Investment in Cashew Kernel Oil Production: Cost and Return Analysis of Three Processing Methods

Three methods of expressing cashew ( Anacardium occidentale L) oil from kernel were investigated. The physicochemical characteristics of the resulting oils were assayed. Parameters characterized included refractive index, melting point, viscosity ratio, acid value, iodine number, peroxide value, saponification value etc. While there is no significant difference in the value for specific gravity, moisture content, refractive index, viscosity ratio, melting point; there are differences in value for chemical variables such as saponification value, iodine value and peroxide value. The highest yield value of 48.8% was recorded for soxhlet method of extraction. The high value of 10.12 meq/kg obtained for aqueous method can be rationalized on the basis that traces of water cannot be completely ruled out and this result to hydrolysis of the ester bond of the triglyceride. The Cost and return analysis of the three methods of expressing cashew kernel oil was also examined. The method of evaluation involved an investment decision model comprising Net present value (NPV), Benefit Cost Ratio (BCR) and Internal Rate of Return (IRR) quality parameters of the resulting oils were characterized. The investment profile revealed that all the methods were viable, however the soxhlet method has the highest NPV (N227, 727 at 21% and N328, 678 at 32%) and BCR thus indicating its high returns on investment.