Hardwood Charcoal Packaging And Export In Nigeria;The Feasibility Report.

Charcoal is a black substance which is derived by burning a wood slowly in an oven with a little air. Charcoal is a great source of energy that is used all over the globe. It is a cheap source of fuel to purchase. It is also a source of generating income through exporting.

Charcoal has a seasonal market, but the season differs from one country to another. For instances in Belgium, UK, Holland, France, Germany and Denmark, the Sales season is from May through August because that is their summer time.

The Europeans give out their orders from September to May of the following year.

In countries like Kuwait, Israel and other Asian countries, it is all-year round and order is placed from January through December.

The United Kingdom is one of the largest consumers of charcoal, though other countries around the world like Holland, France, Netherland, Germany Spain, Bulgaria and Denmark also consume the product in large quantity.

Charcoal is a dark grey residue consisting of Carbon and any remaining ash, produced by the slow process of heating wood and other substances in the absence of oxygen,called Pyrolysis. It is an impure form of Carbon, which contains ash.

However, it is an excellent domestic fuel, and can be made from virtually any organic material like wood, coconut shells rice husks and bones. Usually hardwood species like Acacia, Mangroves, Oaks and Prosopis are preferred for Charcoal production.

Nigeria currently ranks second to Brazil in the production of charcoal. The western countries particularly prefer Nigeria’s charcoal, as the country is rich in tropical hardwood, which burns slower and is hotter. Nigeria currently exports three hundred and eighty thousand (380,000) metric tonnes of charcoal annually.

The business involves the sourcing and packaging (5 KG bags) and export of hardwood charcoal. Charcoal is a dark grey residue consisting of Carbon and any remaining ash, produced by the slow process of heating wood and other substances in the absence of oxygen, called Pyrolysis. It is an impure form of Carbon, which contains ash.

Indeed the charcoal industry is a multi-billion dollar global industry. According to The Food and Agricultural Organization (FAO) of the United Nations, over forty (40,000,000) million metric tonnes of charcoal are consumed globally and approximately 2.4 billion people rely on wood and charcoal for their daily fuel.

Table of Contents

EXECUTIVE SUMMARY 1.0 Business Overview 1.1 Description of the Business 1.2 Vision and Mission Statement 1.3 Business Objective 1.4 Critical Success Factor of the Business 1.5 Current Status of Business 1.6 Description of the Business Industry 1.7 Contribution to Local and National Economy 2. Marketing Plan 2.1 Description of product 2.2 Product Packaging and delivery 2.3 The Opportunity 2.4 Pricing Strategy 2.5 Target Market 2.6 Distribution and Delivery Strategy 2.7 Promotional Strategy 2.8 Competition 3. Technical Analysis 3.1 Description of the Location 3.2 Raw Materials 3.3 Production Process 3.3.1 Pre-Export Documentations in Nigeria 3.3.2 Post-Export Documentations (Exchange Control Documents) 3.4 Production Cost 3.5 Stock Control Process 3.6 Pre-Operating activities and expenses 3.6.1 Operating activities and expenses 3.7 Milestones 4.0 Organizational and Management Plan 4.1 Ownership of the business 4.2 Profile of the promoters 4.3 Key Management Staff 4.3.2 Management Support Units 4.4 Details of salary schedule 5. Financial Plan 5.1 Financial Assumption 5.2 Start up Capital Estimation 5.3 Source of Capital 5.4 Security of Loan 5.5 Loan Repayment Plan 6.0 Business Risk and mitigation factor 6.1 Business Risks 6.2 SWOT Analysis

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