Cassava Farming and Processing Business Plan

Executive Summary

Agro Business Cassava Company is an agro-based company that focuses on cultivating improved varieties of cassava and also processing the cassava various products like cassava flake and starch. Agro Cassava Company is based in Imo State and has acquired 20 Hectaces of land for the farm land and also the processing plant. 

As a company based in Owerri, Imo State and we have identified our target customers within Imo State and the neighbouring state and will grow into a business with outstanding sales by year three. 

The processing plant will not only process our own harvested cassava, but we will be getting cassava from local farmers  and process them to different products. 

Nigeria is the highest cassava producer in the world, producing a third more than Brazil and almost double the production capacity of Thailand and Indonesia. Nigeria currently produces about 38 million metric tonnes (MT) per annum; a figure expected to double by 2020. Although the world leader in cassava production, Nigeria is not an active participant in cassava trade in the international markets because most of her cassava is targeted at the domestic food market. Her production methods are primarily subsistence in nature and therefore unable to support industrial level demands. 

Global Demand for Nigerian Cassava Products, the world looks up to Nigeria for her cassava needs because we are the largest producers in the world. Unfortunately, we cannot help them because we consume over 38.7 million tons of our output as food and also our cassava products are more expensive than those of other countries. There is too much pressure on our cassava because it is used as food, raw materials and for export. 

 

Products 

Currently, Agro Business has a main focus, which is to grow healthy and improved varieties of cassava. After harvesting, the cassava are further processed into its end product (flour and starch). Agro Business’s cassavas are grown in the best conditions to ensure that our cassava are disease-free and are or high quality. In other to ensure that our product stands out from our competitors, we employ the best farming technique and equipment to ensure quality cassavas that is fortified with vitamin A. Agro Business Company’s cassava are of the best varieties, the following varieties are recommended for their high yield and processing quality: TMS 30572, NR 8082, NR8083, TMS 4(2) 1425, TMS 81/00110, TMS 92/0326. Other varieties will also be added with time. 

 

Table of Contents

1. Executive Summary

1.1 Objectives

1.2 Mission

1.3 Keys to Success

2. Company Summary

2.1 Company Ownership

2.2 Location and Facilities

2.3 Startup Summary

2.3.1 Required Funds

3. Product Description

3.1 Future Products

4. Market Analysis Summary

4.1 Market Segmentation

4.2 Target Market Segment Analysis

4.3 Industry Analysis 

4.4 Challenges Facing the Cassava Flour Industry

4.5 SWOT Analysis 

4.6 External Environmental Analysis

4.7 Competition and Buying Patterns 

4.7.1 Main Competitors

4.8 Sales Strategy

4.8.1 Sales Forecast

5. Production Summary

5.1 Suppliers

5.2 Receiving 

5.3 Storage

5.4 By-products

5.5 Production Process

6. Strategy and Implementation Summary

6.1 Competitive Edge

6.2 Marketing Strategy

6.3 Web Plan Summary

6.4 Website Marketing Strategy

6.5 Development Requirements

7. Management Summary

7.1 Organisational Structure 

7.2 Management Team

7.3 Personnel Plan

Table: Salaries and Wages

8. Financial Plan 

8.1 Important Assumptions

8.2 Break-even Analysis

Table: Break-even Analysis

8.3 Projected Profit and Loss

Table: Profit and Loss 3 years summary

Table: Profit and Loss first year

Table: Profit and Loss second year

Table: Profit and Loss third year

8.4 Projected Cashflow

Chart: Cashflow

Table: Cashflow year two

Table: Cashflow year three

8.5 Projected Balance Sheet

Table: Balance Sheet year one

Table: Balance Sheet year two

Table: Balance Sheet year three

Table: Fixed Operating Expenses

8.6 Long term Plan

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Frequently Asked Questions About Cassava Farming 

Is Cassava Farming Profitable?

Cassava farming can be very profitable if done right. Nigeria especially, is a big producer of cassava, in fact the biggest in the world, according to the Food and Agriculture Organisation of the United Nations, 2023. 

How to Write a Business Plan for Cassava Farming

First, carry out your feasibility research and identify your target market. Determine the resources you will need - labour, capital, land etc). Establish a business structure (if you don’t have one). Create a financial plan/budget. These have all been done in this Cassava Farming Business Plan. You can download and adapt to your own specific needs.

What is the Best Time to Plant Cassava?

Cassava can be normally planted at the beginning of the rainy season in Nigeria (April/May). This can extend to September/October. 

Challenges of Cassava Farming

Some of the challenges you encounter in cassava farming include; long maturation cycle, cassava bacterial blight, cyanogenic levels, etc

What are the Different Stages in Cassava Farming?

Selection of site/land

Clearing and soil preparation

Picking the cassava variety to plant

Irrigation

Planting Cassava stems

Weed control

Fertilisation and manure management

Management of pest and disease

Harvesting