 | Small Scale Processing of Oilfruits and Oilseeds (GTZ, 1989, 100 p.) |
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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 |
|
APICA: |
B.P. 5946 |
|
ATDA: |
Appropriate Technology Development Ass. |
|
ATI: |
Appropriate Technology International |
|
CEPAZE: |
18, Rue de Varenne |
|
CECOCO: |
P.O. Box 8 |
|
CONGAT: |
Conseil des Organismes Non-Gouvernementaux en Activite au
Togo |
|
DMA: |
Division du Machinisme Agricole |
|
ENDA: |
B.P. 3370 |
|
GTZ/GATE: |
German Appropriate Technology Exchange, in: Gesellschaft fur
Technische Zusammenarbeit (GTZ) |
|
GRET: |
Groupe de Recherche et d' Echanges Technologiques |
|
IBE: |
Institut Burkanibe de l'Energie |
|
ICCO: |
Interchurch Coordinating Committee for Development
Cooperation |
|
IGB |
Monforts & Reiners GmbH & Co: |
|
ILO: |
International Labour Organization |
|
IPI: |
Institute of Production Innovation |
|
Karite Projects |
Projet Karite |
|
MRN: |
Maschinenfabrik Reinartz |
|
KIT: |
Koninklijk Instituut voor de Tropen |
|
NIFOR: |
Nigerian Institute for Oilpalm Research |
|
OPC: |
Outils Pour Les Communautes |
|
Simon-Rosedowns Ltd |
Connon Street |
|
SPEICHIM: B.P. 12 |
F-93140 Bondy, France |
|
TCC: |
Technology Consultancy Centre |
|
TDAU: |
Technology Development and Advisory Unit |
|
TOOL: |
Entrepotdok 68a/69a |
|
UNATA: |
Unie voor Aangepaste Technologische Assistentie |
|
UNIDO: |
United Nations Industrial Development Organization |
|
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.
