CHAPTER ONE

INTRODUCTION

1.0 BACKGROUND OF THE STUDY

Project in the fruit drink processing both establish and forthcoming are aimed at solving a Very clearly identified development problem.

The raw material producer, due to insufficient demand, week

infrastructure, poor transportation and perishable nature of produce lose substantial money. During the post-harvest glut, the loss is imaginable and often the fruit have to be fed to animals or allow rotting.

Even establishment Fruit processing canning factories or Small/Medium scale processing centre’s suffer huge loss due to erratic supplies. The grower may like to sell his produce in the open market table purpose or the produce may not be of good enough quality for processing even though it is adequate for table use and these results in a grave underutilization of processing capacities.

The main objective of fruit processing is to supply wholesome ,safe, nutritious and acceptable food to consumers throughout the year fruit processing project also aim to replace import of products such a squashes, jams, tomato sauces etc,besides earning foreign exchange by exporting finished goods or semi-processing products.

The fruit processing activities was set up or have to be established in developing countries for one or other of the following reason:

• Diversification of the economy , in order to reduce their present dependence on important products

• Industrialization policy of the government

• Reduction of imports and meeting export demands;

• Stimulate agricultural production by obtaining marketable consumers products;

• Generate both rural and urban employment

• Reduce Fruit Losses;

• Improve farmers nutrition by self consumption of processing Fruit during off season

• Generate new income for farmer/artisans;

• Develop new value-added products

WHAT FRUIT CAN BE PROCESSED

Practically any Fruit can be processed, but some important factors (which determine whether it is to be processed or not) are the following:

(a) The demand for a particular Fruit in the processed form (b) The quality of law material i.e. whether it can stand processing (c) Regular supplies of raw material.

For example, a particular variety of Fruit which may be excellent to eat fresh is not necessary good for processing. Processing requires frequent handling, high temperature and pressure.

Any of the ordinary table varieties of tomatoes for instance, are not suitable for making paste or other processed products. A particular mango or pineapple may be very taste at the table but when it goes to processing centre it may fail to standup to processing requirements due to variation in quality, size, maturity, variety and so on. Even when a variety is suitable, it is not reliable for processing but less regular and large supplies are made available. An important processing centre or factory cannot be planned to depend only on seasonal gluts; although it can take care of the glut, it will not run economically unless regular supplies are guaranteed.

To operate a fruit processing centre efficiently it is of utmost importance, to pre-organize growth, collection and transportation suitable raw material either on the nucleus farm basis or using out growers.

Processing Planning

The secret of a well planned fruit processing centre is that it must be designed for operation for as many months during the year as possible. This means the facilities, the buildings, the material handling and the equipment itself must be interlinked and coordinated properly to allow as many products as possible to be hand led at same time, and yet the equipment must be versatile enough to be able to handle products without major alteration.

A typical processing renter or factory should process four or five types of fruit harvested at different time of the year and two or three fruits. This processing unit must also be capable of handling dried/dehydrated finished products, juices, pickles tomato juice, ketchup and paste, jam, and semi-processed fruit products.

Advanced planning is necessary to process a rang of product in varied weather and temperature condition each requiring a special set of manufacturing and packaging formula. The end result of the effort should be a well managed processing unit with lower initial investment.

Location

The Basic objective is to choose the location which minimizes the average product cost, including transporting and handling. It is advantageous, other things being equal, to locate a processing unit near the fresh raw material supply. It is a necessity for proper handling of perishable raw material, it allows the processing unit to leave the product to mature to its best stage, and lessens injury form handling and deterioration from changes during long transport after harvesting.

An adequate supply of good water, availability of manpower, proximity to rail or road transport market is other important requirement.

Possessing Systems

A. Small scale processing-This is done by small scale farmers for personal subsistence or sale in a nearby market. In this system, processing requires little investment: however, it is time consuming and tedious.

B. Intermediate- scale processing: In this scale of processing, a group of small scale processor pools their resources. This can also be done by individuals processing in based on the technology used by small processor with differences in the type and capacity of equipment used. The raw materials are usually grown by such processors or purchase on contact from farmers. These operations are usually location at the site of production to assume raw materials availability and reduce cost of transport. This system of processing can provide quantities of processed products to urban areas.

C. Large scale processing: Processing in this system is highly merchandised and requires a substantial supply of raw material for economical operation. This system requires a large capital investment and high technical and managerial skills. Because of high demand for foods in the recent years many large scale factories were established in developing countries some successful but majority failed.

Perhaps the most important reason for failure was lack of adequate quantity and regular of raw materials to factories. Despite the failure of these commercial operations, it is felt that they can succeed with better planning and management, along with the undertaking of more independent feasibility studies.

It can be concluded that all the three type of processing system have a place in developing countries to complement crop production to meet food demand. Historically, however, small and intermediate scale processing proved to be more successful than large scale processing in developing countries.

1.2 STATEMENT OF PROBLEM

There are huge risk and pressure involved in starting and running a successful business. Everybody who run their own business will tell you over and over that it’s so much harder than you could have possible ever imagine, and you are they right, but know you will be able to handle it After all, you are not afraid of bit of hard work.

But there are many variables that comes together to make a business work.

You have to consider everything before taking the proverbial plunge into the big-and-sometimes bad world of running your own business. The pressure of being self employed is huge and you can’t get away from them as easily as quitting a job. It’s like a job is “renting” and starting you own business “getting a mortgage”. You take on responsibility that is harder to get out are investing more in your future. Of courses, running own successful business is harder than getting a mortgage (although some first time buyers may disagree).

From dealing with no human interaction or cabin fever’ when working from home, to working longing long and unsociable hours, getting it debt and dealing with non-polite customer politely. The researchers do not think that there is any small business owners who haven’t experienced the “tearing hair out” feeling many times.

An investor must consider the possible stresses and strains of setting up and running his own business and weigh up all the pros and cons before spending anytime on you own idea. You need to be realistic. Never underestimate how hard it’s going to be. You are your sales, your admin, your company secretary—wearing 15 hats and accomplishing them aii is very difficult. It is easier to be an employee than an employer but if you have driven and honest with yourself, and evaluate what you really want, it is worth it. If you are considering being an entrepreneur, remember it’s easier to work in corporate situation.

If your whole being is not telling you that you have got to launch your own business, don’t do it. Because it will totally consume you and you are not going to be to a good daughter, or have lots of time for your friends, and your are probably to have to put friends on the back burner.

If there is any other way you can make you livelihood and be a happy person do it.

Because as an entrepreneur, you are not going to have life-work balance, you may have not flexibility, but you are going to be working almost every moment of your life. And why do that useless you feel so compelled to do that you will probably max out all you credit cards and forget your dad’s birthday. People need to know that it really is as hard as they think-even harder than that.

But once people reach a certain level of success they won’t tell you how hard it was at the beginning. Last minute come aren’t going to tell you that they almost went bust. People have a glamorized view of success, give the profile that the successful entrepreneurs have. But nobody can tell you through how difficult it is, until you go through it and survive. Most businesses go bust and if you have any thing else going on in you life, like stress or financially instability or health issues going into the business you probably shouldn’t do it. It’s an all consuming thing. We can now go further to examine some difficulties that an entrepreneur would face in a new business.

The main factors that drive a lot of individual to self employment are the opportunity to be more in control of their own lives. The in dependence and the much higher level of personal job satisfaction that self— employment brings.

Many people willingly put in long hours and work very hard at starting and running a business, because they are doing it for themselves, and their own future rather than living someone else’s pocket and funding someone’s dream. As someone interested in running own business you will also feels that it gives you a better chance of been able to fulfill you own personal life goals. Yes you are back on that roller coaster again, because being you own boss and in control of your own destiny can also be fabulous.

1.3 OBJECTIVE OF THE STUDY

1. The purpose of this study is to x-ray the state of indigenous fruit Drink processing in Nigeria by size of the firms, location of the factories and the demand for the product.

2. To determine the state of local raw material supply for Fruit Drink processing in Nigeria, quantity to meet processing requirement quality, regularity, accessibility, type of Fruit available and the state where it could be found in commercial quantity.

3. To appraise the performance of firms in the industry especially the life Breweries Nigeria Limited.

4. To determine the level and nature of government support for the development of Fruit Drink farms.

5. To determine the attitude of consumers in patronizing locally processing Fruit Drinks.

6. To assess whether the ban on importation creates any opportunity for indigenous participation in Fruit Processing.

Base on the above, we shall make suggestions and recommendation for advancing the future of industry.

1.4 RESCEACH QUESTIONS

The research will be answering the following questions below-

1. Did our Fruit Drink processors locate their industries near to their source of new materials?

2. Is the quality of our Fruit good enough for processing?

3. What types of Fruits are available for processing?

4. How well the is processing companies performing?

5. What is the level of government involvement to develop farms for the supply of raw materials?

6. How do our consumers patronize local produced Fruit Drink in Nigeria?

7. Does the ban on importation create opportunity for effective indigenous participation?

1.5 SIGNIFICANCE OF THE STUDY

The study tends to provide investors with information on where funds could be sourced. Also provides them with additional information on export incentives that could be extended to them should they venture into exporting of their products.

The study shows that the country have enough of the product for local consumption of which, surplus of the product can be exported and foreign exchange can be earned by the investors.

The processing activities will provide employment opportunities and reduce unemployment.