TABLE OF CONTENT

Cover Page - - - - - - - - - - i

Table of Contents - - - - - - - - - ii

1.0 EXECUTIVE SUMMARY - - - - - - - 5

1.1 Objective Statement - - - - - - - 5

1.2 Vision Statement - - - - - - - - 6

1.3 Mission Statement - - - - - - - - 6

CHAPTER ONE

1.0 INTRODUCTION - - - - - - - - 7

1.1 Business Idea Description - - - - - - - 7

1.2 Company Ownership - - - - - - - - 8

1.4 Business location - - - - - - - - - 8

1.5 Start-up, Growth and Extension summary - - - - - 8

Fig 1.1 Mechanical Garri Frying oven - - - - - - 8

CHAPTER TWO

2.0 PRODUCTS AND SERVICES - - - - - - - 9

2.1 Products / Service Description - - - - - - - 9

2.2 Insurance - - - - - - - - - - 9

Fig 2.0 Locally fabricated palm oil production machines - - - - 9

CHAPTER THREE

PRODUCTION / OPERATION ANALYSIS - - - - - 10

3.0 Production and operation analysis - - - - - - 10

Page 1
…Striving Towards Economic Sustainability and Agricultural Growth
Fig 3.0 Hybrid palm oil tree and a bunch of palm kernel - - - 10

3 .2 Components of Palm oil Farming - - - - - - - 10

Fig 3.1 palm oil tree nursery - - - - - - - - 11

3.3 Palm oil Processing. - - - - - - - - - 12

Fig 3 .0 Palm kernel and locally fabricated oil extractor - - - - 14

3.4 Threshing (removal of fruit from the bunches) - - - - - 14 -15

Fig 3.1 Modern oil palm extraction machines - - - - - 16
How to operate the oil extraction machine - - - - - - 16
Fig 3.3 Palm oil processing plant - - - - - - - 16

3.5 Business Model Canvas - - - - - - - - 17

3.6 Bio- security Quality Control - - - - - - - 18

3.7 Operations Suppliers - - - - - - - - 18

CHAPTER FOUR

4.0 MARKET ANALYSIS SUMMARY - - - - - - 19

4.1 Market segmentation - - - - - - - - 19

4.2 Marketing Strategy - - - - - - - - 19

4.3 Pricing Strategy - - - - - - - - - 20

Fig 4.0 Gallons of palm oil in sizes

4.4 Sales Strategy - - - - - - - - - 20

4.5 Distribution Strategy - - - - - - - - 21

4.7 SWOT Analysis - - - - - - - - - 21

4.8 Business Risk and Mitigation Strategy - - - - - 22

CHAPTER FIVE

5.0 HUMAN RESOURCES ANALYSIS - - - - - 23

Page 2
…Striving Towards Economic Sustainability and Agricultural Growth
5.1 Organizational charts - - - - - - - - 23

5.2 Management Structures - - - - - - - - 24

5.3 Manpower Requirement - - - - - - - 24

Table 5.0 Proposed Team Members and Manpower Requirement 24

Table 5.1 Salary structure - - - - - - - - 25

5.4 Means of motivation - - - - - - - - 25

CHAPTER SIX

6.0 COMPETITIVE ANALYSIS - - - - - - - 26

6.1 Positioning - - - - - - - - - 26

6.2 Competitive Edge/Advantage - - - - - - - 26

6.3 Unique Selling Proposition (USP) - - - - - - 27

CHAPTER SEVEN

7.0 FINANCIAL PLAN AND ANALYSIS - - - - - - 28

7.1 Table: Source of Finance - - - - - - - 28

7.2 Table Proposed Capital Investment - - - - - - 28

7.3 Long Term Financial Strategy - - - - - - - 27

7.4 Long Term Target - - - - - - - - 27

7.5 Economic Benefits - - - - - - - - 28

Table 7.2 Proposed Capital investment table - - - - - 28

7.6 Income and Cash Flow Statement - - - - - - 29

7.7 Profit and Loss Account - - - - - - - - 30

7.8 Advisor Table - - - - - - - - - 31

APPENDICES - - - - - - - - - 32

Page 3
…Striving Towards Economic Sustainability and Agricultural Growth
 1.1 Executive summary
Azur Farms Limited. is a multinational agro-allied farm with cutting edge services,
merchandize and farming, production of agricultural raw materials for industries, palm
kernel plantation, palm oil and palm kernel oil processing and merchandize.
Incorporated in 2017 to promote and support food security and palm oil availability in
Nigeria as we guarantee reliable & efficient services. The company is seeking for
(N15,000,000 ) fifteen million naira grants to finance the following:
 Extension of mechanized palm kernel plantation
 Capital to purchase major equipment in palm kernel oil processing
 50KVA generating set, Drilling of Boreholes
 Acquisition of truck
 Construction of Mini palm oil processing factory
 Financing the business operations and growth.
Mr Ntia James, has contributed over 1,500,000 one million five hundred
thousand naira to the business. The plan that follows explains our market
segmentation strategy, value addition, operations and management team. The
detailed financial plans provide a clear view of our sales and profit forecasts.
These plans show how will reach profitability in the next business year of
operation and generate ROI return on Investment by 2019.
1.3 BUSINESS OBJECTIVES
o To enable the nation attain self sufficiency in oil palm production through
mechanized farming and modern processing of best agronomy practices.
o To promote food security and increase earnings of local farmers
o To create channels of supply and increase customer base quarterly by 10%
o To organize vocational-training in agricultural program among unemployed
graduates, encourage & inspire the youths to go into farming .
1.4 MISSION STATEMENT
Our Mission is to operate an oil palm production plant committed to excellence
in the production of high quality products that will be acceptable globally round
the year and maximize return with diligence and integrity.
1.5 VISION STATEMENT
To be an industry leader in quality palm kernel oil and palm kernel cake in the
country . A well diversified, vertically integrated company ushering in a new age in
an age old industry.

Page 4
…Striving Towards Economic Sustainability and Agricultural Growth
 CHAPTER ONE
1.0 INTRODUCTION
Oil palm is a perennial crop which grows in abundance in tropical areas; it bears a
fruit known as palm fruit which is the fleshy parts of the fruits covering the
kernel. It has numerous benefits as almost all the parts can be used in various
applications, but its cultivation takes quite a lot of hard-work, dedication, and
resources.
After planting the oil palm, it takes about 3-4 years before it grows to maturity,
which literally means that you have to wait for that long without gaining anything
in reward irrespective of your time and resources which range from clearing of
farmland, paying labourers, buying of fertilizers, seedlings and more but it's very
rewarding at the end. To grow oil palm in Nigeria and in any other tropical areas
of Africa and the world, it is necessary to have a basic knowledge of what you are
going into as that will effectively help in making the plant grow well and produce
fruits as much as possible and at the right time without delay.
1.1 Business Idea Description
Palm oil planting, processing and its distribution in Nigeria has become big
business. This is characterized by the many new entrants investing with the hope
of reaping considerably profits. With the zeal to invest comes the need to put the
necessary structures in place. These structures essentially guide the business to
profitability and stability. Palm oil and palm kernel oil are among the world’s
most versatile raw materials. Their functional product properties remain one of
the main drivers behind the rise in demand for palm oil.
Industries using palm oil
Palm oil and palm kernel oil based ingredients are found in approximately
50% of products on supermarket shelves, including food and non food items.
Palm oil in many countries is used as a simple frying oil, but many other markets
make use of both palm and palm kernel oil:
 Consumer retail food and snack manufacturers
 Personal care and cosmetics (mainly palm kernel oil)
 Biofuel and energy
 Animal feed (palm kernel expeller)
 Pharmaceutical
 Industrial
 Food services industry
Palm kernel and palm oil uses are widely varied because they can be processed
and blended to produce a vast range of products with different characteristics.
The below ingredient names are found on the packaging of 50% of the products

Page 5
…Striving Towards Economic Sustainability and Agricultural Growth
stocked on most supermarket shelves, being either palm oil or palm kernel oil
based.
1.3 Company Ownership
Azur Farms Limited. is 50% owned by Mr Ntia James, his wife also owned the
50% shares, this business is registered with Corporate Affairs Commission
(CAC) in 2017 as a limited liability company, according to the companies and
allied matters act 1990.
1.4 Business location
Azur Farms Limited. is located in No 3 John Akwa Street Mbiabong, Ikot Akpan,
Besides Tropicana Uyo. Akwa - Ibom State,South South Nigeria.
1.5 Start-up, Growth and Extension summary
Azur Farms Limited is a palm oil agricultural company in the production of well
refined palm oil and palm kernel oil processing services, this organization was
established in 2017. Our aspirations is to acquire more farm lands and modern
processing palm oil equipment. The total funds needed is 15 million naira. The
breakdown of how the funds will be used is shown in Appendix. as the funds would
be used to execute the following projects.
 Modern palm oil processing line equipments. with Hydraulic press,
 Palm kernel processing machines.
 Borehole
 50 KVA Mikano Generator
 Farmland

Page 6
…Striving Towards Economic Sustainability and Agricultural Growth
 CHAPTER TWO
2.0 Products and Services
 Mechanized palm oil farming and processing services
 Palm oil production in a highly-hygienic environment and well package in
5kg, 20kg, and 50kg gallons for national and international markets
 Palm kernel Oil production
 Palm Nursery for intending farmers
 Consultancy services.
The oil palm is a unique crop as it produces two types of oil from its fruit; palm
oil from the mesocarp and palm kernel oil from the kernel.

2.1 Insurance
Azur farm will engaged the service of Nigerian Agric Insurance
Corporation NAIC. The insurance will cover.
1. Farm crop diseases and fire insurance
2. Workers compensation scheme
3. Operation delivery Vehicle insurance
Our anticipated insurance cost will be 2% of our total sales.

Fig 2.0 Locally fabricated palm oil production machines

Page 7
…Striving Towards Economic Sustainability and Agricultural Growth
 CHAPTER THREE
3.1 Production/Operation Plantation Analysis
There are three main varieties of the West African oil palm: Dura, Pisifera, and
Tenera. The Tenera palm produces the highest oil content of the three, but is
actually a hybrid between the Dura and Pisifera. Modern Tenera or variant hybrids
are usually planted when establishing a plantation, due to the high oil yield. Over
40% of an individual palm fruit, and over 20% of a fruit bunch from a typical
Tenera palm can be extracted as palm oil.
Once trees reach maturity and produce fruit, 9,000-10,000 kg of fresh fruit bunches
(FFB) per hectare (ha) can be expected from a well-managed plantation. Assuming
Tenera palms and good extraction exigencies in the mill, this will yield
approximately 2,000 liters of oil/year/ha.

Fig 3.0 Hybrid palm oil tree and a bunch of palm kernel

3 .2 Components of Palm oil Farming

Commonly three fruit forms or “varieties” of oil palm can be identified based on
the thickness of the shell criterion.
 The Dura has a shell thickness between 2 to 8 mm, the fleshy mesocarp of
Dura yields between 15 to 17% oil
 While the Pisifera has no shell, the oil yield is more than 23%.
 The shell thickness of the hybrid Tenera is between 0.2 to 2 mm, while in
Tenera yields between 21 to 23% oil
 According to commercial purpose, Pisifera is not cultivated on large scale
because of its ability to fruits abortion and thereby virtual empty bunches
production.

Page 8
…Striving Towards Economic Sustainability and Agricultural Growth
 Tenera which is a hybrid of Dura and Pisifera varieties remains the
commercial variety with 60 to 96% of mesocarp. The hybrid produces more
fruit bunches than Dura.
Planting
It is generally agreed that approximately 150 trees per hectare is recommended.
The trees typically start producing in the third year after transplantation from
nursery stock, and reach peak production by perhaps the fifth year. The
cultivation of oil palm takes several planting and replanting;

Fig 3.1 palm oil tree nursery

 The first time the seed is planted, it is allowed to stay for about 90 to 100
days at a room temperature for proper germination.
 After that, it is transplanted into small plastic conditioners, where it is
allowed to stay for 4 to 5 months, at this stage the seed develops a new leaf
every month and when a bifid leaf is noticed, then know it is ready to be
transplanted again but now into the nursery.
 The seedling is allowed to stay for about 1 year in the nursery and then
planted in the palm groove when it noticeably has about 15 green leaves;
at the palm grove, the seed/plant lives the rest of its life and grows into
maturity as well.
Cultivated oil palms carry fruit from their fourth year onward. Palm fruit can
then be harvested for 40-50 years with the maximum yield being reached after
12th year. In plantations they are normally replaced after 25 years. The oil palm
gives the highest yield of oil per unit area compared to any other crop. Modern
high-yielding varieties developed by breeding programs, under ideal climatic
conditions and good management, are capable of producing in excess of 20
tonnes of bunches/ha/yr, with palm oil in bunch content of 25 percent. This is
equivalent to a yield of 5 tonnes oil/ha/yr (excluding the palm kernel oil), which
far outstrips any other source of edible oil.

Page 9
…Striving Towards Economic Sustainability and Agricultural Growth
 Ideal climate for oil palm for maximizing of oil yield
• annual rainfall of 2000 mm or greater, evenly distributed, without a marked
dry season, and preferably at least 100 mm in each month
• a mean maximum temperature of about 29–33°C and a mean minimum
temperature of about 22–24°C
•sunshine of 5–7 h/day in all months and solar radiation of 15MJ/m2 per day
•It is adapted to a range of soil types. Tolerates low pH, but does not thrive at
very high pH (greater than 7.5). Soil must be free draining.
Weed management
Use a contact and/or pre- emergent herbicide to control weeds is
recommended. The enlarged crop canopy should limit weed growth after 2 years.
Fertilizers applicable to palm oil
A soil test should always be done to determine fertilizer types and rates.
But the best fertilizer management practices in oil palm for higher fresh fruit
bunch production are:
Fertilizer
Fertilizers
requirement (g/palm/year)
Urea Diammonium phosphate (DAP)
Muriate of potash (MoP) Magnesium
 700 435 670 125
sulphate.

Urea Rock phosphate Muriate of  870 1000 670 125

potash (MoP) Magnesium sulphate

Page 10
…Striving Towards Economic Sustainability and Agricultural Growth
The main objectives of a fertilizer application are:
 To supply each palm with adequate nutrients in balanced proportion to
ensure healthy vegetative growth and optimum economic yields.
 To minimize negative environmental impacts related to over-fertilization,
land degradation, and pollution from heavy metals such as cobalt and
eutrophism.
 To apply the fertilizers in the prescribed manner over the areas of the
estate that are likely to result in the most efficient uptake of nutrients.
 To integrate the use of mineral fertilizers and palm residues.
Pest and diseases management
The major pests of oil palm in Nigeria are rats, bagworms, Mealybugs, nettle
caterpillars, rhinoceros beetle, bunch moth and termite whilst the most
important disease is Ganoderma basal stem rot and, to a lesser extent,
Marasmius bunch rot.
Insecticides will remain the main weapon against insect pests, but integrated
control involving regular monitoring, good agronomic practices, conservation,
supplementation and utilization of natural control agent, and the judicious use of
chemicals, will become increasingly more important. Chemicals with broad-
spectrum of activity, long and persistent residues, and high mammalian toxicity
will continue to be replaced by safer and more target specific products that are
also safer to the environment.
Harvesting
Harvesting involves the cutting of the bunch from the tree and allowing it to fall
to the ground by gravity. Fruits may be damaged in the process of pruning palm
fronds to expose the bunch base to facilitate bunch cutting. As the bunch
(weighing about 25 kg) falls to the ground the impact bruises the fruit. During
loading and unloading of bunches into and out of transport containers there are
further opportunities for the fruit to be bruised.
3.3 Palm oil Processing.
Fresh fruit arrives from the field as bunches or loose fruit. The fresh fruit is
normally emptied into wooden boxes suitable for weighing on a scale so that
quantities of fruit arriving at the processing site may be checked. Large
installations use weighbridges to weigh materials in trucks.
The quality standard achieved is initially dependent on the quality of bunches
arriving at the mill. The mill cannot improve upon this quality but can prevent or
minimize further deterioration.
The field factors that affect the composition and final quality of palm oil are
genetic, age of the tree, agronomic, environmental, harvesting technique, handling
and transport. Many of these factors are beyond the control of a small-scale

Page 11
…Striving Towards Economic Sustainability and Agricultural Growth
 processor. Perhaps some control may be exercised over harvesting technique as
well as post-harvest transport and handling.
3.2 Threshing (removal of fruit from the bunches)
The fresh fruit bunch consists of fruit embedded in spikelets growing on a main
stem. Manual threshing is achieved by cutting the fruit-laden spikelets from the
bunch stem with an axe or machete and then separating the fruit from the
spikelets by hand. Children and the elderly in the village earn income as casual
labourers performing this activity at the factory site.
In a mechanised system a rotating drum or fixed drum equipped with rotary
beater bars detach the fruit from the bunch, leaving the spikelets on the stem
Most small-scale processors do not have the capacity to generate steam for
sterilization. Therefore, the threshed fruits are cooked in water. Whole bunches
which include spikelets absorb a lot of water in the cooking process. High-
pressure steam is more effective in heating bunches without losing much water.
Therefore, most small-scale operations thresh bunches before the fruits are
cooked, while high-pressure sterilization systems thresh bunches after heating
to loosen the fruits.
Small-scale operators use the bunch waste (empty bunches) as cooking fuel. In
larger mills the bunch waste is incinerated and the ash, a rich source of
potassium, is returned to the plantation as fertilizer.
Sterilization of bunches
Sterilization or cooking means the use of high-temperature wet-heat
treatment of loose fruit. Cooking normally uses hot water; sterilization
uses pressurized steam. The cooking action serves several purposes.

Fig 3 .0 Palm kernel and locally fabricated oil extractor

Heat treatment destroys oil-splitting enzymes and arrests hydrolysis and

autoxidation.

Page 12
…Striving Towards Economic Sustainability and Agricultural Growth
 For large-scale installations, where bunches are cooked whole, the wet heat
weakens the fruit stem and makes it easy to remove the fruit from bunches on
shaking or tumbling in the threshing machine.
 Heat helps to solidify proteins in which the oil-bearing cells are microscopically
dispersed. The protein solidification (coagulation) allows the oil-bearing cells to
come together and flow more easily on application of pressure.
 Fruit cooking weakens the pulp structure, softening it and making it easier to
detach the fibrous material and its contents during the digestion process. The high
heat is enough to partially disrupt the oil-containing cells in the mesocarp and
permits oil to be released more readily.
 The moisture introduced by the steam acts chemically to break down gums and
resins. The gums and resins cause the oil to foam during frying. Some of the gums
and resins are soluble in water. Others can be made soluble in water, when broken
down by wet steam (hydrolysis), so that they can be removed during oil
clarification. Starches present in the fruit are hydrolyzed and removed in this way.
 When high-pressure steam is used for sterilization, the heat causes the moisture in
the nuts to expand. When the pressure is reduced the contraction of the nut leads
to the detachment of the kernel from the shell wall, thus loosening the kernels
within their shells. The detachment of the kernel from the shell wall greatly
facilitates later nut cracking operations. From the foregoing, it is obvious that
sterilization (cooking) is one of the most important operations in oil processing,
ensuring the success of several other phases.
 However, during sterilization it is important to ensure evacuation of air from the
sterilizer. Air not only acts as a barrier to heat transfer, but oil oxidation increases
considerably at high temperatures; hence oxidation risks are high during
sterilization. Over-sterilization can also lead to poor bleach ability of the resultant
oil. Sterilization is also the chief factor responsible for the discoloration of palm
kernels, leading to poor bleach ability of the extracted oil and reduction of the
protein value of the press cake.

Fig 3.1 Clarity between palm oil and palm kernel oil

Page 13
…Striving Towards Economic Sustainability and Agricultural Growth
 Fig 3.1 Modern oil palm extraction machines
HOW TO OPERATE THE OIL EXTRACTION MACHINE
 Ready the Seeds
 Adjusting the machine, such as electricity, heating (if you can do cold
pressing, you do not need open heating)
 Open the machine, putting seeds into the feeder
 Seeds into the screw bolt, beginning of pressing
 The crude oil is out of the squeezing bolt, the flowing into the board
 Then into the vacuum filter, using it for filtration.
 after filtration, the oil is out of the bottom of the pipe

Fig 3.3 Palm oil processing plant

Page 14
…Striving Towards Economic Sustainability and Agricultural Growth
 3.5 Business Model Canvas
Key Key Value Customer Customer
Partners Activities Proposition Relationship Segments
Nigerian s s
Institute for Palm oil
Oil Palm farming, and Placing our Geographic
Research. processing Revenue- customers at the Psychographi
services focused top by giving c Consumer,
International
marketing & them kings and Occasional
.
sales queens and
Institute of
Tropical effectiveness treatments, Cultural
Agriculture solutions appreciating segmentation
(IITA) throughout the their patronage
Ibadan. revenue cycle Channels
Key Open market
Nigerian Resource General public,
export and Restaurants,
import Bank. s Shoprite,
(Nexim). Farmland,
supermarkets,
equipment,
International
Golden utilities
market, food
Fertilizer Nig. finance, industries
labour,
etc.
Greennation materials
and agro
chemical
fertilizers
Cost Structure Revenue Streams
Cost of palm oil and kernel oil per kg Sales of well refined palm oil, Palm kernel,
consumers, Sales cost to middle men, palm rafia, shaft, Truck Hire, delivery
corporate organizations based on services
qualities and quantities measured in kg. Consultancy services, sales of seedlings,
empowerment, Training and seminal

Page 15
…Striving Towards Economic Sustainability and Agricultural Growth
 3.6 Bio Security and quality control
Bio-security measure will be put in place to prevent pest and diseases outbreak.
Foot bath for visitors and workers will be put in place at the entrances of our
production factory. Every vehicle coming into the facility will also pass through a
bath and get sprayed. All quality control standards will be adhered to strictly so as
to produce contaminated free premium quality products. Animals will be kept
away. We will employ a quality control staff to ensure our output and inputs meet
expectations. Bio-security training will be mandatory given to farm attendants and
factory staff.

3.7 Operations Suppliers

Location and Terms of
trading Trade being Alternative
currency of offered Supplier in
Name of Main Products and Services
supplier (payment case of
Suppliers Provided
terms, problems with
delivery main suppliers
times)
Facility Logistics 2 Akintan Palm oil processing line Technology
Ltd. Ejigbo Isolo Street, Equipments. Cash and Incubation
Lagos behind NNPC Processing machines, carry Centre km 9
Depot. Abeokuta
industrial and agro allied
Daleko, Lagos Road.
Ejigbo Isolo machines manufacturer and Abeokuta
Lagos. farbricator Or Apex Skills
N Naira Engineering
works Iyana
Ipaja.
Ultimate motors, Ikotun Idimu Vehicle dealer/sales of Cash and Abbey Motors.
Ketu Lagos road Lagos. trucks carry Apapa Lagos
N Naira On delivery
Juballi bros Oregun Sales and supplier of power Cash & carry Marvellous
Engineering Lagos Nigeria Generating set, water Enterprise
Services N Naira pumping machines Ojodu berger
Ikeja Lagos
Ijanuel Ikeja Lagos Borehole Cash down Emken Global
Geophysical and services
hydro System. Ojodu berger.

Page 16
…Striving Towards Economic Sustainability and Agricultural Growth
 CHAPTER FOUR
4.0 Market Analysis Summary
Palm is one of the most productive crops on the planet, with the ability to grow
in a remarkable range of places. Couple that with large profit margins, an
incredible diversity of uses for palm oil and a lack of economically competitive
substitutes, In 2013 the world consumed 55 million metric tons of palm oil,
nearly four times what it used 20 years earlier. Indonesia and Malaysia satisfy 85
percent of the demand for the world’s most popular food oil. palm oil’s benefits
to the heart and brain, helping drive a six fold increase in consumption all over
the world.
4.1 Markets segmentation
The following market segmentation is been adopted in this business.
1. Geographic Segmentation, Major cities in Nigeria are potential market
but Lagos, Abuja, Kaduna and Ibadan, port Harcourt are been considered
and concentration to this cluster is our top most priority.
2. Psychographic segmentation: It considers how people spend their
leisure, the activities, interests and lifestyle of consumers and the external
influences they are most responsive to and influenced by literacy and
health status, in this cluster people are being influence by their friends,
relations, co-workers, and health practitioners
3. Consumer segmentation: is according to demography based on variables
such as age, gender, education level and occupation and according to
perceived benefits of our products and services.
4. Occasional segmentation: understanding of the individual customers’
needs, behavior and value under different occasions of usage and time.
5. Cultural segmentation: Cultural segmentation is used to classify markets
according to cultural origin. Culture is a strong dimension of consumer
behavior and is used to enhance customer insight and as a component of
predictive models.
4.2 Marketing strategies
Here are the platforms we intend leveraging on to promote and advertise Akwa
Palm Oil Ventures;

 Place adverts on both print (community based newspapers and

magazines) and electronic media platforms
Page 17
…Striving Towards Economic Sustainability and Agricultural Growth
  Sponsor relevant community programs
 Leverage on the internet and social media platforms like; Instagram,
Facebook , twitter, et al to promote our brand
 Install our Bill Boards on strategic locations all around major communities
in Nigeria
 Engage in road show from time to time in targeted communities
 Distribute our fliers and handbills in target areas
 Position our Flexi Banners at strategic positions in the location where we
intend getting customers to start patronizing our palm oil.
 Ensure that all our staff members wear our customized clothes, and all our
official cars and distribution trucks are customized and well branded.
The residential population in the immediate area is comprised of a mixture of
single family and multi-family housing, corporate offices, state and federal
agencies and ministries, religion organizations.
Our overall marketing strategies are:
Market penetration strategy, A growth strategy, Channels of distribution strategy
and Communication strategy. Sales calls and text messages, personal visit to our
leads and potential customers (Caterers, Shoprite's, supermarkets, hotels, Event
planners, families, middlemen etc.
4.3 Pricing Strategy
 Our price of palm oil is based on the sizes in Kg. 5kg N2,500 , 10kg N4,500; 25kg
N 12,000these are the most consistent and will command a 25-30% price premium
over a local farmer. The value of our products and services will be attractive
to extremely price sensitive customers.

Fig 4.0 Gallons of palm oil in sizes

4.4 Sales Strategy
Customers look for several qualities in our products and services these are:
 Availability at all seasons.
 Reliable and consistently high-quality services.
 Good value for money.

Page 18
…Striving Towards Economic Sustainability and Agricultural Growth
  Reputation and positioning .
 For every customer that introduces or refer a new customer there will be
incentive depending on the amount referred to us by the particular
customer.
A number of well trained staff would be serving in our cassava processing factory
in unique and professional manners and positions to provide its clients with all of
the above qualities. Because principles are very important to all businesses & profit
oriented organizations, we believe that as long as we can maintain the above
characteristics, customers will choose our products over our competitors, because
of the wide range of benefits it has for the public.
4.5 Distribution strategy:
We prefer to undertake our distribution logistics from end to end. Therefore this
will entail getting a truck for supply to Abuja and distance location; a farm mule or
a low capacity truck for conveyance from farm to retail outlets in Lagos for retail
customers to make purchase.
In general, our promotions will center on:
 Observation: meeting customers and surpass their expectation of our neat robust
fishes will attract buyers, contaminated free well packaged garri and cassava flour
and the proposed truck by filling a brief questionnaire
 Visibility: Our proposed truck will be branded; each of our middle men would
have big take away pack which includes thank you cards with our customized
nylon bags, so that our presence and name is noticed by everyone.
 Word of mouth: Many high end restaurants, supermarket that use our services tell
their colleagues, friends and others about our products & services.
 Community service public relations: we maintain a good relationship with the
local media, and have made sure we get flattering and beneficial exposure in the
community service sections of the newspaper and TV coverage. We will look for
any opportunities to publicize our business.

Fig 4.1 palm kernel Nuts and oil

Page 19
…Striving Towards Economic Sustainability and Agricultural Growth
 4.6 SWOT Analysis

STRENGHTS WEAKNESSES
Responsive to customers Small scale production
Great quality produce limited staff to handle various
produce knowledge responsibilities
Young work force
AZUR FARMS LTD.
SWOT

OPPORTUNITIES THREATS
Perishable nature of produce
Large potential market size pests and diseases
Opportunity in produce logistics upstart new entrants

4.7 Business Risk, Challenges and Mitigation Strategy

The major pests of oil palm in Nigeria are rats, bagworms, Mealybugs, nettle
caterpillars, rhinoceros beetle, bunch moth and termite whilst the most important
disease is Ganoderma basal stem rot and, to a lesser extent, Marasmius bunch rot.
To mitigate regular application of herbicides to control weeds, Insecticides will
remain the main weapon against insect pests, but integrated control involving
regular monitoring, good agronomic practices, conservation, supplementation
and utilization of natural control agent, and the judicious use of chemicals, will
become increasingly more important. Chemicals with broad-spectrum of activity,
long and persistent residues, and high mammalian toxicity will continue to be
replaced by safer and more target specific products that are also safer to the
environment. Training programs will include teaching materials to train our
employees (sales person) about service attitudes, customer perception and how
to handle client’s complaints. We will conduct periodic staff meetings intended to
review policy, increase customers satisfaction and to keep a general line of
communications between staff and management. All complaints will be
acknowledged by the staff and referred to management. Programs will be in place
for all types of guest complaints. More serious complaints will be documented.

Page 20
…Striving Towards Economic Sustainability and Agricultural Growth
 key risks affecting the business
• Perishable nature of cassava
How your business will respond to
these
 Processing strategy needs to be
worked on to ensure the production
start immediately after the harvest.

• Rodents, diseases, and theft  Best practices, taking into

consideration.
 Regular weed control system
 Round the clock security in our farm
 Good Insurance policy to safeguard
our farm, vehicles, machines and
equipments and installation of fire
extinguishers

Page 21
…Striving Towards Economic Sustainability and Agricultural Growth
 CHAPTER FIVE
5.0 Human Resources Analysis.
The human resources team will consists of men with impeccable academic
qualifications backed by a track record and years of work experience in Agric
business, cassava farming and processing related fields. We Intends to start
with10 staff.
5.1 Organizational Chart Fig.1.1
MANAGING DIRECTOR/CEO

FARM MANAGER ACCOUNTS/ADMIN SALES MANAGER

MANAGER

ACCOUNTANTS
DRIVERS
FARM LABOURERS
SECURITY

5.2 Management structure

Our Management team comprises of a skilled agriculturist and a serial
entrepreneur, Mr Ntia James, M.D/CEO. Yemi David Olubusoye Marketing
Manager and consultant, Richard Akpan (Farm Manager/supervisor), Mr Felix
Imaobong who be the production supervisor and marketing head and Chinwe
Nwachukwu the admin/accounts officer.
As the CEO/ Managing Director, I found purpose in growing a business that
produces foods and creates meaningful jobs for people, which in turn drives me to
overcompensate by pursuing more spectacular entrepreneurial endeavors.
Leveraging in my ability to design farm processing structure that is adequate for
achieving goals and objectives, good understanding of planting, harvest procedure,
diseases, markets and consumer parameters, compiling key business-metrics,
commercial acumen, accountability, excellent human resources management for
efficiency and optimum utilization of limited resources, marketing solutions,
customer relationship management and revenue assurance, I oversee operations in
all aspects of the business. In addition to managing client relationships, marketing

Page 22
…Striving Towards Economic Sustainability and Agricultural Growth
 and services expansion, I am responsible for hiring new personnel members to
enhance the operation team. I have a masters in business administration with
specialization in entrepreneurship.
I have attended workshops and seminars (to further boost my knowledge) in
relation to my chosen business line, some of which includes:
 Innovative agricultural capacity building training @ Green nation value chain services
2017
 Food production and processing by Agricultural Services and Training Centre
(ASTC) , Ibadan Oyo-State. 2016.
 Capacity building programme in the Bank of Industry entrepreneurship support
programme Lagos 2016

Table 5.0 TEAM MEMBERS

Name Position/ qualification

Ntia James CEO/MD. B sc. MBA
MBA Sales manager and consultant
Farm manager HND Agric Engr.
Production B.sc Agric Econs. and Extension
Admin/accounts officer
Farm worker
Factory worker
Needed Additional Positions: Farm workers, Machines operators, Quality
assurance supervisor and Driver, security.
Table 5.1 Salary structure

S/ Description No. Monthly Annual

N Required Salary ₦ Salary ₦
1 General Manager 1 50,000 600,000
2 Farm manager and production 2 35,000 x2 840,000
supervisors
3 Factory worker 3 20,000 x3 720,000
4 Farm workers 5 20,000 x 5 1,200,000
5 Driver, Sales Rep 2 20,000 x 2 480,000
Grand total 12 320,000 3,840,000
Casual staffs wages is subject to number of days engaged

5.3 Means of motivation:

Page 23
…Striving Towards Economic Sustainability and Agricultural Growth
Motivation is a set of activities that induce or encourage the workers to put in their
best effort towards the attainment of the goals of the organization.
Positive Reinforcement: positive reinforcement or behavior is to motivate individuals
or employee by properly designing their work environment and praising their
performance. It also analyzed the work situation to determine what cause workers to
act the way they do and then initiate change to eliminate troublesome as obstruction
to performance.
Training: training does not only improve the quality of output, but also improves the
quality of input as well. Better informed workers are less to make mistake in their
operation. Also increase in productivity is as a result of training program
Wages and Salary: payment of good wages and salaries is fundamental to the
productivity effort of the employee.
Job Redesign: We restructure jobs to reduce dissatisfaction and increase
productivity especially in mass production of vegetables, job enrichment, job
enlargement, establishing natural work units, job rotation, improving feedback and
natural work teams.
Participation: I will give my staff an opportunity to participate in decision making
through consultancy with our customers and implement decision by themselves.
This will also motivate them.
Making a success of any type of business does not depend on theories or what had
worked for others in the past, but on current realities based on the prevailing
conditions for that line of business and operating environment.

CHAPTER SIX
6.0 COMPETITIVE ANALYSIS

Page 24
…Striving Towards Economic Sustainability and Agricultural Growth
Competition creates threats and provides opportunities. The primary benefits of
any competitive analysis are a better understanding of what your competitors
are doing what they are offering to customers, and how to maintain our
competitive advantage. The findings from this analysis are likely to factor
strongly into our strategic planning and repositioning ourselves to strategically
fit into the market and improve our business.
Competitive analysis components are: Local Market Area Competition, Concept
Refinement and Evaluation, Assessing our competitor’s activities and products.
Our main competitors are:
 Queensoil Ventures Adigbe Abeokuta
 Green Ventures Nigeria Limited Benin City
 Acoa Resourcea Rukpokwu Town, Port Harcourt
 Vinmo Farms oluyole estate , Ibadan, Oyo
 Presco Industires Limited Victoria Island, Lagos
 Sunny Oil Nig Ltd Isolo Road, Mushin, Lagos

1. They all have huge capacity to produce and they have an organized
business of many staff and resource to deploy. Their weakness is they have
one main customer called ShopRite and have little leftover of great
produce for the other market, they also have management problems hence
affecting the quality of their produce.
2. They had the best of both funding and technical skills, they have huge
resources and skilled manpower. However, they have poor management
which leads to poor planning and unavailability of produce.
6.1 Positioning
Because we are developing our brand image and market positioning primarily
through our innovative services, focusing our competitive review on that
segment of the market, our market positioning will be in the lower price
quadrant.
6.2 Competitive Edge/Advantage
Production of premium quality well refined palm oil, we have different products
and strategy towards market approach. We planned to capture low small scale
farmers and our presence will basically be felt in any markets. We will gain good
brand recognition in a record time and develop a less overhead structure. Our
competitors are slow to make changes and upgrades to current line of services.
We plan to overcome their leadership with innovative ideas of marketing
automation, cross-channel orchestration, content and social marketing, website
design, online order and home delivery services using the cooling van at
competitive price. We intend to continually introduce additions and refinements
to this line. AFL competitive edge is in its people. We truly believe that your

Page 25
…Striving Towards Economic Sustainability and Agricultural Growth
business is not only as good as your products, but the quality of your staff as
well. Our staff is a reflection of us. Our long term goal is to hire team members
that are truly hand selected and have the same honest to goodness.
6.3 Unique Selling Proposition (USP)
Unlike our big chain competitors, because of our lean size, we can turn on a kobo
when economically pushed and make changes quickly allowing us to be
proactive, whereas our corporate competitors have to adhere more closely to
their company policies thus impeding their reaction time. with production of
well refined palm oil with high content of beta carotene items that take
advantage of seasonal produce further reducing price. Finally we will keep our
prices in check by meticulous monitoring of our controllable expenses – keeping
close eye on our Prime Cost Report and Inventory by initially employing casuals
for the seasonal tasks
The following procedures will be implemented.
 An inventory control system will be maintained. (plastics gallows)
 All merchandise received are counted and inspected.
 We pay our suppliers on time and remain loyal to them.
 We ask for and take term discounts.
 Purchase Orders will include: Price and terms, Price Protection, Always in
writing.

CHAPTER SEVEN
7.0 FINANCIAL ANALYSIS

Page 26
…Striving Towards Economic Sustainability and Agricultural Growth
 Finance is the study of the actual process of acquiring needed funds and how
money is managed. Components of the financial analysis are: Mobilisation, Sales,
Other income, Expenditure and Cash flow Statement.
Financial assumptions
20% inflation is assumed on the cost of equipment’s and raw materials, sales,
and sales turnover.
Tax is assumed 5% on net profit.
Salary increment is reviewed annually at 5 % upward during the period
under consideration.
5% of the total equipment’s is assumed for insurance per annum.
7.4 Long Term Financial Strategy
Azur Farms Limited. plans to reinvest the generated profit in the first 4 years
back into the business. AFL will continues the use of grants funding as a viable
and equitable mechanism of funding and significantly upgrading major assets by
endorsing a strategy of reducing the Indebtedness to rates ratio below a level of
0%.
7.5 Long Term Target
Azur Farms Limited. projects revenue of fifty million naira (N50,000,000) in
sales within the next four (4) years, we can keep up to two-thirds of the total
revenue from products sales after paying expenses. Fish farming and the
byproducts has the reputation as one of the best profit potential in farming
business.
7.6 Economic Benefits
Azur Farms Limited will create employment for 12 persons and more in the
pipeline. In addition to the supply of domestic needs, Government hope to
generate additional income tax revenue to boost the state Internal Generated
Revenue IGR. The establishment of such farm will have a foreign exchange saving
effect to the country.
7.7 Income and cash flow statement
This is very important, to keep track of our income and expenses, make informed
business decisions, collect the financial information necessary, for filing various
tax returns, to improve our chances of making a profit and convince others to
invest in our business. The importance of cash flow statements are:
1. It helps to manage the amount of money flowing in and out of the business
2. It is used to show how much cash is in the business at a given point in time.
3. Shows all monthly income and expenditure of the business
4. Re-assures an investor there is enough money (liquidity) to survive in the short
term

Page 27
…Striving Towards Economic Sustainability and Agricultural Growth
Table 7.3 Proposed Capital investment table
Equipment Quantity Unit Price Price in
in N N
1. Complete palm oil processing line
1 3,000,000 N3,000,000
equipments line with
Hydraulic press
and hammer mill. Locally fabricated
2. Locally fabricated 1 3,000,000 N 3,000,000
Palm kernel oil processing machines.
3. Borehole 1 500,000 N 500,000

4. Fairly used Truck for logistics 1 2,000,000 N 2,000,000

4 Lister Engine Diesel generator 1 500,000 N 500,000

8. Palm oil processing factory 1 4,000,000 N 4,000,000

construction, Electrical and machines
installation security equipment.

9 Operating Expenses, Diesels, 1,000,000 N1,000,000

maintenance, advert, packaging and
marketing cost etc.Training, technical
assistance, administrative & office
equipments, website designs

TOTAL 15,000,000
The estimated amount of capital needed is N15,000,000 million naira.
Sales forecast - what we consider
i. A forecast of our sales over the next 12 months.
ii. Supported by market research – how many customers will buy our
product at a certain price and how often?
iii. When will they pay us? Are we offering credit terms?
iv. What products / services are we selling?
v. How much do you sell them for?
vi. What is our maximum capacity?
7.8 Profit and Loss Account

Page 28
…Striving Towards Economic Sustainability and Agricultural Growth
All sales whether we have been paid or not
Stock level at start of year
Stock we bought
Stock at end of year
Opening stock + purchases - closing stock
Sales - value of goods and services sold
All expenses incurred this year whether you
have paid them or not
Gross profit minus indirect costs
Cost of machinery etc divided by number of years it will last
Tax at tax rate, Owner may wish to withdraw some of the profit

Page 29
…Striving Towards Economic Sustainability and Agricultural Growth