ORINNA LIMITED: RICE

FARMING BUSINESS
GROUP 6 MEMBERS
Hadiza Mustapha Bulama BU/20C/BS/4519
Fatima Yusuf Usman BU/20C/BS/4590
Muhammad Mamman BU/20B/BS/4408 [leader]
Raymond Edibo BU/20C/ENG/4550
Olasetemi Bode Thompson BU/20C/BS/4560
Rumaisa Idris BU/20C/BS/4597
Aisha Yasmin Faruk BU/20C/SCI/4614
Nana khadija Buhari BU/20C/MED/4508
Abubakar Musa Usman BU/20C/BS/4652
Usman Yuguda Hassan BU/21A/BS/5367
PROJECT DESCRIPTION
• Orinna Limited is intending to go into rice production business. This will be a
strategic step to investing across the rice value chain by beginning with the
paddy supply network. The project main focus is to ensure that 100 Ha of land
is put to productive use through stakeholder engagements to ensure
maximum yield of quality paddy.
• The project aims to engage 50 farmers with the assumption of the production
process will be to allow for efficient utilization of the farmers. This objective
will be achieved through activities that encourage farmers to adopt good
agricultural practices, basic business skills and access to finance including
savings, as a multiplier to enhance the impact of these practices on the
resulting farmer income.
• Project activities will be open to both gender, male and female youth as
smallholder farming is a family business. Both men and women will receive
capacity strengthening on topics such as rice good agronomic practices,
harvest and post-harvest handling of paddy rice and basic business skills.
Training will be done using classroom and demonstration methods.
PROJECT BUSINESS REQUIREMENTS
• The project main focus is to ensure that a 100 ha of land owned by the
company is put to productive use through stakeholder engagement to
ensure maximum yield of quality paddy.
• To successfully cover the cost of wet season production of rice in the
year of 2021 at the said farm location, Orinno limited will require as
total amount of N 45,280,719 (Forty-five million, Two hundred and
eighty thousand, seven hundred and nineteen naira only). With project/
investment circle of 6 months (one season) at an interest rate. The
financial projections show that farm will make a revenue of
N72,000,000(Seven-two million Naira only) for wet season farming on
a hundred ha rice production and this will confidently cover up all the
associated charges and investment of the project with over 60% ROI.
SOURCING THE BUSINESS/ CAPITAL

- A SUM OF N20,280,719 WAS RAISED BY THE PIONEERS

COLLECTIVELY
- ADDITIONAL N20,000,000 LOAN TO BE RECEIVED FROM
NIRSAL MFB AS PART OF THE FG’s EFFORTS TO
SUPPORT SMEs
- N5,000,000 worth of farm inputs to be received from the
CBN’s ANCHOR BORROWERS PROGRAMME
• We intend to be in commercial rice farming business because:
• It has proven profitable overtime regard of shift in demand and supply
or cost of inputs due to the larger of buyer and sellers than other
commodities and proliferation of rice milling plants across Nigeria.
• We want to contribute our quota in growing the Nigerian economy,
national food production, export to other countries and above all, to
make sustainable leap in value of local rice.
• This strategy will also be another means of empowering 500 agile
youths of Kebbi state as extension agents as the location will be in
kebbi state. We will employ the expertise professional agribusiness
consultants to spearhead the project while we diligently follow up on
all reports to track progress.
DESCRIPTION OF SERVICE
• Rice is a highly commercialized commodity with virtually all
produce harvested going up for sale through contracts or open
market structures. This is also heightened by the fact that
consumption of rice, spans all demography regardless of status
or class as a staple diet.
• To be a standard sustainable commercial rice farm, we will be
involved in primary post-harvest handling, and supply to Agro-
processors.
TARGET MARKET
• The target market are market dealers, Agro-processors and
urban markets in Kano state and distant markets like Lagos,
Port-Harcourt, asaba, onitsha and other vibrant areas in the
south.
• Un, state govt, federal govt and other parastatals in form of
contracts.
• neighboring niger republic and other ecowas states.
RISK ANALYSIS AND CONTINGENCY PLAN
COMPETITOR ANALYSIS
A few established players in the market with multiple activities are integrating backward
and expanding capacity to solve sourcing constraints and consolidate market share.
• STALLION
A multi- national conglomerate with a rice milling and distribution business, aiming to
enter into contract farming and local fertilizer production. Stallion recently completed
milling capacity expansion to increase capacity to 400K MT p.a.; secures paddy supply
through backward integration.
• BUA
BUA group announced plans to scale its milling and processing facility from 200K to 1M
MT by 2021 supported by outgrower schemes in Kano.
• DANGOTE
Dangote also announced plans to establish 250K MT rice mills in kano, supported by
farmer outgrower schemes in Jigawa, Zamfara and sokoto.
STRENGTHS
•Informational strength: There are enormous
information on rice production , reports of past
projects and history of rice production in project
location.
•Location : Kebbi State has a possibility of three
production cycle with a good irrigation system.
The farm would be positioned in areas less prone
to insecurity.
•Team: A strong board comprising experienced
business experts with existing thriving
businesses, domestic and international network.
•Partnership: Our partner's experience in rice
farming plus other networks of rural farmers and
extension agents will facilitate optimum production
and efficient utilization of input resources.
OPPORTUNITY
•The Nigerian agricultural landscape is changing,
with increased government policies aimed at
stimulating private sector involvement and
boosting local production of key products.
•Rice is one of the major staple foods in Nigeria,
consumed across all geo-political zones and
socioeconomic classes in Nigeria
•With rapid growth in the country's population
which has exceed 200 million, the demand for rice
has increased.
•Large scale processors and already established
brands are already flooding markets with finely
processed rice. Hence, a growing and largely
unmet demand for quality paddy.
•Kebbi state accounts for significant percentage of
total rice production.
•There is greater demand for locally produced rice
as imports become more expensive given the
uncertainty of the foreign exchange market and
ban of imported rice.
WEAKNESSES
• An established company with
limited field experience in rice
production.
• Fewer networks of value chain
support service providers.
• At midstream i.e. milling is
highly competitive; several
large - scale millers are
continuing to invest backwards
into production, hence we will
be a price taker.
THREATS
• Insecurity : There is a growing threat of
insecurity in Kebbi State.
• Infrastructure : Kebbi state is bedeviled
with poor roads . This creates hurdles and
delays when transporting inputs or outputs.
• Preference: Consumers ' preference for
well milled, high quality rice, drives the
sales of imported brands over local brands.
• Climate: Climate uncertainty and global
warming has created a shift in production
calendar with a resulting effect on yield
uncertainty . This has created a lack of
confidence in the sector.
• Political: Rice importation ban could be
lifted at any moment which could cripple
existing pricing structure in the rice value
chain.