Agroindustrial project analysi

THE PROCESSING FACTOR 16rbecause of seasonality) and management capabilities (to meet thesupervisory and technical demands of the technology). The processorshould also consider the potential nutritional consequencesof the technology.Another decision the processor must make is plant location. Thevalue of locating near the markets or the producers of raw materialsdepends on the nature of the raw materials, the transformativeprocess of the agroindustry, and the cost and reliability of theneeded transport services. Labor supply, the availability of infrastructure,land costs, and the developmental effects of the projectare additional considerations for plant location.Inventory management also requires special attention because ofthe constraints of seasonality. The processor must determine thecorrect mix of raw and semiprocessed material and finished goodsfor optimal processing capacity. Adequate physical facilities areessential to prevent losses in product quantity and quality from pestand insect infestation or microbial growth. The raw material's seasonalityaccentuates the plant's needs for working capital and theinventory's exposure to price risks. The processor should explorethe methods of handling both.Processing supplies, particularly for packaging, are important inthe manufacturing operation. The quantity and quality of the supply,the cost and dependability of delivery, and the nutritionaleffects of the packaging need to be assessed. Programming and controlprocedures should also be reviewed to ensure that productiondesign and quality control will be adequately carried out. An implementationplan, project engineering, and a master productionschedule should be drawn up before starting production. Finally,almost all agroindustries generate by-products. Because these canbe important to the project's economics, the processor should estimatetheir financial contribution.