off rater several discount rates may have to be tried until the rate is found at which the NPV is zero. This rate is the IRR, and it represents the exact profitability of the project.

The calculation procedure begins with the preparation of a cash-flow table. An estimated discount rate is then used to discount the net cash flow to the present value. If the NPV is positive, a higher discount rate is applied. If the NPV is negative at this higher rate, the IRR must be between these two rates. However, if the higher discount rates still gives a positive NPV, the discount rate must be increased until the NPV becomes negative.

If the positive and negative NPVs are close to zero, a precise (the closer to zero, the more precise) and less time-consuming way to arrive at the IRR uses the following linear interpolation formula:

ir = i + PV(i2-i1) / (PV+NV)

where ir is the IRR, PV is the NPV (positive) at the low discount rate of i1 and NV is the NPV (negative) at the high discount rate of i2. The numerical values of both PV and NV used in the above formula are positive. It should be noted that i, and i. should not differ by more than one or two per cent. The above formula will not yield realistic results if the difference is too large, since the discount rate and the NPV are not related linearly.

The IRR indicates the actual profit rate of the total investment outlay and, if required, of the equity capital. The IRR of the total investment outlay can also be used to determine the conditions of loan financing since it indicates the maximum interest rate that could be paid without creating any losses for the project proposal. In order not to endanger the liquidity of the project, it would be necessary, however, to adjust the loan repayment schedule to the cash inflows.

The investment proposal may be accepted if the IRR is greater than the cut-off rate, which is the lowest acceptable investment rate for the invested capital. If several alternatives are being compared, the project with the highest IRR should be selected if IRR is greater than the cut-off rate.

4. Summary of handoperated processes

Crop

Coconut

Groundnut

Sunflowerseed

Palmkernels

Sheanuts

Raw Material

Copra partly dried, about 30% m.c.)

Decorticated

Partly decortica ted -(in decorticator+ winnower)

Broken kernels(in hammer mill, with 5 mm sieve)

Pounded kernels (in motar, with pestle)

Process

Grating (in disc grater)

Crushing twice(in roller mill)

Crushing (in roller mill)

Crushing (in roller mill)

Moistening(if raw material dry)


Heating (to80 °C) and drying

Moistening(~12% water)

Moistening(~ 12% water

Moistening(~ 18% water)

Heating (to 120°C)


Pressing (max pressure 50 bar)

Heating (to80 °C) and drying

Heating (to 80%) and drying

Heating (to80%) and partly drying (about 10%m.c)

Keeping hot (for1-2 hours)


Drying of oil

Pressing (max. pressure 60 bar)

Pressing (max. pressure 60 bar

Pressing (max pressure 60 bar)

Pressing (max.pressure 120 bar)



Drying of oil

Drying of oil

Drying of oil

Repeating of process






Cleaning and drying of oil

KIT/UNATA UNIT:1






Processing

with 14-18 per- sons 350 coconuts in 5 hours/ day

with 6-8 persons80 kg/day in 6 hours/day

with 6 men 150 kg/day in 8 hours/day

with 6-8 persons80 kg/day in 6 hours/day

with 5 women40=60 kg/day in 6-9 hours/day




with 15 persons300 kg/day in 6 hours/day



Oil output/day

26 kg

28 kg

29-58 kg

28 kg

16-24 kg

IPI UNIT:²






Processing

under development


with 7 men210 kg/day in 8 hours/day

under develop ment


Oil output/day



42 kg



1 Source: KIT
2 Source: IPI

5. Currency conversion table

US $

DM

FF

F CFA

K

£

FL

BF

Dollar

Deutsche Mark

French Franc


Kwacha

Pound Sterling

Dutch Gulden

Belgian Franc

1

1.92

6.36

318

14.36

0.67

2.17

40


1 as of January 2nd, 1987; equivalents to US $ 1,-.

6. Literature

African Training and Research Centre for Women:

Traditional Palm Oil Processing; Women's Role and the Application of Appropriate Technology. United Nations Economic Commission for Africa, Addis Ababa, 1983.

Agrotechnology, KIT: Oil extraction, Source XV, No. 1; pp. 102-124, 1987.

Barrett J. C., T.W. Hammonds and R. V. Harris, A: Technical and economic evaluation of a small scale coconut expeller operation in the Cook Islands. Coconut Research and Development, Vol. IIl, No. 2, 1987.

Corbett, S.: A new oil press design: but is it any better?, in: VITA NEWS, April 1981, VITA Washington D.C., 1981.

Donkor, P.: A hand-operated screw-press for extracting palm oil: Appropriate Technology V, No. 4. pp. 18-20 1979.

Eckey, A. E.: Vegetable fats and oils. New York, Reinhold Publishing Corporation, New York, 1954.

Food and Agriculture Organization of the United Nations: Report of the first African small-scale palm oil processing workshop, NIFOR, Benin City, Nigeria 12-16 October 1981, FAO, Rome, 1982.

Chungu A. S.: An instruction manual for IPI sunflower processing equipment. IPI, Dar es Salaam, 1986.

Godin, V. J. and Spensley, P. C.: TPI Crop and Product Digests No. 1, Oils and Oil seeds, Tropical Products Institute, London, 1971.

Groupe de Recherche et d'Echanges Technologiques: Le point sur ['extraction des huiles vegetales; les presses a huile. GRET, Paris, 1984.

Hammonds, T. W., R. V. Harris and N. MacFarlane: The small-scale expelling of sunflowerseed oil in Zambia: Appropriate Technology Xll, No. 1, pp. 27-28, 1985.

Hammonds, T. W. and A. E. Smith: An industrial profile of small scale vegetable oil expelling. -Tropical Development and Research Institute, Report G 202, 1987.

Harris, R. V. and A. A. Swetman: Small scale sunflower seed processing in rural Zambia. In press (Tropical Science 1988).

International Labour Office: Palm oil processing. Technologies for rural women - Ghana, Technical Manual No. 1. ILO, Geneva, 1985

International Labour Office: Small-scale oil extraction from groundnuts and copra. Technical memorandum No. 5. ILO, Geneva, 1983.

Jacobi, Carola: Palm oil processing with simple presses: GATE - questions, answers, information 4/83, pp. 32-35, 1983.

Korthals Altes, F. W:, R. Heubers and R. J. H. M. Merx:
Research into small scale systems for processing agricultural products at the agrotechnology section. In: Royal Tropical Institute, Review of agricultural programmes and advisory activities 1982. KIT, Amsterdam, 1983.

- Marches Tropicaux: Les Oleagineux, in No. 2112, 1986, p. 1167ff.

- Niess, Thomas: AngepalBte Technologie fur Dorffrauen; Entwicklung von Karite-Pressen in Mali,
Friedr. Vieweg & Sohn Braunschweig/Wiesbaden, 1986.

- Niess, Thomas: New shea butter technology for West African women: GATE - questions,
answers, information 2/83, pp. 15-17, 1983.

- Niess, Thomas: Shea butter project provides on-the- job training. GATE - questions, answers,
information 2/86, pp. 25-27, 1986.

- Rehm, S. and Espig, G.: Die Kulturpflanzen der Tropen und Subtropen, Verlag Eugen Ulmer'
Stuttgart, 1984.

- Swern, E., ea.: Bailey's industrial oil and fat products. Interscience Publishers, New York,
1964.

- The Courier, European Community Publication: Dossier on Tropical Oil Seeds, in No. 86, 1984,
p. 52ff, Brussels.

- Thieme J. G.: Coconut Oil Processing. FAO, Rome' 1968.

- United Nations Industrial Development Organization:
Guidelines for the establishment and operation of vegetable oil factories. United Nations, New
York, 1977.

- United Nations Industrial Development Organization:
Information Sources on the Vegetable Oil Processing Industry. UNIDO Guides to Information
Sources N. 7. United Nations, New York, 1977.

- United Nations Industrial Development Organization:
Manual for the Preparation of Industrial Feasibility Studies, Vienna/New York, 1978.

- Weiss, E. A.: Oilseed Crops, Longman publ. London, 1983.