Business Plan on Yam Executive Summary in Nigeria

INTRODUCTION

Nigeria is by far the world’s largest producer of yams, accounting for over 70–76 percent of the world production. According to the Food and Agricultural Organization report, in 1985, Nigeria produced 18.3 million tonnes of yam from 1.5 million hectares, representing 73.8 percent of total yam production in Africa.

According to 2008 figures, yam production in Nigeria has nearly doubled since 1985, with Nigeria producing 35.017 million metric tonnes with value equivalent of US$5.654 billion. In perspective, the world’s second and third largest producers of yams, Côte d’Ivoire and Ghana, only produced 6.9 and 4.8 million tonnes of yams in 2008 respectively.

Overview

NCS 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.

The Company

NCS Farm is established as a limited liability company owned by Jude Okon, Adebayo Tijani, and other investors. The farm is managed and directed by Jude Okon, a veteran in the Agric. industry with 8 years’ experience and Adebayo Tijani, an experienced Agro-allied specialist with over 15 years’ experience.

Vision

To be among the first 3 largest yam producer/distributor in Nigeria by 2018.

Mission

To give our customer the very best products and provide excellent customer service so that we may earn their trust and ensure continued business transaction.
To provide an excellent, top-notch and safe environment for yam production, storage and distribution.

Objectives

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

Keys to Success

Financial stability for payment of labour, fertilizer, seed yam and other variable inputs.
Low operating cost and efficient processing techniques.
Ensuring an efficient and highly motivated distribution team.
Maintenance of good working condition and effective remuneration.
Being a member of the Yam Producers Association of Nigeria (YPAN).
Offer consistently quality products.
Outstanding customer service.

Business Plan on Agriculture

Products and Services

NCS Farm will basically sell healthy, disease-free and highly nutritious yam tubers. Other products and services includes 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 use of Yam either for edible or industrial uses.

The Market

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 poundo yam flour).

Competition

Competitors for NCS Farm are mainly small holder farms located in and around Benue state.

NCS 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.

Management Team

Jude Okon

I have over 10 years’ experience in the yam production and processing industry and I have B. Agric from Obafemi Awolowo University Ile-Ife. I also have a master’s degree in business administration MBA from same school. I am in charge of strategy planning for the business.

Adebayo Tijani

I have worked with my father for over 15 years from childhood in which I consistently helped in co-running or managing his farm estate. I have also attended several training and organized workshops where I learnt how to run a Yam production, processing and distribution firm.

We will manage the firm to profitability by strategic production, marketing and sales. We will provide quality assurance in our business by always upgrading our product and services to the taste of time. We will ensure excellence delivery of both products and services by employing more people with production, marketing and exemplary interpersonal communication skill. Our target is to build a team of exceptional goal getters and keep a steading assent of excellent performance.

Executive Summary of Yam Business Plan in Nigeria

Financial Considerations

NCS 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 N42,422,250and profit will reach about N5,989,526 in the 1st year of operation.