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Cassava Production and Processing Business Plan

Introduction

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.

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Table of content

Page

Executive Summary3
Introduction4
Business Description5
Products and services 7
Market Research9
Competitor Analysis12
SWOT Analysis13
PEST Analysis14
Sales and Marketing Plan15
Operational Plan17
Management and Structure21
Financial Plan and Projections22

Executive Summary

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 of 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.

Specification: Cassava Production and Processing Business Plan

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