The Feasibility of Small-scale Indigenous Fruit Processing Enterprises in Southern Africa - Indigenous Fruit Trees in the Tropics: Domestication, Utilization and Commercialization - page 281

currently little domestic competition; a large proportion of juice concentrates
are imported at relatively high cost. Analysis of the financial feasibility of the
proposed enterprise revealed that (based on the assumptions that were made)
the enterprise was potentially profitable, was projected to have a healthy cash
flow and would be viable over the longer term. Once again the analysis was
based on the maximum output capacity of a small-scale fruit juice concentrate
processing plant and the expected output (and therefore income) and the fixed
and running costs associated with producing and marketing fruit juice
concentrate. A summary of the financial feasibility appears in Table 15.2.
Resource environment
As in the case of Malawi, there is a lack of comprehensive and detailed data on
the currently available natural resources in Tanzania and, specifically, detailed
information for Tabora. Therefore, the Tanzania feasibility study also had to
make the assumption that the proposed enterprise could be environmentally
feasible when fruit is imported from both natural and domesticated sources.
Social and institutional environment
Currently the fruit processing groups in Tabora are interested in processing but
have a limited local market. The fruit juice enterprise would focus on exporting
products out of the Tabora region. The enterprise would create employment
opportunities as well as a new market for indigenous fruit products that could
increase household income. Again, a lack of concise information regarding
specific socio-economic indicators of the communities in the vicinity of the
proposed enterprise undermines the estimation of quantifiable impacts and
reduces the result to a comment that merely indicates the 'direction' of the
impact rather than both the direction and amplitude.
Science and technology environment
Processing technology that is ideally suited to the specific technical
requirements of the proposed processing enterprise at Tabora, Tanzania is
available from custom manufacturers in South Africa and can be readily
imported into Tanzania. The nature of the processing technology is also such
that it is relatively easy to operate and maintain. The human resources/skills
and expertise available at Tabora are questionable - but this shortcoming could
be overcome through targeted training. The location at Tabora is argued to be
less than ideal. Although Tabora is located close to a number of important
sources of fruit, it is not well located with regard to the procurement of inputs or
with regard to suitable markets for the fruit juice concentrate. Considerable
costs, that reduce the viability of the processing enterprise, would need to be
borne by the enterprise to transport inputs to Tabora and to transport the final
products to suitable markets in the larger centres of Tanzania. To view transport
costs in this instance in context, transport costs constitute 42% of the total
variable costs to deliver the final product to the market, which is expected to be
detrimental to the profitability and viability of the enterprise there.