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Apple Importation, Storage And Distribution In Nigeria, The Feasibility Report.

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Apple Importation, Storage And Distribution In Nigeria, The Feasibility Report.

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The apple tree (Malus domestica) is a deciduous tree in the rose family best known for its sweet, pomaceous fruit, the apple. It is cultivated worldwide as a fruit tree, and is the most widely grown species in the genus Malus. The tree originated in Central Asia, where its wild ancestor, Malus sieversii, is still found today. Apples have been grown for thousands of years in Asia and Europe, and were brought to North America by European colonists.

Product Description

The apple tree (Malus domestica) is a deciduous tree in the rose family best known for its sweet, pomaceous fruit, the apple. It is cultivated worldwide as a fruit tree, and is the most widely grown species in the genus Malus. The tree originated in Central Asia, where its wild ancestor, Malus sieversii, is still found today. Apples have been grown for thousands of years in Asia and Europe, and were brought to North America by European colonists.

About 69 million tons of apples were grown worldwide in 2010, and China produced almost half of this total. The United States is the second-leading producer, with more than 6% of world production. Turkey is third, followed by Italy, India and Poland.

Chile is currently the largest exporter of apples followed by New Zealand, Argentina and South Africa.

Apples are often eaten raw, but can also be found in many prepared foods (especially desserts) and drinks. Many beneficial health effects are thought to result from eating apples.

Due to our weather conditions, Nigeria does not produces apples though there has been a steady increase in the demand of apples in Nigeria due to the growing middle class family and the growing presence of large retail outlets.

The investor hopes to import the product (apples) from South Africa which produces over 900,000 tons of apples every year and consumes about 214,200 tons annually.

The South-Africa apples export season is from March to November and this would ensure an almost all year round supply of the product.

More than 7,500 varieties of apples are grown worldwide, though our focus would be on varieties that we can easily source from our suppliers in South Africa.

Some of the varieties are

Braeburn

Braeburn originated in New Zealand from a chance seedling in 1950. It is harvested from late March to early April. The fruit has a similar shape to Granny Smith, and the background colour is green-gold and covered with a partial reddish-orange blush or stripes.

The texture is crisp and the taste is sweet and slightly tangy. It is an excellent eating apple and is delicious in salads.

Fuji

Fuji originated in the 1950’s in Fujisaki, Japan and is a cross between Ralls and Red Delicious.Fuji is harvested in early April.

Fuji is a relatively large apple, and has a green-yellow background, partially covered with bright pink-red stripes. The flesh is yellowish and the texture is firm and very crisp, juicy apple, very sweet with an attractive aroma.

Golden Delicious

Golden Delicious was found as a seedling in West Virginia, USA, in the 1880’s. Golden delicious is harvested from late February to mid -March. It is a medium to large apple, green when harvested, ripening to a golden yellow colour.
The skin has conspicuous lenticels. The flesh is green-white and crisp and the taste is sweet, fragrant and juicy. It is a superb eating apple, and is excellent for use in salads. In certain areas and under specific climatic conditions Golden Delicious has a delicate pink blush.

Sundowner

Sundowner is the lesser-known sibling of Pink Lady. They share the same parentage – Golden Delicious and Lady Williams – but they were developed at the same time by the same fruit breeder, John Cripps of Western Australia. Pink Lady and Sundowner are trade names, and you will also see these apples described and sometimes marketed as Cripps Pink and Cripps Red respectively.

Sundowner does not have the distinctive pink blush of Pink Lady, being a more conventional “bi-coloured” red apple. The flavour is less delicate than Pink Lady, and slightly more distinctive.

Granny Smith

Granny Smith derives its name from a real granny Smith, Mrs Maria Ann Smith, who discovered this seedling in her garden in Australia in the 1860’s.

Granny Smith is in full bloom from middle to late October and is harvested from late March to late April.
It is a medium to large apple, varying in colour from light to bright green, and the lenticels are well developed. In cooler areas it will develop a red blush.

The flesh is firm, white and crisp, and the taste is slightly tart, yet sweet. It is an excellent eating apple and good for baking, sauces or purees.

Royal Gala

This apple originated in New Zealand and is a Gala mutation. Royal Gala is harvested in mid-February and the same size and taste is identical to Gala, but it is covered with stripes, bright red in colour. When ripe the background skin is yellow and with the deep red stripes, and Royal Gala has a beautiful deep orange appearance.

Starking

Starking originated in the USA in the 1920’s and was introduced to South Africa in the 1940’s. It is a mutation of Red Delicious, and is harvested in early March.

It is a medium to large apple with red stripes on a green-yellow background. Starking is a very popular eating apple. It is sweet and juicy, has cream coloured flesh and a crisp texture.

Topred

This apple was discovered in the 1950’s in Columbia, USA. It is a mutation of Shotwell Delicious, which was itself a mutation of Red Delicious.

Topred is harvested from late February to early March, and has a deep red colour, more uniform that a Starking and with conspicuous lenticels. It is a medium to large fruit, with creamy-white flesh and a crisp texture. The taste is sweet and juicy and delicious to eat.

Pink Lady ® / Cripp’s Pink

This delicious bicolour apple has one pink cheek and one pale cheek and was developed in West Australia by John Cripps of the Australian Department of Agriculture. Cripp’s Pink is a cross breeding of Golden Delicious and Lady Williams, and is harvested in mid to late April.

The skin is pink to light red solid blush overlaying a lime yellow background, it has creamy white flesh, a crisp, fine texture, and a sweet-tart flavour. Pink Lady ® is not a variety, but a brand name. The brand is applied to the Cripp’s Pink variety of apples only if they comply with the stringent quality standards prescribed by the Pink Lady ® brand.

The market for apple national though consumption is concentrated in the city centres. With a population of over 165 million people and an estimated national population growth rate of 5.7% per annum ,an average economic growth rate of 3.5% per annum in the past five {5} years, Nigeria has a large market for apples.

Over the years in Nigeria, the demand for apples has largely been driven by the increasing preference for fresh fruit over processed fruit from a growing middle class.

Statistics indicates that Nigeria imported from South Africa 1,882 tons of apple in 2011, 7,857 tons of apple in 2012 and 32,317 tons of apple in 2013.

Though there are no recent data to indicate amount of apples and imported and consumed in Nigeria, the fact that Nigeria does not produce apples and the demand for the product continues to increases indicates that there is a sustainable market for apples in Nigeria.

This report examines the financial viability of importing apples from South Africa, marketing and sales of same in the Nigerian market.

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 Value Proposition
1.5 Critical Success Factor of the Business
1.6 Current Status of Business
1.7 Description of the Business Industry
1.8 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. Production Plan

3.1 Description of the Location
3.2 Raw Materials
3.3 Production Equipment
3.4 Production Process
3.5 Production Cost
3.6 Stock Control Process
3.7 Pre-Operating activities and expenses
3.7.1 Operating Activities and Expenses
3.8 Project Implementation Schedule

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
5.6. Profit and Loss Account
5.7 Cash Flow Analysis
5.8 Viability Analysis

6.0 Business Risk and mitigation factor

6.1 Business Risks
6.2 SWOT Analysis

Report Details

Report Type: Feasibility Report
Formats of Delivery: EXCEL / MS WORD
No. of Pages: 34 Pages and 6 pages of Excel
Report Code: FORA/2016/APPLEIMPORTATION/3219993321
Publisher: Foraminifera Market Research
Release Date: 25/06/2016; We update our reports quarterly.
Language: English
Delivery time: 24– 48hours

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