Yam Production and Marketing Business plan
Yams (Dioscorea species) are annual root tuber bearing plants with more than 600 species out of which six are socially and economically important
in terms of food, cash and medicine. The economically viable six (6) yam species are water yam (Dioscorea alata), white yam (Dioscorea rotundata), yellow yam (Dioscorea cayanensis), Chinese yam (Dioscorea esculant), three-leaf yams (Dioscorea dumentonum) and aerial yam (Dioscorea bulbifera).
They are grown in tropical regions and mostly produced in the savannah region of West Africa, where rainfalls are divided into wet and dry seasons.
Nigeria is the largest producer of yams in the world, followed by Ghana, Côte D’Ivoire, Benin, Togo, and Cameroon. Yams are mostly marketed as fresh tubers and prepared for consumption. Transportation and marketing are carried out both by farmers and traders.
As a business, yam production offers an opportunity for yam producers to earn a steady income and also provide employment opportunities for a 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.
Table of content
Executive Summary 4
Business Description 7
Products and Services 12
Market Analysis 13
Competitor Analysis 15
Sales and Marketing Plan 19
Operational Plan 25
Management Plan 27
Financial Plan and Projections 30
PATILAD Farm is a new farm that is involved in Production, sales and distribution of highly nutritious disease-free high-quality yam and other yam derivatives targeting consumers throughout the Nigerian federation and also the international market. We are located in Makurdi, Benue state.
PATILAD 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 Farm will basically sell healthy, disease-free and highly nutritious yam tubers. Other products and services include seed yam, mini-sett, training and on-farm experience for would-be yam farmers, etc.
We produce, process and package to meet standard organization of Nigeria and international standard. We are concerned about providing products that suit the many uses of Yam either for edible or industrial uses.
Households demand for yam consumption is very high in Sub-Saharan Africa. The main forces driving the increased demand for yam and its derivative products in Nigeria include the increasing household consumption of yam due to increased income and increasing demand from the primary food processing industry (producers of yam flour and pounded yam flour).
Competitors for PATILAD Farm are mainly smallholder farms located in and around Benue state.
PATILAD 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.
PATILAD Farm seeks N5 million in long-term financing to cover start-up costs, equipment, building expenses, and working capital.
Funding for the launch of the business is provided primarily by equity from the partners and investors.
The business will reach positive cash flow in its 10th month of operation, allowing for expedited repayment of its loan obligations, as well as for dividends to be paid to the owners. Revenue will top N42,422,250 and profit will reach about N5,989,526 in the 1st year of operation.