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THE EVOLVING AGRIBUSINESS REVOLUTION page 1

 TABLE OF CONTENT
Cover Page - - - - - - - - - - - - - - i

Table of Contents - - - - - - - - - - - - - - ii

1.0 EXECUTIVE SUMMARY - - - - - - - - - - - - 6

1.1 Aims and Objectives Statement - - - - - - - - - - - 7

1.2 Vision Statement - - - - - - - - - - - - - 8

1.3 Mission Statement - - - - - - - - - - - - - 8

CHAPTER ONE
1.0 INTRODUCTION - - - - - - - - - - - - - 9

1.1 Business Idea Description - - - - - - - - - - - - 9

1.2 Company Ownership - - - - - - - - - - - - - 10

1.3 Business location - - - - - - - - - - - - - - 10

1.4 Start-up, Growth and Extension summary - - - - - - - - - - 10

Fig 1.1 Mechanize Rice farm - - - - - - - - - - - - 10

CHAPTER TWO
2.0 PRODUCTS AND SERVICES - - - - - - - - - - - 11

2.1 Products / Service Description - - - - - - - - - - - - 11

2.2 Insurance - - - - - - - - - - - - - - - 11
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CHAPTER THREE
PRODUCTION / OPERATION ANALYSIS - - - - - - - - - - 12

3.0 Production and operation analysis - - - - - - - - - - - 12

Fig 3,0 3D's pictures of the proposed plant - - - - - - - - - - 12

Fig 3.3 Drip irrigation of rice farming - - - - - - - - - - - - 13

3.1 Components of rice farming - - - - - - - - - - - - 13

3.2 Planting material choice, selection and treatment - - - - - - - - - 13

Fig 3.2 Application of Urea fertilizer - - - - - - - - - - - 13

3.3 Choice of Land - - - - - - - - - - - - - - 14

3.4 Pest and diseases management - - - - - - - - - - - - 14

3.5 Managing the Soil Nutrients and Weeds - - - - - - - - - - - 14

3.6 Harvesting - - - - - - - - - - - - - - 15

Fig 3.3 Rice processing plant. - - - - - - - - - - - - - 16

3.7 Commercial Processing - - - - - - - - - - - - - 16

Fig 3.3 Paddy and Processed Rice -- - - - - - - - - - - - 16

3.8 Business Model Canvas - - - - - - - - - - - - - 17

3.9 Bio- security Quality Control - - - - - - - - - - - - 17

3.1.0 Purchasing and Inventory Control - - - - - - - - - - - 18

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3.1.1 Operations Suppliers - - - - - - - - - - - - - 18

CHAPTER FOUR
4.0 MARKET ANALYSIS SUMMARY - - - - - - - - - - - 19

4.1 Market segmentation - - - - - - - - - - - - - 19

4.2 Market Trend - - - - - - - - - - - - - - 19

4.3 Marketing Strategy - - - - - - - - - - - - - 19

4.4 Pricing Strategy - - - - - - - - - - - - - - 19

4.5 Sales Strategy - - - - - - - - - - - - - - 19

4.6 Distribution Strategy - - - - - - - - - - - - - 20

4.7 SWOT Analysis - - - - - - - - - - - - - - 20

4.8 Business Risk and Mitigation Strategy - - - - - - - - - - 21

Fig 4.0 Rice pests- - - - - - - - - - - - - - - 21

CHAPTER FIVE
5.0 HUMAN RESOURCES ANALYSIS - - - - - - - - - - 22

5.1 Organizational charts - - - - - - - - - - - - - 22

5.2 Management Structures - - - - - - - - - - - - - 23

5.3 Manpower Requirement - - - - - - - - - - - - 23

5.4 Means of motivation - - - - - - - - - - - - - 24

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CHAPTER SIX
6.0 COMPETITIVE ANALYSIS - - - - - - - - - - - - 25

6.1 Positioning - - - - - - - - - - - - - - 25

6.2 Competitive Edge/Advantage - - - - - - - - - - - - 25

6.3 Unique Selling Proposition (USP) - - - - - - - - - - - 25

CHAPTER SEVEN
7.0 FINANCIAL PLAN AND ANALYSIS - - - - - - - - - - - 26

7.1 Table: Source of Finance - - - - - - - - - - - - 26

7.2 Table Proposed Capital Investment - - - - - - - - - - - 26

7.3 Long Term Financial Strategy - - - - - - - - - - - - 26

7.4 Long Term Target - - - - - - - - - - - - - 26

7.5 Economic Benefits - - - - - - - - - - - - - 26

Table 7.2 Proposed Capital investment table - - - - - - - - - - 28

7.6 Income and Cash Flow Statement - - - - - - - - - - - 28

7.7 Profit and Loss Account - - - - - - - - - - - - - 28

7.8 Advisor Table - - - - - - - - - - - - - - 29

APPENDICES - - - - - - - - - - - - - - 30

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 IN THE PERSUIT OF BUILDING A
FOOD SECURE NATION.
EKITI RICE PROCESSING MILL PROJECT.
PROSPERING AGRICULTURE FOR EKITI PEOPLE AND NIGERIANS
EKITI RICE PROJECTS (IGBEMO RICE)
The project fits into the Governor FAYEMI'S RESTORATION
AGENDA IN THE AREA OF AGRICULTURE, YOUTHS AND
WOMEN EMPOWERMENT.

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 BUILDING THE FIRST RICE PYRAMID IN EKITI.

Fig 3.0 Rice Pyramid

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 THE TEAM OF COUNSORTIUM THAT WILL MAKE THIS HAPPEN
S/NO NAMES

1 ADO-EKITI FOOD SECURITY COOPERATIVE MULTIPURPOSE SOCIETY LIMITED (AEFSCMS)

2 YOUTH IN COMMERCIAL AGRICULTURE AND DEVELOPMENT (YCAD)

3 EKITI STATE GOVERNMENT (MINISTRY OF AGRICULTURE FADAMA 111 PROJECT)

4 RICE FARMERS ASSOCIATION OF NIGERIA (RFAN) EKITI, ONDO, OSUN, EDO

5 GREENNATION AGRICULTURAL VALUE CHAIN SERVICES LIMITED.

6 SEEDAVEST

7 KAJOLA/KAJOLOWO COOPERATIVE MULTIPURPOSE SOCIETY LIMITED

8 ALL FARMERS ASSOCIATION OF NIGERIA (AFAN) EKITI STATE

9 AGBETUNTUN

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 1.0 EXECUTIVE SUMMARY
Annually, Nigerians consume around 5.5 million tonnes of rice. Currently, we spend roughly ₦365bn
per year importing 1.9 million tonnes, because local production is unable to satisfy the huge demand
for rice in Nigeria.
In line with the change mantra and diversifying through agriculture with the vision of His Excellency,
Governor Dr. Kayode Fayemi the state will consider mechanized rice farming and processing, to
increase agricultural production, food availability and job creation within the state.
EKITI KETE RICE MILL (IGBEMO RICE)
Total cost of investment will be N10bn, the whooping sum of N25bn is expected
at the end of the first cycle. This is an impressive figure since there are three cycles in a year.
10 billion naira investment to finance the following:
 Establishment of Mega farm ( 20,000 hectares of rice farm).
 Establishment of 25 tons per hr Rice processing plant
 Supporting Windmill power generation plants
 Financing the business operations and growth
Empowering 10,000 youths for rice farming jobs in a year

1.1 AIMS AND OBJECTIVES OF THIS BUSINESS PLAN

1. To create jobs and reduce poverty in the state
a) This project will employ 3500 direct workers
b) Empower 5000 existing rice farmers and growers by buying up their products
c) Empower 5000 new intending youths to go into rice farming by providing them with facilities
such as Seeds, Fertilizers, Water Pumps, Herbicides, Bush Clearing and farm implements worth
N150,000 to cultivate one hectare. T

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d) To organize vocational-training in agricultural program among unemployed graduates,
encourage and inspire the youths to go into farming .

2. To increase the IGR Internal Generated revenue of the states

3. To enhance rice supply value chain services
4. To support local farmers and improve their earnings
5. To provide staple food for the state and national consumption
6. To make the state food secured and scale up food self-sufficiency

The plan that follows explains the market segmentation strategy, value addition, operations and
management team. The detailed financial plans provide a clear view of sales and profit forecasts.
These plans show how the state government will reach profitability in the next business year of
operation and generate Return on Investment ROI by 2020.
1.2 MISSION STATEMENT
Our mission is to reduce hunger, malnutrition, provide a healthy and nutritious food round the year
and maximize return with diligence and integrity.
1.3 VISION STATEMENT
To make Ekiti State an industry leader in rice crop production and processing.
A well-diversified, vertically integrated company ushering in a new age in an age old industry

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RICE IS THE HIGHEST STAPLE FOOD CONSUME IN EVERY HOMES IN NIGERIA TODAY.

Fig 1.0 prepared rice for consumption with different recipes.

Fig 1.0 Well refined stone free rice

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 CHAPTER ONE
1.0 INTRODUCTION
Rice is the most consumed staple food in Nigeria; with the use of modern irrigation technology, this
crop can grow all year round 3 times. Ekiti Rice Mill, therefore, will be incorporated to provide
premium quality and parboiled Rice to the Nigerian market. The company will utilize modern
technology of rice farming, drip irrigation and integrated pests and rodents management to provide
top quality healthy produce.
The state governments investments of 10 billion naira can be sourced through both short-term
and long-term loans, partnership, state annual budget and collaborations with the stakeholders to
finance the projects:
Annually, Nigerians consume around 5.5 million tonnes of rice, of which 3.6 million tonnes are
locally produced – mostly by farmers for personal consumption. Currently, we spend roughly ₦365bn
per year importing the remaining 1.9 million tonnes, because local production is unable to satisfy the
huge demand for rice in Nigeria. This is a great news for state governments and entrepreneurs in
Nigeria who want to invest in rice, as it presents legitimate money making opportunities and highest
turnover. This figure also makes Nigeria the world’s largest importer of rice. So there is a genuine
demand, and genuine opportunities for entrepreneurs and governments businesses in Nigeria.
1.1 BUSINESS IDEA DESCRIPTION
As the human population continues to grow, finding means to feed those people is one of the most
important challenges faced especially in Nigeria. Even in troubled economic times, men, women
and children need to eat, to ensure that growing population does not succumb to sickness,
malnutrition and diseases. Many high end food processing companies, restaurants, events center,
hotels, guest houses, markets retailers, families, animal farmers and food importers have placed
demand on RICE and it's by products on daily bases. enough feeds for cattle from agro waste rice
stalks etc. Agriculture Youth Empowerment Scheme, Rice for Jobs project are among the initiatives.
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We found this idea to be incredibly liberating, challenging and exciting. In line with the change
mantra and diversifying through agriculture with the vision of His Excellency, Governor Kayode
Fayemi.
1.3 COMPANY OWNERSHIP
Ekiti Rice Mill would be 70% owned by the state government, and 30% by other stakeholders.
1.4 BUSINESS LOCATION
EKITI RICE MILL will be located in the state capital Ado Ekiti South West Nigeria or other location
as suggested by His Excellency.
1.5 START-UP, GROWTH AND EXTENSION SUMMARY
This project will gulp 10 billion naira, Ekiti Rice mill will start with 25 tonnes capacity mill per hr,
our target is 35 tonnes capacity per hr. which will make it the biggest capacity rice mill in Nigeria.
while the farming aspect will kick-off with 20,000 hectares and later increase to 80,000 hectares.
It is expected that, the mill will generate over 10,500 direct and indirect jobs at the inception, when
comes fully on stream within the first year of operation. and later grow to 40,000 jobs within the
next 4 years.

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 Fig 2.1 Mechanized Rice farm
WE FOUND THIS IDEA TO BE INCREDIBLY LIBERATING, CHALLENGING AND EXCITING.
IMPORTANCE OF AGRICULTURE
Agriculture plays a crucial role in the life of an economy. It is the backbone of our economic
system. Agriculture not only provides food and raw material but also employment opportunities
to a very large proportion of population.
1. Source of Livelihood
2. Contribution to National Income
3. Supply of Food and Fodder
4. Importance in International Trade
5. Marketable Surplus

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 6. Source of Raw Material
7. Importance in Transport
8. Contribution to Foreign Exchange Resources
9. Vast Employment Opportunities
10. Overall Economic Development
11. Source of Saving
12. Source of Government Income
13. Basis of Economic Development

Fig 1.4 Rice processing mill

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 CHAPTER TWO
2.0 PRODUCTS AND SERVICES
 Mechanized Rice farming and processing services
 Sales of stone-free, well refined customized Rice in a highly-hygienic environment and well package
in 10kg, 25kg, and 50kg bags for national and international markets
 Sales of seeds. Green Super Rice (GSR) is a treated high yield new rice varieties that will enable
growing of the crop with less pesticides, less fertilizers and less water have showed yields of 20-30
times more than traditional ones.
 Training and pilot farms for youth who want to go into Rice farming
 Consultancy services.
Channels for supply of rice, collaborating with rice farmers association.
Rice farming is straight forward and requires not much expertise, anyone can cultivate and harvest
rice, irrespective of your experience and background in rice business. Rice is a very high yield crop,
one acre of rice farm is capable of producing over 100 bags of rice.
2.1 INSURANCE
EKITI KETE RICE FARM AND PROCESSING MILL will engaged the service of Nigerian Agricultural
Insurance Corporation NAIC. The insurance will cover.
1. Farm crop diseases and fire insurance
2. Workers compensation scheme
3. Operation delivery Vehicle insurance
Our anticipated insurance cost will be 2% of our total sales.

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 CHAPTER THREE
3.1 Production/Operation Analysis
The entire area of rice mill processing plant will cover 8,000 square meters, giving room for increase
capacity with a light industrial park that would create direct and indirect jobs for 250,000 people within 4
years. The mill would also have a warehouse to accommodate 20,000 metric tonnes of rice. 1000 trucks
capacity trailers park.

Fig 3,0 3D Picture of the plant administrative office block

This investment is expected to create thousands of jobs in rice value chain. In addition to the
anticipated arrangement with neighboring states rice farmers. Ekiti state would go into partnership
with neighboring states, to ensure sustainable inputs for the mill and foster regional economic
integration,”
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This partnership with Thailand covers supplies and installation of the rice mill, including silos. It also
covers maintenance and technical support as well as technical training of Nigerians in the ever
growing sub-sector of the Nigerian economy. The rice mill will be among the single largest mill of
its kind in Nigeria and is expected to be delivered within twelve months.
3.2 Components of Rice Farming
The healthier the seeds, the greater the chances are of ensuring the highest possible yield is achieved.
choosing an improved variety and select the right seeds based on the cultivation environment. Do not
plant seeds in an indiscriminate manner and go for only the best variety seeds. You need to choose
the seeds manually for a good rice production.
Planting material choice, selection and treatment
Selecting good quality seed will help to:
1. Improve yield by 5 – 20%
2. Improve germination by more than 80%
3. Increase resistance to disease and pest attacks
4. Produce consistent plant size
5. Decrease weed problems
Produce rice seedlings in a nursery
Prepare your seedbed and plant seeds there to be raised in a nursery. Cover the soil with a
transparent polythene sheet so that the environment maintains its temperature whilst avoiding soil
borne diseases. Your yield can be significantly decreased if transplanted rice is attacked by nematodes
and soil borne pathogens.

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 Fig 3.2 Application of Urea fertilizer

Managing the Soil Nutrients and Weeds

For a couple of months after transplanting the rice seedlings, you will need to remove weeds from the rice farm, and
then implement a herbicide application regime to destroy any emerging weeds. Some people tend to apply herbicide
twice prior to harvesting. To boost the growth of rice seedlings, fertilizer is often applied. You should carry out
extensive soil tests with specialists before any fertilizer is applied. Always aim to use an organic fertilizer and spray it
in right amounts that have been specified. This will vary depending on soil, environment and the type of rice you are
harvesting. Each growth stage of the rice plant has a different nutrient need. Keeping this in mind, farmers must
ensure that the rice plant gets the proper nutrients at the right time.

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Fig 3.3 Irrigation of rice farming

Choice of Land
The land itself is the most essential capital asset for rice farming business in Nigeria, and it's worth tends to vary on
the basis of the drainage facilities, type of soil and location. Rice is generally the crop of a small farmer and the
average holding size is around 6 acres. You need a large space to set your project up and dry the paddy rice prior to
harvesting.
1. Select a site in ecological zones where rice is grown traditionally
2. Choose fertile land with good water retention capacity (contain some clay and/or organic matter i.e. loamy
soil).
3. If you have to grow rice for one or more consecutive years on the same land, get the advice of a reputable

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 soil-testing agency.
4. Grow legumes after rice, and plough rice residues into the soil as organic matter and fertilizer.
Swampy land
In rice farming you have the option of planting rice in lowlands and uplands, and also in irrigated or swampy
conditions. You can significantly reduce capital and the hassles of irrigation by choosing swampy land for rice
farming. The most common technique is to get swampy land and have it fully cleared. Use tractors to till the soil in a
proper manner until the soil is prepared for actually transplanting your rice seedling. However, it has been found
that rice production is most productive on irrigated soil of lowland swamps. But this type of environment comes at a
higher cost

Pest and diseases management

The major pests and diseases of rice are:
1. Sheath blight is a fungal disease caused by Rhizoctonia solani. Symptoms are usually observed from tillering
to milk stage in a rice crop
2. Bacterial Blight
3. Rice blast pyricularia grisea is a fungus that feeds on rice plants
4. Bakanae
5. Brown spot
6. Grassy Stunt
Harvesting
Within 4 months of the plantation, the crop is ready for harvest. When the rice is matured, its color will change to
light brown from green.

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The rice is ready for harvest when the grain yellows and the start to drop. The water is then drained from
the rice paddies during harvest season. The rice is harvested by cutting the rice stalks. The grain is separated from
the stalk by a mechanized thresher. Harvesting is the process of collecting the mature rice crop from the field.
Harvesting consists of cutting, threshing, cleaning, hauling and bagging. Field drying and stacking or piling are
optional. Harvesting can be performed manually using sickles and knives, or mechanically with threshers or
combine harvesters.

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 FARM MACHINES, TOOLS AND EQUIPMENT FOR MECHANIZED FARMING

HARVESTERS, TRUCKS, TRACTORS, PLOUGHS, PLANTERS, AND IRRIGATION SYSTEM

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 MANUAL SPRAYER, IRRIGATION SYSTEM, SPRAYING TRACTOR TANKS

1OO OF TRUCKS, HILUXES AND CARS WILL BE ACQUIRED, FOR LOGISTICS, DISTRIBUTION, MONITORING AND
EVALUATION.

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 Fig 3.0 External unit of Rice processing plant.
Commercial Processing
Commercial rice milling systems mill the paddy in stages, and hence are called multi-stage or multi-pass rice mills.
The objective of commercial rice milling is to reduce mechanical stresses and heat buildup in the grain, thereby
minimizing grain breakage and producing uniformly polished grain. Compared to village-level systems, the
commercial milling system is a more sophisticated system configured to maximize the process of producing well-
milled, whole grains. The milling process that produces white rice also removes much of the vitamins and minerals
found primarily in the outer bran layers. Further processing is often done in order to restore the nutrients to the
grain. Once complete, the rice is called converted rice. Once done, the rice is steamed, dried, and then milled
from propounding production waste to Steaming to Dryer for 12% moisture from there to silos, from silos the rice
paddy is move to the mill.

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Fig 3.3 Paddy and Processed Rice
Round the year production strategy
To ensure consistency in production, the state government will engage 5,000 members of rice farmer association and
Fadama III rice farmer, and 5,000 youths for job empowerments program they will be provided with facilities such as
seeds, fertilizers, water pumps, herbicides, bush clearing and other supports worth N300,000. All cost inclusive, After
harvest they supply to us at agreed price.

3.4 Bio Security and quality control

Bio-security measure will be put in place to prevent pest and diseases outbreak. Foot bath for visitors and workers
will be put in place at the entrances. Every vehicle coming into the facility will also pass through a bath and get
sprayed. All quality control standards will be adhered to strictly so as to produce contaminated free premium
quality products. Animals will be kept away. We will employ a Quality control staff to ensure our output and inputs
meet expectations. Bio-security training will be mandatory given to farm attendants and factory staff.

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 ELECTRICITY POWER GENERATION IN THE FARMS AND RICE MILL
EKITI RICE MILL PROJECT will tap the revolutionary technology advancement in power generation, tested and
proven, is both modular and scalable, Venturi Windmill Power Generation. Magnetronics Coil Windings require
capital simple manufacturing processes which are straightforward, modular, free of iron, easy to scale, and are easily
field replaceable while the motor generator is in operation.
Due to the efficiency of the electricity motor generator and the blade design, the wind turbines generate electricity
over a broader range of wind speeds than conventional technologies; the turbine starts to generate useable electricity
at 2 m/s and continues to well over 30 m/s. This broader operating range represents a new benchmark for wind
turbines and increases electricity production by more than 300%. Several technological advantages are found in our
proposed magnetronics motor generators. The motor provides high efficiency and ultra-low operating costs, the
lowest cost per horsepower of any motor to date, and it is the least expensive and easiest to service. The applications
for motor are endless from powerful semi-truck type systems to electronic bicycles, not to mention the vast arrays of
electrical generators. Our Intentions is to build wind mill that will generate 200 MW to power our farm and surbub
villages.

WINDMILL, TRV2 Twin Rotor Venturi Wind Turbine PROTOTYPE

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 Microturbi
ne

Community
Power
PowerCe
llllllllll

Hydrogen
Ultimate
Genset
Solution

Advantages and Benefits of Venturi and a PPA Agreement

Immediate 20% to 30% saving on energy costs and up to a 50% saving over the period of the PPA. The revolutionary
technology produces clean electricity with a perfect sinewave. In simple terms it means you use less energy to power
all the appliances in your building. Using less energy reduces your monthly expenses with immediate effect and over
time can amount to many thousands of naira in savings.

Clean green renewable energy helping to reduce pollution, eliminate the need of
fossil fuels and create jobs to develop the economy. A 100% fully redundant energy
system meaning we will have power 24 hours a day, without interruption and
pollution of any sort.

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 3.8 Business Model Canvas

Key Partners Key Activities Value Customer Customer

Propositions Relationships Segments
International. Rice farming,
Institute of Tropical Agriculture Rice processing Placing our customers
(IITA) Ibadan. services Revenue-focused at the top by giving Geographic
marketing & sales them kings and Psychographic
effectiveness queens treatments, Consumer,
Central bank of Nigeria solutions appreciating their Occasional
throughout the patronage and
Nigerian export and import revenue cycle
Bank. (Nexim). Key Channels Cultural
Resources Open market General segmentation
Indorama and Golden Fertilizer Farmland, public, Restaurants,
Nig. equipment, Shoprite,
utilities finance, supermarkets,
labour, materials International market
and agro
chemical etc.
fertilizers

Cost Structure Revenue Streams

Sales cost to middle men, corporate Sales of Rice , Delivery services
organizations based on qualities and Consultancy services, sales of seeds,
quantities measured in kg. empowerment, Training and seminal

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3.1.0 Operations Suppliers
Location and trading currency
of supplier Terms of Trade
being offered Alternative Supplier in
Name of Main
Products and Services Provided (payment case of problems with
Suppliers
terms, delivery main suppliers
times)

Thailand Rice Plant Thailand Manufacturer of Rice Buhler in Switzerland

processing Processing plants and Cash on and
Manufacturer $ Dollar Installation delivery Huber Fotman
Machinery China
Facility Logistics 2 Akintan Street, behind Silos storage line Technology
Ltd. Ejigbo Isolo NNPC Depot. Daleko, Ejigbo equipments. Cash and carry Incubation Centre km
Lagos Isolo Lagos. processing machines, 9 Onijanganjagan
N Naira Abeokuta/Lagos
industrial and agro allied
Road. Abeokuta
machines manufacturer
Abbey motors Apapa road Lagos. Vehicle dealer/sales of trucks Cash and carry Ultimate Motors. Ilasa
Apapa Lagos. N Naira On delivery Lagos

Juballi bros Oregun Lagos Nigeria Sales and supplier of power Cash & carry Marvellous Enterprise
Engineering N Naira Generating set, water Ojodu berger
Services Lagos pumping machines Ikeja Lagos

Gimockesy Ikeja Lagos Borehole Cash down Emken Global

Geophysical and services
hydro System. Ojodu berger.

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 CHAPTER FOUR
4.0 Market Analysis Summary
Considering the fact that Nigeria has a huge market for rice, investing in rice farming, processing, and sale of rice we
make the state economic viable, the 25 tons per hr rice mills will open up business activities in Ekiti. The avenues
and opportunities are endless.

4.1 Markets segmentation

Geographic Segmentation, Distributorship is open to all across Nigerian capital cities and towns, major cities in
Nigeria are potential market but Lagos, Abuja, Warri, Benin, Kaduna, Ibadan, Port Harcourt are considered as
distributor hub and concentration to this cluster is our top most priority.
4.2 Marketing strategies
Strategies are generally used to identify and further define the target customers, and provide supporting data for
marketing plan elements such as positioning to achieve certain marketing plan objectives. Ekiti rice will appeal to a
broad base of consumers in both the residential and business community. The residential population in the

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 immediate area is comprised of a mixture of single family and multi-family housing, corporate offices, state and
federal agencies and ministries, religion organizations.
Our overall marketing strategies are:
 Market penetration strategy.
 A growth strategy
 Channels of distribution strategy
 Communication strategy. Sales calls and text messages, personal visit to our leads and potential customers
(Distributors, wholesalers, Caterers, Shoprite's, supermarkets, hotels, Event planners, restaurants etc.
4.3 Pricing Strategy
 Our price of Rice is based on the kg's, 10kg N2,500; 25kg, N6,000 and 50kg N12,000 these are the most consistent
and will command a 25-30% price premium over a local farmer. The value of our products and services will be
attractive to extremely price sensitive customers.
4.4 Sales Strategy
Customers look for several qualities in our products and services these are:
 Availability at all seasons.
 Reliable and consistently high-quality services.
 Good value for money.
 Reputation and positioning .
 For every distributors there will be incentive depending on their pull and volume of purchase monthly.
A number of well trained staff would be serving the rice farm and processing factory in unique and professional
manners and positions to provide its clients with all of the above qualities. Because principles are very important to
all businesses & profit oriented organizations, we believe that as long as we can maintain the above characteristics,
customers will choose our products over our competitors, because of the wide range of benefits it has for the public.
4.5 Distribution strategy:
We prefer to undertake our distribution logistics from end to end. Therefore this will entail acquiring trucks for
supply to Kaduna, Abuja, Lagos etc. and distance locations; a farm mule or a low capacity truck for conveyance from
farm to processing plants and for supply to retail outlets customers to make purchase.

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 In general, our promotions will center on:
 Observation: meeting customers and surpass their expectation with our well refined, stone free parboiled rice .
 Visibility: Our proposed truck will be branded; each of our middle men would have big take away pack which
includes thank you cards with our customized bags, so that our presence and name is noticed by everyone.
 Community service public relations: We will maintain a good relationship with the local media, national media
and international media, and we get flattering and beneficial exposure in the community service sections of the
newspaper and TV coverage. We will look for any opportunities to publicize our business.
4.6 SWOT Analysis

STRENGHTS WEAKNESSES
Great quality produce
Responsive to customers limited staff to handle various
produce knowledge responsibilities
Young work force
EKITI RICE
SWOT

OPPORTUNITIES THREATS

Large potential market size Birds, Pests and diseases

Opportunity in produce logistics Theft and fire

4.7 Business Risk, Challenges and Mitigation Strategy

Birds are the greatest enemy of rice farming, then Rice pest and diseases which are: Sheath blight is a fungal disease
caused by Rhizoctonia solani. Symptoms are usually observed from tillering to milk stage in a rice crop. Bacterial Blight,

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Rice blast pyricularia grisea is a fungus that feeds on rice plants Bakanae , Brown spot, Grassy Stunt etc. Shortage of rice
supply for factory processing, drudgery of operation, vandalism of factory equipment and pilfering, cost of land
preparation using caterpillars for bush clearing and tractor for tilling the soil.

Fig; some of the rice pests and diseases

To mitigate: Rice gun scarier to be positioned in the farms, regular application of Pesticides, herbicides,
insecticides, regular weeding, empowering local farmers to plant rice in adjoining villages for maximum and effective
production, round the clock security in place.
Making a success of any type of business does not depend on theories or what had worked for others in the past, but
on current realities based on the prevailing conditions for that line of business and/ or operating environment.
Training programs will include teaching materials to train our employees (sales person) about service attitudes,
customer perception and how to handle client’s complaints. We will conduct periodic staff meetings intended to
review policy, increase customers satisfaction and to keep a general line of communications between staff and
management. All complaints will be acknowledged by the staff and referred to management. Programs will be in place
for all types of guest complaints. More serious complaints will be documented.
Bird-Scare Technology Implemented to Safeguard Rice Farms. As a result of the menace posed by birds to the
productivity of rice farms and the need to quell its destructive activities, a 'bird scare tape' technology has been
implemented on a farm in Abakaliki, the Ebonyi State capital.

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 Key risks affecting the business How your business will respond to these

Birds Technology innovation birds scarier gun will be acquired

Comfortable accommodation for Farm security and workers to live in
farm permanently from the stage of budding.

Birds are the greatest enemy of

rice farming Erection of Scare crow

Pests, diseases, fire and theft Best practices, application of pesticides for regular weed control system,
Round the clock security in our farm, Good Insurance policy to safeguard
our farm, vehicles, machines and equipments and installation of fire
extinguishers, CCTV cameral installation.

Herdsmen Government policy and security of farms

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 CHAPTER FIVE
5.0 Human Resources Analysis.
The human resources team will consists of men with impeccable academic qualifications backed by a track record
and years of work experience in Agric business, rice farming and processing related fields. We Intends to start with
3500 staffs.
5.1 Organizational Chart Fig.1.1
MANAGING DIRECTOR/CEO

FARM MANAGERS HEAD OF ACCOUNTS SALES MANAGER

PRODUCTION MGR. ADMIN MANAGER

DRIVERS
FARM LABOURERS SECURITY
PRODUCTION STAFF

5.2 Management structure

The Management team will comprise skilled agriculturist, quintessential managers, people with ability to design
farm processing structure that is adequate for achieving goals and objectives, good understanding of planting,
harvest procedure, diseases, markets and consumer parameters, compiling key business-metrics, commercial
acumen, Commercial-Conceptualization, accountability, excellent human resources management for efficiency and

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optimum utilization of limited resources, marketing solutions, customer relationship management, revenue
assurance.
Salary structure: this will be determined by the state government

5.3 Means of motivation:

Motivation is a set of activities that induce or encourage the workers to put in their best effort towards the
attainment of the goals of the organization.
Positive Reinforcement: positive reinforcement or behavior is to motivate individuals or employee by properly
designing their work environment and praising their performance. It also analyzed the work situation to determine
what cause workers to act the way they do and then initiate change to eliminate troublesome as obstruction to
performance.
Training: training does not only improve the quality of output, but also improves the quality of input as well. Better
informed workers are less to make mistake in their operation. Also increase in productivity is as a result of training
program
Wages and Salary: payment of good wages and salaries is fundamental to the productivity effort of the employee.
Job Redesign: We restructure jobs to reduce dissatisfaction and increase productivity especially in mass production
of vegetables, job enrichment, job enlargement, establishing natural work units, job rotation, improving feedback
and natural work teams.
Participation: Staff will be given an opportunity to participate in decision making through consultancy with our
customers and implement decision by themselves. This will also motivate them.

CHAPTER SIX
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 6.0 COMPETITIVE ANALYSIS
Competition creates threats and provides opportunities. The primary benefits of any competitive analysis are a
better understanding of what your competitors are doing what they are offering to customers, and how to maintain
our competitive advantage. The findings from this analysis are likely to factor strongly into our strategic planning
and repositioning ourselves to strategically fit into the market and improve our business.
Competitive analysis components are: Local Market Area Competition, Concept Refinement and Evaluation,
Assessing our competitor’s activities and products. Haven being in production for 2 years now, our sales
performance and profile has being growing to take on many customers ranging from individuals and corporate
bodies in Lagos, Ibadan, Abeokuta and Abuja, Benin and through our weekly market outing. At the inception we will
have about 50 distributors and numerous individual customers coming to the farm, our patronage will be high and
customers will appreciate our quality. There is a huge demand for rice in Niger republic but the ability to consistently
produce enough to meet the demand of our numerous consumers throughout the year will be challenging. Our main
competitors are:

 UMZA Rice – Kano State

 Mas Rice Mill – Gombe State
 Mama Happy Rice – Niger State
 Labana Rice – Kebbi State
 Wacot Rice Mill Argungu Kebbi
 Ebonyi Rice – Ebonyi State
 Anambra Rice – Anambra State
 Olam Rice – Nasarawa State
 Ofada Rice – Ogun State
 Igbemo Rice – Ekiti State (not harnessed)

Competitors Analysis

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1. They all have huge capacity to produce and they have an organized business of many staff and resource to deploy.
Their weaknesses is they carry out 50% planting outside the states to meet up the processing mill production
capacity.
2. They have the best of both funding and technical skills, they have huge resources and skilled manpower.
However, they have poor management which leads to poor planning and unavailability of produce occasionally.
6.1 Positioning
Because we are developing our brand image and market positioning primarily through our innovative services,
focusing our competitive review on that segment of the market, our market positioning will be in the lower price
quadrant.
6.2 Competitive Edge/Advantage
Production of premium stone free rice, we have different products sizes and strategy towards market approach.
We planned to capture low income earners and our presence will basically be felt in any markets. We will gain
good brand recognition in a record time and develop a less overhead structure. Our competitors are slow to make
changes and upgrades to current line of services. We plan to overcome their leadership with innovative ideas of
marketing automation, cross-channel orchestration, content and social marketing, website design, online order
and home delivery services at competitive price. We intend to continually introduce additions and refinements to
this line. EKITI KETE RICE competitive edge is in its people. We truly believe that your business is not only as good
as your products, but the quality of your staff as well, staff will be a reflection of us. Our long term goal is to hire
team members that are truly hand selected and have the same honest to goodness.
6.3 Unique Selling Proposition (USP)
Unlike our chain competitors, we can turn on a kobo when economically pushed and make changes quickly
allowing us to be proactive, whereas our corporate competitors have to adhere more closely to their company
policies thus impeding their reaction time. Finally we will keep our prices in check by meticulous monitoring of
our controllable expenses – keeping close eye on our Prime Cost Report and Inventory by initially employing
casuals for the seasonal tasks
The following procedures will be implemented.
 An inventory control system will be maintained.
 All merchandise received are counted and inspected.

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  We pay our suppliers on time and remain loyal to them.
 We ask for and take term discounts.
 Purchase Orders will include: Price and terms, Price Protection, Always in writing

CHAPTER SEVEN
7.0 FINANCIAL ANALYSIS
Finance is the study of the actual process of acquiring needed funds and how money is managed.
Components of the financial analysis are: Mobilisation, Sales, Other income, Expenditure and Cash
flow Statement.
7.1 Project cost
This project will gulp 10 billion naira. This partnership with Thailand covers supplies and
installation of the rice mill, including silos. It also covers maintenance and technical support as well
as technical training of Ekiti indigenes in the ever growing sub-sector of the Nigerian economy.
Financial assumptions
20% inflation is assumed on the cost of equipments and raw materials, sales, and sales turnover.
Tax is assumed 5% on net profit.
Salary increment is reviewed annually at 5% upward during the period under consideration.
5% of the total equipments is assumed for insurance per annum.

7.2 Long Term Financial Strategy

Ekiti Kete Rice Mill plans to reinvest part of the generated profit back into the business to increase the
production capacities for sustainable rice production. The company will continues the use of funding
as a viable and equitable mechanism for expansion and significantly upgrading major assets by
endorsing a strategy of reducing the state Indebtedness to rates ratio zero.

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 7.3 Long Term Target
Ekiti Kete Rice Mill projects revenue of N25 billion naira in sales within the next one year, we can
keep up to two-thirds of the total revenue from products sales after paying expenses and salaries.
Rice farming and milling has the reputation as the highest profit potential in farming and processing.
7.4 Economic Benefits
Ekiti Kete Rice Mill will create employment for 20,500 in the first year, and more in the pipeline as
the capacities increases. In addition to the supply of domestic needs, Government hope to generate
additional income tax revenue to boost the state Internal Generated Revenue IGR. The establishment
of such farm will have a foreign exchange saving effect to the country.
7.5 Income and cash flow statement
This is very important, to keep track of income and expenses, make informed business decisions,
collect the financial information necessary, for filing various tax returns, to improve our chances of
making a profit and convince others to invest in our business. The importance of cash flow statements
are:
1. It helps to manage the amount of money flowing in and out of the business
2. It is used to show how much cash is in the business at a given point in time.
3. Shows all monthly income and expenditure of the business
4. Re-assures an investor there is enough money (liquidity) to survive in the short term

Table 7.0 Proposed Capital investment table

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 Equipment Cost in N

1. 25 tonnes per hour rice processing N6 billion Naira

equipments line plant.

2. Construction of silos, office N 1 billion

Complex and staff quarters

3 Mechanized farm equipments; Planter, N 500 Million

Harvesters, harrowers, tractors etc.
4 Seeds, fertilizers, water pumps, 1 billion naira
Herbicides, pesticides etc.
3. 100 Trailer Trucks for haulage/logistics N 550,000
and official Cars for management staff
8. Operating Expenses: Maintenance, bags for production, N 400 Million
advert, packaging and marketing cost etc. technical
support, technical training of staffs, Electrical and
machines installation security equipments.
9 Administrative/ office equipments and consumables N 50 Million

TOTAL 10 billion

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 The estimated amount of capital needed is N 10 billion naira.
Sales forecast - what we consider
i. A forecast of our sales over the next 12 months.
ii. Supported by market research – how many customers will buy our product at a certain
price and how often?
iii. When will they pay us? Are we offering credit terms?
iv. What products / services are we selling?
v. How much do you sell them for?
vi. What is our maximum capacity?
7.8 Profit and Loss Account
All sales whether we have been paid or not
Stock level at start of year
Stock we bought
Stock at end of year
Opening stock + purchases - closing stock
Sales - value of goods and services sold
All expenses incurred this year whether you
have paid them or not
Gross profit minus indirect costs
Cost of machinery etc divided by number of years it will last
Tax at tax rate, Owner may wish to withdraw some of the profit

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 ABOUT OUR COOPERATIVE
ADO-EKITI FOOD SECURITY COOPERATIVE MULTIPURPOSE SOCIETY (AEFSCMS) is an exciting multi farm and
processing services firm set-up to promote and support food security , staple food availability, animal
farm, mechanized crop farming, cash crop, vegetable green house, Plantain, plantation, processing
plantain into flour and crispy plantain chips production. AEFSCMS is a start-up cooperative farming,
plantain processing Industry for domestic and industrial usage and as snacks. Our cooperative is ready
to collaborate with the state government to improve agricultural activities in a Ekiti. is seeking
partnership and collaboration for Two hundred million naira (N200,000,000) loans/grants to finance
the following:
 Mega farm (100 Hectares Farmland acquisition for mechanized multi farming system)
 Acquisition of mechanized farm tools and equipments (Tractors and Planters)
 Capital to purchase major equipment in Cassava, Rice and Plantain food processing value
chain
 Construction of food processing factory and farm office project
 Construction of 200 MW Windmill project to power the farm
 Boreholes drilling, drip irrigation for crops
 Financing the business operations and growth.
 Acquisitions of delivery Van, staff bus and Truck for distribution and logistics
We have secured and we are making contribution to make this happen. The plan that
follows explains our strategy of implementation, value addition, operations and farm
management.

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 BUSINESS OBJECTIVES
 To increase availability of staple and nutritional food in Nigeria through
mechanized farming and best agronomy practices.
 To promote food security and increase earnings of local farmers
 To create jobs along the value chain
 To organize vocational-training in agricultural program among unemployed
graduates, encourage & inspire the youths to go into farming.
 To keep away youth from anti-social & destructive activities.

VISION STATEMENT
To be an industry leader in animal and crop production with high food processing
capacity and feeds mill. A well diversified, vertically integrated company ushering in a
new age in an age old industry.

MISSION STATEMENT
Our mission is to reduce hunger, malnutrition, provide a healthy and nutritious food
round the year and maximize return with diligence and integrity.

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PRODUCT CATEGORIES OF MEGA FARM ON 100 HECTARES OF FARMLAND

ANIMAL FARMING VEGETABLE FARMING FEED MILLING CROP FARMING

POULTRY GREEN HOUSE TOMATOES POULTRY FEEDS PLANTAIN

AQUACULTURE PEPPER CHICKS MASH RICE

CATTLE PUMPKIN (UGWU) BROILERS STARTER CASSAVA

GOATS/SHEEP GARDEN EGG LAYERS MASH YAM

PIGGERY BROILER FINISHER MAIZE

GROWER MASH CASTOR SEEDS

FISH FEEDS.

FOOD PROCESSING CASH CROP

CASSAVA CASHEW
PLANTAIN PALM OIL PLANTATION
RICE COCOA
PALM OIL MORINGA OLEFERA

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