Agroindustrial project analysi

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140 AGROINDUSTRIAL PROJECT ANALYSISconcerned with locating near the supplier-to lessen the risk ofperishability-and with the quality of the transport service (forexample, speed and refrigeration) than with transport costs. Transportservices deficient in quality or availability may eliminate somedesirable locations. When this occurs, the firm should consider integratingto operate its own transport services. Integration would requirean analysis of the incremental capital investment and thepotential savings in increased reliability.Labor supplyBecause agroindustries do not generally employ many workers,their supply of unskilled labor is not constrained, particularly if theworkers from which the project draws are highly mobile. It is moredifficult, however, to find skilled labor and managerial talent, aconstraint especially acute if the plant is in a rural area. If this isthe case, the firm may have to offer special financial incentives orsocial amenities to attract and retain qualified personnel.Availability of infrastructureBecause defective infrastructure can increase costs and negativelyaffect quality, the agroindustrial firm should consider the facilitiesand services available at alternative locations. Puri and Lamson-Scribner have recommended that a firm examine a location for thefollowing infrastructural aspects of electricity and water supply. 27Electricity* Demand (both actual and projected, to identify possible bottlenecks):plant, community* Source and availability* ReliabilityRecord of interruptions during past year (some utility companiesdo not regard momentary outage as an "interruption";hence, verify the record)27. G. N. Puri and Frank Lamson-Scribner, "Technical Aspects of Appraisal,"EDI Report no. CN439 (Washington, D.C., World Bank, May 1976;processed); also see United Nations Industrial Development Organization(UNIDO), Manual for the Preparation of Industrial Feasibility Studies, Salesno. E.78.II.B.5 (New York, 1978), pp. 54-97; and S. Soderman, Industrial LocationPlanning (New York: Halsted, 1975).
THE PROCESSING FACTOR 141* Availability of desired demand on year-round basis* Tie-ins with state power gridEffect of grid outages on power for plant siteWillingness of electricians to repair "hot" or live lines* Cost of purchased powerTerms of contractDocumentationPotable water* Demand, load and pressures, temperatures* Source and availability* Boiler feed-water treatment required* Cost* Kind of boiler fuel, its source and availabilityCooling water* Maximum wet bulb design* Cooling tower; river water or seawater?* Intake works* Discharge* Corrosion protection* Pollution problem* Distance to intake* Right of way for supply and discharge* Permits requiredOfficials: names, titles, addressesObtained by whom?When?Present statusDocumentationi CostProcess water- Demand (both actual and projected) and load at full capacity- Source and availability* Treatment* CostIn addition, the analyst should also assess the transport infrastructure,including roads, railroad sidings, and storage terminals.In one East African country, a corned-beef processing plant was
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AgroindustrialProjectAnalysis James
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AgroindustrialProject AnalysisJames
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ContentsForeword by Ajit MozoomdarP
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ForewordAGROINDUSTRY-that is, indus
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XPREFACEThe following colleagues ga
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IAn OverviewTHE PURPOSE OF THIS BOO
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AN OVERVIEW 5ing factory must conte
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AN OVERVIEW 7trialization occurs ca
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AN OVERVIEW 9Table 1-2. Contributio
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AN OVERVIEW 11cent; this far exceed
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AN OVERVIEW 13By broadening its agr
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AN OVERVIEW 15agroindustries from i
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AN OVERVIEW 17focus than indicated
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AN OVERVIEW 19be interested in cost
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AN OVERVIEW 21that warrant further
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AN OVERVIEW 23prises of different s
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AN OVERVIEW 25an interactive proces
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2The Marketing FactorTHE VIABILITY
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THE MARKETING FACTOR 29testing cons
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THE MARKETING FACTOR 31product to t
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Figure 4. Illustrative Segmentation
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THE MARKETING FACTOR 35ucts are pur
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THE MARKETING FACTOR 37decisionmaki
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THE MARKETING FACTOR 39gional, nati
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Figure 5. Product Life Cycle (PLC)M
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THE MARKETING FACTOR 43Institutiona
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THE MARKETING FACTOR 45How do insti
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THE MARKETING FACTOR 47ssl's may ne
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THE MARKETING FACTOR 49the governme
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THE MARKETING FACTOR 51consciousnes
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THE MARKETING FACTOR 53FUNCTIONS. M
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THE MARKETING FACTOR 55the processo
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THE MARKETING FACTOR 57Responses by
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THE MARKETING FACTOR 59* Likely com
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THE MARKETING FACTOR 61Table 2-3. T
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THE MARKETING FACTOR 63TIME-SERIES
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THE MARKETING FACTOR 65ence of appr
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THE MARKETING FACTOR 67Are the data
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THE MARKETING FACTOR 69ect's market
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THE PROCUREMENT FACTOR 71* Cost. Th
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THE PROCUREMENT FACTOR 73the declin
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TIIE PROCUREMENT FACTOR 75termine t
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THE PROCUREMENT FACTOR 77C- cost pe
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THE PROCUREMENT FACTOR 79Figure 7.
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TBE PROCUREMENT FACTOR8itomato crop
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THE PROCUREMENT FACTOR 83Storage an
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THE PROCUREMENT FACTOR 85Is there c
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THE PROCUREMENT FACTOR 87desired re
Page 101 and 102: THE PROCUREMENT FACTOR 89of the qua
Page 103 and 104: THE PROCUREMENT FACTOR 91Even with
Page 105 and 106: THE PROCUREMENT FACTOR 93The firm s
Page 107 and 108: THE PROCUREMENT FACTOR 95A crop's a
Page 109 and 110: THE PROCUREMENT FACTOR 97Table 3-4.
Page 111 and 112: THE PROCUREMENT FACTOR 99the transp
Page 113 and 114: THE PROCUREMENT FACTOR 101credit or
Page 115 and 116: THE PROCUREMENT FACTOR 103firm's pr
Page 117 and 118: THE PROCUREMENT FACTOR 105Are multi
Page 119 and 120: THE PROCUREMENT FACTOR 107Seeds and
Page 121 and 122: THE PROCUREMENT FACTOR 109tion. Inc
Page 123 and 124: THE PROCUREMENT FACTOR 111size; emp
Page 125 and 126: THE PROCUREMENT FACTOR 113Salient p
Page 127 and 128: THE PROCUREMENT FACTOR 115storage a
Page 129 and 130: 4The Processing FactorTHis STUDY HA
Page 131 and 132: THE PROCESSING FACTOR 119In milling
Page 133 and 134: THE PROCESSING FACTOR 121tion that
Page 135 and 136: n.a., Not applicable.Source: C. Pet
Page 137 and 138: THE PROCESSING FACTOR 125labor perm
Page 139 and 140: THE PROCESSING FACTOR 127tions have
Page 141 and 142: THE PROCESSING FACTOR 129season. Fi
Page 143 and 144: THE PROCESSING FACTOR 131sensitive
Page 145 and 146: THE PROCESSING FACTOR 133Table 4-4.
Page 147 and 148: THE PROCESSING FACTOR 135soluble nu
Page 149 and 150: THE PROCESSING FACTOR 137Food Produ
Page 151: THE PROCESSING FACTOR 139* Fragile
Page 155 and 156: THE PROCESSING FACTOR 143the cost o
Page 157 and 158: THE PROCESSING FACTOR 145cessor in
Page 159 and 160: THE PROCESSING FACTOR 14715 percent
Page 161 and 162: THE PROCESSING FACTOR 149and A. The
Page 163 and 164: THE PROCESSING FACTOR 151example, i
Page 165 and 166: THE PROCESSING FACTOR 153primary in
Page 167 and 168: THE PROCESSING FACTOR 155For more c
Page 169 and 170: THE PROCESSING FACTOR 157farmer's a
Page 171 and 172: THE PROCESSING FACTOR 159failed to
Page 173 and 174: THE PROCESSING FACTOR 16rbecause of
Page 175 and 176: COSTS OF ALTERNATIVE TECHNOLOGY 163
Page 177 and 178: COSTS OF ALTERNATIVE TECHNOLOGY 165
Page 179 and 180: can process almost any eration); $0
Page 181 and 182: Pneumatic Batch or continuous $120,
Page 183 and 184: of previously driedproducts; best f
Page 185 and 186: Fluidized Continuous operation $372
Page 187 and 188: Plate Batch operation for $372,000
Page 189 and 190: system cookers (probably simi- to t
Page 191 and 192: CHECKLIST OF CRITICAL QUESTIONS 179
Page 193 and 194: CHECKLIST OF CRITICAL QUESTIONS 18I
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CHECKLIST OF CRITICAL QUESTIONS 191
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BibliographyTHE FOLLOWING WORKS AUG
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BiBLIOGRAPHY 201Scott, M., J. D. Ma
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BIBLIOGRAPHY 203Forecasting methods
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BIBLIOGRAPHY 205UNIDO. UNIDO Guides
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BIBLIOGRAPHY 207tional Affairs, no.
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IndexAdvertising, 42, 128; promotio
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INDEX 211development planning and,
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INDEX 213Social costs and benefits:
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The World BankEconomic Development
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