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Cocoa Production and Processing Business Plan

INTRODUCTION

The cocoa plant is a small, evergreen tree (usually between 13 to 26 feet tall) that grows exclusively in the deep tropical regions of the world. The dried, green beans are cleaned, roasted, weighed and stored and processed as clean raw material, the beans are subjected to a thermal treatment under high pressure at a temperature of 220°C so that all bacteria are destroyed. This is followed by bean toasting, during which the moisture is extracted.

Finally, the cocoa beans are crushed and the hulls are separated from the bean fragments called nibs. During this mechanical grinding operation heat is generated which makes the cocoa mass melt. The liquid cocoa mass (liquor), with a temperature of about 80°C, is directed to storage tanks, where it is cooled to 45–50°C. From the tanks, the mass is moved to a cooling tunnel where the heat is extracted and the cocoa mass is formed into blocks weighing 25kg each.

In terms of foreign exchange earnings, no single agricultural export commodity has earned more than cocoa. With respect to employment, the cocoa sub-sector still offers quite a sizeable number of people employments, both directly and indirectly and it is an important source of raw materials, as well as source of revenue to governments of cocoa producing states.

Providing employment for a large section of the population, agriculture remains a major source of economic activity in Nigeria. Nigeria produced 242, 000 tonnes of cocoa in 2008 alone. The National Cocoa Development Committee (NCDC), made up of the 14 cocoa producing states in the country, has distributed new high yield cocoa seedlings to cocoa farmers, and continues to allow the purchase of chemicals and inputs at 50% subsidy.

As a business, Cocoa Production and Processing offers an opportunity for cocoa farmers and marketers to earn steady income and also provide employment opportunities for countless number of men and women. On a national scale it also helps to reduce our dependence on other countries to meet our increasing food demand.

Hence starting a cocoa farm of your own either on a large, small or medium scale is indeed a very wise decision as this will bring you immense financial benefit both in the short and long term.

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Table of ContentPages
Executive Summary 4
Introduction 6
Business Description 7
Vision8
Mission8
Objectives8
Keys to success 9
Products and services9
Market Analysis 10
Target market 11
Pricing strategy 11
Competitor Analysis 12
Sales and Marketing Plan 12
Promotion13
Distribution13
Pricing13
Risk14
Swot analysis 14
Pest analysis16
Operational Plan 16
Staff requirement 20
Management plan21
Financial Plan and Projections 22
Financial Diagnostics 23

Executive Summary

Overview

PATILAD Cocoa Farm is a new farm that is involved in the production, sales, and distribution of highly nutritious disease-free cocoa beans, processing into cocoa liquor, cocoa butter, cocoa powder, etc. targeting consumers in Nigeria and the international market. We are located in Ile-Oluji, Ondo state.

The Company         

  

PATILAD Cocoa Farm is established as a limited liability company owned by Dayo Adetiloye, Adebayo Tijani, and other investors. 

The farm is managed and directed by Dayo Adetiloye, a veteran in the Agric. industry with 8 years’ experience, and Adebayo Tijani, an experienced Agro-allied specialist with over 15 years’ experience.

Products and Services

PATILAD Cocoa Farm will sell healthy, disease-free, and highly nutritious cocoa beans. Other products and services include cocoa powder, cocoa tea, cocoa butter, etc.

We produce processes and package to meet the standard organization of Nigeria and international standards. We are concerned about providing products that suit the many uses of cocoa beans either for edible or industrial uses.

The Market

Today, chocolate is a highly demanded luxury product and an impulsive treat for millions of people around the world. No wonder the global market for chocolate and cocoa beverages is now worth over $100 billion (and growing) every year.

Although the developed and fast developing countries (especially in Europe, Asia and North America) consume over 90% of the chocolate produced every year, chocolate largely exists because of Africa.

This is because up to 70% of cocoa, the major ingredient for making chocolate, is grown and harvested in Africa.

Competition

Competitors for PATILAD Cocoa Farm includes renown agricultural produce marketer in and around Ondo state.

PATILAD Cocoa Farm’s competitive edge includes the use of modern production techniques and equipment which turns out high quality products, excellent customer service, the expertise of its founders, etc. 

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