SWOT Analysis
Strength Weaknesses
❖ High productivity in contrast to other cereal. ❖ Low yield due to usage of manual equipment.
❖ Possession of Bachelor degree in Crop production ❖ Large labour force required for production
and Environmental Biology from University of Ibadan. ❖ Disease and pest attack
❖ Farming experience for over 10 years and
understand the farming techniques.
❖ Employment of experienced farmers in the
cultivation of rice.
Opportunities Threats
❖ The closed border has been an opportunity for ❖ The intensity of rivalry in the Industry is relatively
increase for purchase of local rice. high due to the increase of rice farms trying to fill the
❖ Growing population and growing demand rice supply gap and due to the current nationwide
❖ Development of the wasteland, agricultural and scarcity of rice, people might change to their taste
livestock sector. towards other staple meals
❖ Incoherent Government policies
The Product/Service:
The farm is committed to the cultivation of rice production for sale to the Nigeria populace.
We are in this line of business to make profit as we make our products available to our customers at an affordable
price and we do all that is permitted by the law of Nigeria in achieving our business goals and objectives.
We are into cultivation of locally made rice, we operate a standard rice processing and packaging plant.
Unique Selling Proposition
Major competitors in rice farming business are the importers of rice and co-farmers. As in many
other small scale businesses, rice farming has become an all and sundry enterprise due to the
relatively low entry. Competition exists at every level both from big players and small scale
businesses.
in the commercial rice farming business for the purpose of maximizing profits hence
we have decided to explore all the available opportunities within the industry to
achieve our corporate goals and objectives.
Sales in business can however be guaranteed by having a spectacular unique selling point.
Uniqueness lies in providing quality rice at very affordable prices with an outstanding distribution
and delivery plan powered by an excellent customer service.
A major competitive advantage is the Location of the farm in the central highly populated areas of
the city will guarantee access to fertilizers and other materials needed. It will also make delivery
and customer service easier. Use of personal landed properties and buildings will help reduce cost
greatly to be considered as an advantage.
Product Development and Roadmap
Rice farm is a class commercial farm that is committed to cultivating organic and non
- organic rice for the Nigerian market (processed and packaged rice).
We are in business to produce food and raw materials for people and industries in
commercial quantities.
We will also ensure that we operate a standard rice processing and packaging plant as
part of our complimentary business.
We are in this line of business to make profits, and we will ensure that we do all that
is allowed by the law of Nigeria to achieve our business goals and objectives. These
are the areas we will concentrate on in our commercial rice farming business. If need
arises we will definitely cultivate related crops;
Cultivation of short-grain rice, medium-grain rice and long-grain rice (organic and
non - organic)
Standard rice processing plant (rice production and packaging).
Our Pricing Strategy
Some of the factors that will help you sell your rice at the right price that will
guarantee that you make profits is dependent on your strategy while some of the
factors are beyond your control. For example, if the climatic condition is unfavorable
and if there are natural disaster in the location where you have your commercial rice
farm, then it will directly affect the harvest of plantain and also the prices of your
farm produce.
Over and above, if you want to get the right pricing for your farm produce, then you
should ensure that you choose a good location for your commercial farm, choose a
good breed / seeds that will guarantee bountiful harvest, cut the cost of running your
farm to the barest minimum and of course try as much as possible to attract buyers to
your farm as against taking your farm produce to the market to source for buyers.
With this, you would have successfully eliminate the cost of transporting your harvest
to the market and other logistics. We are quite aware that one of the easiest means of
penetrating the market and acquiring loads of customers for rice is to sell them at
competitive prices hence we will do all we can to ensure that the price of our rice are
going to be what other commercial rice farmers would look towards beating. One
thing is certain, the nature of commercial farming makes it possible for farmers to
place prices for their farm produce based on their discretion without following the
benchmark in the industry. The truth is that it is one of the means of avoiding running
into loss. The easier you sell off your harvested rice the better for your business.
TARGET MARKET SEGMENTATION
our company seeks to identify targeted groups of consumers to tailor
products and branding in a way that is attractive to them.
considering a
Demographic segmentation
It involves breaking the market into customer demographics as age,
income, gender, race, education, or occupation. This market
segmentation strategy assumes that individuals with similar
demographics will have similar needs.With the large market for rice both
domestically and internationally, our target scope is considerably wide.
Apart from those along the rice value chain we will be targeting domestic consumers
that include households, eateries, hotels, schools and also export these to rice
consuming countries across the world.
Geographic Segmentation
Geographic segmentation is technically a subset of demographic
segmentation. This approach groups customers by physical location,
assuming that people within a given geographical area may have similar
needs. This strategy is more useful for larger companies seeking to
expand into different branches, offices, or locations. The location of our
company is a vital element we look into, locating our company in a
Stable geographic region will aid in the company expansion and
advertisement of our product
Behavioral Segmentation
Behavioral segmentation relies heavily on market data, consumer
actions, and decision-making patterns of customers. This approach
groups consumers based on how they have previously interacted with
markets and products. This approach assumes that consumers prior
spending habits are an indicator of how big our product they may buy in
the future, though spending habits may change over time or in response
to global events.
Marketing and Promotion Channels
The business will employ several marketing strategies. However, initial marketing activities
will be streamlined to affordable and effective marketing activities. Initial activities will
include the following
-Negotiating of supply contract with restaurants
-Word of mouth advertisement to individuals /families
-Religious platforms and social clubs
-Internet, mobile media, websites and social media
-sponsorship of events in community
-handbills and banners
-Radio adverts
MARKETING PLAN
Plan to advertise the products may be perfected through news paper, social media,
advertising (print, radio, TV) and leaflet.
News paper: Any news paper can be chosen to advertise the rice, with a view to
making the products known within very limited time and connect with individual
business persons, groups and organizations that would be partners, and middle
men. They are to purchase directly from the company at a very moderate price.
Social Media: The management can randomly select any social media, be it
Facebook, Instagram and twitter as Medias to advertize the products. The aim is to
fast advertize the product to the nation and make it wider viewing, than the local
supplier in Edo State.
The selected Medias will give it a wider publicity and make interested Nigerians
and intending end consumers aware of the products, before getting to their end.
The difficulty, individuals may encounter is the inability to purchase differently
from the company.
Advertising: Print, radio and television advertisement is another method the
University can engage to make the proposed GLORIOUS VISION UNIVERSITY
RICE popular in other states of the Federation. News times are better medium to
advertise too, owing to the fact that people would wish to listen to news and will
get to know about the products.
Leaflet: Bills and banners can also be printed and dropped at strategic places like
Motor parks, eateries, and post offices. The serves the same purpose of giving the
product, a wider publicity at a very faster period.
Therefore, this company is going to be a long term business that will continue to
meet the basic needs of the end users in Nigeria. So, this is supposed to go bigger
and wider to encourage investors key in to the dream.
Sales Forecast
We conducted a thorough market survey and feasibility studies and we were able to
discover that the sales generated by a commercial farm depends on the size of the
farm, the nature of the commercial farm (whether cattle rearing, poultry farming,
fish farming and crops cultivation et al).
We have perfected or sales and marketing strategies and we are set to hit the
ground running and we are quite optimistic that we will meet or even surpass our
set sales target of generating enough income / profits from the year of operations
and build the business from survival to sustainability.
Operations and Implementation
We have come up with a 3 year projected sales from research conducted. The results
show promising growth for our sales. This uses current economic realities. It,
however, discounts unforeseen factors such as sudden inflation and natural disasters.
Location and Facilities
Production Process or Service Delivery
Supply Chain Management
Technology and Equipment
These are some of the equipment that we would need to fully launch our commercial
rice farm,
• Tractor
• Soil cultivator
• Plough
• Harrow (e.g. Spike harrow, Drag harrow, Disk harrow)
• Stone / Rock / Debris removal implement (e.g.
Destoner, Rock windrower / rock rake, Stone picker / picker)
• Broadcast seeder (alternatively: broadcast spreader, fertilizer spreader, or Air
seeder)
• Planter
• Plastic mulch layer
• Transplanter
• Sprinkler system irrigation
• Mower
• Sickle
• Wheel Barrow
• Truck
Financial Projections
Going by the report from detailed research and feasibility studies conducted. we will
need an average of
#50,000,000 to start a standard commercial rice farming with rice processing plant
business in Nigeria
This means that the start-up is high depending on our goals, vision and aspirations for
your business. The tools and equipment that will be used are nearly the same cost
everywhere, and any difference in prices would be minimal and may be overlooked
As for the detailed cost analysis for starting a commercial rice farm, it might differ in
other locations due to the value of their economy. Below are some of the basic areas
we will spend our start - up capital in setting up our commercial rice farm:
The Total Fee for incorporating the Business in Nigeria- N750,000.
The total cost for payment of insurance policy covers (general liability, workers'
compensation and property casualty) coverage at a total premium - N70,000 (would
be paid semiannually)
The amount needed to acquire / lease a farm land - N5,000,000
The amount required for preparing the farm land - N900,000
The cost for acquiring the required working tools and equipment / machines / fencing
et al- 700,000
The amount required for purchase of the first set of rice seedlings et al - N500,000
The amount required to set up a standard rice processing plant within the farm facility
N900,000
• Operational cost for the first 3 months salaries of emplovees. Davients of bills et al)
N400,000
The Cost of launching an official website - N250,000
The amount required for payment of workers for a period of 3 months - N500,000
Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) -
N200,000
Profit and Loss Statement
Management
As the owner of the farm, I will oversee the daily business activities. The quality of the management team lies in
their expertise and devotion.
❖ The Farm manager
The Farm Manager will be responsible for the technical or production activities on daily basis. The farm
manager will report to the me on all issues of the business. He would be experienced personnel who has a basic
training in rice farming.
❖ Accountant/Admin
This would be an experienced staff with basic knowledge of stock inventory and bookkeeping. The accountant
will be responsible for interfacing with clients/customers to guarantee satisfaction and accountability.
❖ Records Manager
The Records Manager would have a record book on which information on the area that is cultivated. Record
keeping helps the farmer to budget accurately and make informed decisions about the project. The following
records would be adequately kept.
• State of the soil (acidity)
• High yield variety rice specie
• The right fertilizer and the application
• Good weed control and at the proper time
• Time of cultivation (Early Cultivation)
• Proper Irrigation
• Labor and other variable cost.
The farm officer and field workers will be employed to help with the cultivation of the rice production. Marketer
with proficient skill in harvesting and sales will be hired as need arises
Security officer will also be required for 24 hours watch, depending on the location of the farm.
