This profile envisages the establishment of a plant for ground nut hulling, cleaning and roastingwith a capacity of 90 tonnes per annum. The present demand for the proposed product is estimated at 84.3 tonnes per annum. Thedemand is expected to reach at 151.9 tonnes by the year 2022. The plant will create employment opportunities for 15 persons. The total investment requirement is estimated at about Birr 1.44 million, out of which Birr510,500 is required for plant and machinery. The project is financially viable with an internal rate of return (IRR) of 21 % and a netpresent value (NPV) of Birr 736,980 discounted at 8.5%.
II. PRODUCT DESCRIPTION
Groundnut is a warm - season crop and is killed by frost. Most of the crop is produced in areaswith 40 mm or more annual rainfall and there should be at least 20 mm rainfall in the growingseason.Groundnuts are a high value crop that can be marketed with little processing but are extremelyversatile and can be used in a wide range of products. They are the second largest source of vegetable oil, the largest being Soya beans. The oil can be used for cooking, they can be usedas a shortening or as a base for confectioneries and they can be used to make peanut butter.Large quantities of groundnuts are consumed locally in the areas of production. The worldtrade depends largely on the European demand for groundnut oil extraction. The non-drying oilis used as a substitute for olive oil as a salad and cooking oil. It is used in the manufacture of