cashew presentation njlip

Presentation On

Cashew processing in Bangladesh at Cluster level

Presented to:NJLIP

World Bank

This presentation is prepared by Ms Mahina for a specific goal and made available to specific person. Disclosure of this presentation to any third party in full or in part as extract is not allowed without written consent of Ms Mahina Arefin.

WELCOME Presentation

for Concept and Options of Production, Processing and Marketing of Cashew in Bangladesh at Village level by NGO’s to Cluster level to scale to Industry

level.


Raw Cashew NutsThe raw cashew nut is

the commercial product of the Cashew Tree,

though yields of cashew apple are eight to ten

times the weight of the raw nuts.

Cashew Nut Shell Liquidinside the shell

represent 15% of the grossweight and has some attractivemedicinal and industrial uses.The liquid is one of the natural

resin that is highly heatresistant and is used in braking

systems and in paintmanufacturing.

The Cashew Apple is Processed and Consumed Locally as it is difficult to

Transport

Cashew Kernel60% consumed as Snacks

40% consumed as Confectionery

ABOUT US1. Ms. Mahina Arefin She is a Social Entrepreneur having exposure more that 10 years in various

field and various countries. She has a nich and soft heart on innovation for livelihood of poor women. She is the first who could identify the potential and commercialization of cashew trees standing untilled in hill track of Bangladesh.

2. Mr. Sheikh Razif Ahmed

He is an international trader having experience of 25 years mainly in Chinese market .He has commendable adoptability due to his exposure in country like China. a strong clutch on Cashew's growing market in China and Eastern Asia is his focused specialization

3. Mr. Sunil K. Sonee He is an International Entrepreneur of core level having experience in cashew and many other product in various countries for more than 30 years. He has practical experience and net work in Cashew raw nut import ,finished kernel export and processing units.

4. Ms. Sanjida Kaium Is a social Entrepreneur and Development worker of National level having experience in the field of program development , management, communication and capacity building for more than 15 years

5. Mr. Morari Lal Patel as Consultant. He is well experienced businessman having special acumen to develop cluster cashew industries. He is already running a cashew industry in state of Gujarat in India.

Why NJLIPThe Project Development Objective (PDO) is to improve the livelihoods of extreme poor communities and to strengthen the community institutions and Cashew processing has all the potentialities to play a successful part in this program by:Empowering women through capacity development on cashew processing: Cashew is a global food item having demand all over the world. Through

developing the skill of the community women on cashew processing the women will get a standard income that will empower them financially. According to researches financial empowerment is the key factor in taking part in making decisions

Ensuring day to day income all through the year: Cashew has got demand allover the world throughout the year, it can be

imported, processed and exported all through the year. As a result the women will be able to work all around the world and earn money


Why NJLIPEnsuring sustainable development in aspect of livelihood: Once the women are trained on cashew processing they can work all through

their life by themselves as it has a global demand around the year Addressing mal – nutrition as cashew nuts are full of protein:Cashew nuts are full of food values and protein, it is also very helpful in brain development. Once it is available the children and women will have an available source of protein and recover mal - nutrition Developing women entrepreneur : Through cashew processing each of the processor may become the owner of

processing machine that results a home based factories. Ultimately the women are becoming entrepreneur

Through Individual development cashew processing will successfully develop a group that may really take active part in decision making for developing a healthy and wealthy village that will lead to a healthy and wealthy nation.


Flow chart of Steps for NJLIP

1st option

Colour code: Step – 1 : Step – 2: Step – 3: Step – 4:


2nd option to be triggered on failure of 1st option


Why leaderIf a leader get involved in NJLIP Cashew project:• The leader will become more popular amongst

his/her followers• The poverty of his/her area will be eradicated• The livelihood of his/her people will be developed• Children of his/her area will live a healthy life• He/she will become a role model for others• He/she will be able to create a sustainable positive

impact to his/her followers mind

NJLIP with cashew project is most applicable project for the government as:

• It provides a time bound result• It is so well - planned to bring successful result• It brings equal profit by means of time , money

and national development• It ensures financial solvency• it has business popularity in developed countries

Why Government

The NJLIP cashew project strongly refers the role of social entrepreneur because this project:

• The social entrepreneur will be successful in creating societal leadership this is• Creating a sense of shared commitment and co-ownership by embedding the social objective within

the hearts of relevant social actors.

• social entrepreneurs are able to foster active citizen involvement and positively impact the rate and reach of their social vision.

• He/she will be able to take part in Business management: translating vision into action as a leader who is able to constantly realign strategic choices made at the commercial level with the organization’s social vision, while effectively utilizing its social capital to this end. The total budget for.

• He/she will be able to develop Personal leadership: self-awareness and self-development through driving forward the social objective, advocate the cause, with a people’s approach to doing business whilst simultaneously achieving and preserving financial sustainability.

• A major part of NJLIP covers advocacy: a social entrepreneur can bring a complete success through advocating for the right livelihood for the right cluster

• He/she will be able to develop a group of entrepreneurs to have a sustainable positive impact to the financial development of the society

Why social Entrepreneur

Why media Now a days media plays a vital role in every development activities. In NJLIP Cashew project media may have:• a great opportunity for news coverage• Scope to develop success stories of a developed

Bangladesh• Increase the popularity of their channels/publications• A great chance to prove themselves as the friend of

common people • An opportunity to become social leaders

Why celebrities In the NJLIP cashew project celebrities will find every option to be :• More popular to the common people• A hero/heroine of real life• An example of real leaders• An entrepreneur and a leader

Through the cashew project in NJLIP an advocate may:• Have opportunity to have a strong reputation

on common people• Will create a positive image• Will have a great chance to advocate for the

poor people• Will develop a strong working network

Why Advocates

Why NGOsNJLIP cashew project fulfills all the aspects for NGOs to consider this as a successful on because:• It is self sustainable• Funds revolves automatically• Ensures 100% implementation of funds• Organization gets benefitted• It is Well- planned to manage• Provides global network

WHY BANGLADESHCashew Kernel is exported to Developed Nations, where Bangladesh already exports Garment. Addition of Cashew will result as a Brand Value due to exposure in two main components as food and clothing.

The raw material of Cashew is procured from under-developed nations from where Barter Trade is possible of the various food products and garments manufactured in Bangladesh.

The processing of Cashew involves lot of Manpower which is easy and cheap in Bangladesh.

Electricity and Power required in the Processing can be obtained through Solar Energy which will lead to development of Bangladesh as a whole, and moreover make the whole Project as a Green Project

In many countries World-wide it is worth billion dollar and very similar to garment industry.


CASHEW AND ITS USES• Used as snack, biscuits, confectionery items and in

various other delicacies.Cashew Nuts

• Pressed from Cashew Nuts of Broken Chunks created during Processing. Often used as dressing in salads.Cashew Oil

• Raw material in developing drugs, antioxidants, fungicides etcCashew Nut Shell Liquid

• It is a soft fruit, rich in nutrients, and contains five times more Vitamin C than an OrangeCashew Apple

• Used in paan ( a popular serving made of Betel Leaf)Cashew Peel

• Used in Poultry FeedCashew Bud


OUR OBJECTIVES1. Our Objective is to utilize Cashew production in Bangladesh , which remained unutilized up to recently.

2. Our objective is to bring Cashew Project in existence so as to :

a) Provide employment to un-skilled, semi-skilled and skilled labor force in Bangladesh

b) Bring Nutrition value in Bangladesh as well as in other parts of the World

c) Earn foreign exchange for the country.

3. Develop exchange trade or barter trade to boost the supply chain substantially with right vision.


OUR ROLEEmpowering Women and Youths

Skill Development Training Centre

Technical know-how

Marketing

Buying

Selling

Market Acquisition

Optimization of Funds

Land acquisition and plantation on Global level


SCALABLE AND SELF SUSTAINANCEWith extensive commercialization scope that the product

offers, the benefit is not restricted to Rural Farmers.Many Small & Medium Enterprises can be developed

which may buy the raw material from Farmers process it and make it saleable.

Self Help Groups can setup their own Plants with appropriate Fundings from bank, thus providing employment opportunity along with rotation of funds of the Banks.

Export Oriented Units will be born too.


STRENGTHENING OF VILLAGESThe direct export benefit is foreign exchange

flow in the Villages.The economic and financial aspect of the

Village improves with every export activity conducted.

It brings in recognition to the Village of Bangladesh and strengthens its position.


NUTRITION AND FOOD

Cashew nut is a well known nut for its Nutritional Value in terms of Protein and Calories.

World Bank has been funding Product Cashew so as to eradicate the Protein Deficiency.

The farmers and their families can deal with the problems of Mal-nourishment with consumption of Cashew and with the Income earned in the Process to meet their other needs.


INFRASTRUCTURE IMPROVMENT

Bangladesh can enter into beneficial Cross-Border Trade with other Countries.

The process of Loading, Unloading, Aggregation of Cashew in Containers will not only provide employment but also help in expansion of Custom Ports of the Countries.

Roadside plantation of cashew trees along with other small shrubs like mint, chilies, etc. can be cultivated on contractual basis by local people.


Benefit to Environment along with Employment

Coastal Bangladesh is a suitable place for the Plantation of Cashew Trees in terms of Climatic Conditions.

The plantation of Trees will provide employment to Unemployed as a whole.

It also will upgrade the Environment by Generation of more oxygen in the air and will beautify the Road Side apart from orchard.

Plantation of Cashew will also help from Soil Erosion and other environmental Hazards.

It will also bring in opportunity of Employment as labour can be employed for picking up Raw Cashew nuts (in shell) from these trees.


SKILL DEVELOPMENT & EMPLOYMENT

Process of testing, grading requires skills which can be imparted to the youths, thus making them Technically Skilled and also generating Employment Opportunities.

The Youths can form Groups like Self Help Groups and work unanimously.

These processes ultimately leads to Skill Development along with Employment and export of technical know how and skilled people.


WOMEN EMPOWERMENT Being Labour-Intensive Process of Cashew, it

provides Employment Opportunity to the Rural Poor who can do these processes by forming groups.

It provides employment opportunities to the unemployed Rural Youth.

Empowers women as they can also get employment opportunities in the processes of Peeling etc.

Ultimately, improving Livelihood of the poor. This job does not need any school qualification.This presentation is prepared by Ms Mahina for a specific goal and made available to specific person. Disclosure of this presentation to any

third party in full or in part as extract is not allowed without written consent of Ms Mahina Arefin.

EDIBLE AND EXPORTABLE

Cashew being a widely used agricultural produce and having high nutritional value is being consumed by many other Countries.

As Coastal Bangladesh fits in the climatic conditions required for Raw Cashew Nuts and other requirements in the processing of the Final Product, Cashew can be exported.


Possible Means of Finance and Funding

1. Equity funding by Angel and other investor. 2. Scheme funding from World Bank such as : A) Nuton Jibon Livelihood Improvement Project3) Funds can be sought from NGO and Social development

foundations too. 4) Crowd Funding 5)Buy back based funding from market .


INVESTMENT

It is estimated that about BD taka One million per village using 100 village will be required which will include

Land, Building, Offices Plant and machinery Recurring expenses Working capital Stock of raw and finished product


INVESTMENT IN CASHEW

Cashew is White Gold. The investment

in Cashew is more worthwhile than investing in Gold

Metal, Stock Market, Real Estate etc.

One of the most suitable Investment for Account and Fund Appropriation and availing Tax Benefit being an Agriculture -

Horticulture Produce, Skill Development Opportunity and Export Orientation of

the Product.

Cashew has High return on Secured Investment along with • 1. Developing Rural Land and Real

Estate• 2. FMCG produce by Branding• 3. Cottage to Industrial Level-

benefit• 4. International Trade and

Immigration Opportunity• 5. Family Security

INVESTOR ROLE

• Joint Venture Company with his Own or Proxy Ownership

• He can sign a MOU as Investing Partner

• He can be an Investor on Fixed Return

• He can Invest with pre-planned Exit Plan.

• He can Invest with Pre-Planned Inclusion Plan

Investor can

join as

RETURN ON INVESTMENT

In a period of 3- 5 years the profit accrued will relinquish the Initial Investment as the Minimum Assured

Along with larger market acquisition for the product in house as well as Overseas leading to goodwill.

Net Return on Investment 18%

Gross Return on Investment 30%

SOURCE OF RETURN

Interest and Structure Financing

Trading Profit at Procurement Level

Profit on High Seas and International Sale

Profit from Migration and Skill Development

Profit from Processing

Profit from Local Sale and Export

Profit from Branding

Profit from Rural Real Estate Development

OPTIMUM INVESTMENT

It is estimated that about BD taka Twenty million will be required which will include

Land,Building,OfficesPlant and machineryRecurring expensesWorking capitalStock of raw and finished product

RETURN ON INVESTMENTIn a period of 3- 5 years the profit accrued will relinquish

the initial Investment as the

Along with larger market acquisition for the product in house as well as Overseas leading to goodwill.

Note : Spreadsheet of fund utilization to achieve above profitability can be disclosed to a Nominated CA Firm for Audit only.

Net Return on Investment 18%

Gross Return on Investment 30%


Amount per 100 grams

Calories 553

Total Fat 44g

a. Saturated Fat 8g

b. Polyunsaturated Fat 8g

c. Monounsaturated Fat 24g

Sodium 12mg

Potassium 660mg

Total Carbohydrate 30g

a. Dietary fiber 3.3g

b. Sugar 6g

Protein 18g

NUTRITION FACTSSource : Wikipedia


PLANTATION OF CASHEW The traditional cashew tree is tall (up to 14 m) and takes three

years from planting before it starts production, and eight years before economic harvests can begin.

More recent breeds, such as the dwarf cashew trees, are up to 6 m tall, and start producing after the first year, with economic yields after three years.

The cashew nut yields for the traditional tree are about 0.25 metric tons per hectare, in contrast to over a ton per hectare for the dwarf variety.

Grafting and other modern tree management technologies are used to further improve and sustain cashew nut yields in commercial orchards.


OBTAINING RAW CASHEW IN SHELL

Testing of Sample of Raw Material

Placing order and buying from Farmer as per the

order

Raw Cashew Nut Treatment

Moisture

Nut-Count

Out-turn

Color & Structure


RAW CASHEW NUT TREATMENT*SUN DRYING

At the Producer Level Raw Cashew Nuts are sun dried for several days.

*PACKINGAND TRANSPORTING

*IN-FACTORY PROCESSING

1. Testing2. Sorting


IN-FACTORY PROCESSING

1. TESTING

2. SORTING

TESTING MOISTURE

TESTINGNUT

COUNT

TESTINGOUT-TURN

TESTINGCOLOR &

STRUCTURE


CASHEW NUT PROCESSING

SHELLING/CUTTING

DRYING

PEELING

GRADING & PACKING


SHELLING/CUTTING

At each shelling machine the nuts are cut and then opened by a pin separating the kernel from the shell.

Daily production is about 30 kgs per team of average 8 persons.


DRYING

The raw kernels are put in aluminum perforated trays and then put in an electric / steam drying machine for three hours at a constant temperature of 80 deg. C.

The moisture content of the raw kernel is reduced from 7% to 3% to prevent natural deterioration.


PEELING

Manual peeling is done by gentle rubbing with fingers or by use of special peeling knife; with this operation 10-12 kg of kernels can be peeled per day.


GRADING & PACKING There are 27 specific grades of cashew nut kernels

obtained from peeling. The major work is to select the kernels according to size, shape color and count. Once the kernels have been graded, and after going through final quality control; they are packed in pouches of 25 lbs/11.34 kg net weight.

The pouches are vacuum-packed to extract air and carbon dioxide; then, nitrogen gas is injected in and the pouch is automatically sealed. The final process prevents the product deterioration and extends the storage / shelf life of the kernel up to 5 years if the pouch is not punctured.


MAJOR PRODUCERS OF RAW CASHEW NUTS (IN SHELL)`

RANKING COUNTRY PRODUCTION (METRIC TONS)

I NIGERIA 650,000

II INDIA 613,000

III IVORY COAST 380,000

IV VIETNAM 289,842

V INDONESIA 145,082

VI PHILIPPINES 134,681

VII BRAZIL 104,342

VIII GUINEA-BISSAU 91,100

IX TANZANIA 80,000

X BENIN 69,700

SOURCE : WIKIPEDIA (YEAR 2001)

MAJOR PRODUCERS OF CASHEW NUTS

S.No COUNTRY PRODUCTION (METRIC TONS)

1. Vietnam 1237300

2. Nigeria 835000

3. India 674600

4. Ivory Coast 393000

5. Brazil 230785

SOURCE: GOOGLE (YEAR 2011)This presentation is prepared by Ms Mahina for a specific goal and made available to specific person. Disclosure of this presentation to any


MAJOR CONSUMERS OF CASHEW NUTS

Cashew kernels are ranked as either the second or third most expensive nut traded in the US.

S.NO. COUNTRY CONSUMPTION

1. The United States 55%

2. The Netherlands 10%

3. Germany 17%

4. Japan 5%

5. UK 5%


GRADES & CLASSIFICATION

Cashews are graded on how white they are and how broken the kernel is. There are four color grades, four styles of break on the kernel and six sizes (or maximum number of kernels per pound)

Classification Method 1 - Classified according to grades / with or without basing on number of kernel per Lbs.

Classification Method 2 – Based on whether the cashew kernel is whole or broken


METHOD 1Cashew kernels have been classified according to 6

quality levels Explanation of cashew grade terminology: The alphabets at the front represent a word descriptive of the form of cashew – W for whole, B for Broken, S for Split etc.

The numbers that follow the alphabets (where present) usually represent the number of kernels per pound. Hence, to give an example, W 210 implies that it is a whole cashew kernel which gives 210 kernels per pound.


QUALITY Classified according to grades / with or without basing on number of kernel per Lbs

FIRST W210, W240, W320, W450, WB, WS, LWP, SWP

SECOND LBW210, LBW240, LBW320, LBW, SW210, SW2440, SW320, SW, SB, SS, LP, SP

THIRD DW320, DW350, DW

FOURTH DW2, DW3DW2, DW3

FIFTH SW2, SSW2, SW3, DW, DWTW3, DW, DWT

SIXTH CS, SK, SK2, TPN, TPN2, TPB, DW4CS, SK, SK2, TPN, TPN2, TPB, DW4


METHOD 2 Plain Natural Wholes - Cashew is graded in three categories based on colour.

White Wholes (“W” appearance – white, pale ivory), Scorched Wholes (“SW” – slightly reddish) and Scorched Wholes Seconds (“SSW” – discolored); W and SW Wholes are graded according to size, i.e. number of nuts per Pound; Super Premium – W 150; Premium – W 210; Regular – W 450; Economy – SW 450

Natural Halves - Cashew Kernels broken evenly into 2 parts are less expensive than wholes. They are used in economy packs and also for candy bars, sweets and pastry. Splits are crisper than wholes and sometimes preferred for that reason. The different varieties are: Fancy Splits (FS): White halves split lengthwise; Fancy Bults (FB): White halves broken crosswise; Scorched Splits; Scorched Bults

Natural Broken’s - Natural Cashew pieces are used in economy packs and also in confectionery, pastry, ice creams & cooking; Large White Pieces (LWP); Scorched Pieces (SP); Scorched Pieces Seconds (SPS)


Cashew Kernel Preservation Cashew kernels should be preserved in a dry clean place, far from heat resource. The storage of preservation should be closed, dry clean, free from foreign smell, no insect, rodents.

Cashew Kernel Transportation Cashew kernels should be transported by dry, clean, closed transport facilities that free of foreign smell. The loading operations should be done gently, with care.

Cashew Kernel Standards Cashew kernel standards have been laid down by the following organizations :•AFI (Association of Food Industries of New York)•TCVN 4850 1998 - Vietnam Cashew Nuts Kernel and Technical Request•CENTA•Grade Specification for Indian cashew Nuts kernel


TECHNICAL REQUIREMENTS OF CASHEW KERNELS

The following are some of the typical technical requirements of cashew kernels that are traded in the various parts of the world:

The kernels should be dry and should have the characteristic shape. While depending on the grade they can be either scorched or unscorched, wholes or broken, they should be free from oil (CNSL) and the thin outer skin.

Cashew kernels should be completely free from living insects, moulds, from rodent contamination and insect damage

Cashew kernels should have natural smell, and should be free of rancid or any other unnatural smell.

Moisture content: The cashew kernels should have moisture content not greater than 5% by weight.


Arrangement of Plant &

Machinery

ONETI

MEPROCESSThis presentation is prepared by Ms Mahina for a specific goal and made available to specific person. Disclosure of this presentation to

any third party in full or in part as extract is not allowed without written consent of Ms Mahina Arefin.

Arrangement of Finance and

Funding

Arrangement of Raw Material

Training of Worker and Staff

Receipt of Raw Material

Grading of Raw Material

De-shelling Drying Peeling

GradingPacking

Selling Receipt of Payment

REPEATED

PROCESSThis presentation is prepared by Ms Mahina for a specific goal and made available to specific person. Disclosure of this presentation to any


CHAIRMAN

MANAGING DIRECTOR

EXECUTIVE DIRECTORS

Finance and Budget

Banking

Cash and revenue

Account and

Statistics

Purchase and Raw Material and Import

Sourcing and

import

Shipping and

Logistics

Quality and Credit

Quality control ,Production

Inventory control Raw

material

Production and

output

Plant and machinery

Sales, Marketing and

export

Customer relation and

communication

Dispatch and quality

control

Export and sales

Export logistic and travel protocol

CO-ORDINATION DIRECTORS*

EXECUTIVE DIRECTORSCommunicatio

n NGO and Village

NGO coordinator

and Communication

SHG and grouping

Village coordinator

and communication

Micro finance and account

Assessment and

granting

Coordinator and

fallow up

Recovery, adjustment accounts

Raw Material Distribution and

ware housing

Raw Material Sorting and dispatching

Logistics and safety

Production and training

Training at village and

NGO

Quality control and assessment

Packing and

dispatch

*FOR NGO, VILLAGES AND WAREHOUSING

DIRECTORS

PROPOSED ORGANOGRAM


DIRECTOR : SOURCING & IMPORT

GENERAL MANAGER

BANGLADESH

INDONESIA

EAST AFRICA

WEST AFRICA

ANY OTHER COUNTRY

DIRECTOR : CUSTOMER RELATION & COMMUNICATION

GENERAL MANAGER

BANGLADESH

JAPAN

MALAYSIA

AMERICA

EUROPE

ANY OTHER COUNTRY

DIRECTOR : NGO CO-ORDINATION & COMMUNICATION

GENERAL MANAGER

NGO A

NGO B

NGO C

DIRECTOR : VILLAGE CO-ORDINATIOR & COMMUNICATION

GENERAL MANAGER

VILLAGE A

VILLAGE B

VILLAGE C


At Farm during Harvest• Depending on

Period, Quality, Competition etc

To Town Warehouse• Apart from

Logistics• Value addition

USD 40 - 100

FOB Price• Apart from

Expenses and Logistics

• Value addition USD 50 – 200

CIF and High Seas Price• Apart from

Expenses and Freight Logistics

• Value addition USD 50 – 200

PRICE MARK-UP PER METRIC TONNE

Continued..

USD 400 - 900

USD 450 - 1000

USD 500 - 1200

USD 550 - 1400


To Unsorted and Graded Kernel Production• Where 87 – 75 %

is by-product

To Sorted Kernel• Value addition

USD 750 - 900

To Whole Sale Market• Including Packing

Charges and Commission

PRICE MARK-UP PER METRIC TONNE Continued..

Stage Avg. Price PMT

I USD 650

II USD 725

III USD 850

IV USD 975

V USD 1750

VI USD 2565

VII USD 5175

USD 1030 - 2450

USD 1780 - 3350

USD 3350 - 7000

This presentation is prepared by Ms Mahina for a specific goal and made available to specific person. Disclosure of this presentation to any third party in full or in part as extract is not allowed without written consent of Ms Mahina

Arefin.

Cashew Cluster Development Programme

Country : Bangladesh

Districts of NJLIP

REQUIREMENTS

FOR A CLUSTER OF 10 VILLAGES

Central Warehouse with Office

Local transportation to and fro from warehouse to Villages

A small warehouse for certain processing equipments at every village

A boiler in each village (Capacity will be defined on the number of labors)

A Dryer in each village (Capacity will be defined on the number of labors)

Shelling Tables (Quantity on the no of labors Min 1 table between 3 labors)

Other Storage items like Bowls, Plastic carets etc.

MAN – POWER REQUIREMENT & WAGESPerson Capacity Work2 19 to 55 years, normal health,

good eyesight ,logic, math and weighing skill

To check and grade the raw nuts received

2 19 to 45 years ,sound physic and health ,good cooking skill.

To operate the boiler and dryer To Boil the raw Cashew in cooker To Dry the kernels in the dryer

9 19-55 years, sound health, skill of cutting and separating

To cut/shell the boiled raw nuts To cut and separate the kernels from the shell

5 19-55 years,Sound health peeling skill

Peeling of Nuts To remove the husk from the dried kernels

2 19-55 years,Sound health, segregation ,logic, maths and weighing skill

To remove the damaged or unwanted kernels To pack the ready kernels to be sent to head office

TOTAL MANPOWER AND WAGES 20xBDTk5000=BDTk100000 per month

Requirements of Machinery and Cost to process 250kg Raw Cashew Nuts per day of 8 hrs by 18 persons

• Approx. Ex-Factory rates in India QUANTITY ITEMS PRICE(in BDT)1 Boiler 80kg batch 840001 Dryer for 60kg 840008 Shelling Machines

(Leg and hand operated)60000

10 Peeling knives 100020 Small plastic bowls 700

20 Big bowls or crates 13000

Total Cost of plant and Instruments

242700

Power/ Electricity Consumption

DEVICE/EQUIPMENT UNITS PER DAY COST (in BDT)

80kg Boiler 3 22.26

60kg Dryer 12 89.04

3 Fans 1.44 7.17

Lights for workers 1.28 6.37

TOTAL 17.72 124.84

FOR 25 WORKING DAYS 443 3252

Cost of Raw MaterialRaw Material required per day 250 Kg

Raw Material required per month (25 Days)6250 Kg

Average cost of raw material CNF (Port) 1350 USD/Ton

Clearing and port charges100 USD/Ton

Local transport from port and drying at the center100 USD/Ton

Local transport from centre to village50 USD/Ton

Total Cost Per Ton 1600 USD/Ton

Total Cost Per Ton 124350 BDT/Ton

Cost of Material reached at Village for processing per month

PARTICULARS COST(in BDT)6250 Kg Per Village 777188Labour 64000Power 3252Spares 1000Local Transport 15000Interest Per Month @12.5% per annum 2528Other Charges 1000Rent 5000Total Cost per Month 868968

Returns

ITEM COST(in BDT)Average Rate of wholes (8.6$/kg) 680916

Average Rate of Broken (7.5$/kg) 395687TOTAL RETURN 1076603Approx Return after deduction of Cost Per Village (Return – Cost)

207635

6250kg RCN @ 48Lbs Outturn 1698 Kg of F.G

Estimated Broken Percentage ratio 60:40

1019 Kg Wholes & 679 Kg Broken

Skill Development and Training Buying Skill

Raw material grading skill

Running Boiler

De-shelling

Scooping and separating

Drying

De-husking

Grading and separating

Packing

Skill Development InfrastructureITEM QUANTITY

Testing Cutter 12

Plastic Bowls 50

Weighing Machines 12

Record Book 12

Boiler 1

Dryer 1

Shelling Machine 1

Scooping and Peeling Knife 12

Moisture Meters 5

System of skill development STEP 1 •: Apprentice- For 1 month A person become apprentice and paid a stipend during training as per capability.

STEP 2 •Junior Worker : For 5 months A person is paid a 80% of Wages and 20% is reserved till the person become owner of 500kgs of raw material.

STEP 3 •Senior worker : For 2-5 month A person stays as Senior worker or group leader of step 2.

System of Skill Development

STEP 4 •Junior Trader: 500 kgs of Raw material is given with a buyback assurance for 1 month of processed Kernels or as trade of Raw Material.

STEP 5 •Trader : Once buyback assurance is over the person become independent with a option to join in step 1 or step 2 should he make loss as trader subject to seat vacancy in step1 and/or 2.

Export and Investment Incentive

BOI (Board of Investment) in Bangladesh says that

A) Government and NGOs conduct regular training programs to develop skilled manpower in the Agro Based Industry.

B) High value-added foods for export, including herbs, spices, nuts and pulses.

C) Special loan facilities available to set up an agribusiness.

D) Cash incentives to the exporters ranges from 15% to 20% in various sub sectors

Precaution required at stages

• 1. Concept and information• Many a time concept is not understood properly

and its limitations.• 2. NDA and MOU• All NDA and MOU are required at place for regular

and unique flow of the business.• 3. Appointment and collection of informations • Right people and right time with information is a

must for a success of the project.


• 4. Land and offices• One need to be very economical in the start and

expand with growth of the projects.• 5. Arrangement of plant and machinery• One need to install and maintain right machineries

and at time and price. • 6.Arranging of funding • Right amount and right time at right cost is the

crux. No less no more and no before nor delayed.


• 7. Purchase of Raw Material• One need to buy right quality at right time at right

price every month as available in the world. It need a very special skill.

• 8. Training of Worker and Staff• Very friendly and skill full instructor will be

required.• 9.Receipt of Raw material• Proper storage and care is required of raw material.


• 10. Grading of Raw Material• Calculation and experience based skill will be

required.• 11. Boiling • A proper knowledge of boiler with its timing and

products input - output knowledge will be required.• 12.De-sheling• It needs a very special skill, experience and

knowledge as yield of quality is decided at this stage.


• 13. Drying• One need to know machine of drying and its

experience.• 14. Peeling• One need to have skill of peeling .• 15.Grading• One need to know various grades acceptable

and the skill to segregate it.


• 16. Packing • There are various packing required in different market .

This need to be adopted as per requirement from buyer.• 17. Selling• There are different market which has different time of

demand for various quality at different price.• 18. Payment • One need to be very strong in accounts and in recovery

of payment in such a way that there are no much debts and surely no bad debts.

Countries & Timing for Raw Material

• Feb to April – Benin, Togo, Ghana, Nigeria• March to July – Ivory Coast, Guinea Bissau, Gambia,

Senegal, Guinea Conakary From the above countries minimum shipping time is 45

days.• March To April – Bangladesh, Cambodia• September To November - Indonesia • October to January – Tanzania, Madagascar, Mozambique From these countries maximum shipping time is 30 days

Sales

• Local Markets.• Consumer packs of 250grms and 500grms.• One main packing centre to be established.• Material packed for domestic market or

international market will go through a complete micro biological test and then packed at the centre.

• All packs will be tracked by batch nos. • International packs will be as per requirement of

the buyers.

Marketing

• Local Advertisements Approx. Budget (15000$ yrly)• Branding and Promotion of brands • Organizing or participating in local and international

trade fairs. (Approx Budget 50000$ yrly)• Educating people of health benefits • 0 % Cholesterol and good for heart.• Giving appointment to executives for local marketing.• Appointment of companies in countries of exports

Packing Centre Machines and Cost• Machinery Required.• 1. Electrical Dryer (Capacity will be defined later) • 2 Inspection belts with metal detectors, fine particle removers

( 2000$ Vietnam)• 1 Color sorter with air compressor (75000$ Vietnam)• 1 size sorter for wholes (28000$ India)• 1 size sorter for broken (7000$ India)• 1 pouch packing machine with nitrogen flushing (Capacity Will be

defined on requirement)• 1 Vacuum packing machine with nitrogen generator (7000 $

Vietnam)• Packing materials (Quantity and Specifications as required)

Requirement of Manpower (Packing Centre )

• 1 Manager• 2 Supervisors• 2 Clerical staff (Accounting, Local & Export

Documentation• 14 Ladies for final inspection • 8 Man for dryer, sorters, packing.• 2 Man for dispatch• Local transportation from centre.

Government / Licenses• Import Export licenses to import Machinery • Food Licenses both for Local and export from the Government

of Bangladesh.• Test reports of material batch wise from a notified

Microbiological lab.• Third party Inspection agency like RBS , SGS for exports.• Import and Export Licenses for RCN and finished products as

per government norms.• Fumigation and Certificate of Origin issuing Agency• International banking facility since all the transactions will be

through bank and audited yearly by a CA

Role and charges• Study and analyze the scope where to setup the whole structure. • Setting up training centre (10000 USD One time for 5 provinces)• Installation of Units at Village Level (1000 USD Per Unit)• Training to labors , Operators, and Other staff (100 USD per trainee)• Monitoring of Processing units, Warehouses, Packing unit (7500USD Monthly)• Monitoring of Procurement of Raw Material (Included)• Monitoring of Processing and Distribution of Raw Material (Included)• Monitoring of Collection of finished goods and packing (Included)• Monitoring of Local Market analysis and distribution network (3% of sales value)• Setting up exports in different countries. (3% of sales value)• Tie ups with companies in different countries for exporting the finished

products.

• * Travelling both International & Local, Visa charges, Accommodation, Food • etc. will be extra and to be paid in advance.

Measures for Safety and Environment.

• 1. While de shelling it is must to keep hand protection and eyes protection to avoid etching .

• 2. Proper Fumigation and quarantine is required while storage and transit of in shell

• Cashew.• 3. Water and moisture contact should be

avoided while storage and handling Kernels.

Bank Guarantee by NGO

Based on present market following amount of Bank Guarantee will be required:

USD 1200( approx BDTk 90,000) per person minimum.

USD 24000( Approx BDTk 18,000,00) per village minimum.

Funds against these guarantee must be made available unconditionally for supply of Raw Material to process the cashew nuts.

Funds against these guarantee must be made available unconditionally for supply of Raw Material to process the cashew nuts.

TOR for Sunil Kumar Sonee • Ms Mahina Arefin(MA) and Mr. Sunil Sonee (SS)explored and discovered the

potential of “Cashew Project” jointly . During discovery a insight of the whole trade was developed and a short term , medium term and long term strategy was formed.

• Mr. Sunil shared his 30+ years experience and introduced Ms Mahina to the

global market and gain some real time experience of the trade• With a greater vision MA+SS agreed to enter Bangladesh market and expand this

trade vastly.• With the vision of developing a sustainable livelihood for the poor people of

Bangladesh Ms Mahina Arefin and Mr. Sunil Kumar Sonee work jointly for NJLIP.

• Following know-how transfer and consultancy has been sought from Mr. Sunil due to his long experience and skill already known to Ms Mahina.

Guide and know how sought• 1. Study and analysis of the location(s) • 2. Setting up a training center and method.• 3. Analyze the type and part of machines and equipment to be made in Bangladesh and the

which need to be imported.• 3a. Since Budget is too low ,to find a solution for proper packing either manually or by out

sourcing.• 4. Lay out of installations.• 5. Installation and commissioning of the units• 6. Systematization of monitoring of Warehouses. • 7. Training of labors and staff as may be required along with update in the market .• 8. Monitoring of Procurement, processing distribution of Raw Material. • 9. Monitoring of grading and packing of raw material.• 10. Monitoring of local and export sales distribution • 11. Tie up with market trend in various countries for Plantation , procurement , marketing,

local food control law and sales.• 12.Consultency on Diversification and growth prospect

Duration of services• 1. Study and analysis of the location(s) : 10 days • 2. Setting up a training center and method.: 30 days after receipt of Raw Material of FAQ. • 3. Analyze the type and part of machines and equipment to be made in Bangladesh and the which need to be

imported.: 15 days• 3a. Since Budget is too low ,to find a solution for proper packing either manually or by out sourcing.: 15 days• 4. Lay out of installations : 10 days after receipt of all facts.• 5. Installation and commissioning of the units: 10 days after receipt of machines equipment and Raw Material• 6. Systematization of monitoring of Warehouses.: It is a regular process as and when cargo are received and

finished product need to be stored. • 7. Training of labors and staff as may be required along with update in the market: It is a regular process

according to quality of crop and technology may be required. • 8. Monitoring of Procurement, processing distribution of Raw Material. : It is a regular process and a special

skill equipped with weather world wide, sowing pattern ,tree falling pattern, plantation technology, competition buying etc.

• 9. Monitoring of grading and packing of raw material.: It is a regular process • 10. Monitoring of local and export sales distribution : It is a regular process• 11. Tie up with market trend in various countries for Plantation , procurement , marketing, local food control

law and sales.: It is a regular process.• 12.Consultency on Diversification and growth prospect: It is a regular process

Cost of Services1. Study and analysis of the location(s) : There will be 2 person. USD 100/day for one person. If Mr. Sunil is employed for regular service his service for this component will be free.2. Setting up a training center and method.: There will be 2 person. USD 50/day for one person. If Mr. Sunil is employed for regular service his service for this component will be free. 3. Analyze the type and part of machines and equipment to be made in Bangladesh and the which need to be imported.: There will be 2 person. USD 50/day for one person. If Mr. Sunil is employed for regular service his service for this component will be free. 3a. Since Budget is too low ,to find a solution for proper packing either manually or by out sourcing: There will be 2 person. USD 50/day for one person. If Mr. Sunil is employed for regular service his service for this component will be free. 4. Lay out of installations: There will be 2 person. USD 50/day for one person. If Mr. Sunil is employed for regular service his service for this component will be free. 5. Installation and commissioning of the units: There will be 2 person. USD 50/day for one person. If Mr. Sunil is employed for regular service his service for this component will be free. 6. Systematization of monitoring of Warehouses.: within USD 1200/Month net home take as advance within 5th of every month ,all other expenses for the jobs at actuals 7. Training of labors and staff as may be required along with update in the market .: Within USD 1200/Month net home take as advance within 5th of every month ,all other expenses for the jobs at actuals 8. Monitoring of Procurement, processing distribution of Raw Material.: 2% of Invoice value and material purchased9. Monitoring of grading and packing of raw material.: within USD 1200/Month net home take as advance within 5th of every month ,all other expenses for the jobs at actuals 10. Monitoring of local and export sales distribution : 1% of sales value 11. Tie up with market trend in various countries for Plantation , procurement , marketing, local food control law and sales.: To be decided in case to case12.Consultency on Diversification and growth prospect: To be decided case to case.

Back up Facilities required.

• 1. All travel , transport and conveyance facility and expenses

• 2. Minimum 3star boarding and lodging • 3. A Chauffeur driven car on medium range .• 4. All communication expenses including

gadgets.• 5.Health and medical insurance

cashew presentation njlip

Documents