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== History and current use ==
The method was first used in 1999 as an analytical tool during a course on [[foreign direct investment]] (FDI) at the [[Wageningen University]]. It analyzed the suitability, including a risk analysis and potential benefits, of specific agricultural production processes for foreign investors. Between 1999 and 2012 over 180 students were trained in the use of the Cigar Box Method. It has since developed into a business analysis tool with multiple purposes and used by various targets groups: as analytical tool for foreign investors and bankers, as business planning tool for fruit and vegetable processing factories and business development service providers. An adapted version for women entrepreneurs in Africa has been developed recently. The method is described in the ''Agribusiness Handbook for Fruit and Vegetable Processing'' published by the [[Food and Agriculture Organization]] (FAO).<ref>http://www.fao.org/docrep/012/al177e/al177e.pdf {{Bare URL PDF |date=December 2021}}</ref> The Cigar Box
== Profit parameters ==
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*T = Tax (as % of profit).
More specifically, in (food) processing business, there are three types of [[variable cost]]: VC1 = Raw Materials and Ingredients, VC2 = costs of processing inputs into outputs, VC3 = costs of packaging materials, VC4 = cost of delivery. The [[fixed cost]] (FC) are also divided into three types: FC1 = depreciation of fixed assets, FC2 = interests paid, FC3 = overheads (salaries, transport, maintenance, ...), FC4 = cost of sales, marketing and advertising. Using these 5 parameters in simple formulas, a trained person can do a Cigar Box Profit analysis in half an hour. When data are missing, assumptions
== Profit calculation methods ==
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