Banana Processor

MERU COUNTY INVESTMENT &
DEVELOPMENT CORPORATION
1
Pre Feasibility Study
Report - Meru County
FIRM-RFP-113
FINANCIAL INCLUSION FOR
RURAL MICROENTERPRISES
BANANA PROCESSING PLANT
Location : Mitunguu
Program Title: Financial Inclusion for Rural Microenterprises
Sponsoring USAID Office: USAID Kenya
Contract Number: AID-EEM-E-00-05-0002
Contractor: DAI
Date of Publication: August, 2016
Author: Erickson International

List of Abbreviations
BQ Bills of Quantity
CIF Cost Insurance Freight
Ha Hectares
IRR Internal rate of Return
JKIA Jomo Kenyatta International Airport
KIRDI Kenya Industrial Research and Development Institute
NEMA National Environmental Management Authority
NPV Net Present Value
PGI Protected Geographical Indication
PLC Power Logic Control System
PTO Protected Designation of Origin
ROI Return on Investment
TSG Traditional Specialty Guarantee
List of Figures
Figure 1 Location of banana farmers surveyed 5
Figure 2. Meru Banana Supply Chain 6
Figure 3. Fruit processing flow 12
Figure 4. Banana Inlet Hopper and Conveyor System 13
Figure 5. Waste Water Treatment Plan 16
Figure 6 Architectural image of the proposed plant 17
List of Tables
Table 1. National Banana production among the main producing counties. 3
Table 2. Banana Production Survey Sample 4
Table 3. Detailed description of the banana supply chain of the Sample– Meru . 7
Table 4. Summary of Banana production challenges 9
Table 5. Machine Costs as at 15th July 2016 15
Table 6. Financial projection summary 19
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FIRM-RFP-113
Contents
List of Abbreviations 3
List of Figures 3
List of Tables 3
Executive Summary 5
1. Objectives of the Report 6
2. Methodology 6
3. Background of Banana Farming 6
a) Introduction 6
b) Banana Production in Kenya 6
c) Production Potential of Meru. 8
d) Harvesting and Bulking 10
e) Quantitative and Qualitative Losses occurring in the Banana 13
Supply Chain.
f) Processing 14
g) Recommendation 14
3.1 The Proposed Location of the Processor 15
3.2 Justification of the Proposed Project 15
3.3 Products 15
4. Machinery Sources and Prices 20
5. Waste Water Treatment 21
6. Factory Site Plan and Costs 23
7. Potential Risks facing the business 23
8. Conclusions and Recommendation 24
9. Financial Plan 24
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FIRM-RFP-113
Executive Summary
Agro processing provides a solution to though offsite (away from food processing
the agricultural food production losses site). From the financial analysis and the
experienced in the farming sector. These farmer production potential, the proposed
losses are a big disincentive to farmers in project is viable and will offer high returns
Meru County. It presents a loss in family to the investors.
incomes and perpetuates poverty in the
rural areas. Food losses occur at different The plant will require a total cash outlay
levels of the supply chain – planting, crop of KShs. 658,864,305.58. This includes
management, harvesting, post harvest the cost of construction and processing
management, processing, and distribution machine installation and other fixed and
either in retail or wholesale and at the operating costs for the base year.
consumption stage. This plant is expected to employ 48
workers directly and provide a market
This report presents an investment to the banana farmers in Meru. It will
proposal for the establishment of a banana be Power Logic Control System (PLC)
processing plant at Mitunguu area, Meru controlled thus requiring very limited
County. It represents the second stage human intervention in the process.
of the process i.e. processing and value
addition. This plant will process banana The proposed site (Latitude -0.137587,
puree, banana flour and banana crisps Longitude 37.810284) is 2km from
as the main products. Other product Mitunguu town which is 59 Kms to the
lines that could be added in future (with Isiolo International Airport. The site has
minimal additions to the main processing abundant underground fresh water as well
line) are; Starch, Gin and Vodka. The as adequate supply of water for irrigation
proposed plant will have an intake capacity from Mt. Kenya. It is located on the newly
of 8,000 Kilograms per hour at full tarmac Meru – Ishiara Road (C92);
operation.
The proposed location is in the heartland
The proposed equipment will be sourced of banana farming in Meru. Farmers in
from Netherlands. These are fully Mitunguu use irrigation on their farms thus
automated processors from- intake to are able to harvest throughout the year.
packaging, eliminating the need of a large This will guarantee the processor an all
work force. year round supply of raw products.
The design of the plant has taken into On social benefits, the local community
consideration renewable energy tapping within the immediate vicinity will
to reduce on industrial waste pollution and benefit from the factory’s health facility,
save energy costs. A banana waste energy opportunities to invest in housing and
production plant has been incorporated other economic and trade activities that
into the design. This can be expanded in accrue due to increased population
future to produce manure and animal feed (factory workers) and incomes.
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FIRM-RFP-113
1. Objectives of the (including price and manufacturer’s

specification), determined the necessary
Report additions /accessories that require
frequent changes. Also we sought
The objective of this report is to present out prices of finished products and
the viability of the proposed banana benchmarked with existing processors of
processing plant establishment. This report similar target products locally
primarily considers the business case for
production of Banana Puree, Banana Flour
and Banana Crisps/waffles.
3.Background of
Banana Farming
2. Methodology a) Introduction
Banana is an important food crop in
The study and proposed design of the
several tropical developing countries.
factory was conducted in four phases as
There are 12 countries with a production
described below:-
of over 1 million tonnes annually, ranging
from India (12 million tonnes) to Venezuela
2.1 Phase one consisted of a prefeasibility
(1 million tonnes). Columbia, Costa Rica,
study conducted in Mitunguu and the
Ecuador and Philippines are the major
surrounding areas to establish the
exporters while China is a significant net
availability of banana fruit for processing
importer.
on an industrial scale.
The traditional importers have been the

2.2 Phase two was a survey of the
industrial countries (Western Europe, North
proposed site and necessary amenities.
America and Japan) however, a number
It included a study of the impact of the
of developing countries have become
waste management to the environment
significant importers. FAO1 estimates
and neighboring settlements.
that these trends are likely to continue
and their share could rise further to 33
2.3 The third phase consisted of designing
percent by 2030, as developing countries
architectural requirements for the
will be increasing further their per capita
proposed factory. The Architectural
consumption and imports. The industrial
designs were made based on, future
countries will continue to hold a dominant
expansion needs, lessons learnt from
position as major importers, with their
selected exiting processors and machine
consumption per capita increasing further,
manufactures’ specifications. It also
although at a slower pace than in the past.
considered and benchmarked on best
practices in food processing locally and
b) Banana Production in Kenya
internationally.
Banana is an important source of income
and food security among producers
2.4 In the fourth phase, the team identified
in Kenya. This is mainly due to the
the processing plant and equipment
1 BANANA MARKET REVIEW and BANANA STATISTICS 2012-2013: Market and Policy Analyses of Raw Materials, Horticulture and Tropical (RAMHOT)
Products Team ; FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS, Rome, 2014
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FIRM-RFP-113
introduction of tissue culture technology Dwarf Cavendish and Apple banana;

that has eliminated most of the banana cooking cultivars which include: Gradi
diseases and also reduced the maturation Shisikame, MutaHato, Uganda Green and
period. Bananas account for 36% of the Ng’ombe and multipurpose cultivars such
fruit produced in the country, and 11.1% of as Muraru and Goldfinger.
the total value of domestic horticulture.
Farmers earn USD 148 per year, The leading counties in banana production
contributing between 30-70% of house in Kenya are Meru (14 percent), Kirinyaga
hold income. The subsector employs (12 percent), Embu (10 percent), Bungoma
approximately 500,000 people. (8 percent) Taita Taveta (7 percent) Kisii (7
percent) and Muranga (6 percent).
There are two main banana types in
Kenya- dessert or fruit bananas and Meru, Kirinyaga, Embu and Taita Taveta
cooking or plantain bananas, with different recorded production of 47.28, 57.7, 48.8,
geographic origins; dessert bananas and 50.66 tonnes per ha in 2014, which
originate in Kirinyaga, Murang’a and Meru, could be attributed to access to water for
whilst plantains are produced in western irrigation, adoption of superior varieties
Kenya mainly Kisii. (Tissue Culture), availability of clean
planting materials and exposure of farmers
The main varieties grown include: dessert to modern agronomic practices. Table
banana cultivars - Grandnain, Gross 1 below shows the national production
Mitchel, William’s hybrid, Lactan, Valery, among the main producing counties.
Chinese Cavendish, Giant Cavendish,
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FIRM-RFP-113
Table 1. National Banana Production among the Main Producing Counties.
2012 2013 2014

Area (ha) Production (Ton) Value (KSh.’000) Area (ha) Production (Ton) Value (KSh.’000) Area (ha) Production (Ton) Value (KSh.’000)
Meru 6,194 288,803 2,675,480 6,493 307,013 3,422,330 6,146 215,580 2,475,820
Kirinyaga 3,434 185,402 1,818,220 3,627 209,601 2,288,660 3,768 192,230 2,206,497
Embu 3,026 147,791 1,479,680 3,363 164,374 1,646,528 3,634 177,924 1,782,248
Bungoma 3,029 57,143 1,084,520, 3,413 65,166 1,231,072 3,980 75,234 1,428,277
Taita Taveta 2,450 126,727 1,296,067 2,569 130,154 364,001 2,513 129,739 1,236,000
Kisii 3,856 85,700 1,238,400 3,795 85,022 1,151,060 3,962 85,780 1,231,400
Muranga 5,696 94,981 941,920 5,819 99,737 1,122,677 5,874 101,753 1,141,552
Tharaka Nithi 2,049 80,900 1,039,330 2,137 75,920 963,720 2,148 79,823 1,139,761
Total Kenya 48,022 1,331,958 16,478,500 50,718 1,437,565 17,751,007 52,102 1,430,217 18,164,448
Viewed from an efficiency perpective, Taita Taveta produces c) Production Potential of Meru.
51.62 tons per Ha, Kirinyaga 51.01 per Ha while Meru produces Meru County is currently the leading County in Kenya in the
37.2 tons per Ha. In 2014, Meru had 2,378 Ha more than production of bananas; this is because of the climatic conditions
Kirinyaga and 3,633 Ha more than Taita Taveta yet it produced and accessibility to water for irrigation and markets in Nairobi
23,350 tonnes more than Kirinyaga and 85,841 tons more than and other major urban centres. However, Meru is producing
Taita Taveta. below its capacity. The main banana varieties grown are: Grand
Nain, Gross Mitchel, Chinese Cavendish, Giant Cavendish, Dwarf
Therefore, taking Taita Taveta as a standard, on 6,146 Ha, Meru Cavendish, Shisikame, Uganda Green, Ng’ombe and Gold Finger.
should be producing a minimum of 317,300 tonnes - an increase
of 47% or 101,720 tons more than the reported production in The minimum an acre (0.405Ha) should produce is 15,000
2014. Kgs ( 15 Tons)2. With 6,146 Ha, the minimum production level

8 FIRM-RFP-113
should be 317,300 tonnes. To examine the holdings of about 0.8ha-16Ha. The sample
circumstances of production in Meru a was randomly selected with the largest
survey was conducted in the main growing farm being 20Ha and the smallest being
areas. The findings are discussed below. 0.225 Ha. 11 traders were sampled in
Gakoromone market, Ntharene, Mitunguu,
In this study a sample of 709 farmers was Kariene, Igoji, Katheri 2, Kanyakine and
taken to analyse the production activity. Gikomba in Nairobi. The results are
On the average, the small scale farmers analysed below.
who are the majority of the producers have
Table 2. Banana Production Survey Sample
Survey Sample Actual MOA Data ( 2014)

Production 19,740 Tonnes 215,580 Tonnes
Area (Ha) 564(Ha) 6,146 (Ha)
Sampled Farmers 709
Sampled Traders 11
Farmers weekly output 379.6 tonnes
Traders weekly output 1,221 tonnes
Estimated potential Current % of production 47% increase in Production at current level.3
Areas Sampled Abogeta ,Abothuguchi Central ,Akachiu, Giaki, Kamako, Kanuni, Karirwara,
Kathera, Kiagu, Kianjai, Kigane, Kinjo South, Mikumbene, Mitungu,
Mwangatihia, Nkuene ,Nyaki East Nyaki West , Nthimbiri, Thuura, Mikinduri,
Mbeu, Kariene, Kitheo ,Mlango
Fig 4. below shows the loaction of banana farmers interviewed
Figure 1 Location of banana farmers surveyed

2 Mbijiwe – Farm manager Kaguru Farmers training Centre
3 Taita Taveta and Kirinyaga Counties generate 51.62 and 51.01 tons per HA compared to meru at 35.0 tonnes. Meru
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FIRM-RFP-113
Small scale producers are the back bone of a) De-handing; 26 % of the farmers in
the banana production in Meru. Irrigation Mitunguu reported that de-handing is
in Mitunguu area and the cultivation of done at the farm. In Kariene and Igoji,
tissue culture cultivars has been the driver this activity is done by the traders at the
for the growth witnessed. The Sample collection market albeit on a very small
studied produces 379.6 tonnes per week. scale.
The itinerant traders are the main players
and determiners for prices at the farm b) Cleaning and grading; Traders supplying
level. processors and supermarkets clean and
sort their consignment. Some traders ripen
d) Harvesting and Bulking the produce and deliver to the processors
Harvesting is done in the evening or early and supermarkets. Consignments for the
in the morning. In Mitunguu area, traders open markets are generally not graded.
visit the farms, select and pay for bananas
then hire casual laborers to harvest. The c) Transportation; several forms of
traders know farmers whose produce is transportation are used. These include
ready and the quantities required by the motorcycles, pickup tracks and wheel
market. Traders will transport the harvest to barrows. Motorcycles are preferred for
the road side for collection and transport farms far removed from the main roads. At
to the bulking centre. the various stages of the supply chain, a lot
of produce is damaged and lost.
In Kariene, Kanyakine, Igoji and environs,
farmers harvest and transport to the The Banana Supply Chain: Figure 2 below
market centre to look for buyers. The area illustrates the supply chain of the produce
has 9 bulking Centres along the Meru in Meru. Traders / Middlemen play a central
Nairobi Highway. These are in Kariene, role in the banana trade. They collect from
Kanyakine, Lower Churi (Mwichiune), the farmers and distribute to the market
Yururu, Ntharene, Miruriiri, Igoji, Kieni Kia (retailers, supermarkets and processors).
Ndege, and Keeria. Each centre has a The traders grade, clean, store and
specific day set for purchasing. Produce ripen the produce for the large retailers,
that is not bought is wrapped and left at institutions and processors. The Kiosk
the market centre and will be sold to other Retailers and hawkers collect directly from
traders at lower prices as it is considered farmers and sale directly to consumers
stale. Activities at these centres include; without grading.
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HARVESTING
Traders / Middlemen
Kiosk Retailers and

Hawkers Processors
Builking, De-handling
and Cleaning
Storage and Ripening
Retailers (Supermarkets,
Institutions)
Consumers
Figure 2. Meru Banana Supply Chain
The activities of each participant in the chain is detailed in Table 3 below
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FIRM-RFP-113
Table 3 Detailed description of the banana supply chain of the Sample– Meru .
Supply Location Months of the Products Volumes (ton) Facilities/ Duration/ Inputs and Cost of pro-duction Value of
Chain stage year Equipment Distance Services products
Primary Farm All year round Raw whole bunches Irrigation pipes , On farm Manure, banana Note 1 Note 1
production Hoe and Pangas seedlings/
suckers from
neighbors or self
, irrigation water,
labour
Harvest Farm All year round Raw whole bunches 379Tonnes Knives On farm Casual labour Harvesting 10 KShs / 200-450 KShs
per week paid by Trader or bunch per banana
Farmer bunch ( 30-
50Kg)
Post-harvest Traders premises All year round De-handed bananas or 1,221Tonnes Bags , banana 25-30 km from De-handing De-handing 5 bunch 500 -600KShs
handing (Mitungu , whole bunches per week leaves for the farms to sorting and Market levy – 20KShs bunch (30-50
Igoji, Kariene, packaging market packing Casual per day for traders kg)
Ntharene) Plastic crates labour 100 vehicle parking
Storage / Trader premises All year round Semi ripened and 400 Tonnes Electrical powered 8 hours per 20 Storage, Not willing to provide Not willing to
ripening (Mitungu market) ripened bananas per week ripening equipment tonnes. Mitungu Ripening provide
Ethylene induction market
Transporta- To the traders All year round De-handed and whole 1,226 tons Storage, owned 285 km from Delivery Loading Not willing to provide Not willing to
tion premises and the bunches per week lorry. hired lorry Kariene to and offloading info provide info
market Githurai market. Packing
Note 1- 96% of the sample do not keep records on the costs on the farm. They do not quantify their own labour input. Note 2 – Value of the product could
not be estimated as the prices fluctuate during the different production seasons.

12 FIRM-RFP-113
e) Quantitative and Qualitative Losses the plantation affecting the quality of

occurring in the Banana Supply Chain. produce. About 2% of bananas sampled
The sample provided the following had cigar end fungal disease.
insights into losses incurred at the
different stages on the supply chain. iii) Seedlings: About 89% of the farmers
reported that they get their seedling
i) Farm level- The causes of quantitative from the suckers of their old plantation
losses on the farm occur from; (1) or from neighbours. This practice
overproduction in relation to the hinders the elimination or control
inability of the market to take up all the of diseases thus affecting the total
produce, (2) impassable roads during productivity.
raining seasons, (3) plant diseases, (4)
rain and wind felling plants and (5) iv) Transport of produce - Farmers in
inadequate supply of irrigation water. Kariene, Igoji and Ntharene estimated
(6) Improper crop husbandry. that 16% of the produce is damaged
during transport. The pickups used
Sampled farmers in Mitunguu estimated from the farms will usually load upto
that during raining seasons, 46% of 40-50 banana bunches, Motorbikes
the produce is lost because traders do can carry 6 bunches. The bananas get
not venture into farms more than 10 bruises which accelerates decay during
KM off the tarmac roads. Farmers in storage and ripening. These end up
Kariene, Igoji, and Kanyakine reported being rejected or sold at low prices. At
that only about less than 1% is affected. this stage, traders estimated 15% losses.
The farmers who manage to bring their In Mitungu area, traders estimated that
produce to the market have to sell 5% of the produce is lost by casual
at low prices because of oversupply. labourers when loading to track/ Lorries
About 16% of bananas delivered to the for onward transportation. .
traders get physical damage due to poor
handling. While diseases like banana v) Storage and ripening facilities –Traders
thrips affect about 5% of the produce. in Gakoromone and in the collection
During low production season, traders centers, store bananas on floors or
reported that some farmers harvest leave them outside overnight before
immature bananas. These are rejected at being transported. Roadside traders
the trading centres resulting to losses at expose the produce to direct sunlight
the farm. which increases enzymatic reaction
reducing shelf life. Bananas stored in
ii) Crop management -Most of the farmers temperatures above 24 degrees have
are reluctant to reduce the suckers per a shelve life of about 7 days. During
stool to the recommended number artificial ripening about 2% of the
of 3-5 plants. About 67% of the farms produce is wasted due to uneven
visited had an average of 7-9 plants per ripening
stool. This practice reduces sunlight and
increases competition for nutrients in vi) FAO in 2014 estimated that 11% of the
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production in Meru is lost through the Table 4 below shows a summary of

reasons mentioned above, including challenges affecting production and
handling and storage at retail level. resulting to losses.
Table 4. Summary of Banana production challenges
Challenges of Particulars % of respondents

production
a) Access to production financing 56%
b) Limited extension services 95%
c) Marketing- price fluctuation and middlemen exploitation 96%
d) Inaccessible roads during raining seasons resulting into 98%
waste
e) Limited Water for irrigation purposes 68%
f) Expensive farm inputs, substandard or fake inputs 73.6%
g) High Costs of labor, transport 42.5%
f) Processing at improved Crop and Post Harvest

Products made of banana can be classified Management
into three streams; (i) Pulp or semi solid Surplus production available for
products i.e. Puree, Pulp and Concentrates processing with improved crop and post
(ii) Dry products i.e. Crisps, Waffers, Flakes, harvest management( SP2 ) the County
Powder, Flour and Flavours (iii)Liquid producing on average 51.67 tonnes per
products i.e. Beer, Juice and wine. The ha (EP) in relation to the current area
stem, leaves, peels and fiber are used to under production (cha) net of current
make artifact, mats and animal feed. production (CP) the available net produce
for processing will be calculated as
i) Surplus for Processing at Current follows;
Production Levels
Surplus produce (SP1) available for SP2 =∑2 {((EP x Cha) - CP))}
processing is the net sum of total {(51.67 x 6,146) -215,580}
production less domestic consumption 101,720.4 Tonnes
– current production marketed (CP) as a
percentage of estimated weighted loss g) Recommendation
(EL). From the sample, the weighted loss Dessert bananas stock generated with
is 15 % . efficiency at the farm level is about
SP1=∑1 {(CP x EL) /100} 101,720 tonnes annually. This can provide
{(215,580 x 15) /100} a monthly raw material stock of 8,476
32,337 Tonnes tonnes adequate to establish a processing
plant for different products.
ii) Potential Surplus for Processing
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FIRM-RFP-113
3.1 The Proposed Location of the from India. The proposed products will be
Processor packaged and sold for either industrial use
The proposed processing plant will be or ready to eat snacks.
located in Mitunguu, Imenti South Sub
County. b) Skilled Labour Availability
The location of the plant has the following Fruit processing skills are available in
advantages; the country with over 40 processors in
a) The location is in the heartland of the Nairobi and its environs. This includes
banana growing zone. Transport of raw manual and skilled technical personnel.
materials will not be expensive and the This will provide the recruitment base for
produce can get to the firm while still the business. The Power Logic Control
fresh. Bananas are available throughout System technology that is used in the
the year. machines sought require minimal human
b) The site has ample supply of water and intervention.
electricity.
c) It is on the Meru Ishiara new tarmac 3.3 Products
road. It targets to produce Banana Puree,
Banana Flour and Banana Crisps/waffles as
3.2 Justification of the Proposed Project the main products.
a) Market potential a) Product Standards

The confectionery industry is able to The raw banana has a variety of chemical
absorb the plant’s entire production of and nutritional properties (see table 5
banana puree and flavors. Currently they below) which will determine the extraction
depend on imported products specifically rate for each product
Table 5 General properties of the Banana Fruit
Properties Amount Properties Amount

Calories 89% Saturated 0.11 g
Water 75 % Monounsaturated 0.03 g
Protein 1.1 g Polyunsaturated 0.07 g
Carbs 22.8 g Omega-3 0.03 g
Sugar 12.2 g Omega-6 0.05 g
Fiber 2.6 g Trans fat 0g
Fat 0.3 g
The plant will be expected to adhere to CODEX and other standards detailed in tables 6-9 below;
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Table 6 Requirements for fried banana crisps
S/N Parameter Requirements Method of test

1 Moisture content, %, by mass, max. 5.0 ISO 712
2 Fat content on dry weight basis, %, max. 15 – 35%
3 Free fatty acids on dry weight basis, %, max. 0.5%
4 Sodium chloride (NaCl) on dry weight basis, %, max 2.0
5 Acid insoluble ash, %, by mass, max 0.05
6 Peroxide value, meq oxygen per gram 0.1 ISO 3960
Table 7 Specific requirements for Banana Flour
N Compositional Requirement Quality Limits Method Of Test

1 Moisture, (max), % 11.00 US ISO 24557
2 Total Ash, max,% 4.00 US ISO 2171
3 Acid insoluble ash, max,% 0.40 US ISO 5985
4 Fibre, max, % 5.0 US ISO 5498
5 Particle size Not less than 90 % shall pass through a 0.60 mm sieve for
fine flour and not less than 90 % shall pass through a 1.20
mm sieve for coarse flour. Testing for particle size shall be
done in accordance with EAS 82
The banana flour shall also comply with the microbiological requirements as given in Table 8
below
Table 8 Microbiological requirements
No Parameters Requirements Method of test

1 Total plate count, cfu/g, max 103 US ISO 4833
2 Staphylococcus, cfu/g, max 103 US ISO 6888
3 E.coli, cfu/g, max Absent US ISO 7251
4 Yeasts and moulds, cfu/g, max 102 ISO 21527-2
Banana Puree Microbiological requirements shall be limited to the parameters in the table 9
below
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Table 9 Microbiological limits for Banana Puree
Microbiological parameter Limit

Aerobic (Standard) plate count < 50,000 per g in any sample
Yeast < 5,000 Colony Forming Units (CFU) per g
Mould < 5,000 CFU per g
Coli form < 100 per g using the MPN (Most Probable Number) technique
E. coli < 3 per g using the MPN technique
6 Peroxide value, meq oxygen per gram 0.1
b) Extraction Ratio
Based on the banana fruit composition, the extraction ratios of the three main products will be =
±2%
No Composition Properties Banana Puree Banana Flour Fried Banana Crisps

1 Moisture - 75% 35% 11% 5%
2 Matter – 18% 18% 9% 18%
3 Peel - 7% 0% 0% 0%
Total 100% 53% 20% 23%
c) Manufacturing Design a down time of 4 days in a month for

The input capacity of the factory will be 8 maintainance. The machinery will be on
tonnes per hour of bananas with an over an interface and PLC system. Minimum or
design to take care of future expected no human intervention is required in this
growth. The assumption is that banana kind of control, trouble shooting is easy
source areas will manage to deliver the and down time is minimal during machine
design quantity to the factory to run at operation. The design process is illustrated
optimal capacity. in figure 3 below.
The factory will operate for 26 days and
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FIRM-RFP-113
Schematic Presentation of Banana Processing
Receiving Fruit 1
Storage - ripening 2
Peeling Banana
Washing & Rinsing 3
Banana 3(a)
Sorting of fruit - Greenfruit

Disposing rottingremoved 4
Orga Pump-Transport Belt Washing

to Brush finisher 3(c) Fruit is sprayed with sanitizer as
it moves along the conveyor belt 5
Banana
CHOPPER Chips-Frier
Brush Finisher Fruit is mashed and pips are 6 (a)
Mashed and peels of rem oved from the mango 6
pawpaw removed 3(d) Banana
Flour Miller
6 (b)
FINISHER NO 1
Excess peel from mango and
Mango Slices
pipe from guava and pawpaw
Inspection
are removed, banana dosed
6 (c)
with ascorbic acid 7
Packaging - 3
Lines 14
FINISHER NO 2
Further in all particles are
removed 8
Holding tanks
*Brix, TTA, ph are measured
and adjustments made to
Pre shipping/
*Brix and ph 9
Store 15
STRAINER
Potential foreign matter
and metal are removed
with strainer and magnet 10
RELEASE AND
DISTRIBUTION Shipping
Product distribution in 17
DE-Aeratio refrigerated trucks 16
Excess air is removed
from the product 11
Product divert on
temparature
failure 12 (a)
THERMAL PROCESSING
Product is heated to
102°C and above depending
on the product for minimum
of 60 seconds 12
COOLING SECTION
Product is cooled to 30°C
and below with water and
glycol 13
ASEPTIC FILLING
Product is filled STORAGE OF DRUMS
automatically into tamper store within 4 hours
evident aseptic bags into at 0-10° 15
a drum lined with a plastic
baf 14
Figure 3. Fruit processing flow
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FIRM-RFP-113
Step 1 – Receiveing of Fruit to avoid damage of the fruit enroute to the

The factory will contract farmers to control factory.
quality and variety as well as guarantee the
organic production methods. Once delivered in the factory the fruits will
The farmers will be trained on the best be cleaned and sorted. The inlet system
harvesting methods. Sorting is done at will be a Hopper and conveyor as shown
the home stead before delivering to the in the figure 4 below.
factory. The factory will organise transport
Figure 4. Banana Inlet Hopper and Conveyor System
Step 2 Storage Stage 3 (a) the Bananas are manually

The fruit will be examined, sorted and peeled and categorized according to
stored depending on the ripening stage or the line / product required. Line 3(b) is
the availability of the plant. for processing Banana Flour and banana
Crisps. Line 3(c) is for processing banana
Stage 3 Washing and Rinsing. Puree.
The fruit is washed and rinsed then
separated according to produce. Banana Crisps and Flour 3(b) – the peeled
Banana Products (Puree, Flour and Crisps) banana will move to stage 5 where it is
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FIRM-RFP-113
sprayed with sanitizer as it moves along Celsius and above depending on the
the conveyor belt. The fruit moves to stage product for minimum of 60 seconds.-
6 for chopping / slicing before it is spray Stages 12. The product is then cooled to
dried and separated according to product. 30°C and below with water and glycol
6 (a) bananas slices are fried/ flavoured and (stage 13) and filled automatically into
cooled. They are packaged and stored at tamper evident aseptic bags into a drum
stage 14. Banana chops are ground into lined with a plastic bag (stage 14) and
flour at stage 6(b) - packaged and stored at stored within 4 hours at 0 – 10°C ready for
stage 14. shipping.
4. Machinery Sources 1. Machinery Sources and Prices

and Prices Banana processing equipment are supplied
Banana Puree (3c) – the peeled banana by many companies globally. The choice
is transported to the brush finisher of a equipment will depend on;-
-3(d)-mashed and impurities removed. a) The capacity of the plant/factory.
The mashed product is sent to stage 7 b) The end product to be delivered to the
-Finisher 1 where the banana is dosed market.
with ascorbic acid. This is sent to stage 8 c) The desired technology.
– Finisher 2 for further cleaning. From this d) Future plans for expansion.
stage, the product is sent to holding tanks e) The budget of the plant/finacial
(stage 9) °Brix, TTA, pH is measured and standing of the organisation.
adjustments made to °Brix and pH. The f) The desires,tastes and preferences of
product is pushed through a strainer (stage the markets.
10) to remove potential foreign matter and
metals with strainer and magnet. Accessories that require frequent
replacement, boilers and cylones as well
Excess air is removed through de-aeration as exhaust fans will be purcahsed localy as
(stage 11) and heated at =>102 degrees recommended by KIRDI.
The table 10 below indicates the machine / accessory and the recommended source.
Table 10 Machine Costs as at 15th July 2016
A. Machinery and Materials Costing

Item Quantity Source Price (USD) Remarks
1 Full Automatic Fried Banana One 2,142,564 To process
Crisps Plant (8 tons per hour) fried banana
crisps
2 Exhaust Fans, cyclones and 16 cyclones and Local 11,000 Exhaust factory
factory lightings 10 exhaust fans air
3 Chilling Unit (3000 M³) Three UK 154,176 To freeze Puree
4 Styrofoam and Cooling system To cover 300 M² Local 27,279 Wall laggings
20
FIRM-RFP-113
5 Conveyor System(inputs) Three Netherlands 58,294 To convey raw

Bananas
6 Conveyor System(outputs) Three Netherlands 52,965 To convey
ready Banana
products
7 Boiler and Heating System One Local 186,760 To supply
(Industrial diesel fired) steam
8 Mechanical Works (Platforms, Assorted Local 47,098 Machine
intake, packaging, storage fittings
facility, waste outlet)
9 Plumbing &fittings Assorted Local 58,823 Inlet and outlet
steam and
water flows
10 Complete Sewer treatment One UK and Local 295,117 Waste
plant and waste ducts Management
11 Miscellaneous Expenses @ 606,815 Contingency
±20% of total cost
Total USD 3,640,891
Total KShs @ 364,089,120
USD=KShs 102
NOTE: The Automatic Fried Banana crisps plant will consist of Feeder, cleaner, picking platform, cutter,
first blancher, second blancher, dewatering unit, dryer, fryer, de-oil machine, flavouring and seasoning
machine, pre-cooler, quick freezer and a complete automatic form fill packaging line. The biogas digester
has not been included in this quote.
B. Banana Puree and flour lines
Item Quantity Source Price(USD) Remarks
1 Churning Auger One Netherlands
2 Sizing Rollers Three Netherlands
3 Drier Three Netherlands 1,225,490
4 Crushing Auger One Netherlands
5 Vibrating Auger One Netherlands
6 Packaging Unit One Netherlands
Total In KShs 122,549,000.00
5. Waste Water for use in the factory and a filter cake

of manure for use on farms. This use of
Treatment biogas and recycled water will save on
The water discharged from the processor operating expenses.
when operating at full capacity will be The sewer plant will be a combination
12 thousand liters per hour. The factory of UK sourced equipment and locally
design has incorporated the treatment fabricated accessories that need to be
of this waste to treated water and biogas replaced frequently.
21
FIRM-RFP-113
Figure 5 below illustrates the waste treatment and management plan.
Waste water from the plant

(2000 liters per hour)
Stage 1 - Solida 8
Initial separation process tonnes of full
capacity
Stage 1 effluent
Flocculati on Mechanical aeration

additives
Stage 2 Clarification Stage 2 effluent
2nd Level Solida Addition of chlorine
Recycled water for

Factory gas industrial use
Bio Gas for factory use
energy system
Liquid waste Solidification

recycled
Chemical treatment
lago on/tank
Press
Leachate Press tank Filter cake - Manure
fro farm use
Figure 5. Waste Water Treatment Plan
22
FIRM-RFP-113
6. Factory Site Plan Area – 5 Acres. The land area has been
planned to take care of future expansion.
and Costs Figures 6 show the architectural drawings
Location Mitunguu, Imenti South Sub of the processing site complex.
County.
Figure 6 Architectural image of the proposed plant
7. Potential Risks iv) Failure to meet food processing

regulations pertaining to food safety
facing the business and hygiene practices which need to be
adhered to in the industry.
The risks facing the business can be v) Limited capacity to mobilize capital
divided into two i.e. risks facing the for equipment purchase and working
agro processor and the risks facing the capital.
producers of the raw materials
Constraints faced by producers of raw
Agro-processors face numerous material include:
constraints including: i) Frequent droughts resulting in crop
i) High cost of equipment requiring failure;
meticulous level of maintenance; ii) Limited access to information from
ii) Inadequate extension services to extension service;
support production of raw materials iii) Lack of commercial farming skills and
iii) Expensive power supply coupled with poor crop husbandry resulting into low
frequent power cuts necessitating farm productivity
investment in alternative sources ; iv) Lack of funding and unfavorable
23
FIRM-RFP-113
borrowing conditions project we recommend as follows;-

v) Lack of adequate supply of certified a) Implementation of the site infrastructure
seeds forcing farmers to recycle plants, can be done in two phases, i.e. Phase
vi) Poor road networks making farms one comprising of the machine house,
inaccessible , boiler house, workshop, water and
vii) Pest and diseases resulting into low electricity installation, sewerage and
productivity waste water treatment plant, installing
and commissioning of the processing
8. Conclusions and machines. At this stage the promoters

should acquire a refrigerated truck and
Recommendation an ordinary transport truck. Phase two
would include the completion of the
8.1. Conclusion office block, staff amenities shop, health
The proposed project is a viable business centre and road works in the complex.
which will contribute to modernizing b) The promoters should target to
agriculture in the county. The plant have a full capacity operation of 8
will provide an assured market for the tonnes an hour within 36 months of
numerous banana farmers thereby commissioning the project.
increasing their per capita income. c) Farmer education on production
practices and product handling should
The venture is designed for banana puree, be a continuous process to guarantee
crisps and flour. The processing system will quality of raw materials.
require minimum human intervention thus
it is envisaged that the workforce will not
exceed 48 workers in a full capacity on a
9. Financial Plan
The financial projections contained in
24 hour production of the three products.
this section is based on the following
The country has adequate skills to install
foundation
and commission the operations.
The plant will require a total cash outlay of
KShs. 889,242,324
During our survey the farmers showed
remarkable enthusiasm in participating in
9.1 This includes the cost of construction
the proposed venture as it will reduce their
and processing machine installation, other
farm losses.
fixed and operating costs for the base year.
The plant will require a total cash outlay of

9.2 The Cost of machinery is based
KShs. 889,242,324. This includes the cost
on actual prices CIF upto the port of
of constrution and processing machine
Mombasa as at July 2016. These are from
installation, other fixed and operating costs
specific manufactures.
for the base year.
9.3 Costs of local assembly parts are from

8.2. Recommendations
Nairobi’s industrial area.
Having studied the banana production in
the county and considered the proposed
9.4 The BQs are based on actual costs of
24
FIRM-RFP-113
civil and engineering works as at July 2016. 9.8 Architectural designs were made based
Site inspection visit and soil sample was on the client’s description of process,
conducted in July 2016. future expansion needs, lessons learnt
from selected site visits and machine
9.5 Prices of raw banana were sourced manufactures’ specification. It also took
from Mitunguu market banana farmers and into account the basic industrial safety and
traders. standards in Kenya and globally.
9.6 Prices of the finished products were 9.9 The processing machine has a capacity
sourced from the retail stores and the of 8 tons per hour at full production.
market in Nairobi.
9.7 Visits were conducted to other

Financial projections
processors in Nairobi to establish the & Analyses
physical requirements. Detailed financial analysis are attached to
this main report as a separate document.
25
FIRM-RFP-113
26
FIRM-RFP-113

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MERU COUNTY INVESTMENT &

BANANA PROCESSING PLANT

Program Title: Financial Inclusion for Rural Microenterprises

Sponsoring USAID Office: USAID Kenya

Contract Number: AID-EEM-E-00-05-0002

Date of Publication: August, 2016

Author: Erickson International

1. Objectives of the (including price and manufacturer’s

The traditional importers have been the

introduction of tissue culture technology Dwarf Cavendish and Apple banana;

Table 1. National Banana Production among the Main Producing Counties.

2012 2013 2014

Pre Feasibility Study

Table 2. Banana Production Survey Sample

Survey Sample Actual MOA Data ( 2014)

Fig 4. below shows the loaction of banana farmers interviewed

Figure 1 Location of banana farmers surveyed

Kiosk Retailers and

Storage and Ripening

Figure 2. Meru Banana Supply Chain

The activities of each participant in the chain is detailed in Table 3 below

Pre Feasibility Study

e) Quantitative and Qualitative Losses the plantation affecting the quality of

production in Meru is lost through the Table 4 below shows a summary of

Table 4. Summary of Banana production challenges

Challenges of Particulars % of respondents

f) Processing at improved Crop and Post Harvest

a) Market potential a) Product Standards

Table 5 General properties of the Banana Fruit

Properties Amount Properties Amount

Table 6 Requirements for fried banana crisps

S/N Parameter Requirements Method of test

Table 7 Specific requirements for Banana Flour

N Compositional Requirement Quality Limits Method Of Test

Table 8 Microbiological requirements

No Parameters Requirements Method of test

Table 9 Microbiological limits for Banana Puree

Microbiological parameter Limit

No Composition Properties Banana Puree Banana Flour Fried Banana Crisps

c) Manufacturing Design a down time of 4 days in a month for

The factory will operate for 26 days and

Schematic Presentation of Banana Processing

Sorting of fruit - Greenfruit

Orga Pump-Transport Belt Washing

Figure 3. Fruit processing flow

Step 1 – Receiveing of Fruit to avoid damage of the fruit enroute to the

Figure 4. Banana Inlet Hopper and Conveyor System

Step 2 Storage Stage 3 (a) the Bananas are manually

4. Machinery Sources 1. Machinery Sources and Prices

A. Machinery and Materials Costing

5 Conveyor System(inputs) Three Netherlands 58,294 To convey raw

5. Waste Water for use in the factory and a filter cake

Figure 5 below illustrates the waste treatment and management plan.

Waste water from the plant

Flocculati on Mechanical aeration

Stage 2 Clarification Stage 2 effluent

2nd Level Solida Addition of chlorine

Recycled water for

Liquid waste Solidification

Figure 5. Waste Water Treatment Plan