Elements of a National Food- Fortification Program for Bangladesh

Annex TablesAnnex TablesAnnex A: Estimated Costs of Oil Fortification in BangladeshCostCost ItemTKDollarAnnual CostsInvestment CostsPurchase price (blender) 1,160,000 20,000Handling, shipping, and insurance 46,400 800Total cost, CIF Chittagong 1,206,400 20,800Customs duty 69,600 1,200Customs clearance and handling in Bangladesh 24,128 416Subtotal cost, delivered to mill 1,300,128 22,416Local handling, installation, and training 195,019 3,362Total investment costs 1,495,147 25,778Annual investment costs 297,911 5,136Variable CostsOperating costs of equipmentMaintenance and repair 17,400 300Electric power 34,800 600Other operating costsLabor 14,280 246Internal Testing 522,000 9,000Outside testing 139,200 2,400Vitamin A 27,953,100 481,950Total variable costs 20,076,480 346,146Fortification Costs Per Metric TonAnnual capital Costs (depreciation & interest) 3.3 0.06Maintenance and repair 0.2 0.00Electric power 0.4 0.01labor 0.2 0.00Internal Testing 5.8 0.10Outside testing 1.5 0.03Vitamin A 215.2 3.71Fortification cost 223.3 3.85Key Parameters and AssumptionsItemUnitCustoms duty on imported equipment 6%Annual plant capacity90,000 MT/yearEquipment life10 yearsInterest rate 15%Annual Maintenance as a % of equipment costs 1.5%20 MOST The USAID Micronutrient Program