Moringa Farm Business Plan

50,000.00 20,000.00

INTRODUCTION

Moringa is one of the world’s most useful plants with one of the highest nutritional contents of any plant known in the world. It is a fast-growing tree and is grown throughout the tropics. The most widely cultivated species is Moringa Oleifera, a multipurpose tree, and usually called the Miracle tree for good reason. Common names include Moringa, drumstick tree, from the appearance of the long, slender, triangular seed pods, horseradish tree, from the taste of the roots which resembles horseradish, ben oil tree or Benzoil tree, from the oil derived from the seeds. Used for human food, livestock forage, medicine, dye, and water purification. Moringa oleifera tree has been called the tree of life in many cultures around the world, including Nigeria. There is a huge- market for Moringa oil both locally and Internationally and this will continue to grow. The demand for Moringa is so huge that it requires that Moringa trees be planted on at less 500,000 hectares of landing Philippines to meet orders from just one company in the USA. Foreign buyers of Moringa seeds are always scanting in the country looking for Moringa seeds. And currently, there is a demand to supply over 40 tons of Moringa seeds. Moringa is a multipurpose plant that is known as a miracle tree, due to its amazing properties as a medical plant, nutritional plant climatic change plant etc. Moringa was one of the greatest gifts which Nature bestowed on a man but like most other trees and plants, lost its fame when science became more experimental and analytical.

Looking at the in-depth health benefits of Moringa leaves, stem, root, and seeds, scientific studies have shown that it contains specific antioxidants and health promoting ingredients that offer palliatives to malnutrition, hunger, and diseases. The early leaves are edible and are commonly cooked and eaten like spinach or used to make soups and salads. It’s rich in many vitamins, including Vitamin A, several forms of Vitamin B, Vitamin C, Vitamin D and Vitamin E.

Commercial cultivation of Moringa is very successful in Nigeria due to its market value. Moringa production is not only for income and revenue generation but it is also known for its medicinal value/health benefits and so demand for Moringa is high in the national and international markets. The harvested products will be sold to production industries as raw materials and also exported to neighboring countries for revenue generation. Moringa is marketed in different forms such as raw Moringa, dry Moringa, Moringa powder, Moringa oil, etc. Moringa goes for domestic consumption and also exportation.

In Nigeria, Moringa farming is one aspect of farming with the ability to generate income and profits year-round. As it is, Moringa farming is one of the easiest agricultural engagements a farmer can venture into and the demand for Moringa is year round, creating a veritable stream of income for the would-be farmer.

As a business, Moringa farming offers an opportunity to earn a steady income and also provide employment opportunities for a countless number of men and women. On a national scale, it also helps to reduce our dependence on other countries to meet our increasing food demand. This, however, is still a far cry from the ever-increasing local demand for the product. Hence starting a Moringa farm of your own either on a large, small or medium scale is indeed a very wise decision as this will bring immense financial benefit both in the short and long term.

Business Description

PATILAD Moringa farm is a budding commercial farm that is involved in the cultivation of the miracle-moringa plant for local and foreign markets. We cultivate, preserve, package and sell moringa leaves, seeds, oil and barks of the moringa oleifera and moringa stenopetala species. We are located in Ikase, Kwara State.

Our company is being founded to build upon an extensive array of biological and horticultural education, experience, and the research of its founders. We produce, process and package to meet requirements of the standard organization of Nigeria as well as NAFDAC.

Form of business:      Limited Liability Company

Owners of business:   Dayo Adetiloye, Arowolo Isaac, and other investors.

State of business:       The business is a new business

Opening days: 9 am – 5 pm, Monday through Friday.

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Table of content

Page

Executive Summary4
Business Description
7
Products and services
9
Market Analysis10

Competitor Analysis12
Sales and Marketing Plan13
Operation Plan18
Management Plan21
Financial Plan and Projections22

Executive Summary

Overview

PATILAD Moringa Farm is a budding farm that is involved in the cultivation of the miracle-moringa plant for local and foreign markets. We cultivate, preserve, package and sell moringa leaves, seeds, oil and barks of the moringa oleifera and moringa stenopetala species.

Our farm is sited on a 50 hectares arable land dedicated to Moringa alone. we have the capacity to produce over 10,000 tons of bags of this seed annually, with its other by-products. We cultivate, process and package to meet requirements of the standard organization of Nigeria as well as NAFDAC. We are targeting consumers in both the local and international markets.

The Company           

PATILAD Moringa Farm is established as a limited liability company owned by Dayo Adetiloye, Arowolo Isaac, and other investors.  The farm is managed and directed by Dayo Adetiloye, a veteran of the Agric. industry with 8 years’ experience and Arowolo Isaac an experienced Agro-allied specialist with over 15 years’ experience. Our company is being founded to build upon an extensive array of biological and horticultural education, experience and the research of its founders. Patilad Moringa Farm is located at Ikase, Kwara State.

Products and Services

PATILAD Moringa Farm will basically sell healthy disease free and highly medicinal moringas. We process our moringas into dried leaf powder for human and animal consumption, oil for human consumption and bio-fuel and leaf, twigs and press cake as animal fodder and moringa tea. We are concerned about providing Moringas products that meet for domestic and industrial purposes.

We produce and sell high quality, well packaged, hygienic and fresh products in large commercial volume and best possible prices.

The Market

Moringa looks set to become one of the fastest growing cash crops coming out of the African continent as world food prices soar and the global nutritional recession begins to take hold. Moringa roots have high demand in national and international markets due to its excellent uses and benefits. Since the introduction of Moringa, the price has been on 50 percent increase annually because of new research and development of the usefulness. Between 2015 to 2016, the price jumped from N50 per kg, which is N500, 000 per ton to 200 per kg, which is 2 million per ton. So far, very few farmers are into commercial Moringa farming which makes it almost impossible to cater for its high market demand.

Competition

Competitors for PATILAD Moringa Farm are mainly smallholder farms located in and around Ogun state.

PATILAD Farm’s competitive edge includes the use of modern production techniques and equipment which turns out high-quality products, excellent customer service, the expertise of its founders, etc. 

Financial Considerations

PATILAD Moringa Farm seeks N5 million in long-term financing to cover start-up costs, equipment, building expenses, and working capital.

Funding for the launch of the business is provided primarily by equity from the partners and investors. 

The business will reach positive cash flow in its 10th month of operation, allowing for expedited repayment of its loan obligations, as well as for dividends to be paid to the owners.  Revenue will top N14,500,000 and profit will reach about N3,843,950 in the 1st year of operation.

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