Business Plan on Rice Retailing Executive Summary in Nigeria

Introduction

Everyone knows that rice farming is an important sector of the economy of Nigeria. Due to urbanization, change in employment patterns, rapid population growth, and change in the diets of Nigerians on account of income expansion, rice has become a staple food to the average Nigerian leading to an increase in the demand – standing at an annual growth rate of about five percent.

Rice farming is the business of growing rice in large quantities for sale and consumption. This will basically involve planting, growing, and harvesting rice in a large expanse of land commercially.

Overview

NCS Rice is a start-up Rice distribution, retailing and marketing firm where we make quality and affordable edible polished rice available to the retail market. Our goal is to become the number one stop store for accessing high quality and superior brand local rice to consumers in North Central Nigeria with effective coverage of all the 6 states in the region. We are located in Lafia, Nassarawa state.

The Company

NCS Rice is established as a limited liability company owned by Jude Okon

, Kemi Awe, and other investors. The business is managed and directed by Jude Okon, a veteran in the agric. the industry with 8 years’ experience and Kemi Awe, an experienced Agro-allied specialist with over 15 years’ experience.

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VISION

To be among the first 3 largest Rice in North Central Nigeria by 2020.

MISSION

All year round availability of quality brands of locally produced rice
Swift delivery service, favorable discounts.
Well organized network chains of distribution in major cities in North central Nigeria and beyond.
To give our customer the very best product and customer service so that we may earn your trust and future business.
To provide an excellent, top-notch and inviting environment for rice processing, wholesaling and retailing.

OBJECTIVES

Increase revenue from the sales rice to N30,000,000 over 2 years
To maintain profit margins at 20-25% through close attention to expenses and cost of rice production
To drive awareness and build sales through mentions in both local print and digital media.

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KEYS TO SUCCESS

Transportation
Warehouse
Capital
land
Low operating cost
Having a good retail location in a high-shopping area

Products and Service

NCS Rice will sell packaged locally produced edible polished rice. We produce, process and package to meet the requirements of standard organization of Nigeria and international standard.

The Market

Nigeria, most populous black nation on earth presently consumes about 5 million MT of polished rice annually and about 36% of the rice consumed in Nigeria are imported.

According to the statistics from the Federal Ministry of Agriculture and Rural Development (FMARD), 1.8 million metric tons (MT) of polished rice valued at N660 billion was imported into the country in 2014 alone. Apart from the stiff competition imported rice pose to locally produced rice, they have lower quality and pose serious health hazards. However, the government bane on the import of rice provides incentive for increased production to farmers, mill operators marketers, transporters and other stakeholder within the Rice Industry.

NCS Rice is set up to bridge the gap with the enormous local production in the village through the provision of packaging, distribution and retailing services to these rice producers cum millers.

Competition

Competitors for NCS Rice are Choice Farms, Best Foods Global, Meat World Foods, Chi Farms, Obasanjo Farms. NCS Rice will establish its competitive edge through the expertise of its founders.

Management Team

Jude Okon

He has 10 years’ experience in Rice Retailing Business and has a Bachelor’s Degree in Agriculture from Obafemi Awolowo University Ile-Ife. He has master in business administration MBA from same school. I will be in charge of strategy planning for the business. He is the CEO of the Business.

Okon Aderogba

He has been in the rice business for over 25 years. He has worked with 3 major rice distribution company in North Central of Nigeria. He as attended more than 7 training and organized workshops where he learnt advance Rice Retailing operations. He will co-manage the firm with Jude Okon

We will manage the business to profitability by strategic production, marketing and sales. We will provide quality assurance in the business by always upgrade our product and services to the taste of time. We will ensure proficiency by employing more people with production, marketing

Financial Considerations

NCS Rice seeks N10 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 the owners. 1st year estimated revenue will top N84,400,000 with gross margin of N34,500,000.