MY PLANTAIN AND BANANA FARMING AGRO-INVESTMENT

in #steemchurch6 years ago (edited)

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PROJECT LOCATION: Ekole, Ekiti State.

INTRODUCTION


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Plantain and Banana Cultivation is a standard agro-business in Nigeria, it is also one of the most neglected. Yet, holds more promise and profit potential than other farming and agro-related businesses. Thus, capital, sufficient profit, ability to manage the project and the demand per product in the locality are taken into consideration. The keys to success in this business include operating at low cost while ensuring quality products and yielding profit.

Have in mind that the plantain and banana you eat every day fetch millions into the pocket of few farmers. Today only few farmers plant and grow plantain and banana in Africa and this makes the demand high and profitable. The only issue with plantain farming is that it is rather climate selective. Hence, cannot be successfully run just anywhere.
Plantain farming doesn’t flourish in either too hot or too cold weather. The best locations for a plantain and banana farm in Nigeria are in states like Rivers, Delta, Osun, Ogun and Ekiti states.

The most suitable weather or climate for this business is 26 – 30 degrees Celsius. The moment you get started though, it is a stream of wealth since plantain and banana have rapid growth and reproduction rate. One is required to prepare and research extensively, with assurance of recovering back your investment within a suitable frame of time. Proper calculations and strategies need to be carried out to know the cost involved in this business. This extensive research will help us in decision making regards getting started on the plantain and banana farm. As discussed above, plantain and banana are tasty delicacies eaten by almost every one every day (Nigeria as case study). They are rich sources of Potassium, Magnesium, vitamins, Carbohydrates and even Proteins.

Plantains are a solid source of carbohydrates with low fat content and they don’t contain any significant levels of toxins. They help regulate the digestive system as they are high fiber-foods. They contain vitamins that reduce the number of harmful free radicals, boost the immune system and promote brain function. Bananas are one of the most widely consumed foods. Bananas are richly in Potassium and fiber. They may help prevent Asthma, Cancer, High blood Pressure, Diabetes and also digestive problems.

DESCRIPTION OF THE BUSINESS


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Plantain and Banana farm is a business that can be owned by an individual (Small Scale) or multiple individuals (Large Scale) in the form of a partnership in which they are in mutual agreement to the establishment of the business. Starting cultivation depends greatly on the average dimension of your farmland. First, you need one and half plot of land, cost of labour to clear the farmland and purchasing 2000 plantain suckers.

The cost of the suckers varies depending on the community or state of purchase. A storage facility might be required and has to be situated in urban areas to store harvest when the farm to market distribution of harvest is not convenient or required. It takes 9 to 12 months for plantains to grow from cultivation to harvest. The joy about plantain farming is that you don’t need to buy suckers and plant again unless you want to start planting in another fresh land because once you plant the first sucker, that one sucker can keep producing for the next 25years or more if you will properly maintain the farmland.

VISION AND MISSION OF THE BUSINESS

The vision of the plantain and banana farm is to produce high quality harvest (organic and inorganic), create employment for the youth and the unemployed and creating wealth and income for the investor and workers respectively.
The mission is to have a plantain farm (which I will consider as small scale) that yields profit, can be considered a long term investment and will be expanded to a large scale farm. The quality and nutritious products from my farm will be the first choice of my consumers, feed the population and be used as raw materials in the food processing industry.

LOCATION OF THE BUSINESS

The location of a plantain and banana farm is very important. A farm set up in a remote area is far cheaper than in a city because of the distance and low population. The farm shall be located in the remote areas, so expansion of the farm is possible and also not be too far from the city area for ease of transportation and exposure to potential buyers and also an area with a good road network to an urban environment.

MARKET ANALYSIS

• Market segmentations: During the market segmentations, I found out that nearly everybody eats plantain and bananas. So I'm targeting the whole market, individuals, homes and firm that use plantain and bananas for home consumption and for commercial purposes.

• Target market segment strategy: Individuals are a small sector in the market segmentation. They are pretty large group but they buy a relative small amount of plantain. I have strategically placed my site close to these industries. They are restaurants, boarding schools home delivery food centers, retail shops, supermarket, commercial market.
Another part of my target market that will roader my product in medium quantities are the home that will require my delivery as I have a set amount of plantain and bananas that they order for.

• Competition: Competition is not so keen in the market due to high demand of plantain and bananas. However it still exists. Plantain production already has a large amount of producers which means it is readily available for consumers at all times. Hence plantain and banana producers always struggle to sell their own products. my competitors include those who sell plantain and bananas.

Although those competitors are available, a large number of Nigerians are still lacking essential food component, which are starch. After having a look and analyzing this scenario I decided to come in this industry to solve the problem of malnutrition in my population. Therefore to achieve a breakthrough in my business, I will be suing my motto “customer is the king” which means that everything I will be doing will be basically to satisfy the need of my consumers and to provide a proper nutrition for my consumers. To be continued..........

QUALIFICATION AND EXPERIENCE

Some partners in the business have a bachelor’s degree in agricultural science which makes the running and management of the business easy due to knowledge they have accumulated over the years in agriculture which they transfer to the management, bringing of ideas and creativity in the business. While others have work in banana plantation, skills and knowledge gain from past experience was also transferred to the business.

UNIQUENESS OF THE PRODUCT

In Nigeria, the demand for plantain and banana far outweigh the supply, hence it is a money spinning venture for every willing entrepreneur. What makes the products of plantain/banana unique are:
• Plantain and Banana suckers are bought only once. After the initial purchase of the suckers, the suckers needed for expansion of the plantation is provided from the harvested plant.
• The harvested plant serves as organic manure for the soil.
• It is a major source of carbohydrate with low fat content for more than 50 million people. In Nigeria, all stages of the harvested fruit (immature to overripe) are used as a source of food in one form or the other.
• In Nigeria, plantain peels are used as feed for livestock, while the dried plantain is used for soap production. the dried leaves, sheath and petioles are used as dying materials, sponges and roofing material.

BUSINESS COMPETITIVE EDGE

Plantation Distribution is rather in Nigeria and to reduce the complexity I will site a location close to major roads, nearby markets, where small scale wholesalers and retailers can purchase directly. Also, plantain transportation by road has over the years been handled rather poorly. Our Plantain and Banana Farm will offer better handling, transportation and distribution.

MARKETING STRATEGY

Our plantain/banana farm will strive for the production of harvest of the highest quality and we plan on using the following strategies: the location of our storage facilities will be in close proximity of major markets, industries. We will also make contracts with sellers, hawkers and market association for the supply of plantain/banana harvest as required.

PRICING AND PROMOTION STRATEGY

The price of the plantain would range from 0.7 to 1 STEEM depending on the size and quality. These prices also vary depending on the existing market price as we compete with other plantain/banana farms we will promote our products through advertisements with the aid of social media and pamphlets. We can also make our business known through recommendations and connections with well-known distributors and companies in the locality.

SALES STRATEGY

• Better farm management practice
• Recycling wastes as fertilizers
• Consumer is the king policy
• Keeping up with the new technology for production efficiency

INTERNAL ENVIRONMENT ANALYSIS

SWOT ANALYSIS

SWOT stands for strength, weakness, opportunities and threat and we have made an analysis. In each case by settling up a retail shop where customers can come and buy plantain without visiting the farm and also this retail shop will be sited almost near the potential buyers. We know the importance of time and know that people have many and varying activities; knowing all that we will be delivering our products to the customers door through our product “building a healthy nation” we will have an every fast delivery.

The other factor that will help us to have success over our competitors is to motivates our employees and help them to improve their way of living this will help our employees to be focused on their work and provide better services to their customers.

STRENGTH

• Produce high quality plantain enriched with protein
• Relatively good infrastructure systems
• Good marketing system
• Plantain are seasonal products and can be eaten anytime of the year
• In this area plantation business have not been over exploited
• Plantation are environmentally friendly

WEAKNESS

• Capital intensive: starting a plantation requires a large capital funding
• Outbreak of disease can ruin an entire business

OPPORTUNITIES

• Expansion into large scale production
• Export to neighboring towns
• A large successful plantation will ensure food security

THREATS

• More competition
• Black leaf streak and banana weevils
• Research-Farmers linkage

PRODUCTION PROGRAMME

The sucker corm will be prepared by separating it from the mother plant. This is done to delay the development of nematode infestation, reduce bulkiness and improve early growth of newly planted suckers. These 2000 prepared corms are then transported to their destination where they are left to dry for a few days (not in the sun). These suckers will be planted within two weeks.

PRODUCTION SYSTEM

There are 4 main production system in Nigeria; the plantain/cocoa intercrop, the bush plantain, the taugya farming system, the compound production system plantain, plantain production. The production system fact will be employed in this business in the bush plantain production system is a complex mixture of plantain with many fields crops such as cassava, banana, egusi melon, cocoyam and yam. This method is employed is this business. The choice was made with the idea of making extra money from farm product that can be intercropped with the plantain plantation. This can serve as a source of revenue and improve profit.

FINANCIAL PLAN

Cost Statement

Land: We can afford to buy a piece of land in the rural area in the southern part of Nigeria, particularly in Ekiti state where it is known to have large produce of plantains and banana. This is done in order to minimize cost and maximize profit.

  1. Buy land in Ekiti state ( 1 ½ plot of land) 80 STEEM (PURCHASED)
  2. Storage facility in the urban area(Lagos) 60 STEEM
  3. Transportation of goods from rural area to the urban area N 50 STEEM
  4. Labour for preparation of the land 40 STEEM
  5. Cost of preparation of the land (fertilization, weed control ) 30 STEEM
  6. 2,000 suckers (0.15 STEEM per sucker) 300 STEEM
  7. Other expenses 90 STEEM
    ` TOTAL 650 STEEM

PROJECTED PROFIT

Total revenue: selling price per unit Х no of units sold.
Selling price of a bunch of plantain: 0.7 STEEM
Since plantain takes 9-12 months to develop fully, we only have one harvest in a year.
The total number of bunch in one year: 2,000
The total revenue (TR) = selling price Х quantity = 2,000 Х 0.7 = 1,400STEEM
Profit = total revenue – total cost: (1,400 – 650) STEEM
= 750 STEEM per annum.

REGISTRATION

We ensured that we register the business with the corporate affairs commission (CAC), we joined a co-operate society around us which was specifically for farmers .We also registered the business with the union of trade and commerce.

PROCESSING RESOURCES AND LAUNCHING OF THE BUSINESS

After the registration, we gathered our resources both material and finance together. We cleared the sited land; enough to accommodate the business. We organized a mini party to launch the business where many relatives, friends and well-wishers were present in large number; we printed a sign post to inform the general public who were not present at the party for our new venture.

CRITICAL SUCCESS FACTORS OF THE BUSINESS

• Finance: Funds must be available as when needed according to plan to avoid creating stress factors which will cost so much in revenue loss
• Fertility: The best type of soil for plantain and banana is loam .Loamy soil are the best producing soils for plantain and banana farming because they contain a large percentage of organic component ,compared to the inorganic parts.
• Climatic factor: Plantain and banana cannot thrive in an environment that is too hot or too cold. The ideal climate for plantain and banana is the tropical climate with temperature ranging from 26 to 30 degree Celsius. But below 14 degree Celsius they just stop growing and die.
• Seasons: Plantain and banana are grown all through the periods of the rainy season. We do not plant them during the last months of the rainy season as they need roughly four months to grow well under a good and suitable condition and weather. Planting during the early part of the rainy season is good.

RISK ASSESSMENT

• Production Risk: Production risk relate to the possibility that your yield or output level will lower than projected. Major sources of production risk arises from adverse weather condition such as drought, freezes ,or excessive rainfall at harvest or planting .
• Marketing risks: Marketing risks relate to the possibility that you will lose the market for your product or that the price received will be less than expected.
• Financial Risk: Financial risk relate to not having sufficient cash to meet expected obligation , generating lower than expected profits, and losing in the farm
• Legal and environmental risk: In part, legal risk relate to fulfilling business agreement and contracts. Failures to meet these agreements often carry a high cost. Another major source of legal is tort liability- causing injury to another person or property due to negligence.
• Human resource management risk: Human resource risk pertains to risk associated with individuals and their relationships to each other; these relationships include those with family members, as well as farm employee and customers.

CHALLENGES FACING THE PLANTAIN FARMING

Plantain farming has more challenges that need to be attended to with vigor. Below are some common challenges that are faced by plantain farmers.
• Type of land: In most cases, where land is hired, its fertility is too low for plantain production and farmers maximize its use by practicing intercropping with crops like cocoyam and cassava.
• High postharvest losses are common among the major challenges: As a result of poor handling, postharvest diseases are commonly seen on fruits sold in the country.
• Environmental factor: such as temperature, relative humidity, and air composition do affect the shelf life of plantain coupled with inadequate storage system, insufficient distribution and lack of ripening techniques result in a large portion of the produce been wasted.

FUTURE PRODUCTS

We have big plans for the future. We plan on supplying the peel of plantain for feeding life stock and for production of soap. Another thing we have planned for the future is supplying plantain chips.

CONTRIBUTION TO NATIONAL AND LOCAL ECONOMY

The plantain farm will provide employment in the first year for at least ten persons. By five years at full capacity it would employ about forty persons. The banks, insurance companies and agricultural consulting firm shall all be beneficiary with the attendant tax going to the governments. We shall also find a means of expressing our entrepreneurial skill.

CONCLUSION

Progress plantain farm shall be a success. Plantain farming is a highly developed industry where its efficacy and productivity is a product of bringing together of highly experienced personnel. The industry works effectively as a network with diverse specialization bringing in diverse input. Also to avoid overcrowding of ideas and thinning of the limited resources, focus will be on plantain production for a long time under the supervision of an experienced consulting firm.

NOTE :

  1. The use of "WE" and "OUR" refers to ME, my TEAM and future PARTNERS

  2. THIS PROPOSAL WAS ORIGINALLY WRITTEN BY ME, ALL RIGHT RESERVED!

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You have left us speechless on this post..... you have indeed taken you time to study the nature of the plantain/banana business.

Detailed write and analysis you have provide in full and the @farms indeed support your idea.

(to be a part of this community; ensure to always use #farms tag for agricultural related post)

Resteem

Food And Resource Management Systems ( @FARMS)

It is always nice, we i see people developing interests for agriculture..... amazing proposal @tikhub and i believe that steem/agriculture will change and feed the world

I'm more than impressed. It always pays off devoting your time to something positive. It's better to be a blessing to the economy than to always cry for financial push... and point fingers on the government for your failure. I'm not saying the government is doing great but c'mon, you don't need them to be successful. I'm still amazed.

Wow what a brilliant research investigation about plantain cultivating you have to be sure done all the fundamental work to make it a win venture for any individual who set out on it and demonstrating the quality and its shortcoming to us and its capability all it's astonishing with this extraordinary knowledge I figure individuals will be urged to wander into this agro base cultivating a debt of gratitude is in order for sharing

It is constantly decent, we I see individuals creating interests for agriculture..... astounding proposition @tikhub and I trust that steem/farming will change and sustain the world

Wow!!!!! A definite business proposition, decent occupation tikhub.

The profundity of the information put in this proposition is estimable, a debt of gratitude is in order for your commitment as usual.

Waaaw you may be a decent business counsel, a debt of gratitude is in order for the point by point review @tikhub

Wow what a wonderful research analysis about plantain farming you have indeed done all the necessary work to make it a success project for anyone who embark on it and showing the strength and the weakness of it to us and the potential of it all it's amazing with this great insight I guess people will be encouraged to venture into this agro base farming thanks for sharing

Wow!!!!! A detailed business proposal, nice job tikhub.
The depth of the knowledge put in this proposal is commendable, thanks for your contribution as always.

post excellent and well researched, on the banana, good proposal

Well for one thing its good that alot of us are now taking agriculture seriously!!
You did a good job disserting plantain farming for those who would wish to start theirs too!!

In addition to the risks, a huge consideration should be given to the environment, the plot has to be a little bit free from trees to avoid heavy breeze that could uproot the plantations.

This proposal is worth documenting. God bless you Apostle. God bless Steemchurch for all the good intentions.

Wow! That is all, I can say. I am speechless. You sure do know what you're doing. This made me change my mindset on agriculture and I have empty lands where I can even farm.

Weldone and God bless you

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