Economic Benefit Analysis of  AGICO Hand-crank Oil Press in Zambia in 2010

All the data from FAQs were received indicating various costs by using AGICO Hand-crank Oil Press such as:

Sunflower Seed	Sunflower Oil	Oil Cake	Labour Cost	Exchange rate
ZMK 480 / kg	ZMK 4.300 / kg	ZMK 335 / kg	ZMK 3.500 / day	ZMK 900 / US$
A working day consists of 6 hours pressing and 2 hours light work like sifting seed and decanting oil.

The hand-crank home oil press delivers 1.2 kg oil/hour.

In the following economic analysis it will be assumed that the lady will sell her oil and oil cake at a 10% discount at home.Thus ZMK 3.870/kg sunflower oil and ZMK 300/kg oil cake. Lampoil is estimated at ZMK 4,000/litre.

Income, Expenditure and Profit for Seed Oil Pressing in Zambia

Income
7.2 kg oil – 0.3 kg sludge = 6.9 kg oil x ZMK 3,870/kg oil	ZMK	26,703
14.8 kg Oil cake at  ZMK 300/kg,  14.8 x ZMK 300/kg	ZMK	4,440
Total income per working day	ZMK	31,143
Expenditure
22 kg sunflower seed xZMK 480/kg	ZMK	10,560
Wage of one labourer at ZMK 3,500/day	ZMK	3,500
Lamp oil 40 ml/day, 40/1000 x ZMK 4,000/litre	ZMK	160
Detergent for bottle cleaning	ZMK	250
Unforeseen 5% or 0.05 x ZMK 15,850	ZMK	800
Depreciation of investment: 6.9 kg oil x ZMK 180/litre oil	ZMK	1,380
Total expenditure per working day	ZMK	16,665
Profit Per Working Day
Profit per working day is ZMK 31,143 - ZMK 16,650	ZMK	284
Profit/kg oil is ZMK 14,493 : 6.9 kg oil	ZMK	2,100
Profit (Value added) per kilogram seed  ZMK 14,493 : 22 kg	ZMK	658

AGICO hand-crank oil press can be repaid at least within one month and credit for such a short period may not be a problem. A more up to date analysis can be made by inserting the most recent prices within this analysis.The total investment of US$ 100, at ZMK 900/US$,  could be repaid within US$ 100: ( ZMK 14,493 : ZMK 900/US$) = 6  to 8 working days under Zambian conditions.

For any further information on AGICO hand-crank oil press,please kindly send your query in the following form.We are always at your service.