Farm Executive Summary (Business Plan)

Overview

This business plan is based on Cassava, Rice, Coconut Tree and Palm Tree plantation and the processing plants of the end products, involving processing cassava into cassava starch, Palm Tree to Palm oil & Palm Kernel oil, Rice, Coconut Palm to Coconut Oil and Coconut Milk and Other extracts. With various industrial tools to process and make the products hygienic and profitable with economy of large scale production.

This plantation will be on the land area of about 1640 hectares that will in one year produce;

Cassava Starch from 500 hectares of cassava plantation to produce 3,500 tons of cassava starch and yielding approximately N875,000,000.00
Palm Oil will be produced from 300 hectares of palm tree , yielding 1,800 tons of Palm oil to generate N 396,000,000.00
Palm Kernel Oil will generate N 108,000,000.
While Coconut Milk and Coconut Oil will generate a combined amount of nearly N 140,000,000.
Lastly , Rice will rake in N 540million after being processed from paddy rice to processed edible rice.
Total yearly Sales (Revenue) is projected to be N2billion for all the harvests

With yearly expenses is at 58% of total revenue, yearly tax of 10%, the net profit is projected to be ₦729,888,588 from year of harvest.

The Problems

The population explosion in Nigeria has made the cost of foods and their end products to be unstably higher because of the demand increase. Also the dwindling Nigeria foreign exchange earnings due to sole reliance on crude oil export. Also increase in youth unemployment and dis-empowerment, because of lack of employment opportunities in eastern states of Nigeria has made the insecurity to increase and also decrease in internally generated revenue by the government.

Moreover inability of Nigeria not being able to meet local demand despite massive production is because most farming products are principally in the hands of smallholder farmers who produce primarily for the traditional food market previously and are now transiting for industrial end-users, which in most cases are sub-standards. Majority of the cassava production systems are not oriented to the industrial market.

Solutions

Actualizing economic large scale production and scope profitability can only be achieved through these solution.

Establishing industrial cassava, Rice, coconut Palm and Palm tree farming as being proposed by OSYCHRIS Farms.
Identifying and developing market opportunities as import substitution and export.
Stimulating increased private sector investment in the establishment of export-oriented cassava industries.
Ensuring the consistent production and supply of fresh cassava roots with high starch content to end user industries, Rice, fresh Palm Oil and Coconut Oil and Milk for industrial use. (As OSYCHRIS’ production and process investment project)
Advocating for supportive policy and institutional reforms for the development of the Nigerian farming sector.
Facilitating the establishment of targeted support infrastructures that will reduce transaction cost and increase competitiveness of the entire cassava commodity chain in Nigeria.
Integrating the rural poor especially women and youths into the mainstream of the National Economy.

Palm oil and Palm kernel oil based ingredients from palm tree and coconut oil and coconut milk from coconut tree are in high demand from pharmaceutical industries, local consumption and industrial uses.

Also consumer retail food and snack manufacturers, personal care and cosmetics (mainly Palm kernel oil), biofuel and energy, animal feed (Palm kernel oil expeller), pharmaceutical, industrial, foodservice / service industry.

This makes the demand for palm oil, coconut oil, coconut milk, cassava starch and rice to be very high that the local production is never enough and more importation are done to meet up the local demand.

Chief Christopher Osita Ibe as the owner and chairman of Osychris Farms and Osychris Industries Limited, has spent over 1 billion Naira in purchasing of some equipment and farm machinery and farm seedlings and on Land preparation and cultivation.

It is projected that Osychris will produce 3,500 tons of Cassava Starch from 500 hectares of cassava plantation; Palm Oil is 1,800 tons; Palm Kernel Oil is 540 tons; Coconut Milk will be 68 tons, Coconut Oil is estimated to produce 18 tons and processed Rice will yield 1,800 tons.

Others include Cassava Stem and Animal Feeds that will also bring revenue to the organization.

OSYCHRIS INDUSTRIES LIMITED will be downstream producing company with palm oil , coconut oil, rice, coconut milk and cassava starch processing and packaging. Other extract will be animal feeds and cassava stems. Osychris industries limited has over 1,700 hectares of land at Eziagulu Otu Aguleri, Anambra North, in Anambra state of Nigeria, its disposal, of which 1,650 hectares will be used for the farming plantation.

1.2 Vision

To be the largest producer with the best quality of cassava starch, palm oil, palm kernel oil, Rice, Coconut oil and Coconut Milk in the Nigerian marketplace in the next five years.

1.3 Mission

Innovative production of high-quality farm products at affordable prices.

Production and packaging of high-quality farm products.
Creation of employment for the youths within the business environment.
Breeding customer satisfaction at all levels of product(s) demand.

Strategic Advantage

High quality
Quick delivery services
Wonderful customer care services
Online ordering for products
Increase supply and new choice of marketers and customers
To create customer satisfaction making at least 60% of customer base, repeat business
To training and empower distributors of 200 trainees in 36 months

1.4 Keys to Success

Maintaining core-values to only provide a more sustainable quality to products produced by competitors
Maintain low operating costs.
Product freshness and quality.
Constant research of industry to keep knowledgeable of market needs.
Constant evaluation of strengths and weaknesses with adjustments made as warranted.

1.5 Strategic Advantage

High quality
Varieties of products
Quick delivery services
Wonderful customer care services
Online ordering for products
Loyal network of distributions
Increase supply and new choice of marketers and customers
Steady growth with 12 months
To create customer satisfaction making at least 60% of customer base, repeat business
To provide quality products at affordable prices with exemplary services
To training and empower distributors of 200 trainees in 36 months

1.6 Channels overview

Competition: SME Farmers Local Markets, Retail and household sellers

Revenue Channels: Wholesales, Supermarkets, Stores, Pharmaceuticals, Manufacturing Companies, Local Markets, Retail and household sellers

Production Channels: Cassava Farming, Starch Processing, Palm tree farming, Palm oil Production, Palm Kernel Oil, Coconut Palm Plantation, Coconut oil, processing , Coconut Milk production, Rice Plantation and processing, Animal Feeds and Cassava Stems.

Use of Fund: Fixed Asset, Raw Materials, Equipment, Machineries, Logistics, Salaries, Processing Plants, Buildings and Operating cost.

Amount of Funds Required: N2,000,000,000 (Two Billion Naira Only). With each production sector of Rice, Palmtree, Coconut Tree and Cassava having 25% investment funding on both its farm plantation and corresponding processing plant for end products.

1.7 Management

Headed by Chief Christopher Osita Ibe, who is a Nigerian business man with vast experience and interest in automobile, production, agricultural technology, community development, education and real estate. He will engagement in supervisory role as the Chief Executive Officer.

Dr Christopher Ibe is the Chairman / CEO of Osychris Industries Limited. Founder, Defender Rubber Industries and Diamond Dust Investment Limited . His Companies areas of expertise include power generation (generators and engines), industrial gases (argon, helium and party ballon gases) motorcycles , tyres, tricycles , bicycles, machines , construction, agriculture, product development, housing, student academic sponsorship and humanitarian activities.

1.8 Net Profit

Description	Net Profit in Naira
Year 1	₦729,888,588.34
Year 2	₦752,227,950.91
Year 3	₦775,147,331.30
Year 4	₦798,662,717.34
Year 5	₦822,790,559.36
Year 6	₦847,547,784.21
Year 7	₦872,951,809.68
Year 8	₦899,020,559.45