Techno-economic packaging of palm wine preservation and bottling technology for entrepreneurs

  • OM Oyeku
  • FS Adeyemo
  • CF Kupoluyi
  • TM Abdulhadi
  • OS Davies
  • IG Yussuf
  • AO Sadiq
  • O Olatunji
Keywords: Entrepreneur, Palm Wine Preservation, Palmwine Bottling Technology, Techno-Economic Packaging


The study was carried out to investigate the economic viability of setting up a small scale palm wine bottling factory with a view to providing investment data to guide entrepreneurs in making investment decisions. The economic evaluation was based on a factory capacity of 750,000 bottles (60cl) per annum with production commencing in year one at 75% capacity utilization. Production cost estimate varies between N37.85/bottle (60cl) in the first year and N35.37/bottle (60cl) in the fifth year. The annual net
profits are N8, 460,430.00 and N12, 025,710.00 in years one and five respectively. Projected cash flow is positive in year one i.e. N5,329,960.00 while the projected balance sheet shows that the net worth of the
project is N19,904,010.00 in year one and N41,887,370.00 in year five. Payback period, discounted payback period and profitability index are 1.4 years, 3.3 years and 1.5 respectively. The breakeven point in year one is 48.1% or a breakeven sales volume of N16, 236,312.35.00.  The Return on Investment (ROI) and Return on Equity (ROE) in year one are 57.5% and 86.1% respectively. Capital Turnover Ratio (CTR) varies between 2.3 and 2.9 within the first five years. Internal Rate of Return (IRR) is above 45%. The Net Present Value (NPV) at 25% is estimated at N3, 143,100.00. The Debt Service Coverage Ratio (DSCR) increases gradually from 1.33 to 2.75 between the first and the fifth year.

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eISSN: 1596-6216