₦airaland Forum

bakila:
Because Eguisi burnt some people last year, most people do not do dawa.

And it will still get fingers burnt this year. Greed is the number one cause of loss.

From 18k-29k before sallah and 22k to 32k after it. Except for viewers who didn't do their due diligence; even at entry price of 27k profit is assured this year

Tyche:


I was hoping we can achieve something similar to the equsi storage tutorial on NL. it may suprise you to know that less 1% of people that visits the thread will actually take action.

Niqqas be viewing the thread without commenting

Surprised you noticed the number the views too. Thankfully, we all don't get to pay to view

Tyche:
Where's the Op?

Right here where you left me

ogene70:
nice job, I can relate to this , please can you share your contact?

You can pchat or reach me via 07054515851. Send your whatsapp number/ handle and i will add you up

Opportunities will be availability for lagos clients that want to do pick up in lagos before payment (Terms and conditions apply). I will try to upload pix from which selections can be made and pick up will be done in lagos.

Only ejigbo-isolo has been signed up now but will update once more areas are available

Minimum order is 100. Max is 2000 for now. Deliveries will be done once the minimum truck capacity is achieved. Please note that prices will reflect cost of logistics but will be relatively cheaper than average prices within the locality.

Yams will be made available starting december except there are special demands

For those interested in options outside lagos, vehicles to Benin and Port Harcourt are also available.

For those who want to make invest/experiment in distibution hubs and have a flair for the biz, you can pchat

Varieties available here are
1. Paper
2. Makakusa
3. Gwagwa
4. Alushi
5. Amee

Will briefly talk about two commodities

Yam
Yam comes in different varieties. Understanding the types and their shelf life is essential in making profit in the business. Most yams should however have a shelf life of 2-6 months depending largely on when it was harvested

Yam can be sourced from Benue, Nasarawa, Taraba , Oyo/Kwara at much cheaper prices than other locations when in season

Common factors to consider before purchase

1. Always identify the variety consumed in your locality before purchase
2. Start small if new to the venture
3. Preserving over a period of 4-6 months takes conscious effort. Dont dump and think you will make profit after 6 months
4. Credit facility is a no-no. Do not accpmodate it at all
5. Identify your market
6. Understand the value chain and always have the capacity to sell what you are buying

I am just going to take it as it comes so will indicate the best time of purchase (Entry period) for the commodities list

1. Sesame. Nov- Jan
2. Ginger. Oct- Dec
3. Sorghum. Nov- Dec
4. Soya. Nov- Dec
5. Guinea Corn. Dec- Jan
6. Maize. Sept - Nov
7. Corn bran. Aug- Dec
8. Yam. Oct- Feb
9. Beans. Nov- Dec
10. Rice. Oct- Dec
11. Pepper (Dry) Oct- Dec
12. Egusi(melon) Aug- Sept

I have tried to place commodities into 3 tiers

Tier 1(Mainly Export)
1. Sesame
2. Ginger

Cashew and some others fall into this category but i have only done at expetimental level so i will update when i have full details

Tier 2(Feedmill sector/Livestock)
1. Maize
2. Soya
3. Guinea Corn
4. Sorghum
5. Corn bran

Tier 3 (Retail/Consumer Commodity)
1. Yam
2. Beans
3. Rice
4. Egusi(melon)
5. Pepper (Dry)

Exclusive
1. Locust Beans

geejayjax:
Tried to buy from Benue and resell in lagos, but after my market survey and runnings, it turned out I won't make much profit. Am most likely going to break even

Yam will generally be cheap from now till February, no need tying down your capital except you already have an existing market for sale.

You can however make a small margin by keeping till jan/feb b4 selling. Note though that not all varieties can last that long

As we enter into the final phase of the planting season and await the next set of harvest. Another set of opportunity will be created for would be investors in the Agric value chain.

It is not for the faint hearted but i can assure you, it's a risk worth taking.

I have decided to divide the commodities into three tiers so its more organised and people can align with where they fit best.

I will also try to talk a little about each commodity so we understand its uses too

Provision will also be made for exclusive investors who can choose to sign up for guaranteed profit which is above existing rate of inflation. This group of people are entitled to a MOU and agreement by our lawyers

All investors are required to do their due diligence b4 investing especially for those planning to sell on their own.

In the last 3 years, all commodities listed earlier have consistently appreciated by 50-100% from their initial farm gate price.

That is verifiable and i can give you prices for all. It's a norm. Prices will always rise to fall then rise again.

Whether Egusi, Soya, Maize, Sorghum, Sesame etc. They all change prices.

Egusi within July-Aug has already moved from 18k- 32k as at yesterday. Of course this does not guarantee you continuous increase.

The choice is ultimately yours to know when to enter and when to exit which is also largely dependent on the quantity purchased

Some commodities move faster in tonnes, others will move in bags easily.

The secret is being able to match your sale capacity always

Yes. We have made giants stride this years as regards agriculture though it has started impacting positively on our GDP.

What we have been able to create are more internet farmers who use logic rather than practices in arriving at results.

I will cut the long talk and get down to the point where most are eager to hear.

How do we make money off the value chain?

How do we get invest without necessarily getting our fingers burnt (not that you really want to get any other part burnt).

Just like the stock market, the agro commodity market is there for you to play in. The only difference is that this market runs a cycle and timing and experience is crucial

peperempe:
The op is just bin optimistic but he forgot to knw dat optimism is different frm reality. There is no documented record in Nigeria that one hecter produced even 6tons not to talk of 7tons. I dont tink he has tilled d ground either directly or indirectly because he sounds far frm reality. He even forgot to take note of d masses of d rice husk, bran, dirts and stones bfor posting d write up. How possible can u get one ton of process rice frm one ton of paddy rice. Does it mean dat d masses of d husk, bran, dirt and stones are negligible? I DON'T SEE THE INVESTMENT PROPOSAL TO BE SINCERE.

.

Let's thread carefully. I am yet to see a copy of the financials so i will try to be unbiased.

It's possible the investment proposal is legit but the assumptions wrong. Let's just hope potentials investors will atleast pay a visit to a rice farm before investing

Prices moved up to 33k for quality seeds. This is where experience counts as low quality seeds may not appreciate beyond the 30k region.

The unpeeled market is totally locked up now as farmers who haven't sold are holding on for the long haul.

Peeled stood at N400 per modu in nasarawa, Gunduma and kokona market. Most other markets are trading at 450- 500 per modu.

Please note that modu sizes differ hence price differential does not guarantee instant profit

tbliss22:
Whether anyone likes it or not the produce are rolling into Lagos State, Abuja, Enugu and Akwa-Ibom and I gave the REAL price it sells for from base, and anyone close to that region can testify, You not seeing viability in this venture does not mean someone else can't invest in it. Millions of Lagosians and every other person purchases ORANGES every single day let alone industries' need for the PRODUCE.



Okay let's do the breakdown;
You contacted me on WhatsApp to disclose that five (5) big baskets sells for N15,000 meaning a basket sells for N3,000.

These baskets weigh 25 to 30kg. If you can procure a 75kg bag from Benue for 3,000 (or 2,500 if you are buying right quantity). Now the breakdown is that you can sell a full bag (75kg) for N10,000. The Same bag you bought for N3,000 back in Benue State.

If you send 40 bags to Lagos market or any other state fixing 2,000 maximum as transport on each bag that's (N80,000) and none of my customers, have even spent up to that amount for transportation.

Price of 40 bags = N120,000 (@3,000 for a bag)
Transportation = N80,000 (@2,000 for a bag)
Total = N200,000 (add extra N50,000 for unexpected expenses)
= N250,000

Selling Price = 10,000 for 40bags ( Thats cool N400,000)

Now please tell me how this could be a bad business?


I have directed more than 5 to 10 buyers down to Benue state, and they have consistently been purchasing the produce. If you feel it's NOT cool for you, please don't TRY VENTURING into it because you might not do well in it.

Finally, I don't talk down on any business I don't have full knowledge about because it won't stop people from establishing theirs and you know what?? before I was born ORANGE distribution and sales have been existing and the business won't stop existing maybe till JESUS COMES sha.

Stay away please if you don't have a LARGE HEART for the business!!!

God bless Nigeria.

Mr lekan
07034617082 (whatsapp preferably)
tideal20@gmail.com

HAPPY INDEPENDENT ANNIVERSARY!!!

Too many assumption made in the calculation and no provision was made for loss in quantity purchased(at least 2-5% will get spoilt between the two markets).

However all ventures are profitable. It's your business model that determines your profitability ratio.

dboss444:
Congrats to all batch B stream1 on their successful POP

YAM is finally out in logo/zaki biam LGA of benue state. two weeks ago 10 tubers of yam was going for 700 naira. But somthing happened this wenesday market 10 tubers of yam was going 400/500. Info reaching me is that (association of yam buyers refused to come and buy due to excessive taxation). This made all the corpers batch B stream 1serving in these areas leave with nothing less than 30 tubers of yam (going for 1600). I cash in with 20 tubers of yam for 600.

This is good news for yam dealers and those intending to go into yam bussiness

N.B
If you are storing yam, this is not the best time to buy except you are planning to resell by January/ February. However if you are buying for consumption or immediate sale, please go ahead.

Farming in itself ought to sustain the farmer and assure him of good profit. However that has not always been the case as most farmers tend to make little or no profits for toiling day and night.

Most take loans to plants,thus the output already has a fixed price lower than prevailing market price.

Others just sell at farm gate price just to meet pressing family issues due to abject poverty.

The two strongest sectors during a recession are the:

1. Food sector: we all most eat, whether we like it or not. It is a necessity.

2. Transport/Logistics: we are likely to dump our heavy V6 and V8 engines for cheaper means of transportation. Either way though, the food srctor is heavily reliant on logistics so it is bound to sustain the recession

Excerpts from the financials records of brewing giants, Guinness Nigeria show a loss in revenue due to drop in sales. PZ also just posted loss due to similar circumstances necessitated by shortfall of forex.

What am i trying to point out?

1. We are officially in a recession
2. It may get worse before it gets better hence we may experience a great depression.
3. Regardless of your financial capacity/prowness, pumping funds into particular sectors will not guarantee you wealth during this season

Having experienced being an investor in Level 1 and currently functioning in Level 2.

I have never felt more convinced that level 3 holds the survival to any agro-allied business.

Even in the everyday business, the marketer is king.

Only sales bring about profit.

No matter how much a farmer invest in his farm, he is often curtailed by the antics of the marketer who aims to take the largest chunk of the eventually sale amount.

Of all the levels in the value chain above, level 3-5 make the highest return on investment (ROI). In most cases,they also hold the commodity for the shortest time frame and often experience immediate profit or loss as the case may be.

Of those three levels, the marketers/middlemen are king, often times dictating the price especially if they have stakes in the other levels as well

Monday prices were stable but supply gradually thinning out.
Prices hovering between 28-31k. We are finally getting close to a break away point.

Peeled egusi per bag of 100 modu now 40-45k depending on location.

Will advice buyers to purchase the peeled egusi within that price range rather than the unpeeled at 35k upward as seed quality will gradually depreciate for new entries.

The Agriculture value chain includes

1. Seed company
2. Farmers
3. Marketers/Middle men
4. Processors
5. Distributors
6. Retailers
7. Consumers

Operating in any of this value chain assures you of profit. However the margins differ based on the level you operate in

I have carefully left the logistics level which interconnects all the sectors

There is a need to specify here that commodity storage is universal and is practiced outside the shores of Nigeria.

All countries store/warehouse in order to help regulate prices in periods of scarcity. The only difference here is that we have little or no interference by government in price regulation as regards farm produce in Nigeria.

This is obviously noticeable in the price fludity we experience year round

Factors that are common with all agriculture commodities.

1. They are cyclical in nature:- meaning supply will always be high at peak period during harvest, low at intervals and end up back at the surplus stage

2. They all have agreed existing entry price range at the point of sale which is mostly the market. There is need to specify here that there is a difference between farmgate price and market price.

3. Prices are always lower at harvest and higher at intervals between then and the next harvest.

Slight exceptions exist for crops that are farmed throughout the year via irrigation

4. All farm produce\commodity have a life span determined by their variety and are all perishable

Like all markets, commodity prices will rise and fall based on demand and supply. However in addition, commodity prices are influenced by international prices if any,technological improvement and direct governmental influences/policy drive.

Let's also not forget environmental factors which are most times beyond our control

As earlier indicated in the Egusi thread, i will be providing alternatives to melon purchase here.

Please bear with me as my schedule may be tight sometimes but i will try to handle all questions as quickly as possible

Commodities to be introduced are

1. Sesame
2. Millet/Sorghum
3. Guinea Corn
4. Maize
5. Rice
6. Pepper(Dried)
7. Yam
8. Locust beans
9. Ginger
10. Soya
11. Beans

I have deliberately omitted some and will come back to them later.

Over the next couple of days/week, i will try to discuss the options and possibility of sharing in the wealth available within the agriculture value chain

On a more serious note, I have spoken to a couple of people and physically met 3 of them in abuja over the course of one week. Should be in lagos b4 the month ends and will update here accordingly

Elated by your commendation and appreciate your concerns. Enjoyed the discussion thoroughly. May we experience more cordial relationship over the course of time

I personally think for every purchase made on behalf of anyone, i ought to balance the sale side as well. No need generating revenue off you when purchasing and leading you on only to struggle with sales. I have my limit and i have made that known already

However, i have decided to give alternative commodity storage options other than the melon storage biz for which i will open a thread soon as dicussed with some of you.

NB:- All egusi price update will still be done here

For those i adviced to hold and not buy higher than a price, pay your "tithe" now ooooo.

Prices may come down by monday if the floods subside and more roads are accessible to farmers. However, if you all flood the market clutching your gold bags; prices will just go back up immediately.

For those still interested in buying below 30k, most of you already have my details.Monday/Friday holds the key

This is when experience comes in. For those that are panting for fear of loss(es), relax and get proper shock absorbers.

Like all markets, fluidity determines volatility of prices. I am not God but i know prices will still climb and drop again. Timing is crucial

For the peeled egusi, on the other hand, prices went up to 40k per bag.

That's a pointer to the actual/real market demand as against speculative forces which most players here are in.

Price update for this week

I don't want to be the bearer of bad news but prices fell marginally. Products sold for 26-29k. Premium seeds still retained its price of 30k.

Are we seeing a reverse trend?

On the flip side, supply was low though it could meet the demand side as well. The market was practically devoid of melon as at 5pm.

Well for those that had bought, Friday brought better prospects. Prices finally in the 30k+ region . Let's hope it stays that way and move upward. Select buys at 28-30k though.

Apologies for not physically being present in the market for those who called in. I hope the support system offered was sufficient.

Machine peeled bags of 100 modu were sold at 39k on friday too. Prices obviously will climb with the prices of unpeeled reaching new heights.