Table of content
Executive Summary 4
Products and services
Market Analysis 10
Sales and Marketing Plan
Management plan 19
Financial Plan and Projections 24
PATILAD Honey’s objectives are:
– to produce and collect quality honeybee products from the Nigerian beekeepers, distributing up to 12 tonnes in 3 years on domestic and external markets
– to create jobs for Isheri inhabitants
– to breakeven in the 2nd year of activity
Honey is a healthy product that is used worldwide. Changes in this industry have revealed an
opportunity for Nigerian honey producers to deliver high-quality products to external markets. The markets in Western Europe are importing large quantities of honeybee products and lately, large exporters like China have suffered a decline in their preference due to using pesticides. The Nigerian honeybee products are ecological and are beginning to get noticed in those markets.
On the other hand, we consider there’s a good opportunity in the domestic market, as Nigerians are coming to know the benefits of consuming healthy products, such as honey. As the living standard will hopefully grow in the following years, the domestic market will absorb more and more honeybee products.
The health benefit of Honey is widely spread these days as people are getting to see the danger of refined sugar to people’s health. The market is indeed huge as more households, supermarkets, shopping mall, pharmaceutical companies, and the likes are also increasing their demand. We also focused on the international markets, as demands keep rising for the wild pure honey from wild honey bee colonies. The market has grown from 35% to over 49% between 2015 & 2017 and the gradient is not going to come down soon.
PATILADHoney will hire a distribution company that will market its products under its brand name, all over Nigeria. For exports, it will contact several food importers that will market the products under their brand. The anticipated production is 3 tones within the first 12 months and further expansion as the number of customers increases; production in the 3rd year being three times more. During the first 2 years, emphasis will be given to export sales, which is expected to absorb an increasing proportion of the company’s output.
PATILADHoney will offer to the domestic market and for export high-quality honeybee products such as honey (extracted, comb and chunk), wax and bee glue.
The products will be packed and delivered in different formats from 200 liters metal drums to 200ml jars for honey and 25 ml bottles for bee glue. The product we offer can be used in many ways, such as diet supplements, as a raw material in the cosmetics industry (lotions, skin creams, lip balms), furniture industry (polishes) and food industry (cookie recipes), etc.
The main element of the product strategy will be the development of a reliable supply chain and consistently high-quality production. This will sustain our competitive advantage over our local competitors.
Honeybee supplies will be collected from partner beekeepers and produced internally, handled, and packed by professionals, being delivered on time. Exports of honey will be in DDU or EXW terms, as the external customer requires. On the domestic market, a food distributor will be contracted, thus enabling us to deliver to an increasing number of counties each year.
Our employees will professionally act in order to enable this system to grow profitable from year to year. The capacity for delivery in the 1st year will be up to 7.5 tonnes of honey, all three years together being 52 tones, from which 18 tonnes from internal production. 80 percent of this will be exported, the remaining 20 being delivered to the domestic market.
FINANCING AND COST
The total investment would be up to N5,000,000 and it’ll breakeven in the 2nd year. The initial cost of incorporation is N200,000, in the first year investments of N4,500,000 being made. The two streams of revenue are the external and domestic markets. The weight of exports will be 80%. The first revenues are expected in 5 months after operations start. Revenue will top N9,525,000and profit will reach about N1,869,515 in the 1st year of operation.