Avocados are high in unsaturated fatty acids, dietary fibre, vitamins and a range of other nutrients and as such are used extensively in the food service, food manufacturing and health food sectors. The market demand is also creating new development opportunities in the areas of avocado farming, processing and deep processing.
Setting up an avocado processing plant not only improves the use of the raw material but also increases the shelf life of the product, allows for a wider range of products to be offered and provides for a greater range of sales outlets. Here are some thoughts on the business plan for an avocado processing plant.
Industry and Market Development Prospects for Avocados
The commercial value of avocado goes way beyond the sale of the fresh fruit itself. It’s a very broad range of processed products. Currently, common processed avocado products on the market include:
Guacamole/avocado paste: main use is on burgers, sandwiches, burritos and as a condiment/ingredient in food service.
Frozen avocado products (including chunks and purée) for use by the food service and food manufacturing sectors.
Avocado powder: used as a food ingredient in drinks, baked goods and a variety of other food products.
Avocado Processing Plant Business Plan
Before you go any further with an avocado processing project you need to have a plan in place covering the market, the raw materials, the facilities, the equipment, the people, the sales etc.
- Market Research and Product Positioning
First of all it is vital to establish the target market and the particular products you’re going to be manufacturing. Different products will appeal to different markets and will require different manufacturing processes.
Investors should do their own due diligence on consumer demand, the competitive environment, product pricing and food safety standards (both in the local market and in the markets where they intend to export) to work out what product they’re going to be producing and what the target production capacity will be. - Raw Material Sourcing and Procurement Planning
The ripeness, the range of varieties, the freshness and the quality of the avocado all have a direct bearing on the final product. It’s therefore essential to have a stable supply chain for the raw materials. You also have to take into account the seasonality of the avocados, the cost of procurement, the distance they have to be transported and the storage conditions in order to ensure that you have a consistent supply of raw materials that will meet the processing requirements. - Facility Location and Layout
The plant should ideally be located close to the source of the raw materials or at a logistics hub with good transport links to the rest of the network in order to keep shipping costs down. The floor area of the plant will be a function of the required production capacity, the number of pieces of equipment, the amount of storage required and plans for future expansion. - Production Equipment and Processing Techniques
Select the right avocado processing equipment according to the product positioning. Avocado purée production for example would involve sorting of the raw material, washing, peeling and pitting, pulping, pulp extraction, homogenisation, sterilisation and filling.
If you’re producing frozen avocado products then further equipment (slicing/dicing machinery, quick freezing system, cold store etc) will be required. The choice of equipment will be dictated by a number of factors including processing capacity, degree of automation, product quality and long term maintenance cost. - Investment Budget and Staffing
The capital cost of setting up a production facility is essentially the cost of the land or factory (or lease), the cost of the works (i.e. the renovation), the cost of the plant and the equipment (i.e. the purchase and installation/commissioning), the cost of the raw materials and packaging materials, the cost of labour and the cost of the ongoing operational expenditure. - Sales Channels and Profitability Planning
Processed avocado products can be sold via food distributors, supermarkets, catering supply chains, food manufacturers and cross border.
Gelgoog Provides Comprehensive Solutions for Avocado Processing Plants
Setting up an avocado processing plant is much more than just buying the processing equipment. It’s about integrating the product positioning, the processing methods, the plant layout and the production management. As a manufacturer of food processing equipment we can provide the investor with a complete package from the initial project through to full commercial production.