Feasibility Study on the Establishment of

Corn Processing Plant

study involves techno-economic feasibility study on the establishment of corn Processing Plant
he

consisting of the following components:

1. Market Study and Plant Capacity Determination;

 The envisaged plant to be established will substitute the import of corn starch and the
allied products which are imported from the international market, and to cover the
increasing demand.

 Plant Capacity (Tons/year )

 The proposed annual capacity of the corn processing plant is 30,000 tons of
main product (starch),

 45% of starch is a raw material for the glucose plant; with remaining divided
between production of dextrin and modified starches (35%), glues(10%) and
the remaining sold as native starches

2. Materials and Inputs;

Raw material

 corn grain
 Food grade starch and enzymes.
 dry germ from the main line and hexane
Auxiliary Materials and Additives
 Sulfur and lime..
 HCl, soda ash and activated carbon
3.Location and Site Selection

 Major corn growing zones covering West Gojjam, Jimma, East Wollega, West Shoa,
Illubabor and East Shoa has been selected as possible potential locations of the
envisaged project, but Further considering key infrastructure, labor ,technical and
financial factors, Burie town which also hosts a proposed industrial park as the site for
the envisaged Corn Processing Plant is proposed.

4 required Land
The proposed project site is Burie Town with total land requirement of 3.25 hectares
 The total land required for corn oil production is around 1 hectares
 The total land required for corn starch production is around 1.5
 The total land required for corn oil production is around 0.75 hectares
5 Product Mix
This integrated corn processing plant has three manufacturing plants those are:-
 corn starch manufacturing plant
 corn oil extraction and refining plant
 glucose manufacturing plant
the products are:-

 corn starch

 corn oil

 glucose

6. Technology and Engineering;

Corn Starch Production Technology

 Dry and wet fractionation process technologies are conventionally employed to separate corn
intoits basic component parts
 Cleaning of Corn Grains
 Steeping
 Grinding
 Fiber Separation
 Separation

Corn Oil Extraction and Refining Technology

The oilseeds are processed by one of three types of processes:

1. expeller or screw press extraction,
2. prepress solvent extraction, and
3. expander solvent extraction/supercritical fluid extraction
*The preferred oilseed extraction process depends on the quantity of oil present in the oilseed,

Modified Starches and Dextrin Manufacturing Process Technology

 Dextrin manufacturing can be done in two ways from starch

Torrification/Roasting/Dry method

7 . Organization a Human Resource Requirement

The project will create a job opportunity for 570 employees, which includes:-

description No of employees
 General Manager Office………………………………………….. 6
 Internal Auditing Service………………………………………..... 3
 Plan and Performance Follow up Service……………… 9
 Management Information System Service ………………. 4
 Purchasing and Property Administration …………………26
 Administration and Human Resource Dev. …………….. 95
 Finance Department ………………………………………… 22
 Marketing Department…………………………………….14
 Quality Assurance, Research and Dev………………….47
 Production Department……………………………………95
 Technical Department…………………………………….149
7. Financial and Economic Analyses.

7.1 Financial analysis

7.1.1. Corn starch manufacturing plant
Investment cost

 The total investment cost of the project is estimated at Birr 338,202,120

Source of finance

 Financial requirements during phase one the share of bank loan (70%) and equity (30%)
Revenue

 we expect the total

 income of the plant to to reach 604 from 392 Million in the first year of operation

Profitability

 Average after tax profits during the first five years for the plant are expected to be
around 20%..
Discounted Cash Flow

 the IRR of the project is computed to be 15% indicating the viability of the project
 the net present value of the project is Birr 712 million discounted at 5%.Based on the
projected cash flow the payback period will be five years, which is a reasonably short
period of time.

7.2. The economic impact of the project

 The project creates employment opportunities for 63 persons.

 Average after tax profits during the first five years for the plant are expected to be
around 20%.
7.3 The project could have the following social impacts
 The project will create backward linkages with the agricultural sector

 The project will create a conducive environment for the rapid growth of service and
trade sectors around the project site which in turn create employment
opportunity for a substantial number of person

7.2 Financial analysis

7.2.1. corn oil extraction and refining plant
Investment cost

 The total investment cost of the project is estimated at Birr ETB 38,004,098.

Source of finance

 Financial requirements during phase one the share of bank loan (70%) and equity (30%)

Revenue

 we expect the total income of the plant to to reach 604 from 392 Million
 Profitability

 Average after tax profits during the first five years for the plant are expected to be
around 20%...

7.2.2. The economic impact of the project

 The project creates employment opportunities for 45 persons.

 Average after tax profits during the first five years for the plant are expected to be
around 20%.
7.2.3 The project could have the following social impacts
 The project will create backward linkages with the agricultural sector

 The project will create a conducive environment for the rapid growth of service and
trade sectors around the project site which in turn create employment
opportunity for a substantial number of person

7.3 Financial analysis

7.3.1. corn oil extraction and refining plant
Investment cost
 The total investment cost of the project is estimated at Birr 189,750,000 Birr.
Source of finance
 Financial requirements during phase one the share of bank loan (70%) and equity (30%)
Revenue

 we expect the total income of the plant to to reach 604 from 392 Million
Profitability
 Average after tax profits during the first five years for the plant are expected to be
around 28 %...
7.3.2. The economic impact of the project
 The project creates employment opportunities for 68 persons.
 Average after tax profits during the first five years for the plant are expected to be
around 20%.
7.3.3 The project could have the following social impacts
 The project will create backward linkages with the agricultural sector

 The project will create a conducive environment for the rapid growth of service and
trade sectors around the project site which in turn create employment
opportunity for a substantial number of person
8. Environmental Impact Assessment

In the Integrated Sesame processing plant there is no major environmental pollution

problem. The areas that need attention are the dust problem caused during seed cleaning
and hulling Process and the liquid effluent from oil processing. The selected technology
equipped with dust Arrester to reduce the dust effluent to the minimum allowable limit. The
liquid effluent from oil Processing requires waste water treatment, so that waste water treatment
facility design is considered on the feasibility study.