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Abstract:
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This feasibility study was conducted to determine the viability of a fruit juice
concentrate processing enterprise located at Magomero, Malawi. The feasibility
of the proposed enterprise was assessed in four core areas namely:
- market and financial feasibility,
- technical feasibility,
- resource and environmental feasibility
- social and institutional feasibility.
A market opportunity was identified for the domestic production of good quality
fruit juice concentrates in Malawi to be sold to manufacturers in the growing fruit
juice nectar producing sector in Malawi. The analysis of the financial feasibility of
the proposed enterprise revealed that the enterprise is potentially profitable, is projected to have a healthy cash flow and is viable over the longer term.
As a result of a lack in a comprehensive analysis of the current natural resources
that are available in Malawi this feasibility study has made a number of
assumptions regarding the environmental and/or natural resource feasibility of
the enterprise. Based on the limited information it was concluded that the
proposed enterprise could be environmentally feasible.
Taking the net social benefit of the proposed processing enterprise into
consideration it can be concluded that the processing enterprise is anticipated to be socially and institutionally feasible. Surrounding communities would benefit in a number of direct and indirect ways from the establishment of the proposed enterprise.
Based on the framework set out in this feasibility study it can be concluded that the proposed processing enterprise at Magomero is feasible. This positive result of the feasibility analysis is, however, heavily dependant upon the assumptions made during the study and on conditions remaining relatively stable within the enterprise’s operating environment. If either the assumptions or the operating environment were to differ substantially from actual circumstances the actual feasibility of the processing enterprise at Magomero could differ from the current result. |