Cassava Farming Business Plan in Nigeria

Cassava Farming Business Plan in Nigeria

Executive Summary

Cassava farming is a highly profitable agribusiness in Nigeria, the world’s largest producer of cassava, contributing over 63 million metric tons annually. This business plan outlines the establishment of Green Harvest Cassava Farms, a medium-scale cassava farming and processing enterprise in Ogun State, Nigeria. The business aims to cultivate high-yield cassava varieties on 10 hectares of farmland, process them into products like garri, cassava flour, and starch, and target local and export markets. With an initial capital of ₦6.5 million, the business projects a break-even point within 18 months and an annual profit of ₦12 million by year two.

Business Description

Green Harvest Cassava Farms is a Limited Liability Company focused on cassava cultivation, processing, and marketing. Leveraging Nigeria’s favorable climate and high demand for cassava products, the business will produce garri, cassava flour, and starch for local food markets, processing companies, and export to international markets. The enterprise emphasizes modern farming techniques, efficient processing, and sustainable practices to maximize yield and profitability.

Official Website

Green Harvest Cassava Farms (Note: This is a placeholder for the business website, to be developed as part of the marketing strategy.)

Address

Physical Address: Plot 12, Ijebu-Ode Road, Ilara, Remo North, Ogun State, Nigeria.
Reason for Location: Ogun State is one of Nigeria’s top cassava-producing regions with fertile loamy soils and good rainfall, ideal for cassava cultivation. The location is accessible for transportation to markets in Lagos and other urban centers.

Contact Information

  • Email: in**@*****************va.ng
  • Phone: +234-703-728-1050

Services

Green Harvest Cassava Farms offers the following services:

  • Cassava Cultivation: Growing high-yield cassava varieties (e.g., TME 419, TMS 30572) on 10 hectares using modern techniques like drip irrigation and precision agriculture.
  • Processing: Producing garri, cassava flour, and starch using automated peeling, drying, and grinding equipment to ensure quality and reduce post-harvest losses.
  • Packaging: Offering branded, hygienic packaging for retail and wholesale markets.
  • Marketing and Distribution: Supplying cassava products to local food markets, processing companies, livestock feed manufacturers, and export markets in Europe and Asia.
  • Consulting and Training: Providing training to local farmers on best practices in cassava farming and weed management, in collaboration with organizations like the International Institute of Tropical Agriculture (IITA).

Market Analysis

Industry Overview

Nigeria produces about 20% of global cassava, with a market value exceeding $5 billion annually. Cassava is a staple food for over 800 million people worldwide and is used in products like garri, fufu, flour, starch, and ethanol. The crop’s drought tolerance and ability to grow in diverse soils make it a reliable cash crop. Demand is driven by local consumption, industrial applications (e.g., bakeries, pharmaceuticals), and growing export markets. Challenges include low productivity and post-harvest losses, which this business addresses through modern technology and value-added processing.

Target Market

  • Local Food Markets: Households and food vendors purchasing garri and fufu.
  • Processing Companies: Manufacturers of cassava flour, starch, and ethanol.
  • Livestock Feed Manufacturers: Buyers of cassava chips for animal feed.
  • Export Markets: International buyers in Europe and Asia seeking cassava derivatives.

Competitive Advantage

  • Use of high-yield, pest-resistant cassava varieties (e.g., TME 419, Game-Changer).
  • Investment in processing technology to reduce post-harvest losses.
  • Strategic partnerships with research institutions like IITA for improved farming practices.
  • Strong branding and online marketing presence to reach diverse markets.

Operational Plan

Land and Location

  • Land Size: 10 hectares in Ilara, Remo North, Ogun State.
  • Soil Preparation: Application of glyphosate herbicide 10 days before planting and 250kg/ha of agricultural lime to optimize soil pH (4.0–7.0).

Equipment

  • Tractors and plows for land preparation.
  • Drip irrigation systems for high-density planting.
  • Automated peeling, chipping, and drying machines for processing.
  • Weeders and sprayers for efficient weed management.

Cassava Varieties

  • TME 419: High starch content, pest-resistant, widely accepted.
  • TMS 30572: Fast-growing, good for flour and starch production.
  • Game-Changer: High yield, suitable for industrial processing.

Production Process

  1. Land Preparation: Clear land using bulldozers, apply lime and herbicides.
  2. Planting: Plant cassava cuttings in ridges, spaced for optimal growth.
  3. Fertilization: Apply fertilizer 8 weeks after planting, avoiding contact with stems/leaves.
  4. Irrigation: Use drip irrigation to enhance yield.
  5. Harvesting: Harvest after 9–12 months, preserving stems for the next planting season.
  6. Processing: Convert cassava roots into garri, flour, and starch using modern equipment.
  7. Packaging and Distribution: Package products in branded bags and distribute to markets.

Sustainability Practices

  • Use of eco-friendly fertilizers and IITA-recommended weed management practices.
  • Investment in biogas from cassava waste for sustainable energy.
  • Crop rotation with maize and legumes to maintain soil fertility.

Financial Plan

Startup Costs

  • Land Lease: ₦500,000 (10 hectares for 2 years).
  • Equipment: ₦2,000,000 (tractors, irrigation, processing machines).
  • Cassava Cuttings: ₦500,000.
  • Fertilizers and Herbicides: ₦800,000.
  • Labor: ₦1,200,000 (for 12 months).
  • Miscellaneous (branding, transport): ₦1,500,000.
  • Total: ₦6,500,000.

Price Range

  • Garri: ₦1,000–₦1,500 per kg (retail), ₦800–₦1,000 per kg (wholesale).
  • Cassava Flour: ₦1,200–₦1,800 per kg.
  • Starch: ₦1,500–₦2,000 per kg.
  • Cassava Chips (for feed): ₦500–₦800 per kg.
    Note: Prices vary based on market demand and location.

Revenue Projections

  • Year 1: Produce 3,000 bags (50kg) of garri, 1,000 bags of flour, and 500 bags of starch, generating ₦7.5 million (break-even expected within 18 months).
  • Year 2: Scale to 5,000 bags of garri, 2,000 bags of flour, and 1,000 bags of starch, generating ₦12 million in profit.
  • Export Revenue: Additional ₦3–5 million annually from international markets by year three.

Marketing Strategy

  • Online Presence: Develop a website and leverage social media platforms for promotion.
  • Social Media Accounts:
    • Instagram: @GreenHarvestCassava
    • Facebook: Green Harvest Cassava Farms
    • Twitter: @GHCassavaFarms
    • YouTube: Green Harvest Cassava (for farming tutorials and promotions).
  • Traditional Advertising: Distribute branded fliers, handbills, and billboards in Ogun and Lagos.
  • Partnerships: Collaborate with cooperative societies and processing companies for bulk sales.
  • Export Market: Target international buyers through trade fairs and online platforms.

Management Team

Founder and Owner

  • Name: Adebayo Olanrewaju
  • Background: A certified agriculturist with 10 years of experience in crop farming, including 5 years in cassava production. Adebayo holds a degree in Agricultural Science from the University of Ibadan and has completed training with IITA on modern cassava farming techniques. His vision is to transform cassava farming into a sustainable, high-profit enterprise in Nigeria.

Key Staff

  • Farm Manager: Oversees cultivation and irrigation.
  • Processing Supervisor: Manages production of garri, flour, and starch.
  • Marketing Lead: Handles sales, social media, and export negotiations.

Risk Assessment

  • Weather Risks: Mitigated through drip irrigation and climate-resilient varieties.
  • Pest and Disease: Use of pest-resistant varieties and IITA-recommended herbicides.
  • Market Fluctuations: Diversified products (garri, flour, starch) and export markets to stabilize income.
  • Post-Harvest Losses: Investment in modern processing equipment to minimize waste.

Funding Requirements

  • Seeking ₦6.5 million in funding through bank loans, government grants (e.g., Bank of Agriculture), or private investors.
  • Funds will cover land lease, equipment, inputs, and initial operational costs.
  • Investors can expect a return on investment within 2–3 years, with projected annual profits of ₦12 million by year two.

Conclusion

Green Harvest Cassava Farms is poised to capitalize on Nigeria’s position as the world’s largest cassava producer. By combining modern farming techniques, efficient processing, and strategic marketing, the business will meet local and international demand while contributing to economic development and food security. For further details or to request a full business plan, contact us at in**@*****************va.ng or +234-703-728-1050.

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