Cashew Nut Decortication Business Plan

1. Executive Summary

This business establishes a cashew nut processing unit with capacity to decorticate 5,200 kg monthly (62,400 kg annually) of raw cashews into edible kernels. With $53,280 initial investment, the venture projects $78,000 annual revenue and $28,320 net profit in Year 1, scaling to $148,000 revenue by Year 5.

Key Business Highlights

• Production Capacity: 200 kg/day (62,400 kg/year)
• Value Addition: 160% price increase from raw to processed
• ROI Period: 22 months
• Employment: Creates 5-8 direct jobs

2. Production Process

Raw Material Procurement

Source quality raw cashews (RCN) from local farmers at $0.5/kg. Establish collection centers within 50km radius of processing facility to minimize transport costs.

Decortication

Using semi-automatic decorticator (capacity 30kg/hour):

• Place nuts between horizontal blades
• Apply controlled pressure to split shells
• Separate kernels from shell fragments

Quality Grading

Sort kernels by:

• Size (W180, W210, W240 standards)
• Color (White, Scorched, Dessert)
• Physical damage assessment

Packaging & Storage

Vacuum-pack graded kernels in 25kg food-grade polyethylene bags with oxygen absorbers. Store in climate-controlled warehouse at 10°C, 60% humidity.

Equipment Specifications

Equipment	Qty	Unit Cost	Total	Source
Semi-auto decorticator	2	$1,000	$2,000	India/China
Grading tables	3	$200	$600	Local
Vacuum sealer	1	$800	$800	Germany
Delivery van	1	$2,500	$2,500	Local
Total				$5,900

3. Market Analysis

Target Markets

Local Retail (30%)

• Supermarkets in Kampala, Entebbe
• Local grocery stores
• Roadside vendors
• Price: $1.5/kg

Export (60%)

• European snack manufacturers
• Middle East confectioners
• International commodity traders
• Price: $2.0/kg FOB

Institutional (10%)

• Hotels and restaurants
• Bakeries
• Corporate gifts
• Price: $1.8/kg

Marketing Strategy

Channel	Activities	Budget (Annual)
Trade Fairs	Participate in 2 regional agro-processing expos	$1,200
Digital Marketing	B2B platform listings, social media	$600
Distributor Network	Develop 5 regional distributors	$800
Branding	Packaging design, promotional materials	$400

4. 5-Year Financial Projections

Revenue Forecast (USD)

Year	Production (kg)	Selling Price/kg	Revenue	Growth Rate
1	62,400	$1.25	$78,000	-
2	74,880	$1.30	$97,344	25%
3	89,856	$1.35	$121,306	20%
4	107,827	$1.35	$145,566	20%
5	129,392	$1.40	$181,149	20%

Profit & Loss Statement (USD)

Item	Year 1	Year 3	Year 5
Revenue	$78,000	$121,306	$181,149
Raw Materials	$46,800	$72,784	$108,689
Operating Costs	$2,880	$4,200	$5,800
Marketing	$3,000	$4,500	$6,000
Net Profit	$28,320	$45,822	$70,660

5. Government Support & Compliance

Available Incentives

• Tax Holidays: 5-year income tax exemption for agro-processors
• Equipment Import: Duty-free import of processing machinery
• Land Allocation: Subsidized industrial park spaces
• Training Grants: Up to $5,000 for employee skills development

Required Certifications

• UNBS Quality Mark (Uganda National Bureau of Standards)
• HACCP Certification (Food Safety Management)
• Export License (for international shipments)
• Organic Certification (Premium Market Access)

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