Cassava Farming Business Plan
Cassava is the most important root crop in Nigeria, apart from being a staple crop in both rural and urban households Cassava is a major source of income to cassava farmers and processors in the rural areas. Cassava alone contributes about 45% of Agricultural GDP in Nigeria for food or domestic purpose but its industrial processing and utilization has been very limited.
Currently, the country produces about 40,000,000 tonnes of the commodity and due to the desire of the federal government to reduce import dependency and conserve foreign exchange earnings, there is a national programme aimed at increasing the production of cassava flour to be substituted with wheat flour.
High-Quality Cassava Flour (HQCF) is made by cooking, drying, and grinding Cassava root to a fine powder. It differs from Tapioca flour in that Tapioca flour is made from the starch of the Cassava plant where the Cassava flour is the ground root. High-Quality Cassava Flour (HQCF) is used as a substitute for wheat flour in bakery and confectionery products. The demand for High-Quality Cassava Flour (HQCF) in Nigeria is high. The driving force behind the demand is the federal government policy on Cassava flour inclusion in wheat flour for Cassava wheat composite flour production especially bread and confectionary baking.
The annual national demand for High-Quality Cassava Flour (HQCF) is estimated at 750,000 tonnes while the national supply estimate is about 50,000 tonnes. The High-Quality Cassava Flour (HQCF) industry in Nigeria is dominated by a small scale with a production capacity of fewer than 0.1 tons per day.
Table of content
Executive Summary 3
Business Description 5
Products and services 7
Market Research 9
Competitor Analysis 12
SWOT Analysis 13
PEST Analysis 14
Sales and Marketing Plan 15
Operational Plan 17
Management and Structure 21
Financial Plan and Projections 22
PATILAD Farms is involved in Cassava cultivation, Processing, Packaging and marketing to Nigeria and the international market. We process Cassava into Cassava Chips, Cassava Flour, Cassava starch and Garri fortified with vitamins. Our vision is to be among the top 3 Agricultural processing company by 2025.
The objective of the enterprise is to process the increased output of fresh Cassava into High-Quality Cassava Flour, Garri, Cassava chip for industrial purposes and individual use. The production of HQCF will give Cassava farmers ready-market for their excess production hence improved incomes. The business will help reduce post-harvest losses and encourage primary processing of fresh Cassava into chips at the village level
The business is owned by Dayo Adetiloye with over 15 years’ experience in integrated Cassava farming.
The project set up cost is N10 million using imported machines. The project is very profitable. With aggressive marketing strategies, good management and export-oriented, the payback period would be less than 2 years. The return on investment is very encouraging at 25 per cent of profit.
We forecasted a 40% market share. The business will generate a very high gross margin and a modest net margin after year one and comfortable margin after year three. By year three the business will have developed a respectable yearly net profit.