Agroindustrial project analysi

138 AGROINDUSTRIAL PROJECT ANALYSIS* Energy requirements?* Biomass-based energy sources?How will the technology affect use of project capacity?* Adjustments to diversify products processed and lengthenoperating cycle?* Costs and benefits of adjustments?How well does the technology fit with the firm's managerialcapability?* Supervisory skills adequate?* Technical skills adequate?* Adjust technology to reduce skill requirements?What are the technology's nutritional consequences?* Effects on quality and quantity of nutrients?* Methods of minimizing nutrient loss or increasing nutritionalquality through adjusting technology?Plant LocationIn addition to technology selection, the location of the processingplant is another critical decision in project design. The firstcriterion for plant location is the relation between raw materialsand markets, with transport an essential factor to be considered.Other considerations are labor supply, the availability of infrastructure,land costs, and developmental effect.Raw materials, markets, and transportThe plant must decide whether to locate near the raw materialor near the market for finished goods. The decision depends on thecharacteristics of the raw material and its transformative process,as well as on the costs and availability of transport services. Conditionsof raw materials and transport that favor locating near rawmaterial suppliers are:* Highly perishable produice that requires immediate processing-forexample, cucumbers, melons, or sugarcane;