Imporving Small Scale Farming in Nigeria

I am Ani Johnson,  Currently; I am an Agribusiness Entrepreneur with major emphasis on organic farming, Food Processing and Packaging. My role is to cultivate and process major staple food crops such as Cassava into derivatives like Cassava flour, chips and Garri. And Maize into derivatives like corn flour  I have been researching on how to produce, package and process common local meals that is eaten across the country and how to improve on the way it is being processed. I become an entrepreneur because of my zeal to be self-reliant and also contribute my quota in solving problems and challenges facing the society as I take a look at the environment where I am living and proffer solutions to their challenges and problems. I process and package two major crops: cassava, maize 

Besides, I improve the lives of  smallholder farmers by providing high yield Cassava stems, maize seedlings fertilizers 

We are trying to solve the problem of Post harvest losses by Smallholder Farmers by Siting a Processing Factory at Enugu Nigeria. In addition to that, we are also solving the problem of low yield usually experienced by smallholder farmers by providing high yield Cassava stems and Maize grains

Food insecurity is a major problem in Sub-Sahara Africa and had been worsened by Corona Virus Pandemic, Climate Change, Ever increasing Population. 

Our  Project is processing of staple foods such as Garri, Cassava flour and Maize flour using state of the art equipment from start to finish. We source our raw materials through provision of high yield cassava stems, maize grains and fertilizers to smallholder farmers who in turn sell the cultivated crops to us for processing

This project will elevate humanity as it will guarantee:  Zero Hunger, Good Health and Well-Being,Industry, Innovation, and Infrastructure and Reduced Inequalities

We are working on Improving Smallholder farming in Nigeria. Small scale farming otherwise know as subsistence farming in Nigeria and Sub Sahara Africa has been abandoned or neglected by successive government. Most farmers are living below $1 per day, their output is not enough to take care of their immediate needs.

Our solution will provide high yield cassava stems, maize grains and fertilizers at a subsidized rate for them for cultivation. In order to reduce post harvest losses which is a major problem to smallholder farmers in Sub Sahara Africa, Our state of the art processing plant will ensure that we buy back what they cultivated no matter the quantity this will motivate them to expand their business by acquiring more hectares of land for cultivation.

Besides, we are also solving the problem of food insecurity in Sub Sahara Africa, Our processing plant will ensure mass production of food that can go round the Sub region.

Statistics shows that about 80% of the population of Sub Sahara Africans are subsistence farmers and are classified according to UNDP, as home to some of the most nutritionally insecure people in the world. Our solution will add nutritional value such as Zinc, Niacin,Thiamine

This Project is processing staple foods such as Garri, Cassava flour and maize flour by using state of the art equipment for the production. The process ensures that from start to finish of the production will be done by the machine and eliminate manual processing that leads to substandard production. The Project will also provide high yield cassava stems, grains of maize and fertilizers for smallholder farmers who will in turn cultivate and sell the raw materials back to the company for processing.

Besides, our Project is to ensure that smallholder farmers use best and quality high yield Cassava stems and that is why our strategic partners, Niji Farms will be providing varieties of cassava stems to us for onward distribution to smallholder farmers such varieties as: TME 419, TMS 1632 and Vitamin A (Yellow) Cassava which guarantees high yield and return on investment for smallholder farmers.

Our Pilot Project will first start with selected communities in Enugu Nigeria and those communities are agrarian communities whose livelihood depend of farming. And that is why we are working closely with Enugu State Ministry of Agriculture and Rural Development in order to provide logistics and technical support needed.

We understand their needs as we have one on one interaction with them where we discovered that absence of processing equipment and high yield crops posses a major problem to them. This left them below poverty line as what they cultivate is not enough for them to consume let alone selling to earn income.

We will engage them through cooperative societies and developing a software application where they will subscribe with us and each of them will have a personalized dashboard. This will enable us tract their activities.

The project will address their needs as high yield Cassava stems and maize grains will be provided for them at a subsidized rate. Marketing of their product is also provided as we will buy back their cultivated crops no matter the quantity for onward processing.

The essence of the project is to improve the standard of living of smallholder farmers &guarantee food security

The small scale farmers are traditionally left behind on most countries in Sub Sahara Africa. Most of them lack access to High yield Cassava stems, fertilizers and seedlings as well as processing equipment and market for their products which led to post harvest losses.

The project is aimed to address these challenges they (smallholder farmers) face by making available improved seedlings and cassava stems available to them at a subsidized rate as well as setting a processing factory where we can buy back their products and processed them for the final consumers.

We also provide consultancy services to smallholder farmers. 

I was born and brought up by smallholder farmer. My father labor year in and year out without anything to show for it due to low yield seedling that he was using. Even those  harvested were left unsold or rotten due to absence of marketing for the product.

This led me to form a team of Agribusiness specialists and consultants on ways to reduce post harvest losses and modernize processing techniques of most staple foods being consumed in Sub Sahara Africa. We were able to come up with the idea to set up an enterprise known as Johnsons Agro-Allied Processing Enterprise duly registered as a business enterprise in Nigeria.

Our aim is to work with selected communities in pilot phase where we provide high yield Cassava stems and seedlings (as that what we deal with) to smallholder farmers who will cultivate and sell back the crops back to us for processing.

We therefore in turn process Cassava into Garri and Cassava flour and Maize into maize flour using state of the art processing equipment from start to finish as well as add nutritional contents such as Niacin, Riboflavin etc to make it nutritious.   

I am passionate about this project as i want to use this to improve the lives of thousands of smallholder farmers in the selected communities as well as change the narrative of youths abandoning farming business to older generation as they (the youths) sees it as unprofitable business. This will reduce rural urban migration. 

In addition to that, this will also reduce rate of high unemployment as more people will be engaged in agribusiness (Food Production) and as well revolutionize Food production and processing which will guarantee food security not only in Nigeria but also in Sub Sahara Africa.

As the business progresses more and more communities will be engaged in the project as the proposed processing plant can process 50 tons of Cassava per day 

I am well positioned to deliver this project due to skills and backgrounds. Currently i am undergoing training with Niji Institute for Sustainable Agriculture (NISA) where i am undergoing training on farm inputs and other agribusinesses and how i can develop; run and effectively manage agribusiness investments to global stardom.

Besides, i have i have acquired Entrepreneurship Development Training from National Directorate for Employment, Nigeria in Agribusiness, MIT Solve online Training (edx.com), Growth and Employment (GEM) Project sponsored by the World Bank, Youth with Innovation in Nigeria (YOUWIN) sponsored by UKaid and Nigeria Federal Ministry of Finance and other numerous seminars and workshops relating to agribusiness.

I have over ten years experience in Agribusiness and have been working on this particular project since 2012.

My experience and leadership skills makes to successfully manage any business venture i find myself. I have the passion of revolutionizing Food production, processing and packaging by improving on its contents, quality and durability. This i hope to achieve by using state of the art technology. Having carried out an extensive research on food processing and packaging business. In conclusion, I venture into Agribusiness  to ensure mass production of staple food crops.

I have the ability to overcome adversity having successfully and still managing my business even in the face of uncertainty.

I know the challenges that i will face while implementing this project but i am not deterred. This Project is innovative and entirely new in the selected communities as most of them are illiterate and are unaware of modern high yield crops and use of fertilizers and chemicals. I and my team will engage them through cooperative societies and we are working to partner with State Ministry of Agriculture and Rural Development.

In buying back their crops for processing, weigh bridge will be introduced to weigh every crop brought into the factory for purchase by us and each crop will be paid according to the weigh in tons.

The processed food will be sold by using well structured supply chain that we will be introducing such as ecommerce platform as well as use of middlemen for wider distribution of products      

In the past, I have demonstrated my leadership skills by setting up a successful business enterprise and manage the business with four staff working under me. I have also held leadership positions in various capacity of which I gave a good account of myself. I have also gained experience that I vital for entrepreneurship by acquiring Agribusiness Processing Training from Abuja Enterprises Agency (AEA) and also Business Development Training from HP LIFE.

Besides, I have over 8 years’ experience in business management. My experience and leadership skills makes to successfully manage any business venture i find myself. I have the passion of revolutionizing Food production, processing and packaging by improving on its contents, quality and durability. This i hope to achieve by using state of the art technology. Having carried out an extensive research on food processing and packaging business.

I am also a good community leader and have the interest of my community at heart and that is why i am applying for this challenge in order to provide solutions to problems being faced by several communities in sub Sahara Africa. 

Though our Organization is Hybrid of for -profit and nonprofit, we are working with larger organizations such as:

1. Enugu State Ministry of Agriculture & Rural Development will be providing logistics and technical support for the smallholder farmers farm implements such as tractors will be provided as well as other items that will be needed.

2. Niji Farms will provide high yield Cassava stems such as TME 419, TMS 1632 and Vitamin A (Yellow) Cassava at a subsidized rate

3. Raw material Research & Development Council of Nigeria they will be responsible in providing technical support in improved seedlings

We identified a key issue in Agribusiness especially lack of improved seedlings and Cassava stems for rural smallholder farmers as well as absence of nutritional contents in most staple foods being consumed in Nigeria and indeed West Africa sub region.

Our innovation is in the connection of different dots within the ecosystem and applying proven technology in new ways through innovative distribution. Such innovation includes improved processing from start to finish by using state of the art equipment as against the use of manual and traditional means which is unhealthy and cannot meet the demand of ever increasing population.

Specifically, this means taking innovations in agricultural sector down to rural dwellers through partnership with Enugu state Ministry of Agriculture & Rural Development that will provide technical and other support such as mobilizing rural smallholder farmers through farmers cooperatives that will cultivate the crops and in turn sell the crops back to us for processing. Besides, we are producing an affiliate product for the consumers this is the one we are selling directly to final consumers which will come in 5 and 10kgs. While the product we will sale directly to retailers will come in 25 and 50kgs.

This innovation ensures food security, improved nutritious meal, direct and indirect job creation and empowerment of smallholder farmers by once more making farming business attractive as well as reduce rural urban migration.

This solution is expected to have impact on the problem we are addressing in Nigeria and Sub Sahara Africa such as:

a. Improved nutritional content on most and widely consumed traditional staple foods such as Garri, Cassava flour and Maize flour

b. Making Agribusiness interesting and profitable for smallholder farmers as there is a ready made market for their products unlike in the past where they experience post harvest losses.

c.Ensure food security as our state of the art modern processing equipment will improve on mass production of staple foods that can go round the country and indeed the West African sub region.

We are making impact on humanity through empowering smallholder farmers by providing high yield Cassava stems, Fertilizers and seedlings to them for cultivation. We also create market for them as we will buy their products and process it for final consumers whom we are also making impact by making nutritious food available. This is a social enterprise aimed at taking thousands of smallholder farmers out of poverty.

The social impact of the business idea can be measured in the following ways:

1. Job Creation: This idea will create both direct and indirect jobs. It will create about 20 direct jobs that is those that will work in the production and administrative unit. while that of indirect jobs are the freelance marketers that will market the product.

2. It will ensure that Smallholder farmers sold their farm produce as the business will site the factory closer to the farmers where they can easily sell their crops

3. It will add to Gross Domestic Product (GDP) of the country

4. It will increase foreign exchange earning as the product will be exported outside the country

5. Eliminate the risk associated in consumption of infected foods by rodents with poses a health hazards

6. Ensuring food security as the food will be available all year round.

7. Encourage economic diversification in my locality and indeed the country

8. Encourage young adults and youths to go into farming.

Currently we are serving a community with a population of  500,000 where we are using as a pilot scheme to test run our projects. We are currently working with 20 Smallholder farmers 

In the next one year, we will be covering more communities in Enugu state where we will engage more smallholder farmers with estimated population of 1,000. While our processed food will be distributed to a targeted population of 5 million in some parts of the country.     

While in the next five years we will be targeting smallholder farmers in other parts of the country with estimated population of 20,000. And will be targeting about 20 million for supply of our processed food.

We are dealing with two categories of people: The smallholder farmers who are the suppliers and end users (the final consumers) who consumes the product. We make food available in the society through smallholder farmers that cultivates the food while our enterprise Johnsons Agro Processing Enterprises processes the food.

• Network with Smallholder Farmers: we are currently in talks with Enugu state Ministry of Agriculture and Rural Development on technical support and as well assist in mobilizing & Networking smallholder farmers in various rural communities for the cultivation of crops that will be used in processing. This process will empower rural smallholder farmers and make farming business attractive even for young individuals.

• Expansion and Construction of state of the art modern processing equipment that will ensure processing from start to finish without any manual means of processing that will be involved. This will ensure well processed products that will be healthy for consumption.

• Service improvement: we are aiming on mastering all agriculture markets across sub Sahara Africa so as to design products/services that best fit each market's dynamics and needs.

• Adding Nutritional Contents: During processing, we will add nutrients to all our products and this is one of our major objectives and our Unique Selling Proposition. This actually differentiates us from our competitors.

• Market Expansion: In the next one year we will be aiming to expand
  our market to most parts of the country through a well structured supply chain with food retailers, departmental store and eCommerce platforms. 

The  main barriers currently exist for me to accomplish my goals are:

•   Barrier of Accepting the Product at First Time: Since most consumers are already familiar of consuming local way of processing staple foods, most of them will still hold on the old idea and it will take a long time for them to change.

•   Cost of production: The cost of production will be considered when fixing the price for the product and care will be taken not to fix the price far above that of the competitors. So the business may run into risk of fixing the product below the cost of production.

•  Competitors: this may pose as barrier as local production of stale food pose as competitor along with other alternative types of processed food already in the market. This is a barrier that my idea may face but with enough research already conducted I will surmount the challenges.

• Market Entry Barriers: We have to consider and deal to those things that will serve as barriers when entering the market such as competitors, consumer's preferences and pricing. Research will be conducted on how to deal with these barriers and once identified and achieved, our idea idea will be more successful.

Our plan to overcome above mentioned barriers are as follows:

1. Finance: This will enable us to purchase most of the materials needed for the production. The idea needs a lot of technological components such as different types of fabricated machine like cassava peelers, grinding machine etc. All these requires finance (Capital) to purchase them. In order to overcome this barrier, we request for Equity investors, creditors or grants in order to purchase the much needed equipment

2. Knowledge of the Market: Having a good knowledge of the market will also make our  idea more successful,we have a good knowledge of our target customers, their preferences, income etc. Including how to locate and distribute our products to the consumers at the right time. In order to overcome this barrier, we request for partnership in Business Development.  

3. Differentiate our Products from that of Competitors: Our Unique Selling Proposition is adding nutrients to our products as well as developing an affiliate brands for final consumers and another brands for retailers. The affiliate brands will be in 5and 10 kg that an average consumer can afford while 25 and 50kg brand is for retailers which they will resale to final consumer. This is applicable to our three products: Garri, Cassava flour and Maize flour. In order to over come this barrier, we request for Marketing professionals and Business Development expert.

We are currently working to partner with Enugu State Ministry of Agriculture and Rural development in terms of providing logistics and technical support for the project. The ministry will be providing tractors and other farm implements needed to smallholder farmers.

We are also in talks with Niji Farms who will be supplying subsidized seedlings and Casava stems at a subsidized rate to smallholder farmers. They will also supply insecticides and chemicals for weeding to smallholder farmers.

In terms of processing, we are already in talks with DOINGS Engineering, a Chinese firm for fabrication and Installation of all processing equipment.

The above mentioned partners are already in negotiation with us  

Naturally, the target market of those who are the end consumers of commercial farm produce and also those who benefits from the business value chain of the agriculture industry is all encompassing; it is far reaching. Every household depends on produce from commercial farms, so also a large chunk of manufacturing companies depend on commercial farms for some of their raw materials

We will ensure that we position our business to attract consumers of agriculture produce not just in Nigeria alone but other parts of Sub Sahara Africa.

We have identified the target audience and also device means of reaching out to them. We will advertise our business in agro-allied and food related magazines and websites as well as listing our business in yellow pages advert. We will also engage in direct marketing as well as encouraging referrals (i.e. word of mouth)

We are ready and willing to utilize every available means (conventional and non-conventional means) to test launch and promote the business. We intend growing our business and that is why we have perfected plans to build our brand via every available means.

Having cultivated, processed and packaged our product and have been certified by various regulatory agencies. We will hit the market by embarking on Promotional sales in major Open market across the Country and indeed the sub region.

We are using combination of all to sustain our income. And are planning to source for credit through government agencies in Nigeria such as Bank of Industry, Central Bank Intervention fund for Agro processing businesses as well as seeking for investors who can invest in Agro Processing Enterprises.

We are targeting an average of 1,600 customers per week with about 2,000 products to be distributed in the market on weekly basis at the growth stage. Later, the customer base and the product will increase when the product becomes widely accepted by the target market due to its uniqueness.

Lastly, we are applying for "Elevate Prize" to source either grant or equity investment for this project as it is capital intensive 

Since this is a hybrid organization. This is our financial assumption for the year: 

We assume that we will sell 4,000 units of cassava flour in Year 1. Per unit, this will sell at $50 and cost us $28 in COGS and $5 in overhead. Maize Flour assumption is 5,000 units, $51 selling price with $22 as COGS and $10 overhead cost. Garri is 5,000 units with selling price at $35 per unit, COGS and overhead costat $18 and $8 respectively. The growth rate from year 1 to year 2 is 30% while from year 2 to year 3 is 50%.

We are yet to raise fund for the Project. That is why we are applying for Elevate Prize to raise fund for the project.

We are seeking for Capital of $300,000 (Three Hundred Thousand United States Dollars) This will enable us carry out the following functions:

• Construction of Factory Site
• Purchase of Factory Site 
• Purchase and Installation of Processing Equipment
• Purchase of High Yield Cassava Stems and Maize grains that will be distributed to smallholder farmers at a subsidized rate
• Development of Software & Mobile Applications
• Purchase of Raw Materials 
• Legal Expenses and other Costs

We are looking for a grant but if not available we will go for equity or debt investment.

We will also carry out other operating expenses as follows:

• Accounting/Bookkeeping
• Advertising and Marketing
• Legal, Insurance and Licensing Fees
• Direct and indirect Labor cost
• Payment of Utilities and taxes
• Phone bills and Communication costs etc.

These costs are estimated at $40,000 (Forty Thousand United States Dollars) which is part of initial capital of $200,000.

We are applying for Elevate Prize for assistance to develop a business model on this project. Business Model on how to process staple food crops by adding nutritional contents that will maker it more nutritious and reduce excess carbohydrate. We also need model on developing a software and mobile applications that can be used to subscribe smallholder farmers who will cultivate the crops.

Assistance in Finance is also needed, the project is capital intensive and requires a lot of capital. We source for either equity or debt investment if grant is not available.

Advice on marketing is also needed, we we are selling not only to Nigerian populace but to extend to other Sub Sahara Africa and Africans in Diaspora through a well structured supply chain and marketing that will create much needed awareness.

Legal assistance is needed as well in order to comply to both local and international standards. This involves certification by various regulatory agencies both national and international. As well as registration of patents and trade marks.

Finally we need mentorship on this business in order to gain deeper knowledge of the business.

Our goal is to ensure the success of this project by exploring all partnership that is available. We as a team are already in partnership with government agencies, corporate organizations and individuals in mobilizing smallholder farmers, providing logistics & technical support, installation of processing equipment and provision of improved seedlings & fertilizers for smallholder farmers. 

Seeking for partnership with Elevate Prize is to further corroborate with the existing partnership which will ensure that our goal of " Improving Small Scale Farming in Nigeria" and " Providing Quality & Nutritious staple food in Sub Sahara Africa is achieved. Our Mission is to reduce poverty and improve well being of average smallholder farmers through provision of high yield seedlings and at the same time create a market for their product by purchasing their product which will be processed in our state of the art Processing Factory     

Having partnered with the following organization in Nigeria such as: Enugu State Ministry of Agriculture & Rural Development, Niji Farms, Raw Material Research & Development Council of Nigeria and others, we are open for partnership with Elevate Prize.

We have no potential partners that will come from Elevate Prize in mind but will welcome any partner that will be ready to work with us in order to ensure that our project is a success.

WE are open for partnership with no particular partners.