Abstract

A feasibility study is used to determine the viability of an idea, such as ensuring that a project is technically and legally feasible as well as economically justifiable and profitable. It tells us whether a project is worth the investment.

A feasibility study is based on the desire to “get it right” before committing resources, time, or budget.

The main objective of this study is to investigate the Feasibility of a Large-Scale Pineapple Production in Meme Division, South West Region of Cameroon.

In addition to this main objective, the following three specific objectives are equally the aim of this study: to demonstrate that a large scale pineapple production can create wealth and generate employment; to provide information and data that can be used for a pineapple production start-up project; to generate information that will contribute to the effective implementation of the pineapple sub-sector of the Agricultural Value Chain Development Project (AVC-DP) in Meme Division in particular and the South West Region in general.

Primary and secondary data were used. The primary data was collected using a questionnaire. Expert knowledge from the main large-scale pineapple producer in Meme Division was part of our secondary data.

The purposive sampling method was used to select the respondents. The Statistical Package for Social Sciences (SPSS) version 21.0 was used to analyze the primary data. Descriptive statistics were used to analyze the primary data and present the results.

The profitability of the project was analyzed using the Net present value (NPV) technique with a 10% discount rate.

The sensitivity analysis to determine the resilience of the basic project model to changes in the assumptions (variables) was conducted.  This study consists of biophysical, economic, socio-cultural, commercial, technical, managerial, financial, environmental, legal and other aspects feasibility.

The results of this study demonstrate that a large-scale pineapple production project in Meme Division is technically and legally feasible as well as economically and financially justifiable and profitable.

For a one (01) hectare start-up pineapple production project, an initial investment of 8,043,500 FCFA will be needed. The cumulative net income, scrap value and the NPV with a 10% discount rate at the end of the three years project are respectively 11,749,333 FCFA, 550,000 FCFA and 9,067,018 CFA.

The sensitivity analysis of the project model shows that in the worst-case scenario of changes in the project model variables, the initial investment cost, the cumulative net income, scrap value and the NPV at the end of the three years project are respectively 9,652,200FCFA, 2,651,200 FCFA, 660,000 FCFA and 221,102 FCFA.

Information and data presented in this project can be used for a pineapple production start-up project of at least one (01) hectare in Meme Division.

The five (05) main constraints identified namely: the limited knowledge on pineapple production itinerary; poor farm-to-market roads; lack of inputs; limited access to credit; and lack of quality planting materials; can be used by the AVC_DP to fine turn its implementation strategies especially in its pineapple sub-sector in Meme Division which is a pineapple production basin with great potentials.

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