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Thank you fluentinfor. Am glad i asked this and am grateful for the replies am getting. Its like u said; im not trying to run a charity or nonprofitable orgnisation, im just a guy looking for way to profit while also giving back to the community. i do not intend to start all at once, what u see here is my plan in the long run like showietee stated. I'll be starting up a factory first. But in due time, farming as well since its much profible growing ur own crops than buying. As for the price reduction, i think this is a strategy that might actually help me compete with the market. You know people naturally tend to buy products they re already used to and this could be a problem. and also like u said it will decided based on the cost of production, but it will be an equitable price that will content to both me and my patron. The delivery aspect is the one am not so sure because u will need trucks, and trucks consume fuel. But i do believe if i can attain this, i'd have one over my competetors.

showietee:
My first advice to you is to start small, do not put all your income into it at once.

You will surely need resources to continue, be expecting unforeseen contigencies, unplanned expenditures.


Even as you have learned a lot, have a professional at bay.

Make sure you have the grit, even if you fail at first try, pick yourself up and forge ahead.

As for your analysis on price reduction, its could be attainable but I think it could be hard to continue on such with the environment we have, don't work yourself out of the market, you can set a little below general price if you are able to do so. If you are able to break even, play along with the market.

What you project is on a long run, so, you should be bothered mostly about the short run.


I hope to continue to hear from you.


Wish you all the best.

Thank u very much showietee. Its like you said; 'one step at a time'. I do not plan to start all at once, i think i might start with processing.

Hello, my name is Edwin, an undergraduate in FUTO. I have plans to go into farming in the nearest future and so far I've been trying to gather as much knowledge as I can before setting things up so as to prevent loss of profit and every other retrogressive factors that comes with it.
I have no practical knowledge of farming or how the market works, all of what I know are either what i've been taught or what i've read so far. Foodstuff prices have been on the rise for years and this is bad, because we all know how price inflation works in this country. Once the price of a commodity goes up, it very rarely comes back down (if at all), it instead continues to increase exponentially. I believe The "high cost of living" issues can be resolved with the help of the government and willing individuals who are able to cut down a bit of their profit in some of their various services they offer. As I do know for a fact that if the prices of foodstuffs and other agro based products are regressed a bit, such that the producers still earn a fare share of profit it could affect the prices of other expenses paid for several services in the country in a good way.
I intend to start a farm with substantial processing facilities (mostly on grains, tubers, and cash crops) to counter this current situation. But having very little idea of how the market works I'd like if people can educate me more here and confirm if what i've stated below will actually work if followed up closely, thanks.

1)Firstly like I stated earlier I intend to go into farming, with processing and production too. I intend to start with tubers and grains.
2)After processing I intend to cut the prices of my commodity to my consumers. I know this sounds a little stupid but I believe doing this can help your product gain popularity and more sales too. since you are given out a well refined product for a mouth watering price.For instance if the price for a bag of 50kg garri was initially #15,000 wholesale price, and lets assume the producer bought 25tonnes of garri for #27000 each. That should be #675,000 for 25tons, and from what i read on this forum;
Four tons of cassava = one ton of garri
1ton of garri = 20 bags of 50kg.
I think 25tons of cassava should produce at least 125bags of 50kg.
Supposing i decide to sell a bag for #10,000, and i sold 125bags i should be getting = #1,250,000 - #675,000 my profit should technically be = 575,000. Even if i decided to sell a bag for #8,800, my profit after 125bags would be about #425,000. I believe that the producer might not make as much profit as he would like but from the second year he is sure to have a bigger turnover, with constant sales and the price of cassava will also fall.
3)The factory will have the effiency to deliver to people buying in bulk for free, and later to homes as well (just like jumia, if you have your own vans and branch in several parts of the country it will work easily). I know doing this might put the middle man or retailer status on the brink of extermination because most retailers would be at a loss, but at least foodstuff prices would have depreciated. And let's not also forget that not every household in Nigeria can afford a bag of garri even if it was sold for 5000 per bag. And i think a good way to still keep the retailers I business is to limit the amount of 25kg garri you produce and to not produce in large quantities or sell below the 25kg limit.
Please let me know what you think about this idea as I would like to know the flaws or good sides of it. Like I said before I really have no practical idea of farming, before someone calls me an internet farmer or use vulgar words. I really am interested and by the Grace of God start my own farm in the nearest future, as I wouldn't want to graduate and getting a job becomes a problem. So please assist me in anyway you can, if you think the plan is a good one or if their some things that I am actually missing or a mistake in my write up. Thank you and God bless.

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