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  3. > Frozen Potato Chips {French Fries} Production in Nigeria; The Feasibility Report

Nigerian fast food sector contributes an annual revenue of N200 billion into the growth of the economy. Out of the total snacks, potato based products like French fries, wedges, products using potato flakes have about 8 % share in fast food industry.French fries are among the highest saleable potato products. This is the most abundant processed potato and can be found in many varieties.

French fries are batons of deep-fried potato. French fries are served hot and generally eaten as an accompaniment with lunch or dinner, or eaten as a snack, and they are a common fixture of fast food. French fries are generally salted and, in their simplest and most common form, are served with ketchup.

In Nigeria, more than 85% of the potato production is done by farmers who maintain small farms and carry out their operations manually with traditional farm tools, like hoes and machetes. Though potatoes are very cheap in the production areas, they are relatively more expensive, up to about seven times in Lagos and other urban cities.

Lack of adequate transportation and preservation techniques in the country not only creates price desparity in urban and rural areas but leads to a lot of waste.

The main consumers of frozen potato chips {French Fries} are fast food centres, restaurants and hotels especially especially in urban and semi-urban areas. Besides, Individuals, households, Airlines and supermarkets also require frozen potato chips {French Fries} in significant quantities. Imported frozen potato chips {French Fries} has gained wide acceptance in the Nigerian market.

This report examines the financial viability of establishing a frozen potato chips {French Fries} processing and packaging plant in Nigeria.The installed capacity of the proposed factory is 600kg/h of frozen potato chips {French fries} operating at 75% installed capacity.

Table Of Contents

Frozen Potato Chips {French Fries} Production in Nigeria; The Feasibility Report
Table of Contents:


1.0 Business Overview

1.1 Description of the Business
1.2 Vision and Mission Statement
1.3 Value Proposition
1.4 Critical Success Factor of the Business
1.5 Current Status of Business
1.6 Description of the Business Industry
1.7 Contribution to Local and National Economy

2. Marketing Plan

2.1 Description of product
2.2 Product Packaging and delivery
2.3 The Opportunity
2.4 Pricing Strategy
2.5 Target Market
2.6 Distribution and Delivery Strategy
2.7 Promotional Strategy
2.8 Competition

3. Production Plan

3.1 Description of the Location
3.2 Raw Materials
3.3 Production Equipment
3.4 Production Process
3.5 Production Cost
3.6 Stock Control Process
3.7 Pre-Operating activities and expenses
3.7.1 Operating Activities and Expenses
3.8 Project Implementation Schedule

4.0 Organizational and Management Plan

4.1 Ownership of the business
4.2 Profile of the promoters
4.3 Key Management Staff
4.3.2 Management Support Units
4.4 Details of salary schedule

5. Financial Plan

5.1 Financial Assumption
5.2 Start up Capital Estimation
5.3 Source of Capital
5.4 Security of Loan
5.5 Loan Repayment Plan
5.6 Profit and Loss Account
5.7 Cash Flow Analysis
5.8 Viability Analysis

6.0 Business Risk and mitigation factor

6.1 Business Risks
6.2 SWOT Analysis

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