The focus of this thesis was on the economic feasibility of three food processing projects. They involved freezing of pork loin and fish using cryogenic freezing and stored at $-$18, $-$12 and $-$7$ sp circ$C, and modified atmosphere packaging (MAP) of pork loin using a combination of nitrogen and carbon dioxide gases, chitosan dip and stored at 5, 10, and 15$ sp circ$C. A production plan with similar layout and capacity was adopted for the Montreal area. The benefit-cost analysis (BCA) of each project was carried out assuming that each plant operated approximately 2000 hours per annum at full capacity. Net present value (NPV) and benefit cost ratio (B/C ratio) at 8% discount rate, and internal rate of return (IRR) were determined for each project. The calculations show the NPV of $2.4 million, $1.8 million, and $3.4 million; B/C ratio of 1.09, 1.09, and 1.10; IRR of 15 %, 13 %, and 18 % for frozen pork loin, frozen fish and MAP pork respectively. All IRRs were higher compared to the 1995 return rates of TSE of 9.7 % and the average return of capital of 8.8 % for some food and beverage industries. These economic values are sensitive to changes in working hours, price of raw materials and finished products. It is also found that MAP products could be stored at temperatures up to 15$ sp circ$C. Frozen products could be stored at temperatures of $-$12$ sp circ$C and below only if the length of distribution chain can be reduced. This would decrease electricity costs up to 36% at each level of distribution. It can be concluded that the three projects are economically profitable.
| Identifer | oai:union.ndltd.org:LACETR/oai:collectionscanada.gc.ca:QMM.27385 |
| Date | January 1997 |
| Creators | Owusu-Manu, Michael. |
| Contributors | Gunjal, Kisan (advisor) |
| Publisher | McGill University |
| Source Sets | Library and Archives Canada ETDs Repository / Centre d'archives des thèses électroniques de Bibliothèque et Archives Canada |
| Language | English |
| Detected Language | English |
| Type | Electronic Thesis or Dissertation |
| Format | application/pdf |
| Coverage | Master of Science (Department of Agricultural Economics.) |
| Rights | All items in eScholarship@McGill are protected by copyright with all rights reserved unless otherwise indicated. |
| Relation | alephsysno: 001572104, proquestno: MQ29760, Theses scanned by UMI/ProQuest. |
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