Rice Farming Business Plan in Nigeria
Our sample rice farming business plan in Nigeria can be used to access bank loans, grant applications and proposal writing and grant applications. This business plan was complied after a proper feasibility study on rice production in Nigeria was carried out.
To get your own rice farming business plan in Nigeria, pay N10,000 to:
BANK NAME: FIRST BANK PLC
ACCOUNT NAME: CHIBUZOR TOCHI ONYEMENAM
ACCOUNT NUMBER: 3066880122
After payment, text your full name, email address and title (rice production business plan pdf) to 07033378184. Your business plan will be sent to your email within 15 minutes.
Weighing all the different foods that are consumed on the planet, it could be safe to say that rice is probably the most consumed. Statistics show that in most Asian countries like China, Indonesia, North Korea, Thailand, Japan, and African countries like Nigeria, Ghana, Senegal, South Africa, etc. rice is the most consumed food crop. Several delicacies have been conjured using rice and more are being created on a daily basis, this just means that there is a very high demand for rice all over the world.
On yearly basis, Nigerians alone consume about 5.5 million tons of rice and more than half of that is being imported. In fact Nigeria spends roughly #365 billion on rice importation yearly, including subsidies and as a result the government has seen it as economically wise to beef up the production of rice within the country. Since the enthronement of the present government, measures have been set in place to ensure that rice production sky rockets and indeed there has been a massive improvement in the sector. One way the government has been able to achieve this is by placing a ban on rice importation from the land borders, even though smuggling still occurs, but this has enabled local rice farmers to thrive better than before. So many rice farms have cropped up in the country and the government has established several ways to partner with rice farmers to ensure optimal yield.
With all these set in place, there is still a great chasm between the amount of rice produced within the country and the amount of rice consumed and this is a major source of concern, but therein lies the opportunity. Presently Nigeria is the largest importer of rice in the world, that statistic may look disturbing considering the fact that we have vast agricultural lands and skilled farmers to handle cultivation. However, this just shows how much opportunity there is in the sector, since there is a genuine high demand, there is a corresponding genuine great opportunity for the entrepreneurs who choose to invest wisely in it.
There are several ways to invest in rice production in Nigeria, the market is just too vast, you could invest in a farm, invest in processing, or decide to pool your risk in sales of the finished products. Whichever mode you select, the opportunities that abound are limitless, the only boundaries for success in this business are the ones you create by yourself. Even though you might not want to be interested in tilling the ground to farm rice, it is expedient that you should have an idea about the different stages in the farming process as it will enable you know what kind of product to invest in. this article will giving you some insight into the different stages of rice farming as well as the profitability and challenges of rice farming.
The required facilities for rice farming
- Swampy land. The reality is that rice can grow on almost any kind of land, but for optimal yield, studies and experience has shown that rice should be planted on swampy land. This is a major reason why farmers who are involved in rice farming ensure that they properly till the soil and ensure their land is adequately irrigated before delving into cultivation. Now you do not find swampy land in every part of Nigeria, this should not be a hindrance however as there are several measures that can be taken to achieve the desired land moisture. These measures will definitely cost the farmer some extra money, but are found to be worth every penny spent on the long run. The most common technique involves getting a land, tilling it through and through with the help of a tractor and ensuring adequate irrigation. It has been found that rice thrives best on irrigated low lands, even though it might be a bit costly to bring your land to this status.
- Irrigation channel. As stated earlier, rice will grow sparingly in dry lands, it is best you have a swampy land if you want to go into rice farming. Irrigating the soil is the best way of achieving this as it gives you the opportunity to plant and harvest your rice all year long. You just need to create an irrigation channel that will feed your whole farm, I mean the planting area. You might need to get the assistance of a professional to achieve this, there are several irrigation consultants in every state.
- Rice seeds. One of the most important factors with respect to rice farming asides the land is the kind of seeds used in propagation. A fact remains that the healthier the seeds used, the better the yield, in my opinion this does not just apply to rice farming but to every form of farming you can think of. The parent stock always matters to the kind of yield the farmer gets at the end of the farming season. Choosing your seeds should be based on the cultivation environment basically. Ensure you seek out an improved variety that will thrive in your environment and be highly resistant to diseases and pest attacks. For optimal yield it is advised to purchase seeds from any company that is fully registered and endorsed by the National Agricultural Seeds Council (NASC), the regulating body for the Seed Industry in Nigeria. Selecting the right seed variety will give you the following advantages:
- Improve crop yield by between 5% to 20%.
- Meliorate crop germination by above 80%.
- Ensure increased resistance to pest and disease attacks.
- Minimize weed related problems.
- Consistency in plant size.
- Rice seedling nursery. A nursery is a place where seedlings are raised for transplanting, it is mostly used in commercial farming and it helps to improve yield since the seedlings are usually raised in a controlled environment. For rice you just need to prepare seedbeds in the nursery, plant the seeds and cover the soil with transparent polythene sheets. The polythene sheets will help to maintain the soil temperature and moisture as well as help prevent soil borne diseases. After the rice seedlings have germinated you can transfer them to the main farmland. Rice yield can be grossly affected by attacks from nematodes and other soil pathogens (disease carrying organisms).
- Hauling mill. Rice is usually ready to be harvested after four months of planting, this is a major advantage of rice farming. When it is harvested it does not appear as the regular rice you know, it still has to go through several processes, and this is the reason why you need a mill. You will need to separate the haul from the grain, the process involves separation and blowing off the haul from the grain.
- Knowledge. Having a zest for rice farming is not sufficient to achieving success in the industry, a lot of other factors are involved. It is important that you equip yourself with as much knowledge as you can about both the farming processes and the business aspects of the sector. You might need to visit several rice farms and processing sites, you may need to attach to some of them for a period, or you may even need to take a few courses on rice production. All these will prepare you adequately for the eventualities that may occur on the farm or during the processing stages.
Managing the soil nutrients and weeds
To ensure that the rice grows well it is expedient to deal with any factors that could be a competition for soil nutrients. A major competitor for nutrients is weeds and thus from the transplanting stage you will need to constantly clear the farming area of weeds. Some farmers apply herbicides at least twice before harvesting to destroy emerging weeds. Fertilizers also help to a large extent to improve crop yield, it is advised that the farmer uses more of organic fertilizers. In implementing fertilizers you should seek the expert advice of a professional if you do not have any specialist experience. Ensure to carry out several soil tests on the farmland, this will enable you know the amount of fertilizer you need to apply.
The cost of starting rice farm business
Every business requires capital to kick off or run, capital is not just monetary, it involves much more. In a nutshell, capital is the available assets that can be used or is used in the production of more assets (which could be in form of goods or services). As stated earlier, there are several ways one can be involved in rice business, the different ways have their different capital requirements. For rice farming you obviously need a huge farm to start up, tractors (which could be bought or hired), manpower, etc. all of which will cost some amount. There is really no stipulated amount that you will need but it will largely depend on the aspect you want to focus on and how large you want your business to be. Before delving headlong into the business you should ensure that you make sufficient inquiries about the costs of several contributing factors to the business like transportation, storage, purchases, packaging, delivery, basic equipment, operating costs, to mention a few. Putting all these together will help you come to a realistic conclusion on how much you will need to start up and maintain your business. It is advisable to run a detailed feasibility study and come up with a realistic and workable business plan, this will help you create a map for your business.
Profitability of rice business in Nigeria
Just like in any business, the amount of capital invested will to a very large extent determine the amount of profit that will accrue to the business. It is almost like “garbage in, garbage out.” The bigger the capital investment, the larger the profit is likely to be and the faster it is likely to come in, all things being equal. Presently, there is a very rapid growth in the agricultural industry of Nigeria, rice production sector inclusive, this means that a lot of effort is being put in to make the sector more competitive. The demand is far higher than the supply and thus as long as you have good products, you will sell to make profit. You can decide to market your products locally or push them out to other countries on export, whichever way, there is huge profit to be made in the business. Presently rated as the most profitable agricultural venture to invest in all over Nigeria, there are boundless opportunities that can be tapped for maximum profit.
Risks involved in rice farming
Just like any business, there are risks and challenges involved with rice farming, a few of them are stated below:
- There is a need to select grains manually before planting to ensure that healthy grains are used for the planting process. This process might be cumbersome and time consuming, but failure to do this might result in poor yield or no yield at all.
- Weeds have a tendency of competing with the crop for nutrients, thus you will need to eliminate them as soon as they are noticed.
- Attacks from rodents, pests, insects and other vices, especially when the crops are ready for harvest. To this end it is advised that once the crops are ready for harvest the farmer wastes no time in harvesting.
- High cost of implementing irrigation of the farmland.
The advantages of rice farming in Nigeria
- The duration from planting to harvesting is just four months, this means that with full irrigation, the farmer can have three planting seasons in a year, which spells maximum profit.
- There is a lot of government support for rice farmers which means more capital and machinery for the farmer.
- Rice is the fastest selling agricultural product in Nigeria, you really do not need to spend so much on publicizing it. Take it to the market, you will definitely find someone to buy.
In conclusion, rice farming business requires a lot of knowledge, ensure you acquire as much of this as possible so that you have a better competitive edge on the market.
Get your rice farming business plan in Nigeria today. To order the business plan, pay N10, 000 to:
BANK NAME: GUARANTY TRUST BANK (GTB)
ACCOUNT NAME: CHIBUZOR TOCHI ONYEMENAM
ACCOUNT NUMBER: 0044056891
BANK NAME: FIRST BANK PLC
ACCOUNT NAME: CHIBUZOR TOCHI ONYEMENAM
ACCOUNT NUMBER: 3066880122
After payment, send your full name, email address and topic (i.e. rice production business plan pdf) to 07033378184. Your business plan will be sent to your email within 15 minutes.
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