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AFRICABIZ VOL 1 - ISSUE: 96
APRIL 15 - MAY 14, 2007
Previous Issue
Editor: Dr. Bienvenu-Magloire Quenum
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A WORD FROM THE EDITOR


Dear visitor and international investor,


We warmly welcome you, if this is your first visit to Africabiz Online - The ultimate newsletter on trading and investing in 49 sub-Saharan African countries. If you are a regular and faithful reader, welcome back.

- FROM SMALL TO BIG AS FAR AS MANAGEMENT COPES

The jobless level in most African countries - up to 80 percent of the available "working force," is dispiriting. Even the continent economic superpower, South Africa, does not perform better as its unemployment rate is about 40 percent.

Such levels of joblessness are portent of troubles and chaos for the near future. To defuse social tensions that are building up in most African countries, the unemployment problem needs urgent attention from decision-makers in order to create jobs to cope with the immense demand.

Please take a sharp look at current business opportunity in Africa: A Small-scale Operation To Producing Sugar-cane Juice. Such an operation can create 4 to 6 jobs. A perfect business to sustain an African family / household.

If the operation is upgraded to medium-scale with 5 crushers installed instead of a single one, the number of operating people can be in the range of 20 to 30 that would produce 12,000 liters of fresh sugar-cane juice per day.

And if 1,000 such operations are established in an African country (with a population level of 7,000,000 people), the global daily fresh sugar-cane juice production would be 12,000,000 liters and create 4,000 to 6,000 direct operating jobs, not to mention jobs created in related services: packaging, transport and distribution and the boosting of the cultivation of sugar-cane.

Further, these medium-scale sugar-cane juice production operations can diversify production to manufacturing brown sugar. [
93, 94]

Thus, current business opportunity demonstrates the possibility to boost the economy of African countries establishing small-scale economic activities (instead of big concerns) in all sorts of business areas to trigger the economic take-off with yearly double-digit growth rates - as briefly exposed in Strategy for African Countries and schematized on the graph available here

The Strategy is based on the concept that small can be changed into big to boost African economy and give jobs to thousands and thousands of people.

However, for the successful implementation of such a strategy, projects included as national development scheme's component-parts should be managed professionally, to advert under capacity productivity of the small and medium-scales operations (in comparison to capital intensive operations, which, in principle are more efficiently managed).

In other words, every necessary management tips and "tricks" should be used to maximize productivity and efficiency for small and medium-scale operations. Otherwise, the undertaking may not reach production and job creation targets. For such purpose, the intensive use of IT would be an invaluable asset.

Click here to read about: The Necessity To Establish National Information Technology Center To Manage The Economy.

- SERVICES AND PRODUCTS FROM Dr. QUENUM & ASSOCIATES / BUSINESSAFRICA (TM)

List of Products and Solutions to trading and investing in and out emerging nations - and particularly in sub-Saharan African nations - is here to review.

We draw your attention to Jobs & Projects' platform that assists first, project-owners to tender for the best experts to carry out projects at very competitive costs, and, second, job-seekers to publish for free Résumés/CV to attract project-owners attention.

The Pay-Per- Click advertisement platform is also the cheapest way to advertise for your business.

Click the image for moreDr. Quenum and Associates, IBC / BusinessAfrica (TM) have decided to follow Yahoo wise business practice - that is to establish business relationship only with clients who can produce email address linked to an ISP domain name or that could be traced back against a database of valid and legitimate domain names. In other words, from now on, only ISP-based email messages can expect replies from Dr. Quenum & Associates, IBC / BusinessAfrica (TM). For more on the matter, please visit this link.

- Contributor's Guidelines are here to review. Your contribution on "How emerging nations and particularly African countries / entrepreneurs could bridge the developing gap" is welcome.

Your feedback / objection / contribution is welcome. Visit WorldWide BizCenter, and choose General Information (as topic) to create a thread for discussion. On the top of the WorldWide BizCenter page, there is a HELP link to assist you making an efficient use of the discussion board. This link also is useful


Many thanks for dropping by and see you here on May 15, 2007.

Dr. B.M. Quenum

Editor of AFRICABIZ

Contact Dr. Bienvenu-Magloire Quenum

BUSINESS OPPORTUNITIES IN AFRICA


- Several business opportunities - component parts of the Integrated Developing Scheme described in Africans, Stop Being Poor! are listed in following table.


a- SHEA BUTTER (5, 6, 7, 11, 12, 13)
b- BLUE GOLD (14, 15, 16, 17, 18, 19)
c- FREEZE-DRIED PAPAIN (20, 21, 22 and here)
d- KENAF (23, 24)
e- VEGETABLE OIL (25, 26, 27, 28)
f- CEREALS (30, 31, 32, 33)
g- FRUITS (34, 35, 36, 37, 38, 39, 40, 42, 43, 44, 45, 46)
h- ESSENTIAL OILS (47, 48, 49, 50, 51, 52)
i- ROOTS & TUBERS (54, 55, 56, 57, 58, 59, 60, 61, 62, 63, 64)
j- FOWL BREEDING (66, 67, 68, 69, 70, 71, 72, 73, 74, 75, 76)
k- FISH FARMING (78, 79, 80, 81, 82, 83, 84, 85, 86, 87)
l- BIOMASS ENERGY (89, 90, 91, 92)
m- SUGAR CANE & PRODUCTS (93, 94, 95, 96, 97,

- SUGAR CANE & PRODUCTS: PART IV - A SMALL-SCALE OPERATION TO PRODUCING SUGAR-CANE JUICE

The current series' first issue outlined the importance of sugar-cane as Economic Catalyst to developing. This current delivery deals with the economics of a small-scale operation to producing the basic product extracted from sugar-cane stick, that is fresh sugar-cane juice. [
Sugarcane contains about 70% water, in which sucrose and other substances are held in solution, forming about 88% by weight of juice in the stem. The remaining 12% represents the insoluble cane fibre component.]

Sugarcane juice  is an opaque liquid (which acidic pH ranges between 4.9 to 5.5), covered with froth due to air bubbles entangled within it. Its colour varies from light gray to dark green, depending on the colouring matter in the rind of the cane crushed.
It is the raw material to manufacturing  all kinds of beverages, cane spirits, rum and vodka. Not to forget chemical products, food stuffs and nutriceucals and biopharmaceuticals.

As for any other transformed produce from agricultural raw-materials, the (gustatory) quality of the juice is related to the quality of the processed-sticks. High quality sugar-cane sticks (harvested at the right time in optimum conditions) will yield good juice content with high sugar levels (up to 20% and above). By contrast, poor quality sugar-cane sticks - particularly the ones that had been too early harvested, could yield good juice content, which however has fairly low level of sugar content. Further, if the "final" manufactured product is fresh sugar-cane juice, the removal of the was (cerosin) and other earthy impurities from the sticks, is a compulsory processing step in order to have a healthy juice that tastes good and preserves well. For more on sugar-cane juice processing review previous delivery.

- SMALL-SCALE OPERATION TO PRODUCING SUGAR-CANE JUICE

Let us consider a small-scale sugarcane juice producing operation that yields 2,400 liters of pure fresh juice per day (that is 120 containers of 20 liters each/ 7,200 bottles or cans of 33,33 cc capacity each.)

Play Video That Shows A Small-scale Sugarcane Juice production
In Cerro, Havana, Cuba - Courtesy of Michael Fijal


Click here to visit Michael Fijal's website

The above video shows the processing steps to producing fresh sugarcane juice.

Sugar-cane juice production uses a simple technique that is the crushing of the sticks. However, the technology used to crushing the sticks have an impact on the quantity of juice extracted. Previous delivery listed links to manufacturers of crushing machines.

One can choose a crushing machine that extracts 300 liters of fresh juice per hour. Operating staff is composed of four persons: One to feed the crusher, another person to discard crushed sticks (bagasse), one person to fill in 20 liters containers and another person in charge of handling. Plus one delivery man.  

Table below lists investment items and estimate to producing 2,400 liters of fresh sugarcane juice daily / 24 days per month over 11 months that is 633,600 liters over an operational year: 

Items
US$
INVESTMENT

1- Processing area: 150 sq. meter for crushing area and storage-

750

2- Processing Equipment: One sugarcane-stick peeler, one crusher, 250 - 20 liters each plastic containers (taking into account deposit with clients), a 5 KW steam-powered generating set using  bagasse as feeder), cleaning brushes and water hose. Etc.

30,500

3- Other Equipment: One delivery truck with flat deck. handling equipment. Etc.

12,500

4- Starting expenses: Comprehensive feasibility study / business plan for the processing plant. Etc.

2,500

Total investment

46,250
PRODUCTION LEVEL
1- Fresh sugarcane juice = 633,6 metric tons per year.
2- Dried bagasse = 95 metric tons per year.
OPERATING COSTS

Operational Expenses: Raw material (around 745 metric tons of fresh sugarcane sticks per year or 2,821 metric tons per day - purchased at 30$US per metric ton), harvesting, handling and transport to processing floor - production costs - insurance - utilities - staff and hands / management salaries - amortization - interests on loan. Etc.

65,500
Cost of production off plant floor for one metric ton of sugarcane juice 87

The operation is a highly profit-making business as the cost to producing a liter of fresh sugarcane juice would be standing around 9 cents - compared to "classic" soda beverage that sold in most African cities for around 20-25 cents for 33 cc bottles or cans. Therefore, producers can apply a hefty profit margin up to 100% and still be competitive.

Next delivery (May 15, 2007) will review the several products that could be manufactured from fresh sugarcane juice.

MORE ON SUGAR CANE & PRODUCTS
1- Sugar Cane Industry, The (Cambridge Studies in Historical Geography)
by J.H. Galloway (Paperback Sep 23, 2005)
2- The House Surrounded by Sugar
by Leanna Williams (Paperback - Mar 8, 2006)
3- From Cane to Sugar (Start to Finish)
by Jill Braithwaite (Hardcover - Aug 2004)
4- Cane Sugar Handbook: A Manual for Cane Sugar Manufacturers and Their Chemists
by James C. P. Chen and Chung Chi Chou (Hardcover - Nov 8, 1993)
5-
Sugar Cane
by Alex Morgan (Paperback - Aug 28, 2002)
6- The Sugar cane factory: A catechism of cane sugar manufacture for the use of beginners
by Frederic I Scard (Unknown Binding - 1913)
7-
Sugar Cane Cultivation and Management
by Henk, Bakker and H., Bakker (Hardcover - Jan 1, 1999)
 

8- Sugar Cane (Tropical Agriculturalist)
by R. Fauconnier (Paperback - Feb 24, 1993)
9- Management Accounting for the Sugar Cane Industry (Sugar Sciences, Vol 8)
by A. E. Fok Kam (Hardcover - Mar 1988)
10- The nature and properties of the sugar cane
With practical directions for the improvement of its cultures, and the manufacture of its products)
by George Richardson Porter (Unknown Binding - 1831)
11- Sugar-cane and Sugar Industry in Nigeria
The Bitter Sweet Lessons
by Abdul-latif D. Busari (Paperback - Nov 2005)
12- The 2007-2012 World Outlook for Sugar Cane Mill Products
by Philip M. Parker (Paperback - Oct 13, 2006)

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