ADDIS ABABA UNIVERSITY

SCHOOL OF GRADUATE STUDIES

FACULTY OF TECHNOLOGY

CHEMICAL ENGINEERING DEPARTMENT

TECHNICAL ASSESSMENT ON VIABILITY OF INTEGRATED FRUITS PROCESSING IN ETHIOPIA

By ELIAS ABEBE

ADVISOR:

DR. ENG. SHIMELIS ADMASSU

A Thesis Submitted to the School of Graduate Studies of Addis Ababa University in Partial Fulfillment of the Requirements for the Degree of

Master of Science in Food Engineering

JULY 2007

Addis Ababa, Ethiopia

ACKNOWLEDGMENTS

Above all, I would like to honor and Give Glory to God. Almighty, my lord and savior, who

has been my strength throughout my studies and in this research work too.

My heart felt thank goes to my project advisor, Dr. Shemeles Admassu, for his invaluable

advice and diligent follow up of my progress. I am grateful to staff members of Chemical

Engineering Department, special thanks to Ato Almayehu Ambaw, Head of Chemical

Engineering Department, Dr S.K. Sahoo, and Ato Hintsasilase Seifu who have given freely

their time and experience and provide me with information.

I would like to extend my appreciation for management staff of Awash Melkassa Agriculture

Research Institute (AMARI) for letting me use their Crop Science Department laboratory

facility to conduct my experiments. I am grateful to Staffs= of Crop Science Department of

AMARI especially Senite Yetneberk, Head of Crop Science Department, Ato Mulugeta

Taemer, and W/o Tringo Tadesse for sharing me their invaluable experience and kind support

during my stay there.

I should also not forget my parents, Ato Abebe Bekele and Zewedie Sahilu who were always

showed their support and encouragement. Last but not least, my special thanks to my wife,

Hasset, for her constructive thoughts, encouragement and support during my studies and this

thesis.

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TABLE OF CONTENTS

CHAPTER TITLE

PAGE

ACKNOWLEDGEMENTS i TABLE OF CONTENTS iv

LIST OF TABLES iv

LIST OF FIGURES vi

ABBREVIATIONS vi

ABSTRACT vii

1 INTRODUCTION 1

1.1 Background 1

1.2 The Current Status of Fruits and Vegetables Production &

Processing in Ethiopia

3

1.3 Statement of the Problem 6

1.4 Objective of the Thesis 7

2 LITERATURE REVIEW 8

2.1 Feasibility Study and Dimension of Business Viability 8

2.2 Utilization of Pineapple and Mango for Processing 12

2.3 Chemistry and Technology of Jam Production 15

2.4 Small Scale Fruit Drying Technology 25

3 METHODOLOGY AND APPROACH 28

4 RESULTS AND DISCUSSION 33

4.1 Selection of Fruits and Fruit Products for Feasibility Study 33

4.1.1 Selection criteria for crops 33

4.1.2 Justification for Processing the Products

34

4.1.3 Product description and application 35

4.2 Market Analysis for Dried Fruits and Fruit Jam 38

4.2.1 Market size and value

4.2.2 Feasible market share of the project

38

42

4.2.3 consumers analysis 44

ii

4.3 Technical Feasibility 46

4.3.1 Raw material and auxiliary inputs supply 46

4.3.2 Raw material quality 52

4.3.3 Formulation and sensory evaluation pineapple and

mango jam

55

4.3.4 Pulp and jam yield of pineapple and mango 59

4.3.5 Drying characteristics of pineapple slices 61

4.3.6 Plant capacity and production program 64

4.3.7 Material and energy balance 65

4.3.8 Processing technology 74

4.3.9 Machinery and equipments 80

4.3.10 Production facilities and services 84

4.3.11 Integration with medium and large industries 94

4.4 Organization and Management 95

4.4.1 Organizational structure 95

4.4.2 Human resource requirement 96

4.4.3 Labour availability and training requirement 98

4.4.4 Direct labour expense 98

4.4.5 Administrative and selling expense 99

4.5 Product Quality, Safety and Legal Requirements 99

4.5.1 Quality assurance System 99

4.5.2 Food safety requirements 103

4.5.3 Legal requirements 104

4.6 Financial and Economic Feasibility 113

4.6.1 Total investment cost 114

4.6.2 Production cost 114

4.6.3 Economic evaluation 115

5 CONCLUSION AND RECOMMENDATIONS 119

6 REFERENCES 121

7 ANNEX A 129

iii

LIST OF TABLES PAGE

Table 1.1 Characteristics of small, medium and large scale processing plants 1

Table 1.2 The status of small scale food manufacturing industries in Ethiopia 2

Table 1.3 Capacity of fruits and vegetables processing plants in Ethiopia 5

Table 2.1 Utilization of pineapple and mango for processing 13

Table 4.1

Specification for pineapple jam , mango jam and dried pineapple 37

Table 4.2 Annual marmalade production by Merti Fruit and Vegetable processing 39

Table 4.3 Import volume (kg) and value (Birr) of jam, jelly and marmalade 40

Table 4.4 Guide line for estimation of market share of a new food business 43

Table 4.5 Summary of market research survey 44

Table 4.6 Area covered and annual production of Pineapple in Sidama zone 47

Table 4.7 Annual consumption and cost of raw materials and auxiliary inputs 52

Table 4.8 Physico-chemical of characteristics of pineapple and mango pulp 54

Table 4.9 Formulation of pineapple and mango jam 55

Table 4.10 Physico-chemical characteristics of pineapple and mango jams 57

Table 4.11 Mean sensory scores of pineapple jams 58

Table 4.12 Mean sensory scores of mango jams 58

Table 4.13 Physical determination of local pineapple cultivars 59

Table 4.14 Pulp and jam yield of pineapple and mango 60

Table 4.15 The effect of slice thickness and air temperature on drying rate 62

Table 4.16 Annual production program for 2007-2012 65

Table 4.17 Process losses in well managed fruits and vegetable processing 66

iv

Table 4.18 Daily consumption of raw materials and auxiliary inputs 69

Table 4.19 Summary of technical ratios associated with the products 73

Table 4.20 Specification of equipments and machineries for raw material preparation 84

Table 4.21 Specification of equipments and machineries for jam making and drying 85

Table 4.22 Total land area (m2 ) and construction cost (Birr) for plant facilities 87

Table 4.23 Daily electrical power consumption of the plant machineries 90

Table 4.24 Comparison of transportation cost for selection of plant machineries 93

Table 4.25 Manpower requirement, qualification level and salary of personals 96

Table 4.26 Sample raw materials record format 110

Table 4.27 Sample production record format for drying process 110

Table 4.28 Samples sales record format 111

Table 4.29 Total investment cost (Birr) 114

Table 4.30 Total production cost (Birr) and unit production cost (Birr/Kg) 115

Table 4.31 Expected cumulative profit of the project under three scenarios 116

Table 4.32 Summary of Break even analysis 118

Table 4.33 Summary of IRR and NPV of the project under three scenarios 118

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LIST OF FIGURES PAGE

Fig 2.1 Setting range of high esterified pectin 21

Fig.4.1 Ethiopian fruit jam, jelly and marmalade import volume (kg) (2003-2005) 41

Fig. 4.2 Ethiopian fruit jam, jelly and marmalade import value (Birr) (2003-2005) 41

Fig 4.3 Major pineapple and mango producing areas in Sidama zone 47

Fig 4.4 Pineapple and mango peak harvest periods 48

Fig 4.5a Effect of slice thickness on drying time at drying air temperature of 50°C 63

Fig 4.5b Effect of slice thickness on drying time at drying air temperature of 60°C 63

Fig 4.5c Effect of slice thickness on drying time at drying air temperature of 70°C 64

Fig 4.6 Heat inflow and outflow in jam boiling pan 72

Fig 4.7 Process flow diagram for jam Production 78

Fig 4.8 Process flow diagram for pineapple drying 79

Fig 4.9 Processing plant layout 86

Fig 4.10 Organizational structure 95

Fig 4.11

Activity chart for drying and jam making 97

Fig 4.12

Model label for pineapple jam 107

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ABSTRACT The feasibility study of small scale processing of pineapple jam, mango jam and dried

pineapple was studied. The methodology used for the feasibility study incorporates the three

environments proposed by Lecup and Nicholson (2000) namely, market, technical (scientific

and technological environment) and financial and economic environments.

Pineapple cultivars (Ananas Comosus L,) Smooth cayenne and Red spanish at full ripening

stage were collected from Teso in Sidama Zone. Mango samples were collected from

Shebedino Woreda in Sidama Zone. Physico-chemical characteristics (pH, titerable acidity

and soluble solid content) of the pulp, product yield (pulp and jam yield) and organoleptic

attributes (color, aroma, flavor, degree of spreadability and acceptability) of the jam

formulated from the crops were evaluated to assess the suitability of the local mango and

pineapple varieties for jam production and consumer acceptability.

It was observed that the pulp extracted from Smooth cayenne cultivar contain higher total

soluble solids (16.23° Brix) and lower titrable acidity (0.7%) compared to the Red spanish

cultivar. The total soluble solid and titerable acidity of the pulp from the local mango was

15.5° Brix and 0.36% respectively. The pH values of the pulp from both crops were found to

be higher than 3.6 which is the maximum limit for formation of optimum gel for High

Methoxy Pectin. The pulp yield (60%) and jam yield (95.5%) were higher for Smooth

cayenne cultivar as compared to the Red spanish.

Jam formulated from Smooth cayenne cultivar has scored the highest mean sensory scores in

all quality attributes except in taste. However, panelists have found no significant difference

(p<0.05) between the jam formulated form Smooth cayenne cultivar and imported pineapple

jam except for flavor. Panelists showed less preference in taste of the jam formulated from

Red spanish cultivar.

Drying air temperature had an important effect on thin layer drying rate of pineapple slices.

Drying at higher temperature, 70°C reduces the drying time by 46.2%, 33.3% and 33.3% for

4 mm, 6 mm and 8 mm slice thickness respectively.

vii

Slice thickness affected the drying time at all drying temperatures. Drying time was

considerably elongated (> 11 hr) for 8 mm slice thickness at all drying air temperatures.

The local demand for fruit jam jellies and marmalade is growing rapidly. Between 2003 and

2005, fruit jam, jelly and marmalade import to Ethiopia increase by 257% and 276% in terms

of volume and value respectively. The import volume and value for these products reached

268,897 kg and 2,361,745 Birr respectively in 2005.

Based on the projected feasible market share of the project the production scale of the

processing plant was set at 33 tones per annum with production mix of 26 tones of pineapple

and mango jam and 7 tones of dried pineapple. The production system was integrated to

process pineapple and mango products to make all year round processing and diversification

of products by utilizing availability of pineapple and mango at different times of the year.

Most equipments and machineries required for this processing plant are available in local

market at reasonable price, special equipments like pulper, peeler/corer, slicer and dryer could

be manufactured by local workshop with support from research institutes and universities.

The total investment cost of the processing plant including working capital is estimated as Birr

379,750. The project is feasible with IRR (30.1%), NPV (Birr 601,360) and the payback

period of (3.3 years) at 15 % profit margin. The project can create employment opportunity

for 16 people Moreover the project could contribute to: development of fruit agri-business

through improved farm gate price, availability of consumer goods, reduce post harvest loss

and lay background for innovations and technology adaptation

viii

CHAPTER I

INTRODUCTION

1.1 Background

The manufacturing industrial sector is the most dynamic component of the goods producing

sectors of all economy. Expansion and development of the manufacturing sector increases

agricultural productivity through providing agricultural inputs and creating demand for

agricultural outputs. In particular, Small- and medium-sized enterprises (SME’s) play a very

important role in the overall economic growth of developing countries. In many of developing

countries, smaller enterprises account for a large share of total employment. They provide a

productive outlet for the entrepreneurial spirit of individuals and assist in the dispersion of

business activity throughout the economy (International Trade Centre, 1993). They are a key

component in economic life, not only because of their number and variety, but because of

their involvement in every aspect of the economy; their contribution to regional development;

the complementary role they play in support of the large sector; and their role as a proving

ground for innovations and adaptations (International Trade Centre, 1993).

Table1.1 describes characteristics of small, medium and large scale processing plants. Large

scale processing involves high capital investment (over US$1,000,000) and sophisticated

techniques of processing which requires a big market in order to realize economy of scale.

Small scale processing plants are characterized by the small number of employees (5-15) and

low capital investment (US$1,000-US$ 50,000) makes them suitable for most entrepreneurs in

developing countries.

Table 1.1 Characteristics of small, medium and large scale processing plant

Scale of operation Characteristics

Small-scale 5-15 employees, capital investment US$1 000-US$50,000

Medium-scale 16-50 employees, capital investment US$50,000-US$1, 000,000

Large-scale More than 50 employees, capital investment over US$1 ,000, 000

Source: FAO (2004). Processed foods for improved livelihoods, Diversification booklet

1

Ethiopian National Statistical Agency has conducted survey on Small Scale Manufacturing

Industries in 2006 (G.C.). The report of the survey (CSA, 2006) indicates that there were

39,027 small scale manufacturing industries all over the country. All of the small scale

manufacturing industries operating in rural areas are grain milling service – rendering

establishments. The report further indicates that, the structural distribution of small scale

manufacturing industries in terms of number of establishment, number of person engaged,

gross value of production and value added were concentrated on grain mill servile sector as

compared to other manufacturing industrial sectors in 2005/2006. It was revealed that 19,744

(50.6 %) prevent of the total establishment constitute grain mill services. This industrial group

also constitutes 47.3 % of the number of persons engaged, 29.1% gross value of production

and 30.9% of value added of the total small scale manufacturing industries during the

reference period.

The other important manufacturing industrial groups in this respect were manufacture of

furniture (14.0 %), manufacture of wearing apparel (10.1%), manufacturing fabricated metal

products (10.1%) and manufacturing of fabricated food products (7.4%).These industrial

groups together contributed 41.7%, 43.7%, 59.4% and 56.0 % of total number of

establishments, number of persons engaged, and gross value of production and value of added

in that order, in the reference period.

Table 1.2 shows the contribution of the manufacturing of food products is 7.4 %, 8.39 %,

17.33 % and 11.04 % of the total number of establishments, persons engaged, gross value of

production and value added respectively.

Table 1.2 The status of small scale manufacture of food products in Ethiopia

Share of the total

Economic contribution Amount (Birr/ No.) Manufacturing Industry (%)

Number of establishment 2,877 7.4

Number of persons engaged 10,867 8.39

Gross value of production (Birr) 302,564,926 17.33

Value added (Birr) 65,698,226 11.04

Source: Central Statistical Agency (2006), Statistical Bulletin 381

2

1.2 The Current Status of Fruit and Vegetable Production and Processing in Ethiopia

Ethiopia’s wide range of agro-climatic conditions and soil types make it suitable for the

production of diverse varieties of fruits and vegetables, including temperate, tropical and sub-

tropical crops. Most of the soil types in fruits and vegetables producing regions of the country

range from light clay to loam and are well suited for horticultural production. The source of

varieties of fruits and vegetables in Ethiopia can be categorized into two major groups: exotic

and endemic ones. State farms and newly emerged private commercial farms usually use

exotic varieties, while the small farm holders are mainly confined to local or traditional

varieties.

Horticultural production offers the best possible undertaking among the existing agricultural

enterprises due to the special characteristics of most horticultural crops. They are of relatively

high value adding which makes them suitable where land area is limiting and labor intensive.

Therefore they would go long way in solving the existing unemployment problems. They are

also suitable to small-scale farming which is predominant in Ethiopia.

Fruit crops have significant importance with a potential for domestic and export markets and

industrial processing. Pineapples, passion fruits, bananas, avocados, citrus fruits, mangoes,

mandarin, papayas, guava, grapes, asparagus and vegetable crops of economic importance

such as tomato, melon, pepper, chilies, onion, carrot, green beans, green peas, cabbages, okra,

cauliflower, and cucumbers are produced in Ethiopia. The major vegetables produced for

domestic consumption are cabbages, tomatoes and onion, while green beans and peas have

recently emerged for export market.

According to information obtained from the Ministry of Agriculture and Rural Development

(MoARD), the total area under fruits, vegetables and root crops is about 450,932 he in

2003/04. Out of which 66 % is under root crops while vegetables and fruits occupy 25 % and

9 %, respectively. Of the total land area under cultivation in the country during the same year,

the area under fruits and vegetables is less than one per cent (i.e. 0.05%), which is

insignificant as compared to food grain crops.

3

Less than 10 % of the total production is held by large state farms, while small holders

account for some 92% of the acreage and 90% of the yield (Dendana et al., 2005).

Some of the constraints of horticultural production are related to the perishable nature of their

produce. This is a major problem especially when marketing horticultural produce. During

peak harvest seasons, fruit and vegetables are sold at throw away price because of lack of

means to preserve and store the products. Therefore, in order to prolong the shelf life of the

post harvested produce, processing is necessary. Processing contributes towards expansion of

market of the processed products in availing it during off-seasons and also increasing its

value. Producers of fruit and vegetables will increase production if there is a market for their

produce.

In Ethiopia, fruits and vegetables processing sector is underutilized. Currently, there are only

5 fruits and vegetables processing plants in the country. Table 1.3 describes the location,

major products and production capacity of the current fruits and vegetables processing plants

in Ethiopia. These plants presently process limited products: tomato paste, orange marmalade,

guava nectar, vegetable soup, canned vegetables and wine. In general, processed products are

mainly geared to domestic markets.

4

Table1.3 Capacity of fruits and vegetables processing plants in Ethiopia

Name of Processing Plant

Production Capacity Location Ownership Major Products

Melge Wendo/ Southern Nations, Nationalities and Peoples National Regional State

- Tomato paste Melge Wendo Food Processing Factory

Private (850 g can) (foreign) - Peeled tomato 30 tones per

day - Tomato paste (410 g can)

Gonder Food Processing Factory

Gonder/ Amhara National Regional state

Private - Tomato paste 1,250 cans

in a single shift

(foreign) (850 g can)

Merti/ Oromia

National Regional State

Merti1Processing Factory

State-owned - Tomato paste 5,000 tones per year - Orange

marmalade -10.9

million L per year

Awash Winery2 Addis Ababa State-owned - wine

Green Star Food Company (Ethiopian

DebreZeit/ Private

(foreign) 9,990 tons per year - canned vegetable Oromia

Branch)

1The factory’s processing capacity could reach only 41,000 quintals if tomato products are

processed throughout the year. On the other hand, it could process over 61,000 quintals per

year if only orange products are processed throughout the year. When the two products are

mixed in equal amounts over a production cycle of one year, the factory’s processing capacity

will be lowered to 40,000-41,000 quintals per year

2 Comprises 3 wine factories, namely Lideta, Mekanisa and Addis Ketama.

5

1. 3 Statement of the Problem

The survey on small scale manufacturing industries conducted by in Central Statistical

Agency in 2006 has identified three major problems limiting the industries from working at

full capacity: low market demand (57.1%), shortage of raw material supply (11.1%) and

shortage of spare parts (7.1%) respectively. The industries were not full operation at all the

year round due to shortage of market demand and water. The major reason for lack of market

was incompetence for local and foreign products in price. The survey result further indicates

lack of information to decide type of activity and markets were major problems. It was

reported that 37.8 % of the total industries face shortage of initial capital when commencing

operation.

All the above stated problems are result of lack of detail feasibility study before planning to

establish the manufacturing industries. A feasibility study can be defined as a controlled

process for identifying problems and opportunities, determining objectives, describing

situation, defining outcomes and assessing the range of cost and benefits associated with

several alternatives for solving the problem (Thompson, 2003). Prior to establishing a new

fruit and vegetable processing in order to utilize the potential from the sector, it is essential to

carry out detail feasibility study to determine the potential of the business. A feasibility study

for establishment of fruit and vegetable processing plant consists of

Availability of raw material and seasonal variation

Market availability for finished products and semi processed products

Quality of raw material in the varieties needed for the various types of finished

products

Processing capacity related to raw material availability ,quantity and seasonal

variation

Processing equipments capacity for the mentioned points

Availability of workforce in the area and resources for training them to the required

level

Availability of utilities: electricity , running potable water, adequate waste disposal

Transport access to raw material fields and to products market

6

1.4 Objective of the Thesis The overall objective of this research was to identify the viability of integrated fruits

processing industries in Ethiopia.

The specific objectives of this research were to

Assess potential fruit and vegetable crops that are suitable for small-scale processing

in Ethiopia.

Conduct technical and economic viability analyses.

Identify legal, food safety, environmental and other requirements for these small scale

processing industries.

Study the opportunities of integration with medium/large scale processing industries.

7

CHAPTER II

LITERATURE REVIEW 2.1 Feasibility Study and Dimension of Business Viability

A business feasibility study can be defined a controlled process for identifying problems and

opportunities, describing situations, defining successful outcomes and assessing the range of

costs and benefits associated with several alternatives for solving a problem (Thompson

2003). The business feasibility study is used to support the decision-making process based on

a cost-benefit analysis of the actual business or project viability. It is an analytical tool that

includes recommendations and limitations, which are utilized to assist the decision-makers

when determining if the business concept is viable (Drucker, 1985; Hoagland & Williamson

2000; Thompson, 2003).

2.1.1 The Importance of a Business Feasibility Study

It is estimated that only one in fifty business ideas are actually commercially viable (Gofton,

1997; Bickerdyke et al., 2000). Therefore a business feasibility study is an effective way to

safeguard against wastage of further investment or recourses. If a project is seen to be feasible

from the results of the study, the next logical step is to proceed with the full Business Plan.

The research and business planning stage are reduced. A thorough viability analysis provides

an abundance of information that is also necessary for the business plan (Hoagland &

Williamson, 2000; Truitt, 2002; Thompson 2003).The strength of the recommendations can be

weighed against the study ability to demonstrate the continuity that exists between the

research analysis and the proposed business model. Recommendations will be reliant on a mix

of numerical data with qualitative, experience-based documentation.

2.1.2 Dimensions of Business Viability The business feasibility study places the findings of the Dimensions of business viability

model assessments in to a formal business of an enterprise which an audience can easily

8

understand. The following represents the framework of the dimensions of business viability

(Thompson, 2003):

Market Viability

Technical Viability

Management Model Viability

Economic and Financial Model Viability

2.1.3 Business Feasibility Study Outline The basic premise of a feasibility study is to determine the potential for success of proposed

business venture. The success of a feasibility study is based on the careful identification and

success. The elements to include in a feasibility study vary according to the type of business

venture analyzed and the market. The followings are typical factors to be included(Thompson,

2003).

Description of the Project

Type and quality of product(s) or service(s) to be marketed.

Outline the general business model.

Include the technical processes, size, location, kind of inputs, etc.

Specify the time horizon from the time the project is initiated until it is up and

running at full capacity.

Market Feasibility

Describe the size and scope of the industry, market and/or market segment(s).

Estimate the future direction of the industry, market and/or market segment(s).

Describe the nature of the industry, market and/or market segment(s) (stable or

going through rapid change and restructuring).

Identify the life-cycle of the industry, market and/or market segment(s).

Industry competitiveness

Industry concentration (few large producers or many small producers).

Analysis of major competitors.

9

Barriers/ease of entry of competitors into the market or industry.

Concentration and competitiveness of input suppliers and product/service

buyers.

Price competitiveness of product/service.

Market Potential

Identify the demand and usage trends of the market or market segment in

which the proposed product or service will participate.

Examine the potential for emerging, niche or segmented market opportunities.

Assess estimated market usage and potential share of the market or market

segment.

Sales Projection

Estimate sales or usage.

Project sales under various assumptions.

Access to market outlets.

Identify the potential buyers of the product/service and the associated

marketing costs.

Investigate the product/service distribution system and the costs involved.

Technical Feasibility

Determine facility needs

Estimate the size and type of production facilities.

Investigate the need for related buildings, equipment, facilities, etc.

Suitability of production technology

Investigate and compare technology.

Determine reliability and competitiveness of technology (proven or unproven,

state-of-the-art, etc.).

10

Identify limitations or constraints of technology.

Availability and suitability of site

Access to markets, raw materials, transportation , labor and production inputs

(electricity, natural gas, water, etc.).

Investigate emissions potential.

Analyze environmental impact.

Identify regulatory requirements.

Explore economic development incentives.

Raw materials

Estimate the amount of raw materials needed.

Investigate the current and future availability and access to raw materials.

Assess the quality and cost of raw materials.

Other inputs

Investigate the availability of labor including wage rates, skill level, etc.

Assess the potential to access and attract qualified management personnel.

Financial/Economic Feasibility

• Estimate the total capital requirements

Estimate capital requirements for facilities, equipment and inventories.

Replacement capital requirements and timing for facilities and equipment.

Estimate working capital needs.

Estimate start-up capital needs until revenues are realized at full capacity.

Estimate other capital needs.

11

• Budget expected costs and returns of various alternatives

Estimate expected costs and revenue.

Estimate the profit margin and expected net profit.

Estimate the sales or usage needed to break-even.

Estimate the returns under various production, price and sales levels.

Assess the reliability of the underlying assumptions of the financial analysis

benchmark against industry averages and/or competitors (cost, margin, profits,

ROI, etc.).

Identify limitations or constraints of the economic analysis.

Project expected cash flow during the start-up period.

Project income statement, balance sheet, etc. when reaching full operation.

Organizational/Managerial Feasibility

Outline alternative business model

Identify the proposed legal structure of the business.

Identify any potential joint venture partners, alliances or other important

stakeholders.

Identify availability of skilled and experienced business managers.

Identify availability of consultants and service providers with the skills needed

to realize the project, including legal, accounting, industry experts, etc.

Outline the governance, lines of authority and decision making structure.

2.2 Utilization of Pineapple and Mango for Processing

Pineapple and mango could be processed in to wide diversity of products. Table 2.1 shows

alternative products from green, ripe and waste of pineapple and mango crops. Pineapple and

mangoes are processed at two stages of maturity. Green fruits are used to make chutney,

pickles, slices and dehydrated products.

12

Ripe mangoes are processed as canned and frozen slices, purée, juices, nectar, jam, jelly and

various dried products.

Table 2.1 Utilization of pineapple and mangos for processing and by products utilization

Waste

Green Fruits Ripe Fruits Peel stone -Chutney - Slices in syrup - Pectin - Starch - Pickle - Juice , nectar , pulp,

squash - Syrup - Fat

- Slice in brine -Aroma concentrate - Dehydrated slices

or powder - Jam , jelly - Fruit bar, powder - Colorant

- Beverages - Fruit concentrate - Biogas - Aroma concentrate

Traditionally pineapple is consumed as fresh or processed. The raw fruits are utilized for

products like chutney, pickle, sauce pineapple

beverages, etc. Ripe fruits are used in making pulp, puree, nectar, squash, leather, slices, etc.

Diversification of pineapple product is a good strategy to increase consumption in the main

market of the world. Thus, pineapple is now consumed in the form of single strength or

concentrated juice, dehydrated and/or sugared, canned in slices or bits. The variety

traditionally employed to develop these products has been Cayenne Lisa. Among the new

developments are dried chips, cocktail-type drinks, dried powdered, isotonic mixtures and

wines. There are also new canned forms as whole fruit bars, flakes and cubes.

Essentially a prime table fruit, pineapple pulp is perfectly suited for conversion to frozen

juices , nectars, drinks, jams, fruit cheese, concentrates or to be had by itself or with cream as

a superb dessert. It can also be used in puddings, bakery fillings, and fruit meals for children,

flavors for food industry, and also to make the most delicious ice cream and yoghurt.

Pineapple pieces can be mixed with other fruits to prepare fruit cocktails, which entail another

commercial alternative (Coveca, 2002).

Mango fruits are very much relished for their, exotic flavor and delicious taste. They are also

an excellent source of dietary fiber, provitamin A and vitamin C. A fruit with many versatile

properties has naturally found application for processing into several products.

13

In most mangos growing countries the fruit is generally consumed fresh. Non-fibrous pulpy

mango varieties are normally used for processing. Physio-chemical composition is an

important factor in the selection of suitable cultivars for processing. The green fruit should be

freshly picked from the tree. Fruit that is bruised, damaged, or that has prematurely fallen to

the ground should not be used.

By-Product Utilization When a pineapple is processed, the outer peel and the central core are discarded. The waste

called pineapple bran accounts for about 50 % of the total pineapple weight, accounting 10

tons of fresh bran or 1 ton of dry bran per hectare. The bran can be used fresh for feeding, but

is usually dehydrated with approximately 9 % molasses and ground into animal feed. The

bran, either fresh or dried, is a good feed for ruminants and is usually mixed with grass as the

roughage portion of the diet. Furthermore, the waste from pineapple processing can be used to

make syrup, alcohol, vinegar, wine and three organic acids (citric acid, malic acid and

ascorbic acid). Roughages from pineapple leaves can also be used to produce clothes and

paper. The paper has special qualities regarding its thickness and softness and is used in many

countries to produce bank notes (FAO, 2004).

Pineapple peel wastes, which are seasonal, comprise of peels and rags. Their disposal poses a

serious environmental pollution problem. Since pineapple peel is rich in cellulose,

hemicellulose and other carbohydrates it was found to be a potential substrate for methane

generation by anaerobic digestion. Ensilaging of pineapple peel resulted in the conversion of

55% carbohydrates into volatile fatty acids. The ensilage of pineapple processing wastes

reduced the biological oxygen demand by 91 %. Biogas digester fed with ensilaged pineapple

peel resulted in the biogas yield of 0.67 m3/kg volatile solids (VS) added with methane

content of 65% whereas fresh and dried pineapple peels gave biogas yields of 0.55% and 0.41

m3/kg VS added and methane content of 51 % and 41 % respectively (Swaroopa & Nand,

2004).

Peels and stones are the main wastes of mango processing, and constitute 35-55 % of unripe

as well as ripe mangoes (Bhatnagar & Subramaniam, 1973). Useful products can be recovered

from these wastes and simultaneously avoid the disposal problems. During extraction of pulp,

pulper waste in addition to peel with adhering pulp is obtained. These wastes can be treated

14

with pectin enzyme; their juice can be expressed and used in preparation of nectar, vinegar or

concentrated and used as coloring and flavoring agent (Beerh et al., 1976, Ethiraj & Suresh,

1992). Mango peel can also be used for biogas production by anaerobic digestion. The result

of pilot plant studies have shown that mango peel, supplemented with essential nutrients, can

yield biogas at a rate as high as 0.68 m3/kg volatile solids added; the gas contains 52 %

methane (Krishnananad, 1994). Ensilage helps to preserve mango peel for a longer time and

aids hydrolysis of polymeric constituents of mango peel.

The mango seed kernel is a rich source of carbohydrates, proteins, fat and tannins. The kernel

fat (average 12 %) has potential use for preparing sweet meats (Narasimhacher et al., 1977), in

soap manufacturing and as a substitute for cocoa buffer (Baliga et al., 1981). Mango seed

kernels also contain 47-63 % starch, of which 19-22 % is amylase (Roy & Mitra, 1970).

Gelatinization characteristics and temperature, paste clarity, retrogradation, swelling power

and solubility of seed starch have been studied (Hemavathy, 1987). The starch is also

recommended for food use.

2.3 Chemistry and Technology of Jam Production

The quality criteria for jams and marmalades are decisively determined by the flavour, colour

and consistency as well as state of preservation and distribution of fruits. These properties

depend to a high degree on the quality of raw materials used, with special importance given to

the proper selection of suitable fruits. The characteristic nature of the finished product is

further determined by the addition of sugars, pectin and food grade acids.

2.3.1 Raw Materials

1. Fruits

Fruits used in the manufacture also generate an influence on the gelling process, depending on

variety, state of ripeness and storage conditions. The most important factors are the fruit own

pectin content, the sugar and acid content as well as the amount of minerals and other fruit-

specific constituents. With increasing ripeness, enzymes within the fruit degrade the fruit-

inherent pectin and the pulp becomes softer. The fruit-own acid amount decreases and the

sugar amount increases.

15

The most important quality criteria for fruits used are: optimal state of ripeness, full fruity

flavor, variety-specific color, no blemishes (no spots, no bruises), sufficient consistency

(solidity of form), and soluble solids content in agreement with quality standards, perfect

hygienic condition of raw materials and packaging.

2. Sugar

Sugars are one of the main constituents of jams, jellies and marmalades and influence the

shelf life of these products decisively through the soluble solids content. At the same time

they provide taste, flavor, consistency and coloring. For jam production, mostly refined sugar

or white sugar (sucrose) is used. During cooking, sucrose is partially inverted. This intended

chemical reaction (splitting of sucrose into glucose and fructose by binding water) is

influenced by: the pH-value, temperature and time of boiling. The formation of invert sugar

prevents the crystallization of the sucrose in the finished product. On the other hand, a

complete inversion of sucrose may lead to crystallization of the glucose in the product.

3. Pectin

The gelling agent pectin, a constituent of the vegetable cell structure, strengthens and supports

(as ‘’bonding substance”) the structure of the plant tissue. Any vegetable raw material with

high pectin content is suitable for the production of pectins. Apples and citrus fruits have

always been of superior importance for the production of pectin destined for the manufacture

of jams, jellies and marmalades. The highly valuable pectin substances are present in the pulp

and, in especially high concentration, the cell walls. This explains why the press residues from

the production of apple and citrus juice are so valuable for large-scale extraction of high-

quality pectins. In the plant cell, pectin molecules are so tightly linked to the other molecules

in the cellular wall that they cannot be extracted by water. This water-insoluble form is called

protopectin. The protopectin becomes soluble by acid hydrolysis and is then extracted with

hot water. The pectin rich extract is mechanically cleaned and carefully concentrated. Pectin is

then precipitated with alcohol from the liquid extract. Alcohol-insoluble pectin substances in

pure form are obtained by this alcohol precipitation. Pectin substances are subsequently dried

and ground to powder. The gel strength of pectin as a natural substance differs due to the raw

material used and is standardized by blending with dextrose or other sugar types.

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The molecular structure of pectins is composed of D-galacturonic acid molecules, which are

linked to each other in alpha-1-4-glycosidic formation to polygalacturonic acid. Part of the

carboxyl groups is methoxylated with methanol. Neutral sugars like arabinose, galactose and

xylose, which are linked as side chains to the pectin macromolecule, as well as the

interruption of the main chain by rhamnose make pectin a heteropolysaccharide. Therefore

often neutral polysaccharides like galactane, arabane and also starch are concomitant

substances of isolated pectin. However, the specific composition depends on the raw material.

The gelling power of pectin is mainly based on its molecular weight, i.e. the number of chain

links a pectin molecule boasts, which is kept intact by extremely sensitive production process.

If all carboxyl groups of the polygalacturonic acid are free, i.e. not methoxylated, one gets

pectic acid, its salts are called pectates. Pectic acid in nature is methoxylated (or esterified) in

different degrees with methanol and thus becomes pectin. If the degree of esterification is

higher than 50 %, it is called high methylester pectin; with less than 50 % it is called low

methylester pectin. In selecting the suitable type of high methylester pectins – rapid, medium

or slow set ones – the following criteria are of great importance: filling temperature and

texture.

The criterion for selecting suitable pectin based on filling temperature is that the

manufactured product’s setting temperature is lower than the filling temperature. This

prevents pre-gelling, which would weaken the gel and exert a negative influence on the

texture. The height of the filling temperature is determined by the machines and systems

applied in the process as well as the size of the packing containers used. Containers which

cool more quickly allow a filling at high temperatures of 85 °C and 95 °C. Rapid set pectins in

this temperature range provide good gelation as well as an even distribution of the fruits in the

jelly. Containers which pass through a long cooling phase, on the other hand, require low

filling temperatures of e.g. 70°C to 75 °C, since otherwise the consistency of the product

might suffer by heat-related damage affecting the center. For this purpose, slow set pectins are

used that do not tend to pre-gel in the temperature range in which they are applied.

Furthermore, the setting rate may be controlled by adding suitable buffer salts.

17

Such gelling retardation is usually practiced in the confectionery industry where processing

with very high soluble solids is practiced.

Texture is a very important parameter for sensory acceptance and depends largely on the

composition of raw materials such as the type of fruit, fruit quantity and sugars used, but also

on the selected type of pectin. Pectins with a very high degree of esterification result in firm

gels which are characterized by the rheological parameter “highly elastic with a very low

viscous phase”. Pectins with a medium degree of esterification result in firm gels which are

characterized by the rheological parameter “highly elastic with an important viscous phase”.

Apple pectins form gels with definitely higher viscous share than citrus pectins with the same

degree of esterification do.

For the purpose of spreading jam on slices of bread or sweet rolls, it should be noted that

jellies with a lower elastic phase are more difficult to spread. In the extreme case, this implies

that jellies spread on with a knife will just break up from a large lump into many smaller

pieces. Gels with a higher viscous share, on the other hand, will spread on easily and form a

coherent jelly layer on the bread. The proper selection of the suitable type of pectin will thus

be a great help in controlling the desired rheological parameters of jam, jelly and marmalade.

4. Citric acid

The optimum gel set normally obtained in the pH range of 2.8 to 3.3 for high methoxy- pectin.

If the acid value is too high (pH-value under 2.8) the gel elasticity will be increased and the

gels become firm and brittle. If the acid value is low (pH-value above 3.3) the gel structures

become very soft. When exceeding a certain pH limit, gelation is no longer possible. The

presence of buffer salts in fruits, e.g. salts of citric and malic acid, suppresses the impact of pH

modification by added fruit acids, part of the effective acid value is compensated. To get into

the desired pH-value, the acid dosage must be raised. On the other hand, if the pH-value in

fruits is too low, it can be increased in order to prevent pre-gelation (Oakenfull and Scott,

1984). If the aim is a stabilization of the pH-value within strict limits, as is the case for jams,

one profits from the specific properties of fruit acids to form excellent buffer systems with

their salts, e.g. in the combination citric acid and sodium citrate. Among these acids, citric

18

acid has been used in fruit jam production due to its taste, antioxidant characteristics,

solubility and storage and handling characteristics. Citric acid is naturally present in a great

number of fruits. It is crystalline and dissolves well in water. Citric acid is a weaker acid than

tartaric acid, but stronger than lactic acid. The flavor of the citric acid is naturally sour and

harmonious. This acid, too, is preferred to be added as 50 % aqueous solution. As a rule, fruit

acids are added to the cooking batch towards the end of the cooking process. This prevents

pre-gelling, which might occur if the temperature of the cooking batch drops below the setting

temperature due to the blending in of the sugar or the pectin solution. Even if all parameters

are adjusted in an optimal way and the temperature is higher than the setting temperature, a

processing time, which is too long, can lead to pre-gelation after the addition of acid.

2.3.2 Gelling Mechanisms

The association of pectin chains leads to the formation of three-dimensional networks that

means to gel formation. Two or more chain segments bond together and start to interact.

These are longer segments of regular sequence, which are ruptured by the incorporation of

rhamnose or by the branching of the chain. Different types of chain associations exist which

are determined by the degree of esterification of high methylester pectins. Two decisive

factors initiate gel formation:

1. The addition of sucrose or other sugars has a dehydrating effect on the pectin molecules,

which facilitates the approach of the polymer chains and enables a cross linkage of the

hydrogen bridges.

2. A lowering of the pH in a medium suppresses the dissociation of free carboxyl groups and

thus reduces the electrostatic repulsion between the chains. The mechanism described above is

referred to in literature as”sugar-acid gelling mechanism”. Recent studies, however, have

shown that high methylester pectins are stabilized in the gel by a combination of hydrophobic

interactions and hydrogen bridge bondings, which means that the term ”sugar-acid-gelling

mechanism” requires a closer definition. Methylester groups are the hydrophobic part of a

pectin molecule. Hydrophobic forces push them into aggregate formations, while they are

constantly striving to keep the contact surface with water as small as possible. Moreover,

hydrogen bridges are formed, e.g. between non-esterified carboxyl groups, at a sufficiently

low pH-value in the gel and the dissociation of the carboxyl groups is largely suppressed.

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According to Oakenfull and Scott (1984), the hydrogen bridge bondings are the responsible

factor in the stabilization of a pectin network, but without the hydrophobic interaction of the

methylester groups, gelation would not occur for energetic reasons. The higher the degree of

esterification, the greater the impact of hydrophobic forces in the gelation. The number of

hydrogen bridges over free, non-methoxylated carboxyl groups decreases. If the pH is too

high, the number of interfering factors (-COO-) decreases as well (in case of a too high

product pH, dissociated carboxyl groups interfere with the network formation). These factors

affect the gelling-pH-range. If the degree of esterification is extremely high, the suppression

of dissociation does not matter anymore.

The higher the degree of esterification, the higher also the pH-value is, at which gelation sets

in. Completely methoxylated pectins (100 % degree of esterification) thus do not require any

acid for gelation. The required high sugar concentration for the gelation of high methylester

pectins could be explained, according to Oakenfull (1984), by the fact that certain sugars have

an additionally stabilizing effect on the hydrophobic interactions. Low methylester pectins

also gel according to the mechanism described above. However, they may form a gel even in

relative independence from soluble solids content and pH-value if multivalent cations, e.g.

calcium ions, are present. The following model has been used to describe this gelling

mechanism: pectins chains cluster during the gelation process. Due to their bent shape they

create cavities between them, which become occupied by carboxyl and hydroxyl groups. Both

the formation of cavities and the carboxyl and hydroxyl groups favour the association of

pectin chains by calcium gelation.

2.3.3 Factors Affecting Gel Formation 1. Soluble Solids and pH-Value Figure 2.1 shows the setting ranges of sugar-acid-gels with high methylester pectin (setting

range of high methylester pectins, Pilnik, 1980). Certain solids/ pH areas are identified in

which pre-gelling or no gelling (liquid) occurs. Pre-gelling means that at the given filling

temperature the products have already started setting. Pumping, stirring or depositing during

filling destroys this incipient gel structure.

20

The formation of a homogeneous gel is no more possible. Therefore the texture of a pre-

gelled product is mushy with reduced gel strength. The figure also explains that sugar and acid

may substitute each other within certain limits in their contributions to the gel strength. Lower

sugar content requires for proper gelation a lower pH-value. Higher pH-values are feasible

with higher sugar content. If the sugar content remains constant, gels with lower pH values

will be firmer and more brittle; the same applies if the pH stays the same and the amount of

sugar increases. The optimal soluble solids content for jams is 60-65 % (Oakenfull, 1984).

Replacing part of the sucrose with glucose syrup or the use of the optimal type of pectin may

prevent the formation of brittle gels and the crystallization of sugar and dextrose.

Figure 2.1 Setting range of high esterified pectins

Source: Setting range of high methylester pectins, Pilnik, 1980

The lower limit for proper gelation of high methylester pectins is a soluble solid content of

about 55 %. With 58-55 % soluble solids, high methylester pectins with a very high degree of

esterification (above 75 %) show the best results. High methylester pectins do not gel at very

low soluble solids contents, for this application low methylester and amidated pectins and

calcium salts are used instead. Substituting sucrose by other sugars or polyols has an influence

on the gelling characteristics of pectins and the texture of gels. The reasons for these

phenomena are not yet sufficiently studied. It is assumed that this is due to the different water

activities of the sweeteners at similar solids contents or substance specific differences in the

stabilizing effect (Oakenfull, 1984).

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2. Setting Time and Setting Temperature

High methylester pectins are commercially available within a range of 50 to 80 % degree of

esterification. This group of pectins shows a quite specific gelling behavior. Under the

virtually same conditions, higher methylester pectins set faster and at higher temperatures than

pectins with lower degrees of esterification. This explains the importance of setting time and

setting temperature for the evaluation of high methylester pectins. The setting temperature is

the temperature at which gelation starts subsequent to gel manufacture in the following

cooling period. There is no setting above this temperature, even though all criteria for gel

formation are met. Gelation of extremely high methylester pectins, as was shown in test gels,

may, for example, start already at 90 °C , that of less high methylester pectins at 60 °C .

The setting temperature depends on the raw material, the production technology, the pectin’s

degree of esterification, the sugar content and the product’s pH-value, the amount of buffer

salts added and the cooling rate. The faster the products are cooled, the lower the setting

temperature required. Therefore, to compare setting temperatures, pectin gels are usually

produced under reproducible, defined conditions and one subsequently observes at what

temperature gelation sets in. The setting time is defined as the period in which a fruit

preparation starts to gel at a defined, constant temperature after terminating the cooking

process. The definition for rapid set pectins might be that under defined conditions gelation

requires ten minutes at 90°C and slow set pectins need 20 minutes at 65 °C.

Rapid set pectins differ in their optimal pH-value from slow set ones. While slow set pectins

achieve their greatest gel strength at a pH of 3.0 and less, the optimal pH-value for rapid set

pectins is raised to higher pH-values(3.3 -3.6). For extra rapid set pectins, a pH-value under

3.0 may even be unfavorable, especially if the soluble solids content is clearly above 60%.

Gelation may then set in during the cooling process, with the very real risk of pre-gelling.

Soluble solids of around 60 % and a pH value of about 3.0 are suitable for rapid set as well as

slow set pectins (Figure 2.1). The differences are due to the setting temperature, setting time

and gel texture. With high soluble solids contents and low pH-values, slow set pectins must be

used to avoid pre-gelling .With high soluble solids and high pH-values, on the other hand,

rapid set pectin are recommended otherwise gelation is not possible.

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2.3.4 Technology of Jam Making

The production of jam, jellies and marmalades involve three major processing steps: pectin

preparation, boiling and filling and sealing processing stages.

Pectin Preparation

The production of pectin solutions by way of a suitable system is the best possibility to add

standardized pectin to the cooking process. If only slow-speed mixers are available, the pectin

is mixed with about five times the amount of sugar and this mixture is dissolved in water with

a temperature of at least 80°C. In this way, a 3-5 % pectin solution can be produced. If a

dissolver with high-speed mixer is available (more than 1.500 rpm), pectin is added while the

mixer is running and the water temperature is at least 80 °C, directly poured into the mixer

flux and dissolved. Depending on the type of pectin, pectin solutions of 5-7 % may be

produced. Nowadays, 7-10% pectin solutions can be produced, on modern injection mixers.

The evaporating water volume is clearly smaller when such high percentage pectin solutions

are added in the cooking process than it is the case with 3-5 % pectin solutions.

If sugar solutions or sugar syrups are used, pectin may also be suspended in 10 times the

amount of liquid sugar/sugar syrup while stirring slowly. This suspension may then be

incorporated into hot water with at least 80°C, which results in a 3-5 % pectin solution. If

pectin is directly added to the product batch, i.e. not as pectin solution, this is best achieved

with the above mentioned pre-mix of pectin and 5-10 times the amount of sugar or a

suspension with liquid sugar or sugar syrups. In this case it is important to observe that the

soluble solids content in the batch during the dissolving of pectin is not above 30 %, since it

otherwise interferes with the solubility.

Boiling

This concentration of jams, jellies and marmalades is done with the objective to create a

finished product with a long shelf-life and with the required soluble solids content. During

cooking, a sufficient exchange between sugars, liquid medium and fruits is achieved, which

prevents water loss in the finished product during storage.

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In the large-scale production of jams, jellies and marmalades with cooking kettles two basic

types exist for the concentration process: open system boiling and vacuum boiling. Cooking in

an open kettle is nowadays practiced only in a few, small companies. Cooking in vacuum

systems is done in closed kettles under reduced pressure. The great benefit of this cooking

method consists in low cooking temperatures and short cooking times. Both criteria are

decisive for an optimal finished product as regards to appearance, colour, flavour and

vitamins, since the raw materials are exposed to only minimal stressing. Short cooking times

and relatively large cooking batches also guarantee the economic efficiency of the process.

The pre-heated fruit/sugar mix is fed from the pre-heater by negative pressure into the kettle

and reduced by boiling under vacuum with constant stirring. To prevent foaming, edible oils

and fats such as mono- and diglycerides of edible fatty acids may be added. The pectin

solution is then metered and further reduced by boiling under vacuum until the desired final

soluble solids content is reached. Due to the low cooking temperatures, which may be as low

as 65 °C, slow to medium rapid set pectins are applied in this process. Once the final soluble

solids content is reached, the batch will be vented and acid is added. The temperature of the

cooked material increases in this process, before discharging it should reach 80-85 °C in order

to guarantee germ-free filling. Sophisticated cooking systems with flavour recovery condense

the volatile aroma components from the escaping steam and return them to the cooking batch

before its discharge.

Filling of Jams, Jellies and Marmalades

Jams, jellies and marmalades are discharged from the vacuum kettle by way of pumps or, even

more sensitively, by gravity into heated filling troughs with agitators, from which they are fed

into filling machines. The temperature of the cooking batch at the time of filling is 70-85 °C.

The relatively high filling temperature and capping under vacuum with headspace sterilization

guarantees germ-free filling and perfect stability during storage. Before closing the jars,

suitable measures for the sterility of the product surface during the filling process are

recommended. UV-radiation of the empty jars or the caps before filling is also indicated to

protect against secondary infections. After filling and capping, the jars pass through a tunnel

24

cooler and are sprinkled with cold water which lowers their temperature to 40-50°C. The rapid

lowering of the temperature prevents caramelization and colour changes in the filled article

and brings the product into a temperature range; in which gelation is initiated and an optimal

gel texture may be slowly formed. After cooling and labeling, the products go into packaging.

Before distribution, however, the jars should be stored until the product has thoroughly gelled.

2.4 Small Scale Fruit Drying Technology Drying is defined as the application of heat under controlled conditions to remove the majority

of water normally present in a food by evaporation. The main purpose of drying is to extend

the shelf life of foods by a reduction in water activity. This inhibits microbial growth and

enzyme activity, but the processing temperature is usually insufficient to inactivate. Drying

causes deterioration of both the eating quality and the nutritional value of food. The design

and operation of dehydration equipment aim to minimize these changes by selection of

appropriate drying conditions for individual food items.

Fruit Drying Equipments

A range of technologies is used for fruit drying which include tray, tunnel dryers, freeze

dryers. With the exception of tray dryers, none of these are appropriate, in terms of cost and

output, for use by small and medium enterprises. While small tray dryers are available from

Europe and the USA, they cost in excess of Birr 250, 000 which makes them unaffordable and

uneconomic for producers in developing countries. This suggested the need for small,

controllable, powered tray dryers capable of producing high quality products that could be

constructed by engineers in developing counties to a great extent from locally available food

grade materials.

Hot convective air dryers are generally used for drying piece-forms fruit and vegetables such

as banana, mango and pineapple slices, and various tea leaves (Chua & Chou, 2003).

Depending on the methods used to heat the air convective dryers are classified as solar,

electric and fuel fried which consists of biomass, biogas or petroleum products.

25

1. Solar Dryers

Solar drying can generally be classified into two broad categories active and passive. Passive

solar dryers use only the natural movement of heated air and they can be constructed easily

with inexpensive, locally available materials which make them appropriate at small level. In a

direct passive dryer the food is directly exposed to the sun’s rays. Direct passive dryers are

best for drying small batches of fruits and vegetables such as banana, pineapple, mango,

potato, carrots and French beans. Active solar dryers are designed incorporating external

means, like fans or pumps, for moving the solar energy in the form of heated air from the

collector area to the drying body. The food is not exposed to the direct rays of sun which

reduces the loss of color and vitamins. The collector can be large and thus heat greater

quantities of air.

There are a large number of different designs of solar driers, described in detail by

Brenndorfer et al. (1985) and Imrie (1997). Small solar driers have been investigated at

research institutions particularly in developing countries, for many years but their often low

capacity and insignificant improvement to drying rates and product qualities have restricted

their commercial use to only three of four application world wide.

Solar tunnel dryer becomes popular due to considerable reduction of drying time and

significant improvement of product quality. Solar tunnel dryer have been used to dry fruits,

vegetables, root crops, medicine preparation and fish (Gauhar, 1998). The utilization of solar

energy as the only energy source offers the possibility to use the solar tunnel dryer at nearly

any sunny location, even in remote areas with out access to the mains electricity or in areas

without reliable energy supply. The operational cost of the solar tunnel dryers in terms of

energy amount to zero. The solar tunnel dryers basically consists three major components: the

photovoltaic drive, the solar air heater and the drying compartment. The only part that may

need replacing from time to time is the plastic cover. The life span of the plastic cover is

mainly dependent on the location and care taken of the material. It has a life span in excess of

5 years.

26

The performance of the solar tunnel dryer is significantly dependent on the weather condition.

Both the heat required for removing the moisture as well as the electricity necessary for

driving the fans are generated by solar energy. The weather conditions have the biggest

influence on the capacity product that can be dried with in a certain time period. During the

rainy season, which is not the best season for the utilization of any kind of solar dryer, the

most efficient method of using the solar tunnel dryer is in combination with an artificial dryer.

If the weather conditions are fine, the product can be dried as in the dry season, using only the

solar tunnel dryer while under rainy conditions, the product will be pre-dried during the day

time in the artificial dryer. This method is also suitable if the production has to be extended

due to an increased request for high quality dried products.

2. Electric Dryers

One option for drying fruits and vegetables is an installation of electric convective dryer. This

option requires a regular electrical energy supply or the purchase of a generator. These driers

are available in size that ranges from units that handle 300 kg of fresh fruit per one day drying

cycle up to units that handle one tone per drying cycle. The electrical energy requirement

varies between 25 KVA to 50 KVA.

3. Fuel Fired Dryers

Situations where the control over drying conditions in sufficient using solar dryers, it is

necessary to use fuel-fired dryers. There are large numbers of different types and the selection

depends on the required throughput, types of fuel and level of investment that is available. The

main limitation of fuel-fired dryers, in addition to higher capital and operating costs, are that

they are more complex to build and maintain and therefore requires skilled labor for operation

and maintenance.

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CHAPTER III

METHODOLOGY AND APPROACH Lecup and Nicholson (2000) proposed four main areas of feasibility study for enterprise

development: market and economic environment, scientific and technological environment,

resource management and social and institutional environment. The methodology used for the

present feasibility study incorporates the three environments proposed by Lecup and

Nicholson (2000) namely, market, technical (scientific and technological environment) and

financial and economic feasibility. However the scope of this study does not include the social

and institutional environment.

Materials

Two pineapple varieties (Ananas comosus L.), Smooth Cayenne and Red Spanish at full

ripening stage were collected from “Teso” pineapple growing farmers’ farm in “Sidama

Zone”. The ripening stage of pineapple is identified as peel color turns from green to yellow

at the base of the fruit. The pineapple crops were stored at 8 + 1 °C for 7 days until physico-

chemical analysis was conducted .Temperatures of 7 to 12 °C are recommended for storage of

pineapples for 14 to 20 days, provided that the fruits are at the color break stage (Paull, 1993).

Ripe mango samples were brought from “Shebedino” Woreda local market and kept 8+ 1°C

for 7 days until physico-chemical analysis was conducted. Ripe mango fruit can be stored at 7

to 8 °C (Jobin -Decor, 1988). High Metoxy Pectin (HMP) of grade 150 was used for jam

making experiments which were obtained from Awash Melkassa Agriculture Research

Institute.

Market Feasibility

The market feasibility study was conducted for fruit jam, jelly and marmalade in the domestic

market. The assessment involves the market and consumers study. The market analysis entails

investigation into the market size and value, major suppliers, competition in the market and

the market opportunity in the sector. The consumer analysis is conducted to identify major

market outlets and customers perception towards the product quality, packaging and labeling

and price of the imported fruit jam.

28

The import volume and value of fruit jam, jelly and marmalade was collected from imported

items database from Ethiopian Customs Authority (ECA). Local production was obtained

from the sole producer and distributor, Merti Jeju fruit and Vegetable Processing Plant, annual

sales report (2002-2006). Consumers’ survey was conducted to identify major market outlets

and customers perception towards the product quality, packaging and labeling and price of the

imported fruit jam. Consumers’ survey questionnaire was prepared and stratified random

sampling method was applied to interview 10 randomly taken customers who were found

buying jam in selected supermarkets at five sub-cities of Addis Ababa: Arada, Gulelle, Bole,

Kirkose and Akaki-Kaliti. The market share of the project was estimated from demand and

supply analysis and proposed guidelines for estimation of market share for a new food

business (Anon, 1992). Market information for dried pineapple was referred from Center for

the Promotion of Export from Developing Countries (CBI) website http://www.cbi.nl.

Technical Feasibility

The assessment of the technical feasibility entails investigation into the current and future

availability and accesses to raw materials, the quality, cost of raw materials, processing

technology required, the processing location, the status of the infrastructure and level and

availability of human resource and expertise.

Jam Formulation and Production

The formulation and laboratory scale production of pineapple and mango jams were carried

out in Awash Melkasa Agriculture Research Institute (AMARI) crop science department

laboratory. The fruit were sorted, cleaned with potable water, peeled, sliced in sharp stainless

steel knives and pulped in electric homogenizer. The pH, titerable acidity and total soluble

solid content of the fruit pulps were determined using AOAC methods (1984). Standard jam

formulation procedures were developed based on physico-chemical determination of the fruit

pulps and Codex Alimentarius standard for jam and jellies (Codex Alimentarius, 1981). The

pH of the fruit pulps were brought to 3.2 for obtaining good consistency products. The upper

limit for successful gel set is pH 3.6 (Smith, 2006).

29

The amount of pectin in the formulated batch was determined from laboratory trial

production and observation of product consistency. After formulating the jam, sugar, fruit

pulp and pectin were weighed accordingly. The pectin was mixed with 5 times its weight of

sugar to make it evenly dispersed. Fruit pulp and the remaining sugar were mixed and started

to heating. The prepared pectin was added to the heating mixture and allowed to boil until the

total soluble solid (TSS) content of the jam reach 68° Brix. The jam was then hot filled in

clean sterilized glass jars. The jars were sealed and cooled in ambient temperature.

Sensory Evaluation

Sensory evaluation of prepared pineapple and mango jams and imported pineapple and

mango jams was conducted. The sensory evaluation was conducted 4 week after the jam was

prepared. The prepared jams were kept refrigerated for 4 weeks at 12°C and at room

temperature for 24 hours before sensory evaluation was carried out. The sensory evaluation

was carried out using untrained sensory panels consisting of students and staff from the

faculty of technology AAU. The numbers of panelists were 20 (9 female and 11 male). The

sensory method employed is a nine point hedonic scale to assess color, taste ,flavor, aroma, ,

degree of spreadblity and overall acceptability; 9 (like extremely), 8 (like very much), 7 (like

moderately), 6 (like slightly),5 (neither like or dislike) , 4 (dislike slightly),3 (dislike

moderately ),2 (dislike very much) 1 (dislike extremely). The panelists were briefed how to

use sensory evaluation forms and terminologies of sensory attributes. Each panelist received

samples numbered with three digit random numbers and presented according to a randomized

complete block design. Bread was used as carrier since jam is normally consumed with bread.

Statistical analysis was done using Statistical Package for Social Scientists (SPSS version

13.0).

Drying Experiment

A drying experiment using a convective dryer was conducted at AAU Chemical Engineering

Laboratory to determine the effect of drying air temperature and slice thickness on drying time

of pineapple slices. The dryer consists of a drying chamber, electrical heater, blower and

temperature controller (20 to 80°C, dry bulb temperature). The Smooth Cayenne pineapple

cultivar were collected from “Teso” and stored at 8+ 1°C in the refrigerator. The pineapple

30

was left for 2 hours after it has been taken out from the refrigerator to equilibrate with room

temperature . The pineapple is then washed, peeled and sliced to uniform slice thickness.

At the start of each test, the dryer was switched on and the required temperature was set. After

the dryer reached the steady state condition, sliced pineapple samples were uniformly spread

in rectangular stainless steel meshed trays size (12 mm X 7mm) and kept in drying chamber of

the dryer. Air flow was parallel to the two faces and drying commencing from both major

faces of the slice. Drying air temperature (+ 0.1°C), relative humidity (+ 1%), and sample

weight ((+ 0.001 g) were recorded every 10 minutes for the first 60 minutes , every 15 minute

up to 120 minutes and every 30 minutes there after. The drying was continued until the

moisture content of the samples drop to 15g/100 g. The moisture content of the dried samples

was measured by placing the samples at 70 °C in the atmospheric oven and kept until the

weight difference fall below 0.1g between two consecutive measurements taken in 1 hour

interval. Determination of the moisture content was made in triplicates and the mean values

were used in moisture ratio determinations.

In thin layer drying, the moisture ratio during drying is calculated as follows

co

c

MMMM

MR−−

=

Where MR is the dimensionless moisture ratio, M is the moisture content at time t, and

the initial and equilibrium moisture content respectively on dry basis. However during

drying the samples were not exposed to uniform relative humidity and temperature

continuously, so the moisture ratio was simplified to Pala et al. (1996) and Doymaz (2004), to

oM

cM

oMMMR =

The moisture content at time t was determined from measurements of wet sample taken and

the weight of dried sample.

Food Safety Quality and Legal Requirements

Both national and international food safety and legal requirements applicable to the processed

fruit based products were assessed.

31

The Quality and Standard Authority of Ethiopia (QSAE) is the National Standard Body

(NSB) of Ethiopia. Specific and general legislative requirements applicable to production of

jam were obtained from QSAE. For international requirements Codex Alimentarius standards

and additional specific requirements for the export food stuffs to European Union (EU) market

were referred from Center for the Promotion of Export from Developing Countries (CBI)

website http://www.cbi.nl.

Financial and Economic Evaluation

The financial and economic evaluation incorporates determination of investment cost,

production cost and economic viability of the proposed project. The economic feasibility of

the project was evaluated based on the profitability, Internal Rate of Return (IRR), Net Present

Value (NPV) and payback period. The break-even analysis was also carried out. Finally the

overall feasibility of the project was evaluated based on market, technical and financial

feasibility results.

32

CHAPTER IV

RESULTS AND DISCUSSION

4.1 Selection of crops and processed Products for Feasibility Study In this chapter the basis for selection of crops, processed products and description of

processed products is discussed.

4.1.1 Selection Criteria for Crops Mango and pineapple were selected for technical assessment for viability of product

development from these fruit crops. Currently they are considered as potential crops for export

and local market. The crops are being promoted by the Fruit and Vegetables and Horticulture

Development Department of the Ministry of Agriculture and Rural Development (MoARD)

and The Netherlands Development Organization (SNV) in its program to support Business

Organizations and their Access to Market (BOAM). Furthermore, these crops were selected as

potential commodities for investment based on two overriding yardsticks which are ‘potential

market opportunity’ and ‘outreach to small holder farms’. Additional selection criteria were:

High added value either through agro-processing or knowledge

High market value

Long term comparative advantage

Enhanced group activities and position of women

Social acceptance and support by government polices

The SNV has initiated the value chain analysis for these crops. Value chain analysis is a

model that helps to identify the bottleneck and the necessary intervention at each stage of the

chain, from farm input supply to product delivery. The pineapple value chain has been doing a

lot of activities to improve the supply and quality of pineapple fruit. One of these activities is

identification of suitable areas for pineapple development in Southern Nations, Nationalities

and Peoples Regional (SNNPR) state. Experts from Awassa Agriculture Research Institute

(AARI) and SNNPR investment commission have identified 16,650 ha of land suitable and

available for pineapple production in SNNPR. In Sidama Zone 3,000 ha of land was found to

be suitable for pineapple production. (Legesse et al., 2006)

33

Activities are also initiated to improve the supply and quality of pineapple plantlet. The first

large scale pineapple plantlet micro propagation (500,000 plantlets) has started by Jimma

Agriculture Research Center (JARC). This seedling will be distributed to farmers in the

SNNPR state Cooperative Promotion bureau. It is planned to cover 28.8 and 1.25 ha of land in

Sidama Zone by Smooth Cayenne and Red Spanish new plantlets respectively.

Mango crops were selected due to the potential of the crop to integrated processing owing to

its similarity in products and production technologies. Beside this Fruits, Vegetables and

Horticulture Development Department of the MoARD has identified mango as one of the

fruits and vegetable products with potential for export and aimed to increase the land under

mango cultivation to reach more than 12,000 ha in the selected regions of Oromia, SNNPR,

Amhara and Tigray. The current area covered by mango in Ethiopia is estimated to be about

3000 ha and it is planned to plant 9, 835 ha in the immediate future, and replace gradually the

old mango stock. Awash Melkasa Agriculture Research Institute (AMARI) has adapted three

varieties brought from Florida Research Center, namely Tommy Atkins, Kent and Keitt. The

Upper Awash Agro-industry Enterprise has planted these new varieties so far on 13 ha and is

using them as parent plants for seedling propagation (BOAM, 2006). The Enterprise is

planning to expand its new mango variety orchards to cover 40 ha for sale with annual

capacity of 850,000 seedlings per year.

This intervention will impart positive attitude towards pineapple and mango farming as a

business; improve farmers’ access to productivity enhancing technologies, information and

market. This in turn generates effective market demand for the products. Value-adding

through agro-processing is one alternative to realize this linkage and bring sustainable

development.

4.1.2 Justification for Processing the Products Mango and pineapple could be processed into a wide diversity of products. The selection

criteria of the processed products were based on suitability for small scale processing and high

market demand. Suitable processed fruit and vegetable products are high value added

products. The high added-value means that the amount of food that must be processed to earn

a reasonable income is relatively small.

34

Hence the size and type of equipment required to operate at this scale can kept to levels that

are affordable to most aspiring entrepreneurs. Based on this two criteria jam and dried fruit

products were selected. Dried fruit and fruit preservative are high value added products and

there is high market demand in domestic and international markets.

The demand for exotic tropical and subtropical fruits by consumers in developed countries is

on the increase and so is the demand for natural and organically certified products. The key

reasons are the increasing awareness and health concern of consumers. In line to this, several

African companies are finding sweet success on the world’s market and are pushing ahead

with primary production. Safleg, a Togolese firm, markets dried pineapple rings, chunks and

pieces, and sell them under organic label, exclusively on the German market. The firm process

22 tones of fresh pineapple each week, and is moving into new market with dried mango and

bananas. In Guinea, Nebakam-Bio exports dried organic pineapples, mangoes and banana to

France. Its export volume, a mere 20 tones each year, is far below the requirement of the

importer who currently handles 1,000 tones annually (Spore, 2000).

4.1.3 Products Description and Application Jam is a fruit product prepared from fruit pulp by boiling with sufficient quantity of sugar and

pectin to a moderately thick consistency. Jellies are differentiated from jam in that the fruit

ingredients consist of the juice that is extracted from whole fruit and clarified by filtration or

other means. Marmalde is a fruit jelly where the slice of the fruit or peel shreds are suspended.

The distinguishing characteristics of the product are a substantial amount of fruit ingredient

used in the formulation (450 g/kg of jam) and high soluble solid content of the final

product.(TSS = 68° Brix). Jams are widely used for bread dressing to sweeten cakes and

flavor yogurt.

Pineapple and mango jam are prepared from the pulp which is extracted from whole sound

pineapple and mango fruits mixed with sugar and processed to suitable consistency. Pectin is

added to impart a texture to the jam that allows transportation without change which gives a

good flavor release and minimize syneresis. Citric acid is added to lower the pH of the fruit

for better consistency of the product. There is no added colorant or preservative to the product.

The products have colors similar to the color of the respective fruits.

35

36

Dried tropical fruits are mainly sold in health food shops as snack products and as cooking

ingredients. Dried tropical fruits are low in fat; contain natural sugars, vitamins and natural

antioxidants which are supposed to have properties prevent heart disease and cancer. The

specification for pineapple jam, mango jam and dried pineapple fruit is shown in Table 4.1.

37

Table 4.1 Product specification for pineapple jam, mango jam and dried pineapple

Product Specification

No

Product Type

Ingredients

Fruit content

color

Flavor

Texture

TSS and pH

Packaging material

Pineapple jam

Sugar, Pineapple pulp, pectin, citric acid

45 parts per 100 parts of initial ingredients

light yellow

Balanced sweet and sour taste free from burnt & other flavors

High elastic , moderate viscous & easily spread- able

TSS = 68° Brix pH = 3.0-3.2

Glass jar 450 g unit

1

Dried

pineapple

Pineapple slices

100 % pineapple

Bright light yellow

Sweet, typical of pineapple,

Firm and easily chewable not tough and fibrous

TSS = 14.5-16.0° Brix pH = 3.0-3.2

Biaxially oriented polypropylene (BOPP) 250 g unit in cardboard boxes

2

Mango jam

Sugar, mango pulp, pectin, citric acid

45 parts per 100 parts of initial ingredients

light yellow

Clean and free from burnt caramelized & other flavors

High elastic , moderate viscous & easily spread able

TSS = 68° Brix pH = 3.0-3.2

Glass jar 450g unit

4.2 Market Analysis for Dried Fruits and Fruit Jam

Market assessment is an important tool to identify strengths, weakness, opportunity and treats

in the marketing channel. The goal of the market assessment is to gather information about the

business environment from all role players involved in the marketing of the products.

4.2.1 Market size and value

In planning for starting a new business, the first thing to determine is the likely demand of the

product. The market size and value in each product category has been analyzed.

Jam, Jelly and marmalades are widely used by household, hotels, restaurants, boarding

schools and hospitals, as bread dressing and in pastries to sweeten cakes. The demand for jam,

jelly and marmalade is increasing as a derive demand due to increasing consumption of jam as

bread dressings. Fast rising of pastries and standard hotels also contribute to the increase

consumption of these products. The recent market research conducted estimates the annual

local demand for jam, jelly and marmalades at 1990 tones (Addis Ababa Investment

Authority, 2006). The estimation was conducted based on the information collected from

supermarkets, pastries, boarding schools, hotels and hospitals. The major consumers were the

pastries contributing 60.3% of the total demand while households and industrial outlets

(boarding schools, hotels and hospitals) contribute 25.1 % and 14.6 % of the total demand

respectively.

There is no local production of jam and jellies. All Jam and jelly are supplied to the domestic

market are imported. Merti Fruits and Vegetables Processing Plant is a sole producer of

orange marmalade. Table 4.2 shows the annual orange marmalade production by Merti Fruits

and Vegetables Processing Plant. The data indicates the mean annual production of orange

marmalade by Merti was 467.4 tones over the past five years.

38

39

Table 4.2 Annual orange marmalade production by Merti Fruits and

Vegetables Processing Plant

Production year

(G.C)

Quantity

(Tones)

Value (Birr)

2002 395.1 3,308,721

2003 449.1 2,972,667

2004 - -

2005 524.8 3,473,738

2006 500.6 3,313,554

Average 467.4 3,267,170

Data obtained from Ethiopian Customs Authority indicates that a considerable amount of jam,

jelly and marmalade are being imported. Import value and volume of jam, jelly and

marmalade to Ethiopia is shown in Table 4.3. Between 2003 and 2005, fruit jam, jelly and

marmalade import to Ethiopia increase by 257 % and 276 % in terms of import volume and

value respectively. The import volume and value for these products has reached 268,897 kg

and 2,361,745 Birr respectively in 2005. For the year 2005, the total jam, jelly and marmalade

supply to the local market was 793.7 tones. Merti has a share of 66.1% while the rest 33.9%

was covered by imported jam and jellies. The demand for fruit jam jelly and marmalade on

local market is increasing rapidly as indicated by the volume and value of imports (Figs. 4.1

& Fig. 4.2). This indicates that there is an opportunity for import substitution of these

products through local production and marketing of good quality products.

40

Table 4.3 Import volume (kg) and value (Birr) of jam, jelly and marmalade to Ethiopia during 2003 to 2005

UAE = United Arab Emirates

Source: Ethiopian Customs Authority, 2006

Import volume in kg Import value in Birr

Supplier

2003

2004

2005

Total increase

(decrease)

2003-2005

2003

2004

2005

Total

increase

(decrease)

2003-2005

Egypt - 55,549 125,328 - - 427,552 1,065,000 -

UAE 42,869 25,569 50,240 17.2 247,384 193,761 441,467 78.5

Greek 1,933 34,935 44,449 2199.5 13,995 260,070 358,775 2463.6

Denmark 13,318 26,692 34,620 159.9 142,734 352,343 348,904 144.4

Argentina 8,598 7,927 5,982 (30.4) 136,055 75,051 50,554 (62.8)

South Africa 2,777 10,636 3,831 38.0 18,194 73,221 24,602 35.2

Italy 2,415 3,079 2,777 15.0 42,540 46,358 55,308 30.0

Others 3,314 2,689 1,670 (49.6) 27,536 59,754 17,135 (37.8)

275.8 2,361,745 1,488,110 628,438 257.5 268,897 75,224 167,076 Total

50,000

100,000

150,000

200,000

250,000

300,000

2003 2004 2005

kg

Figure 4.1 Ethiopian fruit jam, jelly and marmalade import volume (kg) during 2003-2005

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

2003 2004 2005

Birr

Figure 4.2 Ethiopian fruit jam, jelly and marmalade import value (Birr) during 2003-2005

41

The major markets for dried tropical fruit are the European Union (mainly Germany, France,

the United Kingdom and the Netherlands), the United States and Japan .Total imports of dried

fruit by EU member countries amounted to Euro 951 million and 635,000 tones in 2004

representing a total increase of 7% in value and 8% in volume since 2002 (CBI, 2005). The

UK is the world’s largest importer of dried fruit, accounting for 23% of total import, followed

by Germany (22%), France (13%) and The Netherlands (8%) in 2004 (Eurostat, 2005).

4.2.2 Feasible Market Share of the Project

The proportion of the total market that could be captured by a new business is vital tool for the

determination of scale of production for the processing plant. The figure depends on many

variables such as the extent and strength of competition, effectiveness of marketing strategy,

socio-economic and political factors. For estimation of feasible market share of the project

guideline proposed by Anon (1992) was used (Table 4.4). The estimation was based on

number of competitors, scale of production and the product characteristics. Mango and

pineapple jam would encounter competition from local orange marmalade and imported jams,

jellies and marmalades. Only four countries supply 95% of the Ethiopian fruit preservatives

import. Egypt was leading supplier in 2005, accounting for 47% total import volume,

followed by UAE 18.7 %, Greek 16.5 %, Denmark 12.9%, Argentina 2.2% (Table 4.3). In

this category, the competitors can be termed as few in number, large in size and competing

with similar products. Hence, a market share of 0-2.5% could be assumed to be captured

(Table 4.4).

42

Table 4.4 Guideline for estimation of market share of new food business

No of other

producers

Many Few One None

Size of

competitors

Large Small Large Small Large Small

Product

range

S D S D S D S D S D S D

100% Market

share % 10-1

5

10-1

5

20-3

0

10-1

5

30-5

0 40

-80

0-2.

5

0-2.

5

5-10

5-10

0-5

0-5

Source: Anon, a Manual for the Entrepreneur, 1992 S = Similar products; D = Dissimilar Products

Thailand is the primary supplier of dried pineapple, papaya and mango in the world. The

Philippines, Sirilanka, Costa Rica and Mexico are also big suppliers of dried fruit (ADC,

2002). Burkina Faso, Uganda, Togo, Guinea and Cameroon are main competitors for Ethiopia

in Africa in the export of dried tropical fruits. Dried tropical fruits face strong competition

from adjoining categories such as:

• Other natural dried fruits, especially those of Mediterranean origins (apricots,

prunes and dates etc.)

• Fresh tropical fruits, especially bananas, mango, pineapple and papayas, which

are widely available and basically have the same uses (snacking and cooking)

• Tropical fruits, which are otherwise preserved, such as canned and frozen tropical

fruits

For dried pineapple, the number of competitors can be termed as few in number, large in size

and competing with similar products. Hence, a market share of 0-2.5% could be captured

(Table 4.4).

43

4.2.3 Consumers Analysis Consumers’ survey was conducted to identify major market outlets and customers perception

towards the product quality, packaging and labeling and price of the imported pineapple and

manago jams. The results of the market survey is shown in Table 4.5

Table 4.5 Summary of consumers’ survey

Very

bad

Questionnaire Very

good

Good Average Bad Total

What do you think about the product color? 6 34 5 5 0 50

What do you think about the taste? 3 13 34 0 0 50

What do you think about the package? 27 15 8 0 0 50

What do you think about the product label? 20 10 11 9 0 50

What do you think about the product price? 5 7 12 25 1 50

Major findings of the consumers survey is summarized as follows

1. 80 % of the consumers found the color of the jam to be better than average, 94 %

of them were satisfied with the taste of imported jams. 68% of the consumers said

that flavor of the jam was average. This indicates that while planning to substitute

the imported fruit jam through local production emphasis should be given to the

quality of the product.

2. A large majority of the consumers (84%) were happy with the existing glass

packages and 60% of the consumers found the labels to be better than average.

This information indicates glass packages should preferably be selected for

packaging jam.

3. Super markets and shops sale pineapple jam and mango jam at Birr 40 per kg and

Birr 26.50 per kg respectively. Majority of consumers (52%) were unhappy with

the price of both jams. This indicates that a potential market share exists if an

alternative product having similar quality can be sold at reduced price.

44

The market for dried tropical fruits is divided between the health food and retail food markets.

Health food stores demand fruit that does not have any additive and it is dried using natural

process. Dried fruits with addition of sugar and treated with sulfur to ensure freshness are sold

to large retail stores. Health food sectors sell more dried tropical fruit than conventional

stores. Traditionally, natural food consumers in Europe are the urban households whose head

is between 30 and 50 years old and with annual income of between Euro 20,000 and 40,000

(CBI, 2005). The selling price of dried pineapple at EU market is US $ 8.50/kg.

45

4.3 Technical Feasibility

4.3.1 Raw Material and Auxiliary Inputs Supply The procurement of raw materials (inputs) must be studied before investing on establishment

of a processing plant. Raw materials and auxiliary inputs supply has great significance

because the transformation of inputs is one of the basic task performed in a processing facility.

Efficient procurement is dependent on quantity and quality of inputs, appropriate timing, cost

and efficient organization.

Availability of Raw Materials

The major raw materials for the envisaged processing plant are pineapple and mango. There

are two major producers of pineapple in Ethiopia: Dale, Dara and Aletawondo woredas’ of

Sidama zone and Gojeb State Farm located in Jimma area with 34 ha land for pineapple

production. The total area covered and annual production of pineapple in Dale, Dara and

Aletawondo woredas in 2005/2006 was 898.6 ha and 14,576 tones respectively (Table 4.6).

Aletawondo is the largest producer of pineapple contributing 92.12% of the total production in

the area. Gambella, Safa and Teso kebeles are major pineapple producers in the Aletawondo

woreda. The farmers grow pineapple as main cash crop for their livelihood.

Teso fruit farmers’ cooperative is organized to work on pineapple. The cooperative has 115

permanent and 1319 potential farmers in three adjacent villages located near main road from

Awassa to Dilla. The primary cooperative has about 746 ha of land with estimated annual

production of 12,480 tones. There are two varieties of pineapple being cultivated currently in

these areas. The Red Spanish variety which is called ‘Dume’ in Sidama language is preferred

by local farmers because of its shortest cultivation period, long post harvest shelf life and

acceptance of its red color by local fresh consumers. The Smooth Cayenne cultivar known by

the local name ‘Hunja’ is not widely cultivated because of its long cultivation period and short

shelf life.

46

Table 4.6 Area covered (ha) and annual pineapple production (tones)

in Sidama zone 2005/2006

Cultivated area Annual Production Percent

Share Area (ha) ( tones )

Dale 8.6 128.0 0.88

Dara 68.0 1,020.0 7.00

Aletawondo 822.0 13,428.0 92.12

Total 898.6 14,576.0 100.00

Source: Ethiopian Agriculture Research Institute, 2006

“Shebedino” Woreda in Sidama zone and “Wenago” in “Gedio” zone, which is adjacent to

“Aletawondo” and “Dara” woreda, are major mango producing areas around Sidama. The

data collected from the Woredas’ Agriculture Bureau indicate that the total area covered by

mango crop was estimated as 47.5 ha with annual production of 470 tones in 2005/2006.

Figure 4.3 describes major pineapple and mango producing areas in Sidama zone and

adjacent areas.

Key pineapple and mango producing areas in Sidama zone

Figure 4.3 Major pineapple and mango producing areas in Sidama zone and adjacent areas

47

The annual consumption of pineapple and mango by the processing plant at full production

capacity is 91.2 tones and 8.6 tones respectively. This amount is only 0.6% and 1.8% of the

current production of pineapple and mango respectively. Therefore, the availability of these

crops would not be the problem. The supply of pineapple is dependent on climatic factors

because most of the cultivation is rain fed agriculture. Drought and poor management would

make feasible supplies of raw materials diminish drastically. However there are three

perennial rivers, Gidabo, Burure and Melewo, crossing the areas which could be used for

irrigation.

Cultivation Calendar

Pineapple and mango bear fruit for limited time during a year. This is limiting the availability

of raw materials to a couple of months per year. Carrying large stock of crops for late

processing requires large investment which is not suitable for small scale processing.

Therefore processing should takes place when the raw materials are at peak harvest. Figure

4.4 describes peak harvesting periods for pineapple and mango in Sidama zone and adjacent

areas. Major pineapple harvest seasons are from October to December and April – July. Key

Mango harvest season is from September to November and January to April. Figure 4.4

shows that it is possible to have all year round processing of products based on the availability

of pineapple and mango at different times to the year.

Oct

ober

Nov

embe

r

Dec

embe

r

Sept

embe

r

Feb

ruar

y

Janu

ary

Crops

Aug

ust

mar

ch

Apr

il

June

May

July

Pineapple

Mango

Figure 4.4 Pineapple and Mango peak harvest Periods in Sidama Zone

48

Organization of the Procurement System

The organization of the raw material procurement system is very important aspect that

contributes to the sustainability of the fruit processing enterprise. One of the main challenges

in procurement of fruits is seasonality of the crops. From marketing point of view it is desired

to have processed products available while the specific fruit is out of season. This strategy

would however require investment be made in equipments necessary to preserve the

unprocessed or semi-processed fruits. The simplest and straight forward means for supply of

fruits is to purchase from the nearby market. However, this creates a number of problems such

as shortage of raw materials, lack of control over fruit quality during harvest and transport and

large seasonal price fluctuations. Contract farming system is vital tool to have control over

supply of fruit, their quality and price. The system had dual advantage. The farmers’ are

benefited having guaranteed market for their crop at a attractive price, the processor in turn

solve problems related to supply and quality of fruits. Raw material standards for variety of

fruits to be grown, degree of maturity at harvest, free from infection should be included when

making agreements for contracted farming. It is also important to train farmers about these

requirements including good farm management practices and post harvest handling of fruits.

Packaging Materials Other Processing Inputs

The selection of the correct type of packaging material depends on a complete mix of

consideration which include: the temperature and humidity of air in which product is stored,

the capacity of the product to pick up moisture, reaction within the product caused by air or

sunlight during storage , the expected shelf life, cost and availability of packaging material.

Dried pineapple is highly hygroscopic substance and it rehydrates to the equilibrium moisture

content on exposure to the atmospheric air. Exposure to high storage temperature and light

results in darkening and development of off-flavor by millard reaction. Therefore the

packaging material should provide protection against moisture pickup and light exposure. The

high fragility of the dehydrated pineapple also requires hard covers to prevent crushing during

transportation.

49

The widely used packaging material for dried fruits are flexible films which may be single ,

coated with polymer or aluminum or produced as multi-layered laminates or co-extrusion. The

product is then placed in cardboard boxes to prevent crushing and exclude light.

The preference for using flexible films for packaging dried fruits is due to their relative low

cost, wide range of barrier properties against moisture and gases, suitability for high speed

filling, ease of handling and print. Flexible films have wide range of mechanical, optical,

thermal and barrier properties depending on the thickness, chemical composition and

structural and orientation of molecules in the film. Flexible packaging materials are locally

produced by Flexible Printing Plc and Chambers Printing House Plc. The companies supply

single and polylaminates of polyethylene (PE), Biaxial Oriented Polypropylene (BOPP) and

aluminum foil.

Taking into consideration barrier requirements of the material and availability of the

packaging materials the packaging material for dried pineapple is selected to be the Biaxial

Oriented Polypropylene (BOPP). The packaged products are then placed in cardboard boxes

to prevent crushing and to exclude light which cause loss of color and development off –flavor

during storage.

Glass jars and cans are widely used for packaging of fruit jam. However there is an increased

transformation from cans to glass jars which are more appealing because glass is perceived by

the consumers as a package material which is healthier than cans. Addis Ababa bottle and

glass share company (AABGSC) is a sole producer and distributor of bottle and glass products

in Ethiopia. The company supply 375 ml jar jars which are suitable for packaging of 450 g

jam. Due to increased demand for glass and bottle products which exceeds the company

production capacity, there is a shortage of glass bottles nowadays. The company is on the

process of increasing its production capacity by double until mid 2008. The shortage of glass

container is expected to be solved by then. In apart from this pouches of low density

polypropylene, aluminum foil, polycell paper and foil polylaminates and aluminum

collapsible tubes are suitable for packaging jam (Gowramma et al., 1981)

50

All raw materials, auxiliary inputs and packaging materials except pectin and citric acid are

available locally. Pectin and citric acid are neither produced nor available locally. Therefore

they have to be imported. The annual consumption of citric acid and pectin is very small 178

kg and 139 kg respectively (Table 4.7). This amount is below the minimum order lot

requested by most producers and traders of these chemicals. This may pose a difficulty in

supply of these chemicals. One option is to make order arrangement together with Merti Fruit

and Vegetable Processing Plant should be sought. Pectin could also be extracted in house from

apple pomice, citrus fruit peel or peel of mango and pineapple. However further investigation

should be carried out on viability of this system. Alternative to citric acid, lemon juice could

be used.

Annual Consumption and Cost of Raw Materials and Auxiliary Inputs

Table 4.7 describes the annual consumption and cost of raw materials and auxiliary inputs.

The annual consumptions are computed from technical ratios (Table 4.19) and annual

production program (Table 4.16). During peak harvest period’s pineapple is sold by small

holder farmers at farm gate price of Birr 0.75-1.00 and Birr 1.0-1.50 per kg for Red Spanish

and Smooth Cayenne cultivars respectively. Mango is sold at farm gate price of Birr 0.30 -

0.45 per kg. The selling price of glass jars including ominia lids and cardboard boxes for 450

g jam glass packages by Addis Ababa Glass and Bottles S. Com is Birr 1.95. For annual

production of 26 tones of jam, 57,778 pcs of 450 g unit glass jars are required. This amounts

Birr 112,667 per annum.

The selected packaging material for dried pineapple is Biaxial Oriented Polypropylene. The

price of the packaging material for a kg of dried pineapple including three colors label printing

by Flexible Printing Plc is Birr 1.80. For packaging of 7 ton of dried pineapple packaging

material worth Birr 12,600 are required.

51

Table 4.7 Annual Consumption and cost of raw material and auxiliary inputs

Pineapple jam Mango jam Dried pineapple Total

Material Price Quantity Cost Quantity Cost Quantity Cost Quantity Cost

Birr/kg (kg) (Birr) (kg) (Birr) (kg) (Birr) (kg) (Birr)

Pineapple 1.50 14,938 22,407 - - 76,300 114,450 91,238 136,857Mango 0.45 - - 8,586 3,868 - - 8,586 3,868

Sugar 7.00 10,318 72,226 6,784 47,488 - - 17,102 119,714

Pectin 128.001 86.24 11,039 53.00 6,784 - - 139 17,823 1Citric acid 65.00 77.0 4,620 100.7 6,042 - - 178 10,662

Source: 1 Merti Fruit and Vegetable processing plant

4.3.2 Raw Materials Quality Factors affecting the quality of raw material are, variety, timing of harvest, harvesting

methods transportation and storage condition of the fruit. The above mentioned constraints

could be solved through the development of harvesting index to the fruits. Pineapple

undergoes changes during maturation and ripening. As the fruit ripens , the ‘eyes’ change

from pointed to flat, with a straight hollowness at the center; the fruit becomes enlarged, less

firm and more aromatic . The shell colors of pineapple are generally used to determine the

various stages of maturity. Red Spanish develops a reddish-brown, yellow or light orange

color, while smooth cayenne produces a light yellow or golden yellow color when ripe. Fruits

with no yellowing are not mature enough for optimum quality (Pantastico, 1975).

Mango is considered to be mature when the total soluble solids, a measure of sweetness, reach

8° Brix (Rameshwar, 1993). Usually harvesting is initiated when a few mango fruits on the

tree begin to ripen and fall (Kalra et. al, 1995). Optimum maturity stage lead to uniform

ripening and better storage life of about 1 week at 35 + 0.1°C and 65 + 1% RH ( Jha et al.,

2004).

52

Physico-Chemical Characteristics of Pineapple and Mango

Pineapple has long been one of the most popular non citrus fruit because of its attractive

flavor and refreshing sugar acid balance. It has been reported that there are 100 varieties of

pineapple, but only 6 to 8 of them are cultivated commercially (FAO, 2002).’Smooth

Cayenne’ and ‘Red Spanish’ cultivars are among the principal varieties. These two cultivates

are also produced in Ethiopia. The Red Spanish cultivar which is cultivated widely in the

Caribbean has medium sugar content of 12˚Brix with low acidity. Smooth Cayenne fruit is

characterized by higher sugar content of 13-19˚Brix. It produces a light yellow or golden

yellow color when ripe (Coveca, 2002).

The physico-chemical characteristics of fruits and the technological qualities of the products

processed vary with the variety. Some varieties are most suitable for specific application

(Doyeyappa & Ramannjaneya, 1995). The selected physico-chemical parameters based on

their impact on quality of fruit jam processed were pulp color, TSS, pH, acidity and ˚Brix

/acidity.

The range of physico-chemical constituents of ripe pineapple depending upon stage of fruit

ripeness, and agronomic and environmental factors has been reported by Dull (1971). The data

indicates Pineapples contain 81.2-86.2% moisture, 13-19% total soluble solids, of which

sucrose, glucose and fructose are the main components. Carbohydrates represent up to 85% of

total solids whereas fiber makes up for 2-3%. The pulp has very low ash content, nitrogenous

compounds and lipids (0.1%). From 25-30% of nitrogenous compounds are true proteins. Out

of this proportion, ca. 80% has proteolytic activity due to a protease known as Bromelin (Dull,

1971). The main organic acids contained in ripe pineapple fruit are citric acid and malic acid

(Singleton & Gortner, 1965; Dull 1971). Citric acid content of 1.27% and 0.80% were

reported for Red Spanish and Smooth Cayenne cultivars respectively (Bartholomew et al.,

1994)

Physico-chemical characteristic of four mango varieties (palmer, keitt, Ameliorel and mango)

were studied (Germain et al., 2003). The study indicates that a pulp extracted from ripe fruit of

the mentioned cultivars has a total sugar content range 9.4-15.2%, and a pH range 3.91-4.35.

53

Chemical composition of common ripe mango cultivars grown in different countries has been

reported by Doyeyappa (1995). It was reported that chemical composition of ripe mango

range: TSS (14.60-22.27°Brix), pH (3.80-4.90), acidity (0.11-0.55 %) and total sugars (9.28-

20.90%).

The results on physico-chemical determination of pineapple cultivars and local mango grown

in Ethiopia is shown in Table 4.8 .The TSS content and titable acidity as citric acid values for

both cultivars are within the reported range by Dull (1971). The acidity expressed as grams of

citric acid per 100 g of fresh weight, was found to be higher in Red Spanish cultivar while the

total soluble solid was higher by 2.88° Brix in Smooth Cayenne cultivar.

Insufficient acid is one of the most common causes of jam failure. The optimum gel set is

normally obtained in the pH range of 3.1 to 3.3 for High methoxy pectin. A pH value above

3.6 often results in poor gel formation, while pH below 3.0 results in hard gels subjected to

syneryesis (Smith, 2006). The pH values of the fruit pulp of the pineapple cultivars and local

mango were above the recommended upper limit of 3.6 as it was indicated in Table 4.8.

Hence organic acid should be added to reduce the pH value to in the range 3.0-3.2.

Table 4.8 Physico-chemical characteristics of pineapple cultivars and mango

Pineapple Cultivars

Parameters Local Mango Red Spanish Smooth Cayenne

Total soluble solids

(°Brix)

13.35 + 0.14 16.23 + 0.37 15.50 + 0.20

Titerable acidity (g citric

acid /100 g f.w.)

0.90 + 0.10 0.70 + 0.02 0.36 + 0.10

pH 3.70 + 0.02 3.62 + 0.02 4.13 + 0.01

˚Brix /acidity ratio 14.74 + 1.51 23.18 + 0.81 43.06 + 0.64

f.w = fresh weight

The ˚Brix/acidity is the ratio TSS of the pulp to the grams of anhydrous citric acid per 100g of

the pulp. This balance between sugar and acid, sweet and tart, is an important measure of pulp

flavor. The ˚Brix/acidity ratio near 20 and acidity close to 0.75% confers to a distinct well

54

appreciated flavor of pineapple (Coveca, 2002). The ˚Brix/acidity ratio for the smooth

cayenne cultivar (23.18) is close to the desired value (20). However, the ˚Brix/acidity Red

Spanish is found to be low (14.74). This is due to lower TSS content (13.33) and higher

titerable acidity (0.90) than the Smooth Cayenne (Table 4.8).

4.3.3 Formulation and Sensory Evaluation of Pineapple and Mango Jams Formulation of Pineapple and Mango Jam

The successful manufacture of jam requires the combination of pectin, acid, and sugar within

narrow limit. Jam was formulated taking into account the pH and TSS of fruit pulp and

ingredients to obtain a final concentration of 45 parts of fruit per 100 parts of final product and

TSS content of 68°Brix in the final product. (Table 4.9)

Table 4.9 Formulation of pineapple and mango jam

Ingredients

(g/kg Jam) Smooth Cayenne Red Spanish Local mango

pulp 450.0 450.0 450.00

Sugar 597.0 609.0 587.0

Pectin 5.0 5.5 3.70

Citric acid 4.5 5.5 6.70

Total 1056.5 1070.0 1047.4

The following procedure were used in the formulation of pineapple and mango jam

A) The weight of fruit pulp in the formulated batch was determined based on Codex

Alimentarius specification for minimum fruit content in fruit jam and jelly. it was

stated that Extra jam, Jam, or High fruit jam should be manufactured from not less

than 45 parts by weight of original fruit ingredients, exclusive of any added sugar of

optional indigents for each 100 parts, by weight of finished product (Codex

Alimentarius, 1981).

B) To adjust the pH value citric acid, malic acid, lactic acid and tartaric acid as well as

their salts are permitted Codex Alimentarius (1981). Among these acids, citric acid has

been used in fruit jam production due to its taste, antioxidant characteristics, solubility

55

and storage and handling characteristics. Due to this reasons, to adjust the pH value in

the formulated batch citric acid was used. The weight of citric acid is determined from

laboratory jam production experiments. Quantity of citric acid in the ingredient batch

is the amount required to reduce the pH of the 450 grams of fruit pulp to the desired

pH level of 3.2.

C) The weight of sugar in the formulated jam is obtained by reducing the weight of fruit

pulp soluble solids (SS), weight of citric acid and pectin from the total weight of TSS

in the final product. The weight of fruit pulp soluble solids is calculated by multiplying

the weight of fruit pulp in the ingredient batch by percent TSS of the pulp. Codex

Alimentarius standard for fruit jam and jelly products limits the TSS value of the final

product to a minimum of 65˚Brix (Codex Alimentarius, 1981). However, to account

for possibility of air leaks in jars the TSS of the formulated product was adjusted to

68˚Brix.

D) The amount of pectin in the formulated batch was determined from laboratory

production trials and observation for consistency of the product. The concentration of

pectin which results good structure of gel may range from 0.5% to 1.5% by weight

depending upon the type of pectin utilized (Smith, 2006). During laboratory

production trials, it was observed that 1% Highmetoxypectin (HMP) of grade 150

resulted in formulation of very firm gel. Hence, the pectin amount was successfully

reduced in next trials until good gel consistency was observed.

The weight of batch ingredients formulated from Red Spanish cultivar (1070g) is higher than

that of Smooth Cayenne (1056.5). This is due to additional 13.5g sugar added to compensate

for lower TSS content of the pulp from the Red Spanish and bring the final product to

68˚Brix.

Sensory Evaluation of Pineapple and Mango Jams

The formulated jam from local pineapple and mango cultivars and imported pineapple and

mango jams were subjected to sensory evaluation and physico-chemical analysis (pH and

TSS). Physico-chemical analysis of the jams is shown in Table 4.10. It was observed that

56

there was no significant difference observed in pH and total soluble solid content among the

jams.

Table 4.10 Physico-chemical characteristics of pineapple and mango jams

Total Soluble Solids

Type of jam pH (° Brix)

Smooth Cayenne jam 2.78 + 0.04 68.5 + 0.2

Red Spanish jam 2.83 + 0.02 68.2 + 0.4

Imported pineapple jam 2.88 + 0.02 64.6 + 0.4

Local mango jam 2.77 + 0.03 67.4 + 0.2

Imported mango jam 2.96 + 0.01 65.4 + 0.3

Sensory scores of formulated batch from Smooth Cayenne and Red Spanish pineapple

cultivars and imported pineapple jam is shown in Table 4.11. The sensory attributes were

color, aroma, taste, flavor, degree of spreadability and overall acceptability. The panelists

have found that there was no significant difference (p < 0.05) in color, aroma and degree of

spreadability among the three jams. However, panelists showed preference to (p < 0.05) the

flavor of jam formulated from Smooth Cayenne cultivar among the three jams. The panelists

showed less preference in taste for jam formulated from Red Spanish cultivar while no

significant difference was observed between the Smooth Cayenne and imported pineapple

jam. This can be explained by low °Brix/acidity ratio (14.74) which is by far lower than the

value which gives higher taste and flavor (20.00).

Jam formulated from Smooth Cayenne pineapple has scored highest mean sensory scores in

all quality attributes except in taste. In overall acceptability the panelist shows least preference

for the jam from Red Spanish cultivar. However the jam is still acceptable since it scored

above 6.5 on a hedonic scale of 1 to 9.

57

Table 4.11 Mean sensory scores of pineapple jams

Overall

acceptabilityProduct color Aroma Taste Flavor Spreadability

Smooth Cayenne Jam 7.58a 7.42b 7.68c 7.95f 8.32g 7.79h

Red Spanish Jam 7.52a 6.63b 6.58d 6.89e 7.47g i6.89

Imported pineapple

jam

6.95a 6.68b 7.95c 7.63e 7.47g hi7.10

Different letters in the same column indicate significant difference, p < 0.05

Mean sensory scores for jam formulated from local mango and imported mango jam is shown

in Table 4.12, which indicates jam formulated from local mango had scored similar sensory

score. Table 4.12 Mean sensory scores of mango jams

Overall

acceptability Product Color Aroma Taste Flavor Spreadability

Local

mango jam 7.05 7.15 8.00 7.84 7.58 7.47

Imported

mango jam

8.00 7.32 7.79 7.47 6.63 7.42

The hedonic rating is 9 (like extremely), 8 (like very much), 7 (like moderately), 6 (like

slightly),5 (neither like or dislike) , 4 (dislike slightly),3 (dislike moderately ),2 (dislike very

much) and 1(dislike extremely).

58

4.3.4 Pulp and Jam Yield of Pineapple and Mango The selected physical parameters to predict the process recovery of pineapple and mango

variety for jam processing are fruit weight, diameter, length and shape. Pineapple fruit can be

classified in three categories on weight basis: category A, defined by fruit more than 1.5 kg;

category B, fruit weighing between 1 and 1.5 kg; category C, fruit weighing less than 1 kg

(Infoagro, 2002). Smooth Cayenne fruit is characterized by cylindrical fruit shape and average

fruit weight of 2500 g (Coveca, 2002). The Red Spanish fruit has fruit weight range of 1200-

2000 g.

Physical determination of pineapple cultivars grown in Sidama zone is shown in Table 4.13.

Red Spanish cultivar is smaller in size than Smooth Cayenne. The average fruit weight for

Red Spanish cultivar (934.0 g) and Smooth Cayenne (1343.0 g) were found to be lower than

the reported ranges by Coveca (2002). However, similar results were found for the two

cultivars grown in Spain. The average fruit weight for the Red Spanish and Smooth Cayenne

were reported as 927.0g and 2060.0g respectively (Bartholomew et al., 1994). The large

standard deviation observed in fruit weight on both cultivars illustrates the variability of the

fruit weights.

Table 4.13 Physical parameters determination of pineapple cultivars grown in Sidama Zone

Cultivars

Parameters Red Spanish Smooth cayenne

Fruit weight (g)(without crown) 934.00 +116.7 1343.00 +369.2

Fruit length (cm) 11.60 +1.20 16.45 +1.90

Average fruit diameter(cm) 11.10 +1.20 13.01 +1.10

Length ratio 1.05 +0.03 1.26 +0.06

Taper ratio 0.90 +0.05 0.95 +0.01

Results are mean value of at least 15 fruits determinations

The process recovery of pineapple fruit is determined by the shape of the fruit. The ratio of

length of fruit to its average diameter, length ratio, and the ratio of fruit diameter at 3/4 and

1/4 the height of fruit, taper ratio, are good indicators of product recovery from fresh fruit. For

higher product recovery, the fruit shall be moderately big with nearly cylindrical shape and

59

good square shoulders. Pineapple showing a taper ratio of 1.0 + 0.05 and length ratio greater

than 1.50 has an excellent shaper for great product recovery during peeling and coring

(Leverington, 1971)

Owing to its elongated shape, it was found that the Smooth Cayenne cultivar has length ratio

(1.26) and taper ratio (0.95). This indicates the fruit has a good shape for greater recovery of

the fruit. However, it was found that the Red Spanish cultivar have length ratio of 1.05 which

is lower than the recommend value (1.50). Taper ratio for this cultivar is 0.90 which is lower

than the range for recommended recovery. These can be used as the indication of the fruit

shape which is getting narrow at the head. These two results give indication for lower product

recovery from both cultivars compared to the recommendation.

Ethiopian standard for fresh mangoes group the size of mangoes into three categories: 200-

350g, 351-550 g, 551-800 g for small, medium and large respectively. The minimum weight

of mangoes shall not be less than 200 g. The average weight of mango produced in

“Shebedino” area was found to be 324.5 g which could be classified as small size.

Product yield is one of the key indicators for feasibility of fruit processing. Yield specifies the

percentage of finished product as compared to raw material. Pulp yield and jam yield were

used to measure the amount of product recovered from fresh pineapple and mango.

Table 4.14 Pulp and jam yield of pineapple and mango at Sidama Zone

Pulp

composition

Cultivar Pulp yield

(%)

Jam yield

(g/kg Jam) %

Smooth Cayenne 450.0 60.0 95.5

Red Spanish 450.0 52.0 94.6

Local mango 450.0 63.0 95.5

The pulp yield represents the amount of pulp, used as jam ingredient that could be extracted

from fresh fruit. The pulp yield was determined by measuring the weight of pulp extracted

60

from fresh fruit after washing, peeling, removing the eyes, slicing and crushing the sliced fruit

in electrical homogenizer. The pulp yield from the Smooth Cayenne was found 60.0% which

is higher than the Red Spanish 52.0% (Table 4.14). This is mainly due to widely broad deep

eyes which are embedded in the fruit flesh. Removing the eyes to avoid the presence of black

spots in the jam result in loss of fruit pulp. The result indicates that Smooth Cayenne cultivar

has better yield from process economic point of view for jam making. The amount of fresh

fruit required to make a Kg of jam from Smooth Cayenne and Red Spanish cultivar is 750 g

and 865 g respectively. In other words, additional 115 g fresh fruit is required to produce 1 kg

jam from Red Spanish cultivar. The pulp yield from local mango was 63%. Jam yield

represents the percentage of final product that could be obtained from ingredient batch.

The weight of ingredient to product 1 kg of pineapple and mango jam is shown in Table 4.9.

It was found that 1056.5 g, 1070 g, 1047 g of total ingredient weight is required to produce

1Kg Jam from Smooth Cayenne, Red Spanish and Local Mango respectively. The loss in

weight is due to water lost by evaporation to concentrate the TSS to 68˚ Brix. The jam yield is

higher for Smooth Cayenne cultivar (95.5) than the Red Spanish (94.6). This is due to higher

TSS value for Smooth Cayenne cultivar.

4.3.5 Drying Characteristics of Pineapple slices The common practice for drying topical fruits is by using drying air with temperature ranges

between 50-600C (Candelaria & Raymundo, 1994). The rate at which pineapple dry at this

temperatures depend on, drying air temperature, humidity, air velocity and the thickness of

the slices. The final moisture content to terminate the drying process is determined by the

water activity (aw) required for inhibition of microbial, enzymatic and non-enzymatic

reactions taking place in the dried products. To inhibit this reactions the aw of the dried

pineapple should fall below 0.45. The moisture content (wb) that corresponds to this aw at

20oC is reported as 15% (Hossain et al., 2001).

During sun or solar drying, the attainable drying air temperatures which are usually lower than

500C. Consequently drying usually needs at least 20 hrs resulting in low drying capacity and

loss in product quality. The observed quality deficiencies of the dried fruits caused by long

61

term drying were mainly discoloration, such as browning, bleaching, cracked or scorched

products (Kameni et al., 2003). Insufficient drying limits the shelf life of the product due to

microbial spoilage. With industrial dryers, the higher moisture materials can be dried quickly

to a hygienic product.

A drying experiment was conducted using a laboratory convective dryer to determine the

influence of drying air temperature and slice thickness on drying time of pineapple slices.

During the experiment, the drying air velocity was set at 0.5 m/s and the relative humidity of

the air was 65+1%. The slices thickness of 4, 6 and 8 mm were uniformly spread in

rectangular stainless steel meshed tray.

The effect of slice thickness and drying air temperature on time taken to reach the final

moisture content is presented in Table 4.15. At higher temperatures, due to quick removal of

moisture the drying time was short. The slice thickness also affected the drying time at all

drying temperatures. Drying time was considerably prolonged for more than 11 hrs for 8 mm

slice at all drying air temperatures. Drying at higher temperature, 70°C reduced the required

drying time by 46.2 %, 33.3 % and 33.3 % for 4 mm, 6mm and 8 mm slice thickness

respectively.

Table 4.15 The effect of slice thickness and drying air temperature of drying time

of pineapple slices

Drying time of pineapple slices (hr) Drying temperature

4 mm 6 mm 8 mm °C

50 13 15 18

60 10 12 16

70 7 9 11

The drying curves Fig 4.5a to Fig. 4.5c shows that the moisture ratio decreases continuously

with drying time. Pineapple slices did not exhibit a constant rate period of drying. The entire

drying took place in falling rate period. Continuous decrease in moisture ratio indicates that

diffusion has governed the internal mass transfer.

62

0.00

0.20

0.40

0.60

0.80

1.00

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18Drying time , Hr

Moi

stur

e ra

tio

4 mm slice thickness 6 mm slice thickness 8 mm slice thickness

Fig. 4.5a Effect of slice thickness on drying time at drying air temperature of 50 °C

0.00

0.20

0.40

0.60

0.80

1.00

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16Drying time , Hr

Moi

stur

e r

atio

4 mm slice thickness 6 mm slice thickness 8 mm slice thickness

Fig. 4.5b Effect of slice thickness on drying time at drying air temperature of 60 °C

63

0.00

0.20

0.40

0.60

0.80

1.00

0 1 2 3 4 5 6 7 8 9 10 11 1

Drying time, Hr

Moi

stur

e ra

tio

2

4 mm slice thickness 6 mm slice thickness 8 mm slice thickness

Fig. 4.5c Effect of slice thickness on drying time at drying air temperature of 70 °C 4.3.6 Plant Capacity and Production Program

Plant Capacity

The annual production capacity of the plant is scheduled to be 33 tons. The production

capacity is based on projected demand and realistic market share that could be captured. The

production mix is planned to be 26 tons of pineapple and mango jam and 7 tons of dried

pineapple. Mango jam has a share of 106 tones (40.7 %) from total jam production. The

production commence on single shift and 260 working days a year. The production program

does not include Sundays and national and public holidays. It was also considered that the

plant would conduct annual maintenance on August when the supply for both pineapple and

mango is low.

64

Production Program

The processing plant produces pineapple products in 7 peak pineapple harvest months (Figure

4.4). Mango processing is from January to March and in September when pineapple is not

available. The annual production program for the year 2009-2015 is indicated in Table 4.16

below. The plant initially produce 80% of its annual rated capacity bound to initial operating

problems such as machine setup and marketing. The production capacity increase by 10% and

attain its full rated capacity by the third year of its commencement.

Table 4.16 Annual production program of the processing plant

Production Program

(tons)

Year

Jam Dried fruit

2009 20.8 5.6

2010 23.4 6.3

2011 26.0 7.0

2012 26.0 7.0

2013 26.0 7.0

2014 26.0 7.0

2015 26.0 7.0

4.3.7 Material and Energy Balance A. Material Balance

There are two stages involved in planning the amount of materials required to produce a given

food product. The first stage is to determine the amount of each ingredient needed to

formulate a product. The formulation for pineapple and mango jam is shown in section 4.3.3

above. The dried products are intended to be natural hence no ingredient was added.

The next stage is to determine the amount of losses that are expected in commercial

production. Nearly all fruit processing result in loss of material. These arise from peeling or

de-stoning, unsatisfactory fruits rejected during sorting, spillage during filling into packs and

from food stick on equipments and lost during washing. Peeling and de-stoning losses are

65

specific to the type of fruits being processed. The losses were determined from laboratory

trials for two pineapple cultivars and local mango. However, other losses depend greatly on

the degree and effectiveness of the quality assurance methods used to reduce the losses.

Therefore, they can not be determined from the experimental result. The estimates were made

from the reported data on material loss in well managed fruit and vegetable processing plants

(Table 4.17). Quality assurance systems to minimize these losses were developed and shown

in Section 4.5.1. Therefore the processing plant is considered to work on lower level of the

reported range.

Table 4.17 Process loss in a well managed fruit and vegetable processing plant

Stages in a process Typical loss (%)

Sorting 5-50

Slicing/dicing 5-10

Batch preparation 2-5

Boiling* 5-10

Filling and sealing 5-10

The loss does not include loss due to evaporation of water *

Source: Fellows, P. Midway Technolog.Ltd, UK, 1997

The main production system is splited into three categories: raw material preparation, jam

processing and drying for suitable handling of material balance calculations. The raw material

balance for the production of pineapple jam and dried pineapple from Smooth Cayenne

cultivar is presented. The material balance calculations are computed backward starting from

the daily production of final products. The results of material balance for mango jam is

summarized on Table 4.19.

1. Raw Material Preparation

This process stage involves sorting and grading, peeling, coring, slicing and pulping of the

fruit flesh. The amount of pineapple required to produce 100 kg of jam and 25 kg of dried

pineapple is 370 kg fresh fruit. The average weight of Smooth Cayenne pineapple fruit is 1.34

kg. Hence, 276 pieces of pineapple is handled in a day.

66

Sorting/Grading

Fruits intended for processing has to pass a serious of quality inspections. Any fruits that do

not meet the required standard are removed. The percentage of rejected depend on source and

quality of fruits. Hence, the maximum acceptable reject level should be standardized between

the processor and the fruit supplier. For this specific case 5% reject loss which is the lower

level of the reported range of in typical fruit and processing plant is considered (Table 4.17).

weight of initial fresh pineapple = 370 kg of fresh pineapple per day

weight of fruit reject = 0.05 x 370 Kg/day = 18.5 kg /day

weight of sorted pineapple = 370-18.5 = 351.5 kg /day

Peeling and Coring

Pineapple has to be peeled and cored if it is to be used for drying whereas for jam production

the core is not removed. In laboratory trials it was found that the peel and core of pineapple

accounts to 38% and 8% of the fresh fruit and peeled pineapple weight respectively. From the

sorted pineapple 82% of the peeled pineapple is used for drying operation. Therefore,

weight of pineapple peel = 0.38 x 351.5 = 133.6 kg /day

weight of peeled pineapple = 351.5 – 133.6 = 217.9 kg /day

weight of peeled pineapple used for drying = 0.82 x 217.9 = 178.7 kg /day

weight of peeled pineapple used for jam = 217.9 – 178.7 = 39.2 kg /day

weight of core = 0.08 x 178.8 = 14.3 kg /day

weight of peeled and cored pineapple = 178.7 – 14.3 = 164.4 kg /day

Slicing

Slicing of fruits produces certain pieces with defined thickness and shape which may not meet

the process requirements. The unfit slices should be removed because they result in non

uniform drying and inconsistent product quality. From Table 4.17 the slicing loss is estimated

as 5%. The weight of fruit directed to slicing operation is 164.4.

Weight of slicing loss = 0.05 x 164.4 = 8.2 kg /day

Weight of sliced pineapple: 164.4 – 8.2 = 156.2 kg /day

67

Pulping

The daily consumption of fruit pulp for production of 100 kg pineapple jam including process

losses is 50.4 kg as shown in Table 4.18. 39.2 kg of this quantity is obtained from fresh fruit

while the rest 11.2 kg is supplemented by slicing loss (8.2 kg) and core (3.0). The core and the

slicing loss are blended in 1:3.7 ratios to maintain the original composition of the fresh fruit.

2. Jam Processing

The next stages in jam production are ingredients formulation, boiling, filling, sealing and

packaging.

Batch formulation

As it was shown in Section 4.3.3 105.6 kg of raw materials and ingredients are required to

formulate pineapple jam from Smooth Cayenne cultivar. 2 % material loss during batch

preparation, 5 % during boiling and 5 % during filing and sealing was estimated from Table

4.17. The total amount of these losses is 12%. Therefore the total amount of raw materials

required for production of 100 kg pineapple jam including the process losses is computed as

weight of batch ingredient including process loss =105.6 / (1- 0.12) =120.0 kg /day

material loss in batch preparation = 0.02 x 120.0= 2.4 kg /day

weight of boiling batch ingredient: 120.0 - 2.4 = 117.6 kg /day

A batch of jam should be boiled within approximately 20 minutes to maintain the quality of

product. Therefore two batches can be prepared in one hour. The time allocated to boil 117.6

kg batch ingredients mixture is 4 hours as it is shown in activity chart (Figure 4.11).

The weight of raw material and ingredients to be handled per batch:

hrbatchdayhrdaykg

/2/4/6.117

Χ =

= 14.7 kg /batch

Table 4.18 shows the composition of the batch and weight of raw materials and ingredients

required for daily production of 100 kg of jam including the process losses.

68

Table 4.18 Daily consumption of raw materials and ingredients

Ingredient Unit Input per batch Daily consumption Fruit pulp kg 6.26 50.08

Sugar kg 8.30 66.4 Citric acid g 62.61 500.9

Pectin g 69.57 556.6 Total kg 14.70 117.6

Boiling

The jam yield from smooth cayenne pineapple was 95.5 % as it was shown in section 4.34.

The weight of batch ingredients before boiling is 117.6 kg. The material loss during boiling is

estimated as 5% from Table 4.17.

weight of jam = 0.955 x 117.6 = 112.3 kg /day

weight of lost jam = 0.05 x 112.3 = 5.6 kg /day

weight of jam transferred to next stage=112.3 – 5.6= 106.7 kg /day

Filling and Sealing

The material loss at this stage is due to spillage and material sticking to filling equipment and

lost during washing. Material loss was estimated as 6 % during jam filling and sealing.

Weight of material loss = 0.06 X 106.7 = 6.7 kg /day

Weight of filled and sealed jam =106.7-6.7 = 100 kg /day

Labeling and Packaging

The jam is packed in 450 g net weight in glass jars and placed in cardboard box which can

hold 24 jars. The label is placed both on consumer pack and cardboard box.

Quantity of jars to pack daily production = 100 kg /0.45 kg per unit = 222 unit /day

Cardboard boxes to pack daily production: 100 kg /10.8 kg per unit = 9.25 unit/day.

Similarly, 222 labels for glass jars and 9 labels on outer package are required per day.

69

3. Drying of pineapple slice

Material balance around a dryer with 86% wb input moisture content of slice pineapple and

final moisture content of dried pineapple slices 15% wb yields a product recovery of 16.8%

from sliced pineapple.

Weight of sliced pineapple = 156.2 kg /day

Weight of dried pineapple = 0.168 x 156.2 = 26.3 kg /day

Filling and sealing

The drying process resulted in some poor quality products that could not be sold or

reprocessed. The process loss at this stage is estimated as 5% from Table 4.17.

Weight of material loss = 0.05 x 26.3 = 1.3 kg /day

Weight of sealed dried pineapple: 26.3 -1.3 = 25.0 kg /day

Labeling and packaging

The dried pineapple slices are packed in 250g polypropylene plastic bags and placed in 5 kg

cardboard boxes.

Quantity of polypropylene bag = 25 kg / 0.25 kg per unit = 100 units/day

Cardboard boxes = 25 kg per day / 5 kg per unit = 5 units/day

B. Energy Balance

The energy balance has been made to estimate the energy required for drying pineapple and

jam boiling.

1. Energy for drying pineapple slices

To determine the amount of fuel required for drying the amount of moisture that should be

removed from pineapple slices should be determined first. For inhibition of enzymatic and

non-enzymatic reactions the water activity of the dried pineapple should fall below 0.45.

The amount of moisture that should be removed form sliced fruit ( ) is computed as

follows

wM

f

fipwM

MMMM−

−=100

)( (1)

Where is the weight of dried pineapple, kg, is initial moisture content of sliced

pineapple (%wb) and is final moisture content of dried pineapple (% w

pM iM

fM ). b

70

From material balance =156.2 kg /day. Substituting the value into (Eq.1) pM

15100)1586(2.156

−−=wM

wM = 130.5 kg /day

The quantity of heat required to evaporate this quantity of water is determined from

(2) fghMwQ ×= Where Q is the amount of energy required for the drying process, kJ/day

is latent heat of evaporation, kJ / kg water fgh

The latent heat of evaporation was calculated using equation given by Youcuf-Ali et.al (2001)

as follows

( )( )prfg Th 56.059710186.4 3 −×= (3)

Where

prT is the temperature of the product, °C

The product temperature is considered to exit at the dry bulb temperature of 50 °C, Hence

( )( )5056.059710186.4 3 −×=fgh

= 2.38 kJ / kg water fgh

Hence, the amount of heat required to evaporated 130.5 kg water is

Q= 130.5 X 2.38 kJ / kg

= 310.6 mJ/day

Typical convective dryers account for about 85% of all industrial dryers (Mujumdar and Beke,

2003). The Overall thermal efficiency (Q’) of fuel fired tray dryers is between 30 and 40 %

(Earl, 1983). An average thermal efficiency is 35%. Therefore amount of heat required for

drying pineapple slice is

= 887.4 mJ/day η/' QQ =

71

2. Energy for Jam Boiling

The heat energy required for boiling of jam is determined from energy balance equations.

Figure 4.6 illustrated the heat inflow and outflow in jam boiling pan. From energy balance

computation it was found that 43.5 mJ of energy is required to product 100 kg jam from

pineapple and mango.

FF CTF ,,

P, Tp, Cp

Q

vHV ,

Fig 4.6 Heat inflow and outflow in jam boiling pan

Energy balance equation for jam boiling

( ) ( ) ( )refvrefppTTfeedp hHVTTPCQFCreff

−+−=+−, (4) Where F is quantity of batch mixture fed into boiling pan, kg /day

V is the quantity of evaporated water, kg /day

P is the quantity of jam, kg /day

Q is quantity of heat supplied to the boiling pan

CF and C are specific heat capacity of the feed and the final product respectively, P

KJ/ kg °C

TF and TP temperature of the feed and jam respectively, °C

is the reference temperature, °C Tref

Hv is enthalpy of the vapor at product temperature, KJ/ kg

href is enthalpy of the liquid water at reference temperature, KJ/ kg

Taking the reference temperature to be that of the feed temperature (eq.4) becomes,

( ) ( )refvrefpp hHVTTPCQ −+−= (5)

72

From material balance P =112.3 kg, V=5.3 kg /day. The processing plant is recommended to

be located at Awassa where the altitude is 1,700 m above seal level. Jam boils at 98.8°C at

1700 m above sea level (Elizabeth & Judy, 2006). TF =25 °C (ambient temperature). From

= 100.7 KJ/ kg. Csteam table Hv = 2672.1 KJ/ kg and href P =3.6 KJ/ kg °C. By Substituting

these values in to (eq. 5) the quantity of heat required for boiling 117.6 kg pineapple jam was

calculated as Q = 43.5 MJ. The summary of technical ratio associated with production of

pineapple jam, dried pineapple and mango jam computed in material balance calculations are

summarized in Table 4.19.

Table 4.19 Summary of technical ratios associated with the products

Category Parameter Technical ratio

kg Pineapple / kg dried pineapple 10.9

kg Pineapple / kg jam 0.97 Raw materials

kg mango / kg jam 0.81

kg sugar / kg pineapple jam 0.67

kg sugar / kg mango jam 0.64

g citric acid / kg pineapple jam 5.04 Ingredients

g citric acid / kg mango jam 9.50

g pectin / kg pineapple jam 5.60

g pectin / kg mango jam 5.00

Jam jar (450unit)/ kg jam 2.22

Cardboard box (10.8 kg unit) / kg jam 0.09 Packaging

Polypropylene bag/ kg dried pineapple 4.00 Materials

Cardboard box(25 kg unit)/ kg dried pineapple 0.20

Unit label / kg jam 2.22

Label Unit label / kg dried pineapple 0.20

73

4.3.8 Processing Technology The selection of processing technology was made on the basis of various factors. The first

factor was the consistency of the processing technology that ensures quality requirement of

the market place. The production of good quality products is essential to compete effectively

in the market place. Locally produced jam may faces strong competition from imported jams

which has already got consumers acceptance. Dried pineapple is intended for export market

hence the processing technology should meet the importers requirement. The second factor

was the technology compatibility for small scale processing of fruits. Small scale food

processing requires reliable, affordable, locally produced and locally repaired technology of

suitable size for the production and people who operate it (Fellows, 2002). The third factor

was the effect of the processing technology on the quality and quantity of the products

nutrients has been considered.

Description of the selected processing technology for jam production and drying are classified

into three major stages: raw material inspection, raw material preparation and processing.

Process flow diagrams for the manufacturing of jam and dried products are shown in Figure

4.7 and Figure 4.8 respectively.

Raw Material Inspection Pineapple and mango fruits harvested at optimal maturity stage will be collected from

contracted farms. The fruits are filled into wooden crates and transported to the processing

plant. The fruits are temporarily stored in the raw material storage area. The fruits are then

weighed in ground scale and inspected for maturity, color, size, presence of mold and foreign

matter. Fruits that do not meet the quality standards are removed to a disposal site. The fruits

are then filled in plastic crates and transferred into the raw material preparation stage. Each

batch of raw material received is recorded in an incoming material test book noting the

number of batch, the supplier and quality observations.

74

Raw Material Preparation

Four basic steps are involved in preparation of fruits for jam production and drying: These are

washing, peeling/coring/de-stoning, slicing and pulping. The fruits washing process includes

pre-cleaning, sanitization and rinsing stages. For raw material cleaning 2.5 liters of water is

required for each kg of fruit (Carlos et al, 2005). The first hygienic process is simple water

washing, in which the dirt is removed only through the physical contact between the water and

the fruit. For sanitization 50 % of the total water for hygiene is required. The recommended

chlorine concentration is 5 ppm (Medina, 1987). The rinsing is performed using potable water

to remove the residual chlorine.

The next processes are peeling, coring and destoning of the fruits. Pineapple should be peeled

and cored if it is to be dried however the core would not be removed for jam production. The

core removed during preparation of pineapple for drying is utilized in jam making. Peeling of

pineapple is a very tedious task. Hand operated pineapple peeling and coring machine is

applied .Peeling of mango is done by hand kg with sharp stainless steel knives. Mechanical

peelers for ripe mango are available at higher capacity which is more than 400 kg /hr. They

are also expensive to for small scale processing. The multi purpose fruit slicer slices the

peeled mango and pineapple into uniform thickness. The slicer also helps to reduce the size of

the fruits to the level that could be handled by the fruit pulper. The fruit pulper liquidizes the

sliced mango and pineapple.

Processing

1. Jam processing

The next stages in jam production are formulation of batch ingredients, boiling, filling, sealing

and cooling. Formulation of ingredients is one of the most important stages in jam processing.

There must be the correct proportion of sugar, acid and pectin in order to obtain a good gel.

The quality controller should adjust the batch recipe according to the physico-chemical

parameters of the fruits received. The change in batch formulation should be communicated to

the batch preparation staff in written form. The batch ingredients are weighed in the quantity

specified in the recipe using table scale with measurement range up to 2 kg in division of 1g.

75

The pH of fruit pulp should be adjusted by adding citric acid until the pH reaches 3.2 by

measuring it with pH paper. Boiling is one of the most important steps in jam making. Its

principal purpose is to increase the concentration of sugar to the point where gelling will

occur. Pectin is added by vigorously stirring while slowly adding the pectin to a heated but not

boiling fruit pulp. A temperature of 76°C to 82°C is preferable for pectin addition, because at

the boiling point sugar dissolves more rapidly than pectin and the pectin may form lumps

which are nearly impossible to dissolve. After the pectin is dissolved temperature is raised to

the boiling point. The boiling is continued until the product reaches 68 ° Brix. The end point is

determined by reading the total soluble solid content with hand refractometer. The

refractometer determines the sugar content by the angle that the solution refracts or bends

light. The procedure is fast and simple. A drop of the liquid is placed on the instrument and

the operator peers into the refractometer while aiming it towards a light source and reads the

percent TSS. Based on this result decision can be made weather to package or to cook the jam

further. The jam should be boiled for not more than 15 minuets because of the resultant loss of

flavor and color of the product.

When the end point reached the jam should be filled into jars, which have been cleaned and

sterilized. New jars and bottles should be cleaned by potable water with bottle brush then

rinsed thoroughly. Second hand bottles must be thoroughly inspected for contamination. They

should be soaked in 1% solution of caustic soda and detergent to remove old labels. All

contaminated jars should be removed and not used for package.

Sterilization of jars and lid is carried out by placing them in a large pan of boiling water for

10-15 minutes. The jars should be hot so that they do not crack due to thermal shocks during

filling. The jam is filled to at least 90 percent full to help a vacuum to form in the space above

the product as it cools. The lids should be loosely placed on the containers immediately

following filling, then tightened firmly with in two or three minutes. This allows time for

exhausting of air from the head space. The steam in the head space condenses when the jam

cools creating a vacuum seal on the jar. The jars are then placed in bottle cooler where cooling

water flow in opposite direction to containers. This helps to cool down the jam to 45°C so that

it does not keep cooking in the jar. The water level in the cooler should be kept below the lids

76

of the jars to prevent possible re-contamination of product. Labeling is carried out by rolling

the jars along the guide rail mounted on labeling table over glued stack of label and pressing

into rubber mat. Starch based glues are used to stick the labels into the surface of jars. Finally

the jars are inserted into cardboard boxes and transferred to the storage room.

2. Drying

The fruits sliced according to buyer’s specification at raw material preparation stage are

loaded on trays immediately after they have being sliced. The trays should be cleaned to

remove any old fruit pieces prior to loading the sliced fruits. The trays should be fully loaded

by placing slices close together on the tray however overlapping of slices should be avoided.

After the sliced fruits have been dried to the required moisture level they are unloaded from

the dyer. Under dried or darken pieces of slices are removed. The dried pineapple is filled into

250 g biaxially oriented polypropylene bags and sealed in manual heat sealers. The machine

melts and press polypropylene plastics forming 3-5 mm wide seal. The packed products are

then filled in cardboard boxes and transferred to storage.

77

Receiving fresh pineapple or mango Sorting and grading

Cleaning

Animal Feed or Biogas

Peeling/destoning

Pulping

Batch formulation

Boiling ( 68° Brix & 15-20 min)

Filling &Sealing

Cooling 45 °C

Labeling

Storage ( 10-21 °C )

Sterilization

Inspection & cleaning

Receiving glass jars

Peel & stone

Batch Ingredients

Inspection

78

Figure 4.7 Process flow diagrams for jam production Receiving fresh Pineapple Sorting & grading

Cleaning/washers

Animal feed or biogas

Figure 4.8 Process flow diagrams for pineapple slices drying

Peel & core Peeling/ decoring

Slicing (4 - 6 mm)

Drying (60- 70°C)

Filling & Sealing

Labeling

Storage

79

4.3.9 Machinery and Equipments The specification and description for equipments and machineries of processing plant is

discussed in this section. To estimate the throughput of the machineries and equipments first,

the weight of material that is handled at each stage of processing should be determined. This

task has partially been covered in material balance (section 4.3.7). Capacity, material of

construction and maintenance requirements are included in equipment and machinery

specification. All fruit contact surface should be smooth, non-toxic, unaffected by food

products, and capable of withstanding repeated exposure to normal cleaning.

Description of Plant Equipments and Machineries

Specification of plant equipments and machineries for the processing plant is shown in Table

4.20 and Table 4.21. Detail description of major equipments and machineries is discussed

below.

Pineapple Peeler/corer

A hand operated pineapple peeler and corer consists of two sharpened stainless steel cutting

cylinders which peels and removes the core from pineapple. The manually topped and tailed

pineapple is placed on the support table and when the larger cylinder brought down it cuts off

the outer skin. The smaller cutter is then used to remove the core. Cutting cylinders of three

different sizes help to handle the variation in pineapple fruit size.

Pulper

The contact parts of the pulper to fruit are made of stainless steel. It is powered by 1 HP single

phase motor. It can process about 60 -70 kg per hour. Its easy operations and maintenance

requires no skilled labor to operate. It can be easily dismantled for cleaning after operation

and quickly re-assembled.

Boiling pan

There are two types of boiling pan commonly employed for jam making : a simple stainless

steel boiling pan which is placed directly over a heat source and double jacketed stainless steel

boiling pan. The latter is selected because of higher quality jam it produces. Steam is produced

80

in the space between the outer jacket and inner pan to get more uniform heating and avoid

localized burning of the product.

The equipment should be fabricated from stainless steel because it is resistant to the action of

fruit pulp. Furthermore it provides smoothness, cleanability and corrosion prevention. The

corrosion resistant of stainless steel is attributed to the formation of surface film on the metal

surface when exposed to air. Iron or steel are liable to darken fruit pulp by the solution of

small amount of iron, which reacts with pulp tannins and colors to produce a black or dark

brown color. Copper and tin are objectionable because even small concentration of their salts

adversely affect the flavor and color of pulp and catalyze undesirable changes. Galvanized,

zinc coated, vessels should never be used for fruit pulp because toxic levels of zinc can be

dissolved in the pulp (Smith, 2006).

Bottle washer

The time consuming part of manual bottle washing is rinsing out the detergent. Bottle

washers are used to reduce this time. They are made by soldering vertical pipes on to a larger

base pipe and connecting the base pipe to a water supply. The jars are inverted over vertical

pipes and rinsed free of detergents. No spare parts are required and there is no maintenance

requirement.

Jars and lids are sterilized in boiling water in large aluminum pan. The bottles are boiled for

10 minutes and removed for immediate hot filling and sealing. The quantity of jars required to

package a batch of jam, 12.5 kg, is 28 jars. The sterilization could be done on two 10 liter

aluminum pans or one large aluminum pan 20 liter capacity.

Jam Fillers

At small scale viscous products like jam jelly and marmalade are filled by hand using funnels

and jugs calibrated for the correct volume. This is time consuming operation, which requires a

large labor input. Mechanical fillers are expensive and usually operate at higher production

throughput (more than 1000 packs per day. Jam filler selected for the project is small gravity

filler made from stainless steel bucket and valve fixed at the bottom. A gave valve is

recommended because of the easiness for cleaning. The tank should be cleaned after use by

washing thoroughly with detergent and rinsing with clean water.

81

Bottle cooler

The filled jars should cool down to room temperature so that the jam does not keep cooking in

the jar. Leaving the jam to cool by atmospheric air is very slow process because air is poor

conductor of heat. Inclined water bath is used to increase the rate at which the glass cools. The

water level should be kept below the lid of the jars. The cooling water flows in the opposite

direction. No spare parts are required and no maintenance, except periodic emptying and

cleaning to prevent a building of micro-organisms in the cooling water.

Dryer

The selection of fruit dryer is governed by the required throughput, the level of investment,

the ability to meet product quality requirements and the type of heat source available. From

material balance computations the daily throughput of the dryer was estimated as 156.2 kg.

The potential small scale drying equipments of this capacity are solar tunnel dryer and tray

dryer. The prone and cons of the two dryers is analyzed.

a) Solar tunnel dryer

Among the solar dryer solar tunnel dryer are popular due to larger throughput (150-250 kg per

batch), considerable reduction of drying time and significant improvement of product quality

(Chou, et al., 1997). Solar tunnel dryers capable of handling 150 kg per batch are available at

cost of Euro 5,326 (ITDG, 2004). The operational cost of solar tunnel dryer in terms of energy

is Zero. The main limitation of these dryers are they are dependent on weather condition and

extended drying periods which often lead to quality problems such as browning and

scorching.

b) Fuel fired dryers

Fuel fired dryers provides a better control of the product quality and shorter drying time is

achieved. The main limitations of these dryers are high investment cost and operating costs.

The investment cost is considerable reduced if the dryers are to be manufactured locally from

locally available materials. Intermediate Technology Development Group (ITDG) a British

based NGO has developed and disseminate small scale fuel fired tray dryers.

82

83

The dryers have been successful in more than 100 countries. These dryers could be

constructed at low cost (Axtel and Russell, 2000). The operating costs could be reduced if low

cost energy sources are used. For heat supply there are two options. These are biomass and

biogas. There have been studies on utilization of fruits and vegetable waste as efficient use for

methane generation (Nand, et al., 1990). Pineapple peel has been found to be promising waste

resource for biogas generation. Mango peel can also be used for biogas generation by

anaerobic digestion. The result of biogas pilot plant studies have shown that mango peel can

yield a biogas rate as high as 0.6 m3/ kg volatile solids and 52% methane (Krishnananad,

1994).The above two options are very promising energy source for pineapple drying however

further study need to be conducted to verify the viability of these options. Liquefied Petroleum

Gas (LPG) is another option but the operating cost is usually high. This gas has been taken as

energy source because for the drying of pineapple slices.

The selected dryer is fuel fired tray dryer, it consist of a drying chamber, combustion

chamber, heat exchanging unit and a centrifugal fan to draw ambient air through the heat

exchanger into the drying chamber. The combustion chamber is made of bricks enclosed in

galvanized sheet metal. The heat exchanger system consists of boiler tubes arranged in a

rectangular array. An air distribution system in the drying chamber helps the distribution of

heated air and profiles uniform temperature at all location of the drying chamber. The heat

required for drying is supplied by combustion of LPG. The temperature of air at the entrance

of the drying chamber is monitored by the thermocouple.

Equipment Supply and Maintenance Service

Most equipments and machineries required for the processing plant are available at local

market with reasonable price and special equipments like peeler/corer, slicer, and pulper could

be manufactured by local workshops. These fabricators could help in maintenance and supply

of spare parts; moreover their cost would be generally lower than imported ones. Dryer, hand

held refractometer and bag sealing machine, however, have to be imported. Since the

manufacturing of agro-industry machineries and equipments is not well developed in Ethiopia,

research centers and universities working on food technology should give support to develop

and test prototypes that meet the needs of both workshop and food processors.

Table 4.20 Specification and cost of equipments & machineries for raw material preparation

Processing stage

Unit Material handled

Process time per

day

No of workers

Equipment Specification Quantity Total cost

Per day Birr ( hr )

Ground scale measurement range 0-50

kg and tolerance

Weighing /sorting/grading

Pcs 275 1.0 4 +

100 g 1 2,400.00 enamel coated wooden sorting table (1.80 m x1.20 m x 0.8 m )

1 350.00

wooden crates 0.05 m3 volume 5 1250.00

Cleaning Pcs 261 1.0 4 25 liter polyethylene washing tank 2 80.00 Water storage tank 1500 liter 2 2,800.00

Plastic crates 5 125.00

Peeling /coring Pcs 261 2.20 2 Manual pineapple peeler and corer capacity of peeling and coring 2 fruits

per minutes

1 8,100.00

Multi fruit slicer capable of slicing

mango and pineapple , capacity = 75 kg/hr

Slicing kg 218 2.90 1 1 21,650.00

Stainless steel multi fruit pulper with

capacity 24 kg/hr 1 8,640.00

Pulp extraction kg 48 2.0 1 20 liter Plastic buckers 2 40.00

84

85

Table 4.21 Specification and cost of equipments and machineries for jam making and drying

Processing Stage

Unit

Material handled Per day

Process

time ( hr )

No of workers

Equipment specification

Quantity

Total cost

(Birr)

Ingredient

weighing/Blending

Kg

119 2.0

1

Table scale measurement range of 0-

2Kg and tolerance + 1g

2

350.00

Boiling

Kg

116

4.0

1

15 liter Stainless steel boiling pan Hand held refractometer 0-90 °Brix Double gas stove with cylinder

3 1 1

1,780.00 1,800.00 1,450.00

Jam cooling

Pcs

222

4.0

2

Bottle cooler capacity of cooling 28

jars per 30 minute

1

250.00

Bottle cleaning

/sterilization

Pcs

222

3.3

2

15 liter aluminum boiling pan

20 liter plastic buckets

2 3

110.00

75.00

Filling and sealing

Pcs

222

1.3

1

10 liter Stainless steel vessel equipped with gate valve at the bottom Table scale measurement range of 0-2 kg tolerance + 1 g

1 1

175.00

Labeling/packaging

Pcs

222

2.0

1

Enamel coated wood table (1.8 m x 1.2

m x 0.80 m)

1

350.00

Dryer

Kg

155

10

2

Fuel fired tray dryer with drying capacity 155 kg / batch

1

75,000.00

Bag sealer

Pcs

100

2

2

Manually operated heat sealer with capacity 50 packs /hr

1

810.00

4.3.10 Production Facilities and Services When considering setting up of fruit and vegetable processing plant, the infrastructure

required to lodge all machinery and equipments is often given priority. The infrastructure for

food processing should meet basic industrial health and hygienic practices. Details studies

have to be conducted on location of the processing plant, plant layout, construction of the

buildings provide basic services and installations.

Plant layout

Plant layout is the plan of optimum arrangement of an industrial facility. It embraces the

physical arrangement of various departments, machines, equipments and services for

economical, efficient and effective functioning while planning the production of any goods.

The food processing plant layout has been developed taking into consideration international

and national code of hygienic practices. Recommended international hygienic practices for

dried fruit processing plant construction, layout and sanitary facilities were covered in Codex

code of hygienic practice for dried fruits Codex Alimentarius (1969).

The processing plant layout is shown in Figure 4.9. In setting up the plant layout the

following points were considered. Machineries and equipments are arranged in a continuous

line without a path crossing to step up efficiency and avoid cross contamination. The ‘dirty’

area where the raw material is washed, peeled and cored is separated physically from the clean

area where pulp extraction, slicing, boiling and packaging is carried out. This layout reduces

the risk of contaminating semi processed and finished products by incoming raw materials. A

separate building is arranged for storage of ingredients, final products and packaging

materials. Sanitary facilities were provided in plant layout for preserving health and sanitary

standards. The sanitary facilities are located in separate area from the area where the raw

materials are received and processed to prevent possible contamination. Hand washing basin

is also provided at entrance to the toilets.

Special emphasis is taken in locating a dryer and bottle washing facility. A dryer is placed

outside the processing room in open shade because the processing room is humid area which

84

requires a great amount of heat to dry the air. Bottle washing is placed outside the processing

room to avoid the risk of glass splinters mixed with the final product.

Building Design

During construction of the building of the processing plant the following aspects should be

addressed. The processing room contains a considerable heat that evolves from jam boiling.

Therefore the roof should be over hanged and roof vents should be included to allow heat and

steam to escape and crate a flow of fresh air through the processing room. The vent must be

screened with mesh to keep insects and birds out of the room. A paneled ceiling should be

fitted in the processing and storage rooms to prevent dust accumulation and contaminate

products. There should be no holes in the paneling, in the roof and where the roof joins the

walls to inhibit access to birds’ rodents and insects. Floors should be made of good quality

concrete, without holes or cracks. The floor should be curved up to meet the wall to prevent

dirt collecting in corners. The floor should slope to a drainage channel, fitted with metal

grating that are easily removed for cleaning. A wire mesh should be fitted over the drain to

prevent rats and crawling insects from entering the room.

All interior walls should be plastered or rendered with concrete. They should have no cracks

that could harbor dirt or insects. The lower parts of the walls are most likely to get dirty and

they should be tiled or painted with white gloss water proof paint at least one and half meter

above the floor. Higher parts of walls can be painted with emulsion paints. All windows

should be screened with mosquito mesh to prevent access for flying insects. The windows

should also be made to slope so that they do not accumulate dust. Processing room doors

should be fitted with thin metal chains or strips of plastics hanged from door lintels. Store

room doors should not have gaps beneath them and should be kept closed to prevent insects

and rodents.

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27 26 25 24 23 22 21

Figure 4.9 Processing plant Layout 1. Reception & weighing 16. packaging dried fruit 2. Cold room 17. bottle cleaning and rinsing 3. Fruit sorting & washing 18. Ingredients storage 4. Peeling/coring/destoning 19. packaging materials storage 5. Pulp extraction 20. Final products storage 6. Batch preparation 21. Cafeteria 7. Jam boiling 22. Office 8. Jam filling and sealing 23. Quality control office 9. Jam cooling 24. Women rest room 10. Labeling and packaging 25. Women shower room 11. Fruit slicing 26. Men rest room 12. Tray loading 27. Men shower room 13. Drying 28. Waste treatment 14. Unloading the dried fruit 29. Water tanker 15. Filling and sealing dried fruit

4 3

5

6

7

8

9

10

11

12

14

15

16

1

20 19 18 28

13

17

29

2

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Total Land and Building Area

The required area (m2) and construction cost for the production facilities essential for the

successful operation of the processing plant is shown in Table 4.22. A total area required for

the processing plant is 250 m2 out of which 108 m2 is to be covered by buildings while a

covered are of 96 m2 is left open for parking, storage of waste material and future expansion.

The cost of construction of a building should be appropriate to the size and expected

profitability of the business. Cost of building generally differs by the type of construction

material used, the type of foundation, wall height and location. The current building cost in

Addis Ababa is 900-1200 Birr/ m2 for simple storage building and 1900-2300 Birr/ m2 for

residential G+1 building (Ethiopian Investment Authority (EIA), 2006). A construction cost of

1,500 Birr/m2 for the processing room and 1000 Birr/ m2 for other facilities is considered

taking into account the location and scale of the processing plant.

Table 4.22 Area (m2) and construction cost (Birr) for the processing plant facilities

Description Area (m2) Unit construction

cost (Birr/m

Total cost (Birr) 2)

Processing room 40 1,500 60,000.00

Cold room 12 1667 20,000.00 1Dehydration area 12 500 6,000.00

Storage 20 1,000 20,000.00

Office 12 1,000 12,000.00

Quality control room 6 1,000 6,000.00

Toilet and shower 12 1,000 12,000.00

Cafeteria 6 1,000 6,000.00

Total construction cost 108 - 142,000.00

Land rent 250 0.75 1875.00 1 Total land and construction cost 143,875.00

1 The dehydration area is only a shade and 500 Birr/ m2 construction cost is assumed.

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In Ethiopia, land is public property. Both urban and rural land is available for investment on

leasehold basis with renewable period. The rental value and the lease period of rural land are

determined and fixed by land use regulation of each regional state. The cost of rural land in

SNNPR, where the processing plant would be located, is 30 Birr/hectare/year to 117

Birr/hectare per year. The average value of 75 Birr/ ha per year is considered for the lease

period of 10 years (EIA, 2006).

Basic services Three basic services are required for the operation of the processing plant: potable water,

electric power and energy source. Industrial good manufacturing practices and daily

consumptions of basic services are analyzed in this section. The detail description is given as

follows.

Water Consumption

Potable water is essential in all fruit processing plants. It is used as ingredients, for washing

down equipments and machineries, maintaining workers hygiene, as cooling and heating

medium and for fire fighting. An adequate supply of potable water shall be available from taps

in the processing room. Potable water is drinking water that is wholesome, clean and safe to

drink. It is free from any microorganism, parasite and any substance that in number and

concentration constitutes a potential danger to human health. Ethiopian standard ES 261:2001

specifies physical, chemical and microbiological specification for the potable water. The total

daily water consumption for the processing plant was determined on the basis of water

required for cleaning of raw materials and sanitization of processing plant and workers.

Additional 10% of total usage is included as safety factor.

1. Water consumption for raw material cleaning

Pineapple cleaning requires 2.5 L of water per kg of pineapple washed (Carlos et al., 2005).

From material balance it was found that 352 kg of pineapple is washed daily. Therefore, the

daily water consumption for raw material cleaning = 352 kg/day x 2.5 L/kg = 880 L/day.

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2. Water consumption for processing plant hygiene

Equipment and workplace should be thoroughly cleaned after each day’s production, using a

cleaning routine. For cleaning of plant equipments, machineries and work place it was

considered 500 liter per day. About 50 % of it is needed for washing, 20 % for sanitization

and 30 % for rinsing without the use of chlorine. The recommended chlorine concentration for

sanitization is 200 ppm (Andrade, 1996). Therefore, the sanitizer consumption is determined

as:

Active chlorine quantity = 0.2 x 500 L/day x 200/1,000,000kg/l = 0.02 kg/day

In apart from this, 2 L water is considered to be consumed per bottle for bottle cleaning,

sterilization and jam cooling. From material balance it was found that 222 jars are required to

package daily production. Hence, additional 444 L of water is consumed per day. Therefore,

the total quantity of water consumption for processing plant hygiene is 944 L per day.

3. Water consumption for workers hygiene

There is a minimum recommended water volume per day per person for sanitary purpose and

comfort condition in workplace. In Ethiopia there is no such regulation laid until now. For

similarities in level of development Brazilian experience was taken. Brazilian labor ministry

regulations laid 60L/ day per person water as minimum water volume for sanitary purpose and

comfort condition in workplace (Carlos et al., 2005). The number of direct labor in the

processing plant is 10. Therefore the consumption is computed as follows

Daily water requirement = 10 persons x 60 L/ day per person = 600 Liters

Hence total water requirement per day including 10% safety margin = 1.1(880 + 944 + 600)

= 2, 424 L /day

From this total water 444 liters is utilized purely for jam production. The remaining 1980 L

could be apportioned to the two products based on the ratio of fresh pineapple handled to

produce the final products. From material balance it was found that 82% of the total fresh

pineapple is used for pineapple drying. Hence, the daily water consumption for pineapple

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drying and jam production would be 64.94 liters per Kg and 8.00L per kg of final products

respectively. To ensure the supply of water on continuous basis two polyethylene plastic tanks

with the total capacity enough for one day production would be installed. The tanks would

have slopping base and be fitted with drain valves at the lowest point to periodically flush out

any sediment that has accumulated.

Electricity Consumption

Electrical power required to run plant machineries, for illumination and additional 10% of the

total consumption to account for miscellaneous consumptions was included in computing total

daily electricity consumption of the processing plant.

1. Electricity consumption for machinery

The daily electrical power required for running plant machineries is calculated based on

supplier’s data sheet for machinery power load (Table 4.23). The running hours are taken

from activity chart Figure 4.11.

Table 4.23 Daily electrical power consumption for plant machineries

Running time Electrical power

consumption (KWh) Equipment Power (KW) (hr)

Pulper 0.75 2.0 1.5

Slicer 1.8 2.9 5.3

Dryer fan 1.5 18.0 27.0

Heat sealer 0.1 2.0 0.2

Daily electricity consumption for machineries 34.0

2. Electricity required for illumination Electricity provides illumination of workplace in food processing plants. The efficiency of

workers in the processing plant will be dependent on availability of proper lightning.

Calculations for the Electricity required for illumination are based on the lumens method

(Filho, 2002). It was recommended that illumination intensity of 500 lux is required for raw

material reception, preparation, processing and packaging areas. In these areas ceilings and

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walls will be painted with light colors but the floor would be constructed from dark material.

Wide lamps are used in continuous lines. Based on this consideration it was established the

light ratio /m2 which is 0.18 KWh/ day m2 is required for this areas (Filho, 2002). The total

area for the processing room is 40 m2. Hence daily electricity consumption due to illumination

of processing area is computed as:

Electricity consumption in processing area (E1) =0.18 KWh/day m2 * 40m2

E1 = 7.2 KWh/day

For the storage areas, ingredient, packaging materials and final products, it was considered the

need for 3 incandescent lamps 60W each. Hence the daily electricity consumption (E2) for

one operational hour (E2) is computed as

E2 = 3 X 0.06KW X 1Hr/day = 0.18KWh/day

The managing area includes two toilets restaurant, office and quality control room. It was

considered the need for 5 incandescent lamps 60W each. Therefore daily electricity

consumption (E3) for one operational hour in toilets and 6 operational hours for the other

rooms would be 1.56KWh/day. Therefore the total daily electricity consumption for plant

illumination (ET) would be:

ET = 7.2 + 1.56 + 0.18 = 8.94 KWh/day

The total daily electricity consumption for the processing plant is computed by summing the

daily consumption for plant machinery, illumination and 10% of the total value as safety

margin. The computed total daily electricity consumption of the processing plant is

47.2KWh/day. From this total energy 37.5 KWh/day is required for pineapple drying while

5.2 KWh/day is utilized for pineapple jam production.

Location of the processing plant

The basic criteria for selection of the fruit processing plant location was minimizing the

average production cost, including transport and handling. Beside the supply of good water,

availability of manpower, proximity to transport facilities and adequate market were taken

into consideration. The major raw material pineapple is produced in Sidama Zone on the way

91

92

from Awassa to Dilla. The major market for jam products is Addis Ababa while the dried

fruits are to be exported via air flight to EU countries. The packaging materials are produced

in Addis Ababa. Hence the choice for locating the processing plant near raw materials supply

or market proximity would depend on the annual quantity of raw materials, ingredients,

packaging materials and final products that are transported between the two sites.

As a result, three potential areas were selected, Addis Ababa, Awassa and Dilla, for locating

the processing plant. The cost comparison for transportation of raw materials, ingredients,

packaging materials and final products is shown in Table 4.24. The road transportation cost

was taken from Ethiopian road Transport Authority. the freight transport tariff rate from Addis

Ababa to Awassa and Dilla is 29.304 cents/ton per Km while for the return trip the cost is

25.641 cents/ton per Km. In Table 4.24 it is shown that the transportation cost could be

lowered by 1, 774 Birr or 1,446 birr per annum if the plant is to be constructed at Awassa than

Addis Ababa or Dilla respectively. Locating the plant in Awassa has additional benefit in

reducing injury from handling and deterioration from changes during long transportation after

harvest. In Awassa there are industry zones with full infrastructure to be supplied for

investors. It is also possible to get the required staff of the processing plant easily.

93

Table 4.24 Transportation cost comparison among potential sites for plant location

*it is considered that 25% of the jam will be sold in Awassa while the other 25% at 100 Km radius from Awassa and the rest would

be sold at Addis Ababa. ** It is considered that 25% of the jam will be sold in Awassa while the other 25% at 200 Km radius from Awassa and the rest

would be sold at Addis Ababa.

Addis Ababa Awassa Dilla

Transported

Materials

Distance

(Km)

Quantity

(ton)

Cost

(Birr)

Distance

(Km)

Quantity

(ton)

Cost

(Birr)

Distance

(Km)

Quantity

(ton)

Cost

(Birr)

Raw materials 360 95.1 8,535 77 95.1 1,878 5 95.1 1,220

Ingredients - - - 273 17.1 1,368 365 17.1 1,831

packaging - - - 273 17.7 1,416 365 17.7 1,893

Final product with

package

-

-

-

253

100

25.3*

12.7

2,099

365

77**

200

25.3

12.7

12.6

3,263

8,207 6,761 8,535 Total cost

4.3.11 Integration with medium and large scale industries At present there are few small scale fruit processing industries in Ethiopia. However, with the

development of these industries integration with medium and large scale only could help to

foster the overall profitability of the industries. This approach could be very helpful especially

for export market. In this specific case, the integration could be created so that small scale

industries sell their semi-finished products to the centralized finishing plant. The finishing

process would consists of packaging of product in standard consume packs, distribution and

marketing of products. This approach would help to meet higher market volume, reduce

transportation cost, reduce distribution and marketing costs and to comply with safety legislate

compulsory and product related legislations in the export market.

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4.4 Organization and Management 4.4.1 Organizational Structure For the business to operate smoothly and effectively, there must be defined structure of

authority and responsibility (chain of command), division of labor, and definition of what each

one must do in the business (job description).

The organizational structure of the processing plant is shown in Figure 4.10. The organization

management team consists, Production Supervisor, Marketing Supervisor, and Administration

and Finance Officer who are working under the supervision of the General Manager. The

marketing supervisor is responsible for procurement of raw materials, ingredients and

accessories, promotion and distribution of final products. Administration and finance officer

handle personnel administration, financial book keeping and store management. The

production supervisor is responsible for planning organization and monitoring of production

process, quality assurance and repair and maintenance services.

General Manager

Marketing Supervisor

Production Supervisor

Administration & Finance Officer

Quality Inspector

Store keeper

Labor

Figure 4.10 Organizational structure for the processing plant

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4.4.2 Human Resource Requirement The number and skill of work force that is required to operate the processing plant is

determined in conjunction with selection of plant machineries. For better management of the

work force, the production process has been broken down into sequence of activities that

should be performed in specified time frame. The activity chart (Figure 4.11) describes the

specific task and time frame each staff should carryout throughout the day. To ensure business

survival and growth, it is important that the people who run the business must have the proper

qualification and suitable experience. Human resource requirement including minimum

qualification level and estimated salary for each job title is presented in Table 4.25.

Table 4.25 Manpower requirement, qualification and salary scale of the personnel’s

Job title

Qualification

Experience

Quantity

Salary

Total salary Birr/ year

General manager

B.SC in Food Technology / B.A in Business Administration

2 years

1

1700.00

20,400.00

Production supervisor

College diploma Food Technology /Chemical Engineering

1 year

1

752.00

9,024.00

Marketing supervisor

College diploma in Marketing Management

1 year 1

752.00

9,024.00

Administration & finance officer

College diploma in Accounting

1 year

1

752.00

9,024.00

Quality inspector

Diploma in chemistry

-

1

752.00

7,752.00

Store keeper

12th grade

-

1

472.00

5,664.00

Labor

12th grade

-

8

472.00

45,312.00

Guard

10th grade

- 1

392.00

4,704.00

Total annual salary (Birr)

110,904.00

Source: Ethiopian Investment Authority. (2006), Factor Cost

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Figure 4.11 Activity chart for drying and jam processing

Time

Task

8am

9am

10am

11am

12am

1pm

2pm

3pm

4pm

5pm

6pm

7pm

8pm

9pm

11pm

11pm

12pm

1am

2am

3am

4am

5am

6am

7am

Required

Human resource

Weighing /Sorting /cleaning

4a,b,c,d *

Peeling/coring/slicing

2a,b

Loading sliced fruit into dryer trays

2e,f

Drying

2h,i

Filling /sealing/packaging dried fruits

2e,f

Pulp extraction

2c,d

Batch formulation and jam boiling

2c,d

Cleaning and sterilization of jars

2a,b

Cooling /filling/ sealing/ labeling/ packaging of jam

2e,f

Cleaning machinery & work place

1g

Raw material inspection and process control

Quality controller

* Similar letters designate same person

The total human resource requirement is estimated as 15. The total annual salary of factory

staff is estimated as Birr 110,904. For this analysis the base salary is calculated based on

published data by Ethiopian investment authority in its brochure ‘Factor cost’ (EIA, 2006).

Salaries of skilled personnel, however, are determined by contractual agreements between the

parties based on the level of skill and type of profession.

4.4.3 Labor Availability and Training Requirement Shortage of unskilled and semi skilled labor forces are not expected since there is a large

number of unemployed persons and a few opportunity for alternative employment.

Furthermore, the various technical and vocational training schools, and higher learning

institutions supply sizable number of trained and skilled personnel required by the processing

plant. Training of the production staff can be carried out at the work place during the course of

work.

4.4.4 Direct Labor Expense

Direct labor expenses are attributable to a product in terms of a production labor. This

includes salaries and wages, benefits and social security contribution for workers directly

involved in the production process. For this study, 8 production laborers are taken as direct

labor. From Table 4.25 yearly salary and other payments are estimated as follows

Yearly gross salary of direct labor = Birr 45,312

Yearly payment for benefits and social security is assumed to be 10% of the yearly

gross salary = 45,312 X 0.10 = Birr 4,531

Therefore direct labor expense = 45,312 + 4,531 = Birr 49,843

The plant is going to be engaged in producing three different products, namely pineapple jam,

mango jam and dried pineapple. Hence, the above expenses are apportioned to the products

based on the ratio of raw material consumptions. The annual consumption of raw materials for

pineapple jam, mango jam and dried pineapple is 14,955 kg, 12,114 kg and 76,300 kg

respectively. Therefore the following ratio was assumed

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Pineapple jam = 0.145

Mango jam = 0.117

Dried pineapple =0.738

Thus, the annual direct labor expense for the production of pineapple jam, mango jam and

dried pineapple would be Birr 7,227, Birr 5,832 and Birr 36,784 respectively.

4.4.5 Administrative and Selling Expense

Administrative and selling expense includes salary and benefits related to management,

functional staff and indirect labor. The expenses are determined from Table 4.25 excluding

direct labors.

Yearly overhead labor expense = Birr 65,592

Yearly payment for benefits and social security is assumed to be 10% of the yearly

gross salary = 65,592X 0.10 = Birr 3,280

Therefore, total indirect labor expense = 65,592 + 3,280 = Birr 68,872. Including the

selling expense which is assumed to be 5% of the total overhead labor, the total annual

administrative and selling expense would be Birr 69,036. Using the same cost distribution

ratio as in the preceding section, the share of pineapple jam, mango jam and dried

pineapple to these costs is Birr 10,010, Birr 8,077 and Birr 50,949 respectively.

4.5 Product quality safety and legal requirements 4.5.1 Quality Assurance System The quality assurance system has been developed for the processing plant which incorporates

all processes from purchase of raw materials and ingredients to the consumption of final

product. All aspects that could influence product quality have been identified and procedures

were developed to control these factors hence improve the product quality. The analysis

methods for quality control of raw materials and processed products are selected to be

relatively simple which have sufficient accuracy for routine use. Cost of equipments and level

of skill required is also considered as criteria for selection. The time and effort required for

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this task are equivalent to the type of problems expected. A detail of the quality assurance

procedures for each stage of processing is presented below.

Raw Material Inspection

The inspection of raw materials should take place as they arrives the processing unit. A fruit

should be inspected for maturity, required variety, visible molds or rots, serious bruising,

presence of soil, leaves, or other foreign matter. Fruit weight, total soluble solids and fruit pH

should also be measured. Fruit inspection staff should be trained to monitor quality standards

and correct sorting procedures. This step is critical because most of fruit quality assessments

are carried to subjective assessment of the operators. Ingredients should also be checked to

make sure that they are the correct type and they are not contaminated or adultered. For pectin

and citric acid laboratory experiments need high skill and specialized equipments which are

expensive for small scale processors. Therefore, during procurement of these materials, the

processors should ask certificate of conformance from the suppliers.

Processing

The initial stage in processing of fruits into dried products and fruit jams involves preparing

fruits by washing, peeling, coring or destoning, slicing and/or pulping. Quality inspections at

this stage are to ensure that the water is potable, all peels are removed, fruits are uniformly

sliced, and the pulp yield is within expected range. The next stages are formulation of batch

ingredients, boiling, filling and sealing, jam cooling, labeling and packaging. The drying

process involves drying of sliced pineapple, filling and sealing dried slices into polypropylene

plastic bags and packaging in cardboard boxes.

The correct formulation of a batch of ingredients is critical for both keeping product quality

and financial viability of the operation. The staff responsible for batch formulation should be

given through training in accurate weighing and keeping records of amount of ingredients

used and batch codes. Another important quality control parameter is measurement of the total

soluble solids (TSS) content of the jam. This is very essential for correct preservation and

anticipated shelf life of the product in addition to ensuring uniform products. A hand held

refractometer which can measure 0-90˚Brix could be sufficient for measuring the TSS value

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of jam. To obtain optimum firmness of the jam , the pH value of the fruit pulp should be

adjusted to the recommend value of 3.1 + 0.1 .This can be done by dropping acid buffers into

the fruit pulp and continually measuring the pH value using pH paper until the required value

is achieved.

The moisture content of dried fruits is determined using a laboratory drying oven. Finely

sliced samples are carefully dried in a laboratory oven at 100°C for 4 hours and reweighed.

They are put back into the oven and checked again at hourly intervals until they do not loose

any more weight. The moisture content is then determined by dividing the weight loss to

initial sample weight.

Strict hygiene in the processing and by operators is needed to reduce the risk of food spoilage

and food poisoning. This must include proper cleaning of equipments and processing rooms,

establishing standards for food handlers’ hygiene and immediate removal of waste.

Packaging

The quality assurance procedures were developed for packaging and storage because long

term preservation of the products depends on quality of the package. For glass containers the

critical faults are broken, cracked, strands of glass inside the pack or bubbles in the glass.

Major faults are variation in the size and shape of containers. Minor faults include uneven

surface, off colors and rough mold lines. All glass jars used in jam packages should be

checked for critical faults. As glass splinters in a food are very serious for consumer health,

every effort should be made to prevent them. One staff member should have responsibility for

checking the packages. The member should be fully trained to recognize faults in glass

containers.

Another key quality control measure is to check variation in the weight of jars as this

variations affect the fill weight. Random samples should be taken from delivery of containers

and weighed. The heaviest pack should then be used to calculate the final filled weight

required. A simple gauge can be made to check that the product has been filled to the correct

level. Moreover, random samples of jars should be checked to ensure the correct net weight

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using a check weighing scale. Other quality control checks include: inspection for

contamination in re-used jars, proper sealing of jar. The label should be checked whether the

labels match the actual product in the pack, sell by date on the pack is correct and the batch

code numbers are correct.

The polypropylene film packages used for package of dried fruits should be inspected for

incorrect printing, smell of solvents, poor seal and incorrect thickness. The thickness can be

measured by cutting 10 squares of film, each 10 cm x 10 cm and carefully weighing them. The

result (gram/ inch2) is then checked against suppliers’ specification.

Storage and Distribution

Dehydrated products should be kept in a cool, clean and dry place. Exposure to sunlight

should be avoided as this result in sweating and oxidation. The product is very attractive to

insect and rodent infestation and therefore, should be kept away form them.

Jam should be stored in clean, dry, dark areas. Exposure to light can affect their color, making

them look less appetizing. The temperature of the storage area should be between 10 and

21°C. If canned and stored properly, the shelf life of these products is usually 12 to 18 months

(Angela & Heather, 2001). Foods that are older than this are safe to eat if the jar and its seal

are still intact. The quality of such products, however, may be diminished. Generally, the

higher the storage temperature, the shorter the shelf life of a product (Angela & Heather,

2001).

Products should be stored off the floor in a cool dark store room that has good ventilation and

protection against insects and rodents. Records should show the amount of products,

ingredients and packaging materials that are in the sore room, when they are transferred into

and out of the store room. When they are used or sold First in first out (FIFO) system of stock

control should be used.

The control of product quality does not finish when the product leaves the processing unit and

processors should monitor and control the distribution methods to retailers and discuss with

them the best way of storing and displaying the products.

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4.5.2 Food Safety Requirements The safety of fruit and vegetable products can be assured by implementation of a management

method known as the hazard analysis critical control point (HACCP) system. The HACCP

system requires the food processing companies to identify each aspect of their activities which

have a bearing on the safety of food product and ensures that suitable safety procedures are

established, applied, maintained and revised on the basis of the HACCP system. Effective

hygienic control is vital to avoid the adverse human health and economic consequences of

food borne illness, food borne hazard and food spoilage. As part of EU food law, the HAACP

regulation has been extended to cover not only food companies in the EU, but other producers

that supply to the EU market as well. This means that as of January 2006, food processors in

developing countries that plan to export to the EU market need to have an approved HACCP

system, and the ability to trace their products origin.

Implementation of HACCP system involves the following stages

♦ Identify potential hazard

♦ Assess the level of risk and determine the critical control points.

♦ Determine maximum allowable deviations to the standard of each CCP.

♦ Design and implement a control system of tests or observations for each CCP.

♦ Design and implement corrective action plan for each CCP.

♦ Introduce a vilification procedure including additional tests and procedures to check

the efficiency and effectiveness of HACCP system.

♦ Document all the procedures and test results.

Ethiopian standard ES 577: 2001 (Recommended code of practice-general principles of food

hygiene) gives the code of practice recommended on the general principles of food hygiene.

The standard describes the necessary hygienic conditions for producing food which is safe and

wholesome for consumption through the food chain from primary production to the final

consumer. QSAE provide technical support on implementation of HACCP and training.

However there is no local accredited body for certification of the HACCP system. Recently

the certification is being carried out by foreign companies which make the cost beyond the

financial capacity of small scale processors.

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4.5.3 Legislative Requirements The legislative requirements differ as per the product and where the product is being

marketed. Mango and pineapple jams are intended to be sold at domestic market. Therefore,

national legislations are applicable to these products currently there is no national standard for

jam and jelly products. The Quality and Standard Authority of Ethiopia, QSAE, is the national

standard body (NSB) of Ethiopia.

It is engaged in development of standards and enforcement of regulations for selected locally

manufactured, imported and export products. It enacted regulations for mandatory

certification of products that have a bearing on public health, safety and consumer protection.

However there are general legislative requirements for prepackage foods regarding the

labeling, weight and measure, hygiene and sanitation standard. Mandatory information that

should appear on labels for prepackaged products is specified in ‘General standard labeling of

prepackaged foods’ (ES 359:2001). Additional requirements for labeling product

identification, declaration of net quantity, name and place of manufacturer, packager and

distributor are covered in ‘labeling requirements for prepackaged products’ (ES OIML

R79:2001) which has been adapted form international organization of legal metrology (OIML)

Detail analysis of these requirements is presented under each title.

The dried pineapple is intended to be sold in the EU market. The codex alimentarious food

standards are the minimum standards to comply with. In addition to this the following

legislative requirements should be fulfilled. These are maximum residue levels, tracking and

tracing systems, and packaging and labeling legislations.

1. Labeling

The international organization of legal metrology (OIML) define label as any written, printed,

or graphic matter affixed to, applied to, attached to, blow into, formed into, embossed on, or

appearing up on a package containing any product for the purpose of branding, identifying, or

giving any information with respect to the product or to the content of the package .The label

is the primary point of contact between a processor and a customer; therefore it is a main

method of persuading a purchaser to buy a product without having sampled it. Labeling

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legislations are being laid to protect the customer from false, misleading or deceptive labeling

of prepackaged foods.

In design of model label for pineapple jam (Figure 4.12) detail specifications that were

specified in codex international standard for jams and jellies (Codex Alimentarius, 1981) were

included. The following information is specified in ES-359:2001 to be mandatory and should

appear on label of pineapple and mango jams.

Name of the Product

It is stated in ES 359:2001 the label shall indicate the true nature of the food and the name

should be specific. A common or usual name existing by common usage as an appropriate

descriptive term shall be indicated on the label. A more detail specification for naming of jam

and jelly on the label is given by (Codex Alimentarius, 1981). It is specified that the name of

the food shall de declared ‘Extra Jam, High Fruit Jam, or Jam’ if it has been manufactured

from not less than 45 parts by weight of original fruit ingredient for each 100 parts by weight

of final product.

List of Ingredients

A complete list of ingredients shall be declared in descending order ingoing weight (m/m) at

the time of manufacture of the food. The list of ingredients shall be headed or preceded by an

appropriate title which consists of or include the term ‘ingredients’ (ES 359:2001). As to

quantitative labeling of characterizing ingredient codex standard declares the name of the food

shall be accompanied by a statement showing the part of the fruit ingredient used in the

preparation of 100 parts of finished product.

Declaration of Net Quantity

Detail specification for declaration of net quantity for prepackaged foods has been covered in

ES OIML R79:2001.A pre packed product shall bear a declaration of the net quantity of the

product on the principal display area.

105

Statement of the net quantity shall appear in easily legible boldface type or print that contrasts

conspicuously with the background and with other information on the package. The

declaration shall be either by mass or volume for semi solid foods. Each pack of jam have net

content of 450 g , hence the minimum height of numbers and letters should be 4 mm.

Appropriate phrases such as ‘net quantity’, ‘net content’ or ‘net’ may be used in connection

with net quantity declaration.

Expiration date: - Expiration date on prepackaged foods shall be declared on the label. After

this date, the food shall not be marketable. Any special condition for the ‘storage of the food

shall be declared on the label if the validity of the date depends there on.

Instruction for Use: - Instruction for storage condition shall be declared on the label if the

validity of the date depends there on.

Lot Identification: - Lot identification of each container shall be embossed or otherwise

permanently marked in code or in clear to identity the producing factory and the lot.

Name and business of the manufacturer, packager, distributor or importer: - The label of

prepackaged product shall specify conspicuously the name and place of the business of the

person responsible for any of the following: manufacturing, packing, distributing, importing,

or retailing the product. The statement of the place of business with complete mailing address

shall be in accordance with the national law and postal usage or may be represented by an

indicator if permitted by national standards (ES OIML R79:2001).

106

Figure 4.12 Model label for pineapple jam

2. Weight and Measure Legislation

Ethiopian standard (ES 682:2001) specifies for net content in pre-packaged products. Specific

requirements for net content verification of pre-packaged products declared in unit mass,

volume, length, width, thickness, area or number. In ES 682:2001, prepackaged product is

defined as any commodity that is enclosed in a container or wrapped in any manner, and for

which its quantity has been determined and indicated on its labor prior to being offered for

sale. The following mandatory requirements have been specified regarding the net content of

pre-packaged products.

a) Specifications

The checking of prepackaged products covers check on the net content of each package in the

sample and on the average of the actual contents of the prepackages in the sample. The

prepackaged product is said to be comply with the regulation if the following requirements

have been satisfied.

Hasset Fruit Processing plc Hasset Fruit Processing plc

PINEAPPLE JAM

Produced with 45 g fruit per 100 g Total sugar content: 66 g per 100 Ingred

Nutritional Fact

After Opening Store in Cool Place

g

ients:

Manufacturing date

Expiry date

apple, pectin, citric

ontent: 450 g

Sugar, pineacid

Net C Product code

Contact Address Tel 011-1-200000 P.o.Box 1000 Addis Ababa, Ethiopia

107

a) The actual content of the prepackages shall be not less than, on average, the nominal

net quantity

b) the proportion of the prepackages that has a negative error, the quantity by which the

actual quantity is less than the nominal quantity, greater than the tolerable negative

error laid down shall be not greater than 2.5% of the batch size.

c) No prepackage product that has a negative error greater than twice the tolerable

negative error.

The standard specifies the tolerable negative error for ranges of nominal net quantities (Q).

if the nominal net quantity of the product fall into 300<Q<500, the tolerable negative error

is 3 percent of the nominal net quantity. This implies if the nominal weight of the product

is 450 g, for example, the tolerable negative error is 13.5 g. Therefore the standard

specifies the producer to sell a single product with the actual content which is 27 g below

the nominal weight. However, the producer should not utilize the weight deliberately.

b) Measuring instruments

The measurement or check on a prepackage shall be carried out by means of a suitable

measuring, instrument which have been calibrated by QSAE with in the previously twenty-

four months. For analogue measuring instruments should have a division size equal to at least

one fifth of the tolerable negative error. The accuracy of the measuring instruments should be

verified and recorded every day using masterpiece that has been certified by QSAE.

Responsibility: - the standard specifies the pre-packer responsibility for

measuring and checking the actual quantity contained in a prepackaged product and

ensuring that the product comply to the requirement specified in the standard;

Carrying out production checks and retains the results of the check with details of the

corrective actions and verifications. The records for verification and calibration of

equipment, production and process control records, corrective action records and

disposal of non-conforming products should be retained at least for 3 years.

108

3. Tracking and Tracing System

Development of tracking and tracing systems are of critical importance for doing business

with international market. It has been enforced by law in most developed countries that

exporters shall demonstrate the tracking and tracing management system is in place. Product

traceability is also an important requirement in quality management and food safety

management systems. Traceability systems are joined up record keeping systems which bring

together information collected at each step of production, processing and distribution. This

requires specific chain management and food labeling procedures and a tracking and tracing

administration.

Traceability systems are important to support effective withdrawal or recall of products on

detection of problems. They are helpful also to assist in process control and management and

to enable to meet regulatory demands and customer requirements for information. Dried

pineapple is intended to be sold at international market especially EU in which tracking and

tracing system is mandatory. A model tracking and tracing system (Table 4.26 to 4.28) has

been developed for the processing plant in order to enable the product traceable back to the

origin of raw materials in the supply chain. The system incorporates unique identification of

ingredients, intermediates and products. This identification creates a batch that gives a link to

the product history.

1. Raw material Reception Records

Records at this stage form a critical traceability link in the food chain and the recording

system of the supplier. Raw materials receiving recording format (Table 4.26) has been

developed for fruit reception. Similar layout with little modification could be used for

recording incoming batch of ingredients and packing materials. The records include

identification for received goods (batch/lot identification, composition and quality

specifications), supplier, date received and quality inspection results at reception.

109

Table 4.26 Raw materials receiving record format

Quality inspection results Date Received quantity

Supplier Batch/lot #

Percent Reject Color maturity TSS pH variety

2. Production Records

The production records make the link between received raw materials, ingredients and product

delivered. The record contains temporary identification of work in process added ingredients,

date and time of processing and product identification code. A sample production record

format for fruit drying is shown below (Table 4.26). One week productions of dried fruit are

coded in similar code. Similar pattern could be developed for jam processing.

Table 4.27 Production record format for drying

Product code -------

Date Batch #

Weight of sliced fruit (kg)

Initial moisture content

(%)

Final moisture content (%)

Drying temperature°

C

Drying time(hr)

Package

size

3. Sales Records

Sales records form critical traceability link in the food trade chain by providing a link with

that of a customer. Without having sales records, traceability in food market chain would

break down completely. A sample of sales record formats (Table 4.27) have been developed.

The records include product code, sells date and volume and customer information.

110

Table 4.28 Sample sales record format

Date Product code Sells volume customer Remark (Kg)

4. Stock Control Records

Stock control records for product and raw material with their corresponding batch codes

should be recorded. This helps to control the amount and type of material and products present

in the storage.

5. Maximum residue levels

The EU has regulation in place to control the amount of contaminant, maximum residue levels

of pesticides and exporters of dried fruit to the EU have to comply with these regulations.

6. Packaging, Marking and Labeling

There are no important statutory obligations specifically for the packaging of dried fruits and

vegetables. The EU, however, has issued a directive for packaging and packaging materials

(Directive 94/62/ EC) in which minimum standards are regulated. This directive lays down the

maximum level of concentration of heavy metals in packaging. The maximum permissible

concentration of lead, cadmium, mercury and chromium in packaging are 100 ppm as of June

2006. The directive also descries requirements specify to manufacturing of packaging

material, in order to facilitate re-use or recycling to minimize negative environmental impact.

The use of PVC, chlorine, Cadmium and Chloro Fluro Carbons (CFC) should be minimized.

In addition to this directive, 89/109/EC and 90/128/EC laid regulation having a bearing on

product safety (use of approved material) and on the communication aspects to the consumer.

111

Other market requirements

- Environmental, social, health and safety issues are becoming increasing important on

the EU market. These issues are also important for the product group of dried fruit,

especially regarding the environmental circumstances in which the dried fruit is grown

and processed and the labor conditions of the workers on the farm yard and the plant.

112

4.6 Financial and Economic Feasibility The financial and economic analysis is based on the data provided in the preceding sections

and the following assumptions.

1. Project life: the pre-operating period of the project is estimated as 12 months. With

regard to the operational life of the project standard assumption of 10 years is

considered.

2. Depreciation : the asset of the project is assumed to be depreciated in the following

manner

i. Buildings 5%

ii. Machinery and equipment 20%

iii. pre-operating expenses 20%

3. Working capital: the working capital requirement of the project is computed based on the

minimum days of coverage required for the various components that constitute the working

capital. Accordingly, the following minimum days of coverage are assumed.

Working capital Minimum days of coverage

Cash in hand 30 days

Work in progress 1 day

Finished product 15 days

Raw materials

Foreign purchase 120 days

Local purchase 30 days

4. Source of finance: 30% of the finance for the project is expected form the investor

while the rest 70% is obtained from long term bank loan.

5. Pre-operating expenses: these costs are expenses which are incurred before the

business starts operating. These include business registration fees, licenses, training

cost, and cost of preparing business plan and travel expense to raw material and

equipment suppliers.

6. Other income: - it was assumed that the peel from pineapple and mango are changed to

compost or animal fed and sold to the farmers generating additional income.

113

4.6.1 Total Investment Cost The total investment cost of the processing plant including working capital is estimated as Birr

379,750.00. Owners are assumed to contribute 30 % (Birr 113,925.00) of the finance while the

remaining 70 % (Birr 265,825.00) is expected to be financed by long term bank loan.

Table 4.29 Total investment cost (Birr)

No. Items L.C F.C Total Share (%)1 Land 1,875.00 0 1,875.00 0.49 2 Building and civil works 142,000.00 0 142,000.00 37.39 3 Office equipments 5,000.00 0 5,000.00 1.32 4 Plant machinery and equipments 49,975.00 77,610.00 127,585.00 33.60

Total fixed capital 198,850.00 77,610.00 276,460.00 72.80 5 Pre-operating expenses 10,000.00 0 10,000.00 2.63 6 Working capital 78,390.00 14,900.00 93,290.00 24.57

Total initial investment capital 7 287,240.00 92,510.00 379,750.00 100.00

L.C= Local currency F.C = Foreign currency

The major component of the investment are building and civil works, machineries and

equipments and working capital expenses accounting 37.39 % , 33.60 % and 24.57 %

respectively. The foreign component of the project accounts for Birr 92,510.00 or 24.36 % of

the total initial investment cost (Table 4.29).

4.6.2 Production Cost The components of the production cost are shown on Table 4.30

Raw materials and auxiliary inputs include the cost of fruit crops, sugar, pectin, citric acid

packaging materials

Factory overhead expense: includes maintenance and repair cost and cost of utilities

(electricity, water and fuel).

Administrative and selling expense: include cost of indirect labor, office supplies and

communication.

Direct labor cost: includes is the cost of wage and benefits of the production staff.

114

Table 4.30 Total production cost (Birr) and unit production cost (Birr/ kg) for year 2008

The total production cost at first production year is estimated as Birr 521,013.00. Raw

materials and auxiliary inputs account for 61.1% while administrative and selling expense take

13.3 % of the production cost. The unit production cost of pineapple jam, mango jam and

dried pineapple is estimated as Birr 13.53, Birr 11.19, and Birr 46.33 per kg respectively.

4.6.3 Economic Evaluations The economic evaluation of the project is made under three scenario based on profit margin of

5%, 10% and 15%.

Scenario 1: The products are sold at product cost plus 5% profit margin and 15% value added

tax (VAT) at factory gate. Therefore, the selling price of pineapple jam, mango jam and dried

pineapple would be Birr 16.24, Birr 13.43 and Birr 55.60 per kg of the products respectively.

Products

Total Share Pineapple

jam

Mango

jam

Dried

pineapple No Items %

Raw materials and auxiliary inputs

1 141,620.00 74,863.00 101,640.00 318,123.0 61.1 2 Direct labor 7,227.00 5832.00 36,784.00 49,843.00 9.6 3 Factory overhead 3,409.00 2560.00 47,706.00 53,675.00 10.3

4 Depreciation 4,399.00 3549.00 22,388.00 30,336.00 5.8

5 production cost 156,655.00 86,804.00 208,518.00 451,977.00 86.8 6 Administrative &

selling expenses

10,010.00 8077.00 50,949.00 69,036.00 13.3 7 Total production

cost

166,665.00 94,881.00 259,467.00 521,013.00 100.08 Annual production

volume (Kg)

12,320.00 8480.00 5,600.00 26,400.00 9 Unit production

cost (Birr/Kg)

13.53 11.19 46.33 19.74

115

Scenario 2: : The products are sold at product cost plus 10% profit margin and 15% value

added tax (VAT) at factory gate. Therefore, the selling price of pineapple jam, mango jam and

dried pineapple would be Birr 16.90, 14.00, and Birr 57.90 per kg of the products respectively

Scenario 3: : The products are sold at product cost plus 15% profit margin and 15% value

added tax (VAT) at factory gate. Therefore, the selling price of pineapple jam, mango jam and

dried pineapple would be Birr 17.60, 14.55, and Birr 60.23 per kg of the products respectively. 1. Profitability

According to the projected income statement (Annex A.1 –A.3) the project will generate

profit beginning from first year of operation. The expected cumulative profit under the three

scenarios is shown in Table 4.31.

Table 4.31 Expected cumulative profit of the envisaged project under the three scenarios

Cumulative profit, thousands

Scenario 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

1 12.26 85.48 191.94 299.11 406.40 423.09 436.26 445.19 449.07 446.99

2 37.71 141.01 282.55 426.57 572.54 613.12 651.38 686.65 718.18 745.13

3 63.17 196.54 373.17 554.02 738.67 803.15 866.49 928.10 987.29 1,043.28

2. Break Even Point Analysis (BEA)

In addition to projected profits the break even production capacity should be determined to

avoid losses. For this purpose, the break even point sales, production and percentage are used

to indicate the level at which the project neither makes profit nor incurs loss. As a first step in

computing the break even point, the cost are divided into two broad categories, fixed cost and

variable cost, which may be defined as follows

Fixed cost: - refers to the cost that remains constant irrespective of changes in the volume of

output. A cost grouped under this category in the study includes direct labor expense,

administrative and selling expense, and financial costs.

Variable cost: - these costs vary directly with output. Costs that are group under this category

include raw materials and auxiliary inputs and factory overhead.

116

The BEA for scenario 1 is shown below. The results related to BEP for the three scenarios are

summarized in Table 4.32.

Scenario 1. The products are sold at product cost plus 5% profit margin and 15% value added

tax (VAT) at factory gate. Therefore, the selling price of pineapple jam, mango jam and dried

pineapple would be Birr 16.24, Birr 13.43 and Birr 55.60 per Kg of the products respectively.

From projected income statement (Annex A) assumptions made for fixed and variable costs,

the following data was obtained.

Annual sales = Birr 628,966.80

Annual fixed cost = Birr 149,215.00

Annual variable cost = Birr 371,798.00

Unit selling price = Birr 22.08 / Kg

A) Break Even Point (BEP) Sales: - this refers to the amount of sales value at which no

profit or loss is incurred by the business. It can be calculated as

BEP (sales) = Annual sales X Annual fixed cost

Annual sales – Annual variable cost

BEP (sales) = Birr 364,940

B) BEP (Production):- this is the quantity at which no profit or no loss is incurred by the

business. The BEP production can be computed using the following equation.

BEP (Production) =. BEP (Sales) .

Unit selling price

BEP (Production) = 15.32 tons

C) BEP (percentage):_ is the percentage of sales or production at which the business makes

neither profit nor loss. This can be computed as

BEP (percentage) = Annual fixed cost X 100%

Annual sales – Annual variable cost

BEP (percentage) = 58.02%

117

Table 4.32 Summary of Break even point analysis of the three scenarios

BEP sales (Birr)

BEP production

(tons)

BEP (Percentage) Scenario

%

1 364940.39 15.32 58.02 2 342437.05 13.72 51.97 3 324185.10 12.42 47.06

3. Internal Rate of Return (IRR) and Net Present Value(NPV)

The net present value of the project is computed at 15% discount rate. Annex A.4 shows the

cash flow statement for scenario 1. Summary of the results of IRR and NPV is shown in table

4.33 below.

Table 4.33 Internal rate of return and net present value for the three scenarios

Scenario IRR (%) NPV Remark

1 7.8 298,060.00 Not Feasible

2 20.2 449,710.00 Feasible

3 30.1 601,360.00 Feasible

The net present value for scenario 1 is below the investment cost. Hence the project is not

feasible under scenario 1. For the scenario 2 and 3 the project is feasible with IRR value of

20.2 and 30.1% respectively.

4. Pay Back Period

The pay back period is the length of time required to recover the initial cash outlay on the

project. The investment cost of the project is Birr 379,750.00. From income statement

projection the payback period of the project under scenario 1, 2 and 3 is 12.8 years, 5 years

and 3.3 years.

Summary of economic feasibility analysis

Based on result of economic evaluation, scenario 1 is not feasible. Scenario 2 is feasible with

longer pay back period. However, scenario 3 is feasible with the payback period of 3.3 years.

118

5. CONCLUSIONS AND RECOMMENDATIONS

5.1 Conclusions Based on the framework setout in this feasibility study the following conclusions were made

regarding the feasibility of proposed small scale pineapple jam, mango jam and dried

pineapple processing enterprise.

5.1.1 Market Feasibility A market opportunity was identified for the domestic production of pineapple and mango jams

for domestic market dried pineapple for export to EU countries. However the positive results

of the market feasibility are dependent on continuous and reliable production of high quality

products and the effectiveness of the firm marketing strategy. Stringent legal and market

requirements are categories that should be considered in the international market.

5.2.2. Technical Feasibility The analysis of technical feasibility of the proposed processing enterprise revealed that the

processing equipments, production facilities and services and the human resource could be

integrated for processing of jam and dried products at small scale. It was possible to show the

plant operate all year round by alternatively processing product from pineapple and mango

fruits. Both Smooth Cayenne and Red Spanish pineapple cultivars and local mango could

potentially be used for jam production. From process recovery point of view, Smooth Cayenne

cultivar with pulp yield (60%) and jam yield (95.5%) is preferable for jam production as

compared to the Red Spanish. However, the following constraints were identified

The supply of pineapple and mango is dependent on climatic factors because most of

the cultivation is rain fed agriculture. Drought and poor management could risk the

supply of raw materials. Irrigation using three perennial rivers, Gidabo, Burrier and

Melewo, crossing the areas should be promoted.

As pectin and citric acid are not locally produced or available at local market they

should be imported. The annual consumption for these chemicals is below the

minimum ordering lot for most traders. This may cause difficulties in the supply of

these chemicals.

119

Most of the equipments required for the processing plant are available in the local

market. Special equipments like pulper, peeler/corer, slicer and dryer could be

manufactured in the local workshop. However research centers and universities

working on food technology should give support to develop the manufacturing of

agro-processing machineries and equipments and prototypes that meet the needs of

both workshop and food processors.

5.2.3 Financial Feasibility The analysis on financial feasibility of the proposed enterprise revealed that based on the

assumptions made, the enterprise is profitable. The enterprise is projected to have a healthy

cash flow and is viable over long term. The positive financial feasibility is, however,

dependent on stable inflation and macro economic conditions. The profitability of the plant

can be further increased by using alternative energy costs.

5.2.4 Overall Feasibility Based on the framework set out in this feasibility study where feasibility is assessed in three

core areas, it can be concluded that the proposed processing enterprise is feasible. The results

of the feasibility study, however, are heavily dependent upon the assumptions made during the

study and other operating environments (political, environmental and economic conditions)

remain relatively stable.

5.2 Recommendations for Further Study I believe it is worthwhile if further investigation is made on the following points

Development of prototype small scale biogas fired tray dryer.

Studies on extraction of pectin from pineapple and mango peel or other

sources.

120

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7. ANNEX A Annex A.1. Projected income statement for 5 % profit margin of the project from 2008- 2017

Production year Description 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Production (TPA) 26.40 29.70 33.00 33.00 33.00 33.00 33.00 33.00 33.00 33.00 Capacity utilization (%) 80.00 90.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

Sales realization 628.97 742.97 866.79 910.13 955.64 1,003.42 1,053.59 1,106.27 1,161.59 1,219.67Cost of production

Raw materials and auxiliaries

318.12 340.85 397.65 417.54 438.41 460.33 483.35 507.52 532.89 559.54

Direct labor 49.84 54.83 60.31 66.34 72.98 80.27 88.30 97.13 106.84 117.53 Factory overhead 53.68 59.04 64.95 71.44 78.59 86.44 95.09 104.60 115.06 126.56

Depreciation 30.34 30.34 30.34 30.34 30.34 30.34 30.34 30.34 30.34 30.34 Administration and selling

expense 69.04 72.49 76.11 79.92 83.91 88.11 92.51 97.14 102.00 107.10

Gross profit before interest 107.95 185.43 237.44 244.56 251.42 257.93 264.00 269.55 274.46 278.61 Financial expenses 3.43 3.36 3.30 3.23 3.17 3.10 3.04 2.98 2.92 2.86

Other income 2.08 2.60 2.34 2.36 2.39 2.41 2.44 2.46 2.48 2.51 Profit/loss before tax 106.60 184.66 236.48 243.70 250.64 257.24 263.40 269.03 274.02 278.25

Provision for tax 94.35 111.45 130.02 136.52 143.35 240.55 250.23 260.10 270.15 280.34 Profit after tax 12.26 73.22 106.46 107.17 107.29 16.69 13.17 8.93 3.88 -2.09

Net profit accumulated 12.26 85.48 191.94 299.11 406.40 423.09 436.26 445.19 449.07 446.99

129

Annex A.2. Projected income statement for 10 % profit margin of the project from 2008- 2017

Production year Description 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Production (TPA) 26.40 29.70 33.00 33.00 33.00 33.00 33.00 33.00 33.00 33.00 Capacity utilization (%) 80.00 90.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

Sales realization 658.92 778.35 908.07 953.47 1,001.15 1,051.21 1,103.77 1,158.95 1,216.90 1,277.75 Cost of production

Raw materials and auxiliaries

318.12 340.85 397.65 417.54 438.41 460.33 483.35 507.52 532.89 559.54

Direct labor 49.84 54.83 60.31 66.34 72.98 80.27 88.30 97.13 106.84 117.53 Factory overhead 53.68 59.04 64.95 71.44 78.59 86.44 95.09 104.60 115.06 126.56

Depreciation 30.34 30.34 30.34 30.34 30.34 30.34 30.34 30.34 30.34 30.34 Administration and

selling expense 69.04 72.49 76.11 79.92 83.91 88.11 92.51 97.14 102.00 107.10

Gross profit before interest

137.90 220.81 278.71 287.90 296.92 305.71 314.18 322.23 329.77 336.68

Financial expenses 3.43 3.36 3.30 3.23 3.17 3.10 3.04 2.98 2.92 2.86 Other income 2.08 2.60 2.34 2.36 2.39 2.41 2.44 2.46 2.48 2.51

Profit/loss before tax 136.55 220.04 277.76 287.03 296.15 305.02 313.57 321.71 329.34 336.33 Provision for tax 98.84 116.75 136.21 143.02 150.17 264.44 275.31 286.44 297.80 309.38 Profit after tax 37.71 103.29 141.55 144.01 145.97 40.58 38.26 35.27 31.53 26.95

Net profit accumulated 37.71 141.01 282.55 426.57 572.54 613.12 651.38 686.65 718.18 745.13

130

Annex A.3. Projected income statement for 15% profit margin of the project from 2008- 2017

Production year Description 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Production (TPA) 26.40 29.70 33.00 33.00 33.00 33.00 33.00 33.00 33.00 33.00 Capacity utilization (%) 80.00 90.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

Sales realization 688.87 813.73 949.35 996.81 1,046.65 1,098.99 1,153.94 1,211.63 1,272.22 1,335.83 Cost of production

Raw materials and auxiliaries

318.12 340.85 397.65 417.54 438.41 460.33 483.35 507.52 532.89 559.54

Direct labor 49.84 54.83 60.31 66.34 72.98 80.27 88.30 97.13 106.84 117.53 Factory overhead 53.68 59.04 64.95 71.44 78.59 86.44 95.09 104.60 115.06 126.56

Depreciation 30.34 30.34 30.34 30.34 30.34 30.34 30.34 30.34 30.34 30.34 Administration and

selling expense 69.04 72.49 76.11 79.92 83.91 88.11 92.51 97.14 102.00 107.10

Gross profit before interest

167.86 256.19 319.99 331.24 342.43 353.49 364.35 374.91 385.09 394.76

Financial expenses 3.43 3.36 3.30 3.23 3.17 3.10 3.04 2.98 2.92 2.86 Other income 2.08 2.60 2.34 2.36 2.39 2.41 2.44 2.46 2.48 2.51

Profit/loss before tax 166.50 255.42 319.03 330.37 341.65 352.80 363.74 374.39 384.65 394.41 Provision for tax 103.33 122.06 142.40 149.52 157.00 288.33 300.40 312.78 325.46 338.42 Profit after tax 63.17 133.36 176.63 180.85 184.65 64.47 63.34 61.61 59.19 55.99

Net profit accumulated 63.17 196.54 373.17 554.02 738.67 803.15 866.49 928.10 987.29 1,043.28

131

Annex a.4 Projected cash flow statement for scenario 1

Particulars 2,007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 CASH INFLOW Capital expenditure 379.75 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Cash sales 576.55 681.05 794.56 834.29 876.00 919.80 965.80 1,014.08 1,064.79 1,118.03 Accounts receivable 52.41 61.91 72.23 75.84 79.64 83.62 87.80 92.19 96.80 101.64 Other income 2.08 2.60 2.34 2.36 2.39 2.41 2.44 2.46 2.48 2.51 Total cash inflow 379.75 631.05 745.57 869.13 912.50 958.03 1,005.83 1,056.03 1,108.73 1,164.07 1,222.18 CASH OUTFLOW Pre-operating expense 10.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Purchase of fixed asset 276.46 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Cost of goods sold 490.68 527.20 599.02 635.24 673.89 715.16 759.25 806.39 856.79 910.73 Finished goods inventory 27.98 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Raw materials Inventory 65.30 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Loan amortization 24.03 24.03 24.03 24.03 24.03 24.03 24.03 24.03 24.03 24.03 Interest expenses 3.19 3.19 3.19 3.19 3.19 3.19 3.19 3.19 3.19 3.19 Tax payable 94.35 111.45 130.02 136.52 143.35 240.55 250.23 260.10 270.15 280.34 Total cash outflow 379.74 612.24 665.87 756.26 798.98 844.46 982.93 1,036.70 1,093.71 1,154.16 1,218.29 Net cash inflow (outflow) -379.74 18.80 79.70 112.87 113.52 113.57 22.91 19.33 15.02 9.91 3.89 PV of cash flow 379.74 16.35 60.26 74.21 64.91 56.466 9.903 7.27 4.91 2.82 0.9615

Cumulative PV 379.74 16.35 76.61 150.83 215.73 272.20 282.10 289.37 294.28 297.10 298.06

132

133