ECONOMIC ANALYSIS OF THE PRODUCTION OF THE PRODUCTION OF OGI(A BREAKFAST CEREAL) POWDER FROM MAIZE

Economic evaluation of the production of Ogi powder from maize was conducted using the net present value and internal rate of return methods assuming a uniform cash flow over a 10 years plant life. The facilities for the production were identified and cost estimates obtained from equipment suppliers. Cost estimate were based on an equal mass flow rate of Ogi powder. Sensitivity analysis was carried out by varying the numbers of production days at 100% plant capacity and varying plant capacity for 330 days production schedule. The results indicate that some component of operating cost reduced as the number of production days reduced. The production cost and product cost per unit increases slightly with the reduction in either plant capacity utilization or numbers of days. The result also showed that the plant could be operated for 330, 300 and 250 days. For good economic performance, plant capacity utilization must be flexible and ranges between 70-100%.