CASSAVA PRODUCTION AND PROCESSING PLANT

My business idea is aimed at expanding my cassava cultivation and processing farm to a larger capacity. My cassava farm is designed to operate as a strategic business unit aimed at becoming the forefront of production of cassava tubers for production of garri and laundry starch.. This idea is conceived as a result of my great passion to make food available for the populace. The year 2019-2020 witnessed shortage of garri production as a result of lockdown and limitation of movements during the covid -19 period. This led to increase in hunger and spread of diseases and subsequent deaths.Our production of garri for consumption will solve the problem of this shortage as well as providing food for consumption in my target market. Features & Functionalities My company is into commercial cultivation and processing of garri and laundry starch for industries in Abuja, FCT. Our farm features a 3 hectare capacity leased farm land which produces an average of 300 bags of 50kg bag of garri and 15 tonnes of starch per annum. We are in the commercial cassava farming business because we want to leverage on the vast opportunities available in the commercial farming industry to contribute our quota in growing the Nigeria economy, in national food production, raw materials production for industries, to export agriculture produce from Nigeria to other countries and over and above to make profit. Pricing Price of 50kg of garri=$23 Price of one tonne of starch=$80 Average price =$52 Profitability- Total number of bags of garri produced per annum=300 Total production of starch per annum=15tons Unit price per 50kg of garri=$23 Unit price for starch per ton=$80 Sales of garri=$23x 300= $6,900 Sales for starch: $80x 15=$1,200 Total revenue:$6,900+$1,200=$8,100 Total cost of production=$3,200 Net Income=$8,100-$3,200=$4,900 Profit margin= (Net income/total revenue) x100% Profit margin =($4900/$8,100)x100%=60% Target Audience/Customers- Market penetration rate =5% Population of Abuja,FCT=3,464,000 Target customers=3,464,000 x 5%=173,200 Average price of 50kg of garri=$52 Market size= Target customers x average price of products Market size=173,200X $52= $9,006,400 Marketing & Sales- Your Marketing Plan Our company maintains extensive marketing campaigns that ensure maximum visibility of the business in our target market. This we do via traditional advertisement in radio and print media ,word of mouth, road shows and also we leverage on the use of internet to create more awareness in the market. SWOT Analysis : STRENGTHS Expert hands in cassava farming. Use of advanced farm implements. WEAKNESS: High cost of equipments and fertilizer Unpredictable production output OPPORTUNITY; Vast market Job and wealth creation THREATS: Disease. Bad weather condition-draught Resource Requirements- For expansion in our farm the following are needed; Recruitment of more staff. Purchase of more equipments. Funding. Building a Team Our team is made up of the following: CEO-Being the CEO in charge of the whole company’s operation with 6 years experience in cassava farming and processing. Farm Manager: Our farm manager is a graduate of Agric economics and extension with 4 years experience in cassava cultivation and management. He oversees the entire administration of the company. Farm attendants; we have 3 farm attendants who runs the routine operation in the farm. They have 4 years experience each in cassava farming. Security Guard. He takes care of security in the farm. Business Forecasting and Planning We have been in business for the past 4 years as we work toward further expansion to take advantage of the increasing demand of garri and laundry starch in Abuja,FCT.We have achieved tremendously by penetrating the market within first year of operation and we intend to increase market penetration rate in the near future. We have strived so hard and achieved very good customer relationship and have created good confidence in our customers as we have all year round availability of garri and laundry. Our staff are well equipped with adequate training in cassava cultivation and processing and also we strive so hard to pay them good salary promptly to motivate them to work harder. What are the next steps for your business? 1st Year Q1- Expansion of our work force. Q2 Purchase of more equipment. Q3 Increase penetration rate into more target markets to about 80% Q4 Lease more farm lands 2nd Year Q1 Massive marketing. Q2 Purchase more farming implements Q3 Increase sales up to 87% mark. Q4 Increase profitability margin to 56%