An Economic Analysis of Pineapple Processing in Ghana

Pineapple puree and chips factory – capital expenditure
Plant and machinery

Pineapple puree production line	1,800,000.00
Pineapple chips production line	1,060,000.00
Other factory equipment (fork lift, etc.)	760,000.00
Sub-total	3,620,000.00

Land and building

Factory building	2,500,000.00
Sub-total	2,500,000.00
Motor vehicle
Pick-up	750,000.00
Sub-total	750,000.00

Office equipment

Furniture and fittings	200,000.00
Computers and other equipment	300,000.00
Sub-total	500,000.00
Total CAPEX	7,370,000.00
Working capital	1,117,812.50
Total start-up costs	8,487,812.50

Cashflow and liquidity analysis (GH¢)

Item	Moratorium Period	Year 1	Year 2	Year 3	Year 4	Year 5
Cash inflow

Funds from debtors	2,504,000	6,573,000	8,281,980	10,145,426	12,174,511	14,381,141
Receivable	–	500,800	1,314,600	1,656,396	2,029,085	2,434,902
Funds from the bank	8,487,813	–
Total cash inflows	10,991,813	7,073,800	9,596,580	11,801,822	14,203,596	16,816,043

Cash operating outflows

Cost of raw materials	420,271	1,349,110	1,836,457	2,515,474	3,349,075	4,379,211
Packaging cost	150,240	394,380	496,919	486,980	584,377	690,295
Transportation cost	150,240	394,380	496,919	608,726	730,471	862,868
Export cost	90,144	236,628	298,151	365,235	438,282	517,721
Production overheads	150,240	394,380	496,919	608,726	730,471	862,868
Direct labour	406,800	447,480	492,228	541,451	595,596	655,155
Insurance	41,200	41,200	41,200	41,200	41,200	41,200
Maintenance charge	41,200	45,320	49,852	54,837	60,321	66,353
Cost of additional admin staff.	508,500	559,350	615,285	676,814	744,495	818,944
General admin expenses	50,009	55,010	60,511	66,562	73,218	80,540
Taxes	–	178,742	502,720	879,224	1,255,006	1,657,063
Payment of creditors	–	191,435	362,492	455,207	553,989	679,965
Purchase of equipment & warehouse	7,370,000
Total cash operating outflows	9,378,844	4,287,415	5,749,653	7,300,435	9,156,500	11,312,184
Net operating cash flows	1,612,969	2,786,385	3,846,927	4,501,387	5,047,095	5,503,858

Cash financing outflows

Service charges	42,439		–	–	–	–
Interest payment	–	2,519,130	2,177,255	1,739,406	1,178,638	460,446
Principal loan repayment	–	1,217,798	1,559,673	1,997,522	2,558,290	3,276,482
Total cash financing outflows	42,439	3,736,928	3,736,928	3,736,928	3,736,928	3,736,928
Net cash flow	1,570,530	950,543	110,000	764,459	1,310,168	1,766,930
Opening balance	6,427	1,576,957	626,414	736,413	1,500,872	2,811,040
Cumulative cash flow	1,576,957	626,414	736,413	1,500,872	2,811,040	4,577,970
Debt service coverage		0.9	1.1	1.4	1.7	1.9

Revenue projections

	Moratorium period	Year 1	Year 2	Year 3	Year 4	Year 5
Expected revenue	3,004,800	7,887,600	9,938,376	12,174,511	14,609,413	17,257,369

Expected selling price

Pineapple puree (per 500 ml)	13.00	13.65	14.33	15.05	15.80	16.59
Pineapple chips (per Kg)	11.00	11.55	12.13	12.73	13.37	14.04

Total expected capacity

Pineapple puree (per 500 ml)	626,000	626,000	626,000	626,000	626,000	626,000
Pineapple chips (per Kg)	626,000	626,000	626,000	626,000	626,000	626,000

Total expected production

Pineapple puree (per 500 ml)	125,200	313,000	375,600	438,200	500,800	563,400
Pineapple chips (per Kg)	125,200	313,000	375,600	438,200	500,800	563,400
Utilisation	20%	50%	60%	70%	80%	90%
Pineapple fruit requirement (Kg)	250,400	626,000	751,200	876,400	1,001,600	1,126,800
Expected pineapple purchases	564,652	1,623,375	2,240,257	3,005,678	3,950,320	5,110,726

Profit and loss analysis (GH¢)

Income from operation	Moratorium period	Year 1	Year 2	Year 3	Year 4	Year 5

	3,004,800	7,887,600	9,938,376	12,174,511	14,609,413	17,257,369
Cost of production

Cost of raw materials	564,652	1,623,375	2,240,257	3,005,678	3,950,320	5,110,726
Packaging cost	150,240	394,380	496,919	486,980	584,377	690,295
Transportation cost	150,240	394,380	496,919	608,726	730,471	862,868
Export cost	90,144	236,628	298,151	365,235	438,282	517,721
Production overheads	150,240	394,380	496,919	608,726	730,471	862,868
Direct labour	406,800	447,480	492,228	541,451	595,596	655,155
Depreciation	462,000	462,000	462,000	462,000	462,000	462,000
Insurance	41,200	41,200	41,200	41,200	41,200	41,200
Maintenance charge	41,200	45,320	49,852	54,837	60,321	66,353
Total cost of production	2,056,716	4,039,143	5,074,444	6,174,833	7,593,036	9,269,187

Administration expenses

Cost of additional admin staff.	508,500	559,350	615,285	676,814	744,495	818,944
General admin expenses	50,009	55,010	60,511	66,562	73,218	80,540
Total admin expenses	558,509	614,360	675,796	743,375	817,713	899,484
Net profit before interest	389,575	3,234,098	4,188,136	5,256,302	6,198,663	7,088,697
Interest charges/service charge	2,164,392	2,519,130	2,177,255	1,739,406	1,178,638	460,446
Net profit/(loss) before tax	(1,774,817)	714,968	2,010,881	3,516,897	5,020,025	6,628,252
Tax (25%)	0	178,742	502,720	879,224	1,255,006	1,657,063
Net profit after tax	(1,774,817)	536,226	1,508,160	2,637,673	3,765,019	4,971,189
Net profit margin (%)	–59%	7%	15%	22%	26%	29%

References

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Articles in this issue

DOI: https://doi.org/10.17306/j.jard.2026.1.00004r1 | Journal eISSN: 1899-5772 | Journal ISSN: 1899-5241

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Language: English

Page range: 51 - 66

Accepted on: Mar 9, 2026

Published on: Mar 30, 2026

Published by: The University of Life Sciences in Poznań

In partnership with: Paradigm Publishing Services

Publication frequency: 4 issues per year

Keywords:

pineapple processing,

financial viability,

value addition

Related subjects:

Business and economics,

Political economics,

Political economics, other,

Business management,

Business management, other,

Life sciences,

Life sciences, other,

Social sciences,

Political science,

Political science, other

© 2026 Alexander Asmah, Michael Oppong, Nicholas Commey, Frank Adu Opare, published by The University of Life Sciences in Poznań
This work is licensed under the Creative Commons Attribution 4.0 License.

Volume 79 (2026): Issue 1 (February 2026)

An Economic Analysis of Pineapple Processing in Ghana

Figures & Tables

Fig. 1.

Initial investment outlay (GH¢)

Cashflow and liquidity analysis (GH¢)

Revenue projections

Profit and loss analysis (GH¢)

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