CLOV

Product Description and Application

• Clove Oil Characteristics: Clove oil is a colorless or pale-yellow oil with a characteristic odor and taste of cloves. It darkens with age or exposure, becoming reddish brown.
• Uses: Clove oil is widely used for flavoring various food products such as mealy sausages, baked goods, confectioneries, and oral preparations like dentrifices, gargles, and chewing gums. It is also valued for its antiseptic and bactericidal properties.

Market Study and Plant Capacity

• Market Demand: The current demand for clove oil is estimated at 5,000 tonnes per annum, with projections to reach 10,395 tonnes by 2022.
• Plant Capacity: The proposed plant is designed to produce 155 tonnes of clove oil per annum, based on 300 working days and a single shift per day. The capacity utilization rate is expected to be 70% in the first year, 90% in the second year, and 100% from the third year onwards.

Materials and Inputs

• Raw Materials: Clove buds, stems, and leaves are the primary raw materials. The essential oil content is approximately 17% in buds, 6% in stems, and 2.5% in leaves.
• Auxiliary Materials: Depending on the extraction method, other materials such as solvents (e.g., supercritical carbon dioxide) may be required.

Technology and Engineering

• Extraction Methods:
  • Traditional Methods: Steam distillation is a common method for extracting clove oil. This involves distilling the cloves to release the oil, which is then separated from the water using a non-polar solvent.
  • Modern Methods: Supercritical carbon dioxide (SC-CO2) extraction is a modern technique that offers higher extraction efficiency, shorter extraction times, and better selectivity for target compounds. This method uses carbon dioxide in its supercritical state to dissolve and extract the bioactive compounds from cloves.
  • Other Methods: Pressurised liquid extraction and microwave-assisted extraction are also viable alternatives.

Manpower and Training Requirement

• Manpower: The plant is expected to create employment opportunities for 14 persons.
• Training: Training programs will be necessary to ensure that the staff is proficient in the production process, including the operation of machinery, quality control, and safety protocols. Training in modern extraction techniques like SC-CO2 extraction may also be required.

Financial Analysis

• Initial Investment: The total investment requirement is estimated at Birr 3.30 million, with Birr 1.60 million allocated for plant and machinery.
• Production Cost: The production cost will include raw material costs, labor costs, utility costs, and other operational expenses. A detailed breakdown of these costs is necessary for a comprehensive financial analysis.
• Financial Evaluation: The project is financially viable with an internal rate of return (IRR) of 28% and a net present value (NPV) of Birr 2.77 million, discounted at 8.5%.

Economic Benefits

• Employment: The project will generate employment opportunities for local residents.
• Market Penetration: The project aims to penetrate the market gradually, with full capacity production expected from the third year onwards.
• Health and Food Industry Impact: Clove oil has various health benefits, including cardioprotective, anticarcinogenic, and anti-inflammatory properties, which can contribute to the overall health and well-being of consumers.

Distribution and Marketing

• Distribution Channels: Distribution should be arranged through contacts with agents having extensive experience in the market to ensure effective and efficient distribution of the product.
• Pricing: A recommended price of Birr 27,500 per tonne has been suggested for the product.

Future Perspectives and Challenges

• Green Extraction Techniques: Adopting green extraction methods like SC-CO2 extraction can enhance the sustainability and efficiency of the production process.
• Market Expansion: There is potential for expanding the market for clove oil by exploring new applications in the food and beverage industry, as well as in pharmaceuticals and other sectors.

By considering these aspects, the clove oil production project can be well-planned, executed, and sustained, ensuring both financial viability and social benefits.