PROFILE ON PRODUCTION OF SOYA BEAN MILK

 

Nigeria presently produces about 500,000MT of soyabean annually making it the largest producer of the product on the African continent. Soyabeans are used in the production of milk, edible oil and animal feed.  Nigeria's domestic production of soybeans is trending upwards, but still lags behind the rapidly growing demand from the poultry industry for soy meal and soya milk processors. This supply deficit resulted in the increase in the price of soybean meal within ten months, reaching a high $670 per ton last September 2011.

This profile envisages the establishment of a plant for the production of soya bean milk with a capacity of 450,000 liters per annum.

The present demand for the proposed product is estimated at 1.35 million liters per annum. The demand is expected to reach at 2.7 million litters by the year 2022.

The plant will create employment opportunities for 21 persons. The total investment requirement is estimated at about N18.335 million, out of which N6.5 million is required for plant and machinery.

The project is financially viable with the following profitability indices:

 

Average Return on Assets                              5.8%

 Average Return on Equity                             16.5%

 Average Return on Sales                                23.1%

 Average Debt service coverage                      0.3

 Average proportion of Debt                           0.653

 Average proportion of Equity                        0.347

 Average Debt/Equity Ratio                           65.3:34.7

 Average Operating ratio                                 22.5%

 Average current ratio                                     18.54

 UnDiscountedPay back period (yr)                5.6

 Net present Value (N000)                             19161.1

 Internal Rate of Return                                  35.3%

 Profitability Index                                          0.7

 Break Even point(Based on year1)(Sales)  134574.3

 Fractional capacity utilization                        2.373

 Selling Price N000.00                                    0.2000

 

 

 

I.                 PRODUCT DESCRIPTION AND APPLICATION

 

Soya bean milk is a relatively stable emulsion milky liquid produced from ground Soya bean with heat treatment, fine reduction and water dispersion. It is imitation milk widely used as food for infants that are suffering from malnutrition, and for individuals afflicted with certain allergies, diabetes and other diseases associated with diet. Soya bean milk has approximately the same protein content as cow milk and therefore can act as an excellent protein supplement to ordinary milk. It is a high protein, high oil pulse grain having approximately 40% protein and 20% fat.  Soya bean milk can be produced in of unsweetened or sweetened form. Unsweetened soymilk is a bland milky substance which could be imported any favor or taste. Sweetened soymilk could either be consumed as milk or as a beverage item.

 

 

 

II.               MARKET STUDY

 

Soya bean milk, a nutritious product produced from soya bean, can be used as a substitute for cow milk. Accordingly, the demand for cow milk is used as a proxy for estimating the demand for soya been milk. In SNNP region, traditionally processed milk is supplied to the market, albeit there is no quantitative data. In the absence of data on domestic production and consumption of milk, the Revised Report on the 1995/96 Household Income, Consumption and Expenditure Survey is analyzed in estimating the demand for the product. Table 3.1 depicts the average consumption of milk by different expenditure groups in urban and rural areas according to the survey finding

.Table 1 shows that there were wide gaps between estimated domestic production and consumption of milk for the period 2000-2005. The deficits were made up through importation of milk and milk products. However, with the current removal of subsidies in European nations, the cost of importing dairy products would definitely constitute a serious stress on the country's foreign exchange.

 

 

Table 1.  Estimated human population and annual demand for, and supply of milk from national herd, 2000 to 2005

Year

Human Population, x 106

Demand, t

Supply, t

2000

110.00

990,000

495,479

2001

112.75

1,014,750

515,291

2001

115.56

1,040,004

535,911

2003

118.45

1,066,050

557,347

2004

121.42

1,092,780

579,641

2005

124.45

1,120,005

606,827

Source: Livestock Sub-Sector Review Report No. 102/92CP-NIR 49 SR/5/8/92

 

 


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