Cassava Processing Business Plan

EXECUTIVE SUMMARY

User’s Company is a registered commercial farm under the Nigerian Corporate Affairs Commission (CAC), that will be located at #1 User Location, Port Harcourt, Rivers state, Nigeria. We have done our detailed market research and feasibility studies and we were able to secure a well–situated and suitable farm land to start our commercial cassava farm.

Cassava is known to be the third-largest source of food carbohydrates in the tropics, after rice and maize. Our commercial cassava farm is going to be a standard farm hence will be involved in both commercial cassava cultivation, laundry starch and animal feed production. We will be involved in both organic commercial cassava farming and non–organic commercial cassava farming.

We have put plans in place that will help us launch a standard and world-class cassava processing plant within the first three years of officially running User’s Company. We will produce laundry starch and animal feeds and ensure that they flood the market both in Nigeria and in other countries of the world.

We want to compete with the best in the industry, which is why aside from the fact that we have secured the required farm land and most of the farming equipment and machines, we have also hired some key employees who are currently undergoing training so as to fit into the ideal picture of the 21st century commercial cassava farm workforce that we want to build.

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.

User’s Company is well positioned to become one of the leading commercial cassava farms in Nigeria, which is why we have been able to source for the best hands and farm machineries to run the farm with.

We have put process and strategies in place that will help us employ best practices when it comes to commercial cassava farming processes and laundry starch and animal feeds production as required by the regulating bodies of Nigeria.

User’s Company is a family business that is owned by User’s Name  and his immediate family members. The farm cum business will be fully and single handedly financed by User’s Name and his immediate family members. Before starting User’s Company, User’s Name has worked with some of the leading commercial farms and laundry starch production plants in Nigeria; He has a degree (B.Sc.) in Agricultural Science from Imo State University.

OUR VISION STATEMENT

Our Vision is to become one of the leading commercial cassava farms and laundry starch and animal feed production brand not just in Nigeria but also on the global stage.

                           OUR MISSION STATEMENT

User’s Company is a world class commercial cassava farm that is in business to cultivate cassava in commercial quantities, and produce laundry starch and animal feed for both Nigeria and the international market. We want our well– packaged laundry starch and animal feed to flood every nooks and crannies of the Nigeria and other countries of the world.

OUR PRODUCT/SERVICES

User’s Company is a world class commercial farm that is committed to cultivating organic and non–organic cassava for both Nigeria and the global market. We are in business to produce both food and raw materials for people and industries in commercial quantities. We will also ensure that we operate a standard cassava processing and packaging plant (laundry starch and animal feed production) as part of our complimentary business.

We are in this line of business to make profits, and we will ensure that we do all that is allowed by the law of Nigeria to achieve our business goals and objectives. These are the areas we will concentrate on in our commercial cassava farms. If need arises we will definitely cultivate related crops;

  • Cultivation of numerous cassava varieties (organic and non–organic)
  • Production of laundry starch and animal feeds

                                  OUR BUSINESS STRUCTURE

User’s Company is a commercial cassava farm that intends starting small in Port Harcourt, but hopes to grow big in order to compete favorably with leading commercial cassava farms in the commercial farming industry both in the Nigeria and on a global stage.

We are aware of the importance of building a solid business structure that can support the picture of the kind of world class business we want to own. This is why we are committed to only hire the best hands in and around Nigeria.

At User’s Company, we will ensure that we hire people that are qualified, hardworking, dedicated, customer centric and are ready to work to help us build a prosperous business that will benefit all the stakeholders (the owners, workforce, and customers).

 In view of the above User’s Company, we have decided to hire qualified and competent hands to occupy the following positions;

  • Chief Operating Officer
  • General Farm Manager
  • Administrator/Accountant
  • Cassava Cultivation Manager/Supervisor
  • Laundry Starch and Animal Feeds Production Plant Manager
  • Sales and Marketing Executive
  • Field Employees
  • Front Desk Officer

MARKET ANALYSIS

  1. Market Trends

One of the common trends in the commercial cassava farming line of business is that most players in the industry are no longer concentrating only on non–organic cassava farming. They now find it easier to run both organic cassava cultivation and non – organic cassava cultivation. It is a fact that despite that organic food is expensive, the sale is on the increase and it is indeed profitable.

Despite the fact that commercial cassava farming has been in existence since time immemorial, it does not in any way make the industry to be over saturated; commercial cassava farmers are exploring new technology to continue to improve cassava cultivation, preservation and processing processes; mechanized farming has indeed increased the tons of food produced by farmers. The fact that there is always a ready market for cassava makes the business highly profitable.

Lastly, it is a common trend to find standard commercial cassava farmers in Nigeria run a cassava processing plant business alongside their farm. It is a means of maximizing profit in the business.

  • Our Target Market

It is a known fact that the end consumers of cassava and those who benefit from the business value chain of commercial cassava farming is all encompassing.

Almost every household makes use of products from cassava or consumes cassava in different forms. In essence, a commercial cassava farmer should be able to sell his or her farm produce to as many people as possible including laundries, alcoholic beverage production companies, laundry starch production companies, livestock farmers and other production companies that make use of cassava as raw materials.

We will ensure that we position our business to attract consumers of cassava and production plants that rely on cassava as raw materials not just in Nigeria alone but also other parts of the world which is why we will be exporting some of our farm produce either in raw or processed form to other countries of the world.

  • Our Competitive Advantage

The truth is that it is easier to find entrepreneurs flocking towards an industry that is known to generate consistent income which is why there are more commercial farmers in the Nigeria and of course in most parts of the world.

User’s Company is fully aware that there are competitions when it comes to selling commercial farm produce including cassava all over the globe, which is why we decided to carry out thorough research so as to know how to take advantage of the available market in Nigeria and in other parts of the world.

We have done our homework and we have been able to highlight some factors that will give us competitive advantage in the marketplace; some of the factors are effective and reliable cassava farming processes that can help us sell our produce at competitive prices, good network and excellent relationship management.

Another competitive advantage that we are bringing to the industry is the fact that we have designed our business in such a way that we will operate an all–round standard commercial cassava farm that will also include cassava processing plant (laundry starch and animal feeds production). With this, we will be able to take advantage of all the available opportunities within the industry.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category (start–ups commercial cassava farms) in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.

 

D)  Sales and Marketing Strategy

We are quite aware that the reason why some commercial cassava farms hardly make good profit is their inability to sell off their cassava as at when due. In view of that, we decided to set up a standard cassava processing plant to help us maximize profits.

Our sales and marketing team will be recruited based on their vast experience in the industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall goal of the organization. We want to build a standard and world–class cassava farm that will leverage on word of mouth advertisement from satisfied clients (both individuals and businesses).

Over and above, we have perfected our sale and marketing strategies first by networking with agriculture merchants and companies that rely on cassava as their major raw materials.

In summary, User’s Company will adopt the following strategies in marketing our cassava;

  • Introduce our business by sending introductory letters alongside our brochure to stakeholders in the agriculture industry, livestock farms and production companies that rely on supply of cassava as raw materials and cassava processing plants et al.
  • Advertise our business in agriculture and food related magazines and websites
  • List our commercial cassava farms on yellow pages ads
  • Attend related agriculture and food expos, seminars, and business fairs et al
  • Leverage on the internet to promote our business
  • Engage in direct marketing
  • Encourage the use of word of mouth marketing (referrals)
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