The project envisages production of 10,000 tons of baby food per annum. The totalinvestment requirement of the project is estimated at about Birr 44.9 million; of whichBirr 28 million is the cost of working capital and Birr 5.6 million is planned to financethe cost of building and civil-works while Birr 9.2 million is for machinery andequipment. Based on the cash flow statement, the calculated internal rate of return (IRR)and simple rate of return of the project are 22.4 % and 19.5, respectively. And the net present value (NPV) at 18 % discounting rate is Birr 4,799 thousand. The plant isexpected to create employment opportunities for about 157 persons.
2.Product Description and Application
Infant food is a supplementary food prepared for children below the age of two. Infantfood relieves mothers from intensive breast-feeding. The main ingredients in the preparation of infant food are pulses, soybean, milk, potato, corn and fruits. Generally,the mixture of these ingredients is kept in such a way to fulfil the nutrition requirementsin child feeding. Carbohydrates and proteins are the major nutrient elements. Infant foodis prepared in a factory or at home. They are delivered in cans of 400/500 grams or in plastic containers of 1kg each. Sweetness, palatability, and tenderness are the basicrequirements for infant food. Infant food is served diluted in water and boiled to form astew or soup. They are also served as batter for spoon feeding. The main objective of preparing baby food is to give the necessary nutrition to infants in addition to their mother milk so that the babies are healthy and fit both physically and mentally.3