MAIZE PRODUCTION

undisputedly, one of the fastest growing farm produce in terms of market demand/consumptions in the world is the maize market.

Maize farming and production business in Nigeria and the world at large is a high potential opportunity for Nigeria, Africa continent and the World.

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Maize/corn is one of the most common and important food crops across Sahara Africa.

Africa with a population a bit over a billion has over 900 million Africans that depend on maize. It is often cheaper than Rice, Wheat and host of other grains.

Africa continent produces over 50 million tons of maize yearly with Nigeria being the highest producer in Africa producing about 8 million tons yearly, while the world total maize production is over 785 million tons with United State of America contributing over 42% of the world maize produced. Relatively, Africa contribution to the world production is about 6.5% and consumed 30% of the world maize produce, Africa is therefore the largest consumer of maize globally.

Africa import over 28% of maize consumed, therefore spending about $2 billion yearly. This is massive and does not survive any common sense because it can be avoided.

Maize production is cheaper in terms of pricing and affordability, easier in terms of weather and farming, and highly profitable in terms of return on investment. A seed of maize can give you over 500 kernels in return. This is an incredible return on investment. Maize needs just between 90 to 120 days to reach harvest after planting.

In Nigeria, IITA took a bold step to ensure that Nigerian maize meets international standard by providing a cure to the lingering fungi that affects maize in Nigeria. The fungus is called Aspergillus Flavus causing Aflatoxin and the antidote is called Aflasafe. In order to facilitate easy spread of the antidote among farmers, IITA has appointed BSA as a technical partner in this area in addition to its large-scale coverage of maize production in Nigeria.

BSA has carved a niche for itself by massively developing maize farming and production through the creation of a farm settlement called Aflasafe Corn City. This is the first of its kind in Nigeria, where Maize farmers are being aggregated and established in the same farm territory. This is fantastic and very special.

The company through its unique business features has created three class of Maize Farming Investors:

CLASS OF INVESTORS-

SILVER INVESTORS
GOLD INVESTORS
DIAMOND INVESTORS


SILVER INVESTORS: This are prospective investors ready to invest in the maize farming business either via land rental or outright land acquisition but can only afford 25% of the total cost of investment.


GOLD INVESTORS: Those investors ready to invest in the maize farming business either via land rental or outright land acquisition but can only afford 50% of the total cost of investment are called Gold Investors.


DIAMOND INVESTORS: When an investor is not expecting any assistance in terms of facility i.e. able to provide 100% of the investment cost, such investor are referred to as a Diamond Investor.

PROFITABILITY ANALYSIS / LAND RENTAL
REVENUE COMPOSITION:


At least 5 tons of maize per hectare per season
Prevailing Selling price of N125,000 per ton.
2 hectares of land


*Amount (5 tons x N125, 000 X 2) = N1, 250,000



INVESTMENT COST COMPOSITION (LAND RENTAL)


Land rental cost is N50,000 per hectare per annum
Planting, Harvesting cost etc per hectare per season N240,000


*Amount { (N50,000 X 1 season) + (N240,000 X 2 hectares)} = N50,000 + N480,000 = N530,000

*R O I = REVENUE LESS COST = N1, 250,000 – N530, 000 = N720, 000

Therefore return on investment when the land is on RENTAL: N720, 000/N1,250,000 X 100

= about 58%



PROFITABILITY ANALYSIS / LAND ACQUISITION

REVENUE COMPOSITION:


5 tons of maize per hectare per season
Selling price of N125,000 per ton
2 hectares of land


*Amount (5 tons x N125, 000 X 2) = N1, 250,000



INVESTMENT COST COMPOSITION (LAND ACQUISITION)


(a)Land Acquisition cost is N850,000 per hectare.



(b)Land clearing cost is N500,000



Finally, it is an undisputable fact that maize farming is one of the most profitable farm produce in the world. If well managed and well developed, the contribution to the GDP is massive. The right place to go and the right partner for this project is BSA (BUSINESS SUPPORT ACADEMY).

Email: info@bsa.org.ng
Visit (http://bsa.org.ng) (http://e-agric.bsa.org.ng)

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