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Where Are The Farmers? - Business (4) - Nairaland

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Re: Where Are The Farmers? by moremi2008(m): 7:45am On Feb 18, 2012
tkb417:

okay this question

Guys have been advising me not  to do a large scale farm

do you consider 20 hectares to be large scale

The costs of planting, land preparation, labour, harvesting, storing, cleaning and sorting, bagging and taking to the market is about N12-N15million for 80 hectares!

so how big is 20 hectares?

No, 20 hectares is small scale. I am guessing everyone is assuming that you intend to expand down the line. I don't know very much about agriculture besides stuff I have picked up from casual reading (and I am guessing it's the same for most posters on this thread). I am glad to hear that you've worked closely with a farm with existing operations and already know what the operational reality is.

What is the minimum efficient scale for farming at your given level of non-land medium-term fixed inputs (e.g. farm machines and storage/transport infrastructure)? 20 hectares sounds good for an initial pilot project but is it enough to really build a sustainable business? Can the projected revenues of a 20 hectare farm cover your COGS and operational expenses and still provide enough profit to reinvest and to take care of your personal needs? Do you have historical price data for the type of rice you intend to grow? Are prices relatively stable in the near-medium term or should you be preparing for wild price fluctuations? Can you survive with a prolonged price depression? No be small thing oh. You had better bring out your Excel and start crunching. I have a deep respect for entrepreneurs but I have seen enough business failures to check, check and recheck those numbers and assumptions (one single wrong assumption can completely throw a wrench to the best business plan). Once you're super-confident that you can, at the very minimum, break-even even if you lose half your crop to disease or natural disaster, then ride on! Again, good luck!
Re: Where Are The Farmers? by moremi2008(m): 8:03am On Feb 18, 2012
occam:

Some of the problems you listed aren’t peculiar to agriculture alone but are experienced in other industries in Nigeria.

Agribusiness (I deliberately use this term) encompasses seed supply, farming, food marketing, packaging and exporting. Sadly, most people only understand the farming aspect and spend all their energy and time cultivating large hectares of land without proper planning and strategy on getting the food to consumers.

Like any other business, understanding consumer needs is the first step to success. A detailed marketing analysis will help identify key segments (direct consumers, food industry, Poultry farms, industrial users and exporters) and size of each potential segment. For instance, maize is consumed as popcorn, cereal, ogi, eko, used for feeding animals etc. So these are your products; not maize. Farming is only the means to an end and not your end goal.

Don’t simply start rice; maize; cassava farming etc rather develop a detailed business plan on how to serve potential customers and which aspect of the agribusiness you want to start with. As your business grows you can integrate vertically or horizontally.    

Agribusiness can be capital intensive and not for the faint hearted. However, it can be very lucrative; albeit a long term venture.

[b]@OP I'll be very wary of rice production because of Nigerians' fondness for polished, imported rice. Ensure you develop a solid plan with risk assessment before you invest your capital.
[/b]

Actually, I beg to disagree. Most agricultural products, especially grain, are commodities and in developed parts of the world, agribusinesses are very rarely vertically integrated. In particular, processed food businesses buy commodity inputs either through pre-arranged supply contracts or through spot market transactions on mercantile exchanges e.g. Tyson chicken rarely owns poultry or cattle farms. Even the companies that import rice into Nigeria rarely own the farms that supply the grain (at their very cores, these importers are logistics and marketing companies). Unfortunately, farmers are largely price-takers (hence the reason for frequent government interventions to provide some cushion against price fluctuations). A fully-integrated business plan might be very counter-productive to a farmer because it often distracts from the real business of farming and also sets up inefficient internal markets (e.g. the food processing arm is often bound to "buy" products from the company farm even when there are cheaper inputs from outside the company).

I am not suggesting that there is no place for a fully-integrated approach to farming but I think its belongs to a different part of the farm life-cycle (when the company already has a successful and well-established farm and is looking to expand into value-added products). At the early and medium-term stages of a farm, the focus should be on producing the desired quality of product at the cheapest price possible and figuring out a way to get that product to the market reliably and on schedule.
Re: Where Are The Farmers? by adelegan1: 8:22am On Feb 18, 2012
See talking about agriculture in paper is very interesting. It is jst like a fary tales. I have nigeria politician for friend that is  former minister of nigeria and presidential candiate of nigeria he told the only thing he regreted in his is to invest in agriculture. It keep doing it because he is stuck in the bussiness.

I want to help you and please my question straight. What state do you live in?
Invest in production of cassava starch the farmer will harvest and bring the product to you.a tonne of cassava is 7000 naira.

Do be the farmer be the proccessor. The processor will always cheat the farmer. There is no price regulatary board.


If you need cheap processing machine go futa or fiiro in oshodi they will help to  build washer,piller,chipper,drying machine, hammer mil and bagging machine.
A tonne of cassava starch is sold for 120k. That is alll for now. A man without experience is an optimistic man.
Re: Where Are The Farmers? by adelegan1: 8:34am On Feb 18, 2012
Have you ever heard of contract farming please make research about it

1 Like

Re: Where Are The Farmers? by blessamo: 9:39am On Feb 18, 2012
I am one of the experience farmers in Nigeria, i will like to comment on Plantain plantation; i have well over fifteen

years experience in cocoa and plantain farming, i will not forget to tell you that you need a forest to really enjoy good

outcome from plantain you are about to plant, good rainfall,but not swampy, fertile soil, improved variety, healthy

sucker, standard spacing and good farm management, have you secure the land already? not on lease i think? do

you have a reliable source to get your Sucker, motorable road and means of transporting your sucker? if yes, you are

good to go. you can mail me on olumosakin@gmail.com and i will give you my phone no if yuo need more anyway. i

wish you success all the way. Sam
Re: Where Are The Farmers? by chreldb(m): 10:02am On Feb 18, 2012
@op you claim that the investment for an 80 hectre rice farm is just a meagre 1e to 15 million? Are you sure? I strongly sissagree with you. But for the benefit of the doubt please educate ne the econoimy of your conclusion then let's analyse ot constructively.

@ goshen, I do not for one minute doubt you for your claims about grasscutter farming. But put this in mind and compae it to what other posters have said

Grasscutter farming is peculiar to Nigeria and west Africa. There is no direct competition with countries tha have superior technology. Your main competitors are hunters, how many grasscutters dem fit catch? Domestication of grasscutters started in Nigeria as a result of the demand for the delicacy. Hunting could not meet the demand. So as for grasscutter farming the risk factor is relatively low.

That been said, there is someone that asked a question about goat rearing, this is my advice.
Goat farming can be highly profitable in the south because the south rarely rear goats. Infact even cattle farming is now possible in the south because the fallacy about trypanomosis no longer exists cos there is a vaccine for it but people do not know.

Finally, there are two classes of meat producing animals. And they are monogastric and ruminants. Ruminants have the ability ro eat and digest forage (grass) while monogastrics do not you have to give them a prepared diet. That is why goat and cattle rearets attain a better leve of success (goshen are you there?). My own two kobo. Please let the economist continue dropping their opoinion am learning. If anyone wants free consultancy on this forum I can give them. As long as we keep teaching ourselves
Re: Where Are The Farmers? by chreldb(m): 10:07am On Feb 18, 2012
Please excuse the typos
Re: Where Are The Farmers? by moremi2008(m): 10:28am On Feb 18, 2012
adelegan1:

See talking about agriculture in paper is very interesting. It is jst like a fary tales. I have nigeria politician for friend that is  former minister of nigeria and presidential candiate of nigeria he told the only thing he regreted in his is to invest in agriculture. It keep doing it because he is stuck in the bussiness.

I want to help you and please my question straight. What state do you live in?
Invest in production of cassava starch the farmer will harvest and bring the product to you.a tonne of cassava is 7000 naira.

Do be the farmer be the proccessor. The processor will always cheat the farmer. There is no price regulatary board.


If you need cheap processing machine go futa or fiiro in oshodi they will help to  build washer,piller,chipper,drying machine, hammer mil and bagging machine.
A tonne of cassava starch is sold for 120k. That is alll for now. A man without experience is an optimistic man.

Uncle, a family friend retired as a top exec for a big bank and then used his retirement savings to start a cassava-processing business. The business flopped big time. I don't know why or how the business flopped but not all cassava processors print money. The guy knew the ins and the outs of business (he spent most of his career giving out loans to big Nigerian businesses) but he still failed.

PS- Your friend fell for the Obasanjo Farms fallacy. A lot of people actually believe he makes lots of money from that farm but I highly doubt it. It's just a giant hobby and money-laundering scheme.
Re: Where Are The Farmers? by felixzo1(m): 10:31am On Feb 18, 2012
When we talk about agriculture most people think only cultivation.if anybody thinks agriculture is not rewarding then he has not done his research well enough. I know a lot of families that there only source of income is from agriculture. Food crops ,cash crops and animal husbandry is the way to go if you want to enjoy agriculture. Processing and packaging is also very inportant. It takes a lot of time and sacrifice if you want to profit from it. A comitment a lot of people lack.
Re: Where Are The Farmers? by felixzo1(m): 10:47am On Feb 18, 2012
If you do your planing and research well, commercial agriculture involves a lot of cash. (More than 5 millions) Land, fertilizers, labor , soil analysis, herbicides ,tractor hire services, land clearing. Storage facilites, transport. Most people do not put these factors into consideration.using the same old method your grand father used.
Re: Where Are The Farmers? by obalukan: 2:30pm On Feb 18, 2012
Agricultural is the best i have ever try in my life. I hvae been in to crop production many years ago and i fund it intresting even if you start by growing vegitables (EWUDU AND EFO) two plot of land there is no way you can not making 5k everyday please plan well and join me in the farm(FARMER IS KING)
Re: Where Are The Farmers? by obalukan: 2:32pm On Feb 18, 2012
Agricultural is the best i have ever try in my life. I hvae been in to crop production many years ago and i fund it intresting even if you start by growing vegitables (EWUDU AND EFO) two plot of land there is no way you can not making 5k everyday please plan well and join me in the farm(FARMER IS KING)
Re: Where Are The Farmers? by Sholaf(f): 3:15pm On Feb 18, 2012
Hmm Interesting!
Thanks for this input, I assume there are opportunities for some of us.
Re: Where Are The Farmers? by adelegan1: 3:51pm On Feb 18, 2012
Vegetable farming is the best ewedu and efo i have been doing this for long. When it is sold for 30 to 70 naira per kilo it is really profitable. we have 2 kind of efo the white and the black. The white take 21 days and the black take 30 days .if you are interested in vegetable farming i will teach how to start and market your product.
Re: Where Are The Farmers? by Fhemmmy: 4:19pm On Feb 18, 2012
adelegan1:

Vegetable farming is the best ewedu and efo i have been doing this for long. When it is sold for 30 to 70 naira per kilo it is really profitable. we have 2 kind of efo the white and the black. The white take 21 days and the black take 30 days .if you are interested in vegetable farming i will teach how to start and market your product.

That is not a bad idea too, I am sure the OP could add that as well to the growth of other stuff that he wanna do.
Also, I am not expert in this field, but i will assume that he will not need too much land for that.
Where are you based?
Re: Where Are The Farmers? by Fhemmmy: 4:22pm On Feb 18, 2012
tkb417:

okay this question

Guys have been advising me not to do a large scale farm

do you consider 20 hectares to be large scale

The costs of planting, land preparation, labour, harvesting, storing, cleaning and sorting, bagging and taking to the market is about N12-N15million for 80 hectares!

so how big is 20 hectares?

It is nice to know that you have done a lot of homework to be ready to make it happen.
I am really learning a lot from this your thread, thanks a lot for teaching us . . . also, have you look at what the 80 hectare will yield the farmer if he is investing 15M Naira for the planing and i will assume that the 15M Naira do not include the cost of the land.
Re: Where Are The Farmers? by Fhemmmy: 4:26pm On Feb 18, 2012
tkb417:

@Fhemmy

i see you. Thanks bro

i dey hustle so i go fit buy x-6 cheesy cheesy cheesy

Chief, with this kinda plan that you have, X6 will be the smallest ride you will be having.

Please leave your contact, really will like to talk to you out of Nairaland . . . . .Are you a Gmailer, u could leave your number and we could text too or my number is +x-Bleep-Bleep-xxxx (number removed)
Re: Where Are The Farmers? by adelegan1: 4:52pm On Feb 18, 2012
Fhemmmy:

That is not a bad idea too, I am sure the OP could add that as well to the growth of other stuff that he wanna do.
Also, I am not expert in this field, but i will assume that he will not need too much land for that.
Where are you based?
They are other area he can look at in agriculture he should not ignore good advice from experience people. Im base in akure, ondo state
Re: Where Are The Farmers? by Fhemmmy: 5:04pm On Feb 18, 2012
adelegan1:

They are other area he can look at in agriculture he should not ignore good advice from experience people. Im base in akure, ondo state

Leave your contact too . . . we could rub minds.
My number is listed up there and i will take it off sometimes this afternoon ( My time), I noticed you are a gmailer too
Re: Where Are The Farmers? by adelegan1: 5:20pm On Feb 18, 2012
adelegan1111@gmail.com
Re: Where Are The Farmers? by Sholaf(f): 5:23pm On Feb 18, 2012
adelegan1:

Vegetable farming is the best ewedu and efo i have been doing this for long. When it is sold for 30 to 70 naira per kilo it is really profitable. we have 2 kind of efo the white and the black. The white take 21 days and the black take 30 days .if you are interested in vegetable farming i will teach how to start and market your product.

Ok thanks, will keep in touch when am ready.
Re: Where Are The Farmers? by Fhemmmy: 6:07pm On Feb 18, 2012
adelegan1:

adelegan1111@gmail.com

Thanks Bros, I was really thought by you.
You are a man with wealth of Knowledge, thanks for the call and we surely going to talk so much more . . . .   thanks
Re: Where Are The Farmers? by tkb417(m): 9:21pm On Feb 18, 2012
Hi Fhemmy

you can take off your number. Ill send you sms so you can have my number an my Gmail addy
Re: Where Are The Farmers? by tkb417(m): 9:22pm On Feb 18, 2012
adelegan1:

adelegan1111@gmail.com
ill send you an email too


ahhh, i need to send plenty emails tonight oh
Re: Where Are The Farmers? by tkb417(m): 9:23pm On Feb 18, 2012
Thanks guys

Ive got a lot of vital info from this thread already

im happy
Re: Where Are The Farmers? by tkb417(m): 9:24pm On Feb 18, 2012
chreld_b:

Please excuse the typos
we can talk outside NL if you dont mind
Re: Where Are The Farmers? by Fhemmmy: 9:36pm On Feb 18, 2012
Thanks again for this great thread . . . .
Re: Where Are The Farmers? by moremi2008(m): 10:16pm On Feb 18, 2012
Fhemmmy:

Thanks again for this great thread . . . .

Bros, you too dey famz, haba! Kilode?!
Re: Where Are The Farmers? by tkb417(m): 10:24pm On Feb 18, 2012
moremi2008:

Bros, you too dey famz, haba! Kilode?!
u dont know Fhemmy on Nairaland?

haba cheesy
Re: Where Are The Farmers? by moremi2008(m): 11:02pm On Feb 18, 2012
tkb417:

u dont know Fhemmy on Nairaland?

haba cheesy

I know he's a car dealer and it's part of his job to famz and ranka dede to build business. Are you by any chance in the market for a new car? That might explain all this enthusiastic praise and adoration! cheesy

PS - Bros Femo, abeg carry on oh! I am just saying my own. Please don't let any man knock your hustle! grin grin grin grin grin grin
Re: Where Are The Farmers? by Fhemmmy: 2:12am On Feb 19, 2012
moremi2008:

Bros, you too dey famz, haba! Kilode?!

Lol . . . I am into any business that is Legal and wont compromise my believe and i can tell kids that i do . . . , Lol.
Please if you have some farm business for me, i beg, i am willing oh.
I would love to be more of an investor into it, but the fact that i am not on ground makes it difficult, but son of man still wont give up . . . .Lol
Re: Where Are The Farmers? by Fhemmmy: 2:13am On Feb 19, 2012
tkb417:

u dont know Fhemmy on Nairaland?

haba cheesy

Chief, I remain loyal oh and still remain humble

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