- The document presents a pre-feasibility study for a fruit juice production facility in Iraq, analyzing factors such as raw material availability, production costs, market demand, and financial viability.
- A financial model for a proposed "model" facility indicates it could achieve a 19% return on investment but has a long payback period and high break-even production level, raising concerns about commercial feasibility.
- Key outstanding questions that require further investigation include identifying an investor, selecting a fruit type and production location, and assessing market demand and pricing strategy.
Setting Up an Almond Processing Plant Project Report 2024.pdf
Iraq Fruit Juice Project
1. Inma Agribusiness Program Pre-feasibility Study for Fruit Juice Production in Iraq Agland Investment Services Inc. with the Louis Berger Group Baghdad, November 2011
2. Introduction This presentation is based on a Study Report covering the same subject material. The presentation summarizes only the main issues arising and the Findings related to a “model” fruit processing facility. The model is NOT a design for a factory, neither does it provide a formal financial feasibility statement – the ROI shown is purely indicative and in the real world highly dependent on location and operational factors. The purpose of the model is to provide an analytical structure for the initial “proof of concept”. The main background elements and major Findings of the work are reported in the Study document. The work was undertaken in Baghdad and Erbil in November 2011 over a period of 25 work days for the Inma ( Ar. Growth ) Agribusiness Program with USAID funding (1). 1 1. Consultant Agribusiness Specialist: Geoffrey Quartermaine Bastin , FoodWorks Co. Ltd. via Agland Investment Services Inc. and the Louis Berger Group.
3. The commercial success of a fruit juice processing facility depends on: 1. Continuous availability of cheap raw material (collection and pre-processing at the farm level) – click here for a Crop Calendar 2. Availability and cost of other inputs (mainly sugar and clean water) 3. Cost and continuity of electricity supply 4. Sales – product price point and an efficient distribution infrastructure, including a cool chain for fresh juices and juices in non-aseptic packaging. 5. Competition from large-scale juice makers and imports. Major Success Factors 2
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5. Fresh Fruit Supply Grapes – 150-200,000 tons; mainly table grapes; this variety – “Awilka” – considered best for juicing Pomegranates – 100- 120,000 tons. Maybe 25,000 tons for processing. Apples – 35-40,000 tons in remote areas of the north Citrus – 140,000 tons Other fruits – pears, peaches, plums. All small, scattered amounts in total 38.000 tons. Click here for a table of Iraq’s fruit production 4
6. Major Fruits Location 5
7. Example: Collapse of Fruit Production Source: FAOStat 2011 6
8. Click for list of operations 7 Click for actual photos
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10. Operational Feasibility 1. Raw materials – not yet decided. Collection, transport and pricing may be an major constraint. 2. Plant location – not yet decided; probably in the north but depends on choice of fruit for processing. 3. Buildings – need “food safe” and HACCP qualified – click to see the Layout 4. Equipment – choice of supplier and suppliers ability to install and commission plus train staff in Iraq – click to see an Equipment Schedule 4 . Packaging – click to see the Options 5. Power and water sources – grid with 200 kVA generator; water needs to be clean (cleaning may impose additional costs); HVAC is essential. 6. Staffing – there are scale economies related to management; this model may be top heavy – click here for a Staffing Schedule . 7. Waste disposal – effluent process water will require treatment. 8. Sales - sales channel will depend on location and product mix. 9
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13. Outstanding Questions Objective for the project – so far this is undefined. Is it (1) to provide value-added to fresh fruit, or (2) to create a secondary market for a surplus or (3) to make a profit for an investor? Click here for other reasons to turn fruit to juice . Investor – needs to be identified. This will determine location. Questions arise about business strategies in Iraq that may not favor long-term investment in processing, cost of capital is a related issue. Fresh fruit – (1) What kind of fruit is to be used as raw material; (2) Is there sufficient fruit in the designated location; (3) where is the location? Choice of process – a model factory layout has been provided but juice processing offers many different configurations. A choice must be made between a fresh juice, a concentrate or aseptic pulp. Market demand and channels – remains uncertain as does the pricing strategy. Marketing margins in Iraq are high and retail prices are LOW. The ex-factory price presents a challenge for a small-scale operation. 12
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15. End of Presentation Thank you for your time Return to Title slide
16. Background Slides These slides are hyperlinked to the main text and are provided for completeness and to supplement the main findings.
17. Delicate, soft fruits cannot be kept intact over long periods and tend to degrade before or at harvesting. Juicing is the logical alternative. Culls of orchards represent a sensible, technically and economically valid utilization strategy for less than perfect fruit. Blends of juices with other products allows other marketable products. Modern processing, packaging, ingredient technology and distribution systems ensure safe, stable and appealing juice and beverage products in a convenient, economical form far from the raw material source or season. For consumers juices can be consumed more conveniently than whole fruits. Fluid food products, including juices are easier to process, to heat, cool, freeze, standardize, transport, etc., than solid foods or fluids containing particulates. Thus processing efficiency, safety and quality norms are easier to meet. Reasons for Juicing Fruits Return to main slide B1
18. Summary Fresh Fruit Production Source: FAOStat 2011 Note: These data might exclude production for Kurdistan. In addition 2009 was a drought year. Return to main slide B2 Fruit type Previous peak production 2009 reported production Pomegranate Not available 100,000 Dates 2000 - 932,000t 507,002 Citrus 2002 – 400,000t 138,488 Grapes 1990 – 455,000t 194,000 Apples 1999 – 93,000 36,576 Pears 2003 – 25,000t 12,489 Apricots 1990 – 33,000 18,339 Peaches/nectarines 1986 – 30,000 16,878 Plums 1990 – 35,000 2,910 TOTAL 2009 1,026,682
20. Selection of Juice Products Currently Available in Iraq Return to main slide B4 Item Origin Fruit Size/package Price IDR US$ Juice bar Erbil Grape Cup/200ml 500 0.43 Juice bar Erbil Pomegranate Cup/200ml 750 0.64 Sunich - juice Iran Grape 200 ml carton 250 0.21 Sunich - nectar Iran Various 1 liter carton 1,300 1.11 Sunich - 100% Juice Iran Various 1 liter carton 1,850 1.59 Tata (200 ml) - juice India Various 200ml sachet 250 0.21 Fontana - juice Cyprus Orange 1 liter carton 1,750 1.50 Pinar - nectar Turkey Peach, Apple 1 liter carton 1,750 1.50 Dimes Classic - nectar Turkey Peach 1 liter carton 1,500 1.29 Akmina (Danone) Turkey Various 250 ml bottle 400 0.34 Bravo (Rauch) - 100% Juice Austria Peach 1.5 liter carton 5,500 4.71 Happy Day (Rauch) - 100% Juice Austria Orange 1.5 liter carton 5,500 4.71
22. Fruit Processing Unit Operations Return to main slide B6 Unit Operation Result Mass transfer Fruit delivered, dry cleaned Extraction Washed Separation Sized, graded Separation Peeled, cored and deseed Size reduction Crushed, comminuted Pressure application Juice extracted Separation Solids screened Deaeration Oxygen removed Centrifugation Solids separated Filtration Clarification Fluid flow Juice transferred, pumped Heat transfer Enzymes inactivated, juice pasteurized and cooled Concentration/evaporation Volume reduction, stability Mass transfer Packaging, shipping
23. Summary Input – Output Analysis Source: Consultant’s Excel Model Return to main slide B7 Inputs Intermediate output per day Final output/day Juice Oil Pulp 100% Juice Fruit Juice drink kg and liters Fruit: 12,000.00 5,082 92.19 1,729 Oil: 92.19 5,174 Sugar: 172.85 Water: 16,420.97 18,322
24. Return to main slide Click here for actual factory photos Or…. B8
25. Source: Consultant’s Excel Model Capital Costs Return to main slide B9 Item US$ Main Process Equipment 817,000 Ancillary Equipment 255,000 Office Equipment 21,105 Building and civil works 695,000 TOTAL 1,788,105
26. Equipment Schedule Main items Return to main slide B10 Slope Regulated Elevator Washing Unit Sorting Unit Extractor Finisher Decanter De-aerator Pasteurizer Cooling Unit Mixing Tank Packaging Unit
27. Financial Cash Flow Analysis FIRR: 19% Pay-back in 4-5 years Return to main slide Source: Consultant’s Excel Model B11
28. Source: Consultant’s Excel Model Return to main slide Sales and Revenue B12 Total Product Quantity Liters 100% Juice 1,034,809 Fruit juice drink 3,664,468 Sales 100% Fruit Juice I liter packs 517,404 250 ml packs 2,069,618 Fruit Juice Drink I liter packs 1,832,234 250 ml packs 7,328,936 REVENUE US$ 100% Juice 1,300,531 Fruit juice drink 3,070,296 TOTAL (US$) 4,370,827
29. Staffing Schedule Return to main slide B13 Designation Number of persons Management Factory general manager Process manager (Engineer) QC manager (Food) HR manager Sales manager Accountant 1 1 1 1 1 1 Skilled and clerical staff Secretary Accounts clerk Food/QC and laboratory technician Process supervisor Maintenance and process technician Storekeeper 2 1 1 1 1 1 Process and unskilled Process line workers Cleaners Security Cafeteria workers Drivers 20 4 4 3 2
30. Packaging Options Return to main slide Click here for actual photos B14 Container Comments Glass Traditional, inert, visible Tin Can Rugged, reasonably inert Paperboard/plastic laminate Refrigerated storage, easily resealed PET Rugged, reasonably inert, visible Plastic/metal laminate pouch Aseptic, inert, light weight Bulk - plastic, metal Shipping and long term storage Paperboard/foil/plastic laminate Aseptic, inert, light weight
31. Quality Attributes Return to main slide B15 Attribute Rationale Soluble solids (ºBrix) Defines juice strength Titratable acidity and pH Defines acid balance Colour Visual appeal Freedom from defects- decay, insects/damage, mechanical injury, etc Aesthetics, susceptibility to spoilage and contamination Maturity Optimum quality Size, shape and uniformity Ease of juicing Flavour Defines quality Absence of pathogens, chemicals and extraneous matter Defines safety Low microbial load Quality, shelf life
32. In order to safeguard the product quality, the fruit is only delivered and processed using harvest bins. This process gives the possibility to handle the fruit maintaining its integrity, without juice loss and in the best hygienic conditions. http://www.dolomitifruits.com Fruit Delivery B16
33. All fruit handling, from the delivery to the selection, is done on the conveyor belt without using water. This prevents microorganism proliferation and the fruit microbial contamination, which is usually caused by water during handling. Input Conveyor
34. After the selection stage there is a high pressure machine that washes and cleans all of the fruit . Washing B17
35. The fruit then goes into the pressing machines which process it into pulp, juice or puree. Up-to-date technologies give the opportunity to obtain very dense fruit puree Extraction B18
36. The product is subjected only to a single pasteurization process before the aseptic packaging, this guarantees unaltered organoleptic fruit characteristics. Preservation and Packaging B19
37. 3 and 5 liter cartons. Shelf life: 1 year 108 cartons per pallet Packaging Options B20
38. Open-headed metallic drums with aseptic bags of 200 liters or double polyethylene sacks according to client’s needs. 4 drums per pallet. Total weight per pallet approximately 850kg Return to main slide B21