-By Chukwudi Odili
Preface
To reiterate, my passion for introducing these series of articles, past and present, is borne out of the concern to provide direction and empower us to work with God to achieve His vision for our lives.
Investment – meaning
Technically speaking, to invest is to put one’s little saving into an activity that will generate dividends (income) in multiples; two fold, three fold, ten-fold, and so on, depending on the size of one’s capital. Being an investor is getting money working for you rather than you working for money (engaging in paid employment).
You generate a multiplicity of wealth by putting your money in as many ventures as your savings can permit. Rather than focusing on a single way of achieving income (labour), shrewd investors look for worth in anything and everything (diversification). If you don’t work hard you cannot in the first place generate sufficient savings that you will invest; and if you don’t exercise discipline and shrewdness, you should not expect bounteous dividends from your basket of investments. God won’t bless a mess. Frustration and confusion in many cases are the fruits of a poorly managed life.
In the present day Nigeria, integrated commercial farming stands out as a lucrative venture to undertake. Our people need adequate food for security and income, and our local industries need sustainable raw materials for survival. Anyone who sets up an integrated farm project in our country today will surely make money, especially now that the trading business space has become overcrowded. Even if you didn’t (want to) farm before, now is the right time to enter the business. Necessity is the mother of invention. With proper guidance, you can even do better than those already there, who are not properly guided. In the current dispensation, more incentives are gradually coming alive. One of such valuable incentives is land. Perhaps, not many people in Abuja are aware that the process of land allocation to encourage agricultural development in the Federal Capital Territory has been going on for quite some time now. The various states across the federation have also put generous incentives in place.
Meaning of Integrated Commercial Farming
Integrated Farming is simply a modern farming practice that uses creative ways to combine crop and animal husbandry in a small enclosed space or land. It gives attention to details, and continuous improvement in all areas of the farming business. It combines the best of modern tools and technologies with traditional practices according to given site and situation. It is a private-sector oriented initiative and a silent, forward-thinking answer to the nomadic form of animal husbandry. The advantage of integrated Farming over nomadic farming is that it looks at both crops and different animals, not only cattle.
The notion of commercial farming makes a case for agriculture to be seen and practised as a business and not a part-time activity. In line with this thinking, policy makers have consistently tried to design agricultural policy to focus on government-supported, private sector as the main growth driver. It has also tried to ensure that commercialization of agriculture includes simple but modern technologies, financial services, input supply chains, and market linkages that directly engage rural poor farmers, given that rural economic growth plays a critical role in the country’s job creation, economic diversification, improved security and sustainable economic growth. Encouraging farmers to use equipment that they can understand and operate is a step in the right direction. Many types of modern combined equipment exist which can at the same time perform land preparation, planting, field maintenance, and harvesting functions. They can be hired from the federal and state ministries of agriculture and related agencies or can be purchased from foreign sources.
Crop Farming
Crops fall into the staple, cash-crop, fruit, ornamental and forestry categories. The staple or food-crop category includes cassava, yam, potatoes, maize, rice, beans, plantain, etc. The cash or economic crop category includes palm tree, cocoa, cashew, gum-arabic, groundnuts, cotton, sesame-seed, rubber, timber, ginger, etc. Fruits include pineapple, paw-paw, mangoes, guava, pears, apple, bananas, and the citrus group (oranges, tangerine, grape, lime, etc.). Ornamental crops exist in form of garden eggs, pepper, tomatoes, carrots, okro, green vegetables (pumpkin leaves, green, melon, cabbage, lettuce, cucumber, okasi, bitter leaf). Forestry, which involves the planting and maintenance of trees used for industrial purposes, is probably the most commercial category. For instance, timber processed from felled trees is an essential material used for the construction of buildings, boats, furniture, electricity and telephone poles, and for the production of pulp for paper-making.
Profitability
The profitability profile of selected staple crops on one hectare of land is as follows:
CROP *VARIABLE COST **AVERAGE YIELD REVENUE GROSS PROFIT
(N) (Kg) (N) (N)
MAIZE 250,000 9,233 856,400 606,400
YAM 261,100 10,000 890,654 629,554
CASSAVA 180,000 15,000 960,000 780,000
PLANTAIN 475,000 8,500 1,020,000 545,000
TOTAL 1,166,100 3,727,054 2,560,954
Notes: *The cost element does not include the fixed cost of land. ** The yield rate varies with crop species.
Details of integrated (crop and animal) commercial farming, including explicit information about: land acquisition and other government incentives, high-yielding seed and equipment procurement sources; fertilizer sources and application methods; field maintenance, produce storage, processing, packaging and marketing (and by extension, export procedures and documentation for export-oriented produce); cost and revenue analysis, financing options, and other essential practicalities will be provided in a detailed feasibility report/ business plan for interested prospective investors.
The author, an experienced award-winning project development consultant, is willing to assist anyone interested in establishing an integrated farm project. He can be reached via email: dilisinvest@gmail.com.
SETTING UP INTEGRATED COMMERCIAL FARM PROJECT (2)
- By Chukwudi Odili
Animal Husbandry
A combination of the following animal husbandry practices could be raised commercially in a small space of compartmentalized land: poultry/ cattle, sheep and goat rearing, piggery and fishery.
If you want to grow sheep, two distinct species are prominent: the West African long-legged sheep and the West African dwarf sheep. You can raise sheep for milk, meat, and wool with ease. In fact, sheep have some exceptional advantages over other types of livestock. They are easy to handle, compared with cows, horses, and pigs. They don’t need perfect pasture land. They happily eat brush, grasses, and weeds that grow in poor soil. Sheep manure fertilizes the soil. Sheep pastures can be rotated with crop planting; a former sheep pasture is a marvelously fertile spot for growing crops. Sheep are gentle and docile and trainable. They can be taught to come when called, to follow you, and to stand when ordered to do so; although their male counterparts (rams) can be aggressive at times. Sheep don’t need much space. Even one acre can support a small flock—three or four ewes and their lambs.
Nigerian goats are similar to sheep in their classification and use. A typical Northern Nigerian grown goat is very expensive and its meat is not ‘sweet’ compared to the type grown down south whose price is cheaper and meat tender and succulent. A good way to start the goat business is with one Buck and three Does. A goat has an average of two kids once a year; so with your four goats in a year, you will have additional six little ones. Goats are very friendly, inquisitive animals that are usually domesticated. They are easy to handle and make an idle choice for the small farmer. The goat is a ruminant whose balanced diet comprises good mixed pasture, good quality hay, non-urea dairy ration, fresh water and minerals. Female goats are called does, males are bucks, and young goats kids. It takes five months after a doe is mated to a buck before the kids are born, two or more. When the kids are weaned, the doe may possibly be milked twice a day, and the milk can be used for drinking, making yogurt, butter and cheese, or can be fed to other young farm animals.
Pig farming is wonderful. It only needs a small investment in buildings and equipment. Pigs are usually known for their meat production, and have the highest feed conversion efficiency. Pig meat (pork) is the most nutritious because it usually has high fat, low water content and restored energy value than any other meat. For this reason, it’s apparently the most consumed meat globally. Pig farming offers quick returns because the marketable weight of fattened piglets can be reached within a short breeding period (six to eight months). The pig is highly fruitful. For example, a sow (female pig) becomes fully mature after birth from the age of eight to nine months, and can give birth to a litter of piglets twice in a year. Six to twelve piglets can be produced in each birth. Pig manure is commonly used for fertilizer in agricultural farms and fish ponds. Also, pig fat, which is stored rapidly by pigs, has an increasing demand from poultry feed, soap, paints and other chemical industries. Unfortunately, pigs have high death rates. Nevertheless, the African swine fever (ASF) which has caused a lot of havoc in this country could very easily be brought under effective control if correct veterinary measures are adhered to; just as the poultry virus.
Aquaculture, that is, the commercial breeding of fish, which provides fish protein, is increasingly becoming a poverty-reduction animal farming activity. Since fish convert about 70-75 percent of what they are fed into meat, it is very lucrative to breed fish. Luckily, fish are relatively easy animals to farm. They need less space per animal than livestock. Fish in rivers and lakes are fast disappearing owing to environmental changes and the use of chemicals in commercial fishing. Getting started with aquaculture requires a good pool of water. Your pond must contain plenty of weeds, both in the water and around it. These plants not only provide protection and shade for your fish, but they will also help you feed them. Many species of fish are farm-produced all over the world but Catfish is taking the lead because of its numerous advantages over other fish species. The importance attached to the culture of Catfish in Nigeria is not only because it is highly esteemed specie that commands high market value, but it is resilient and can survive where most other cultivable species cannot. These qualities coupled with its low bone content, fine flavour, high growth rate and its ability to feed on virtually anything make fish the bride of most fish farmers in Nigeria. Catfish could therefore be turned into a big business.
In-door Cattle ranching that focuses only on commercial meat production is also called Beef-fattening, and it is the simplest form of animal husbandry business. More extensively, cattle may be bred for the general purpose of producing milk, hides and skin, hoof, horn, bones and dairy products like butter and cheese. The local Fulani Bunaji or Rahaji species may be cross-bred with the Sokoto Gudali , the Shuwa Arab, the Azaouk or the Bargawa. If for the purpose of beef production, then the local Ndama, Kuri, or Dali species must be stocked. As the business grows, the imported Hoistel Freisian cows and bulls could be introduced to facilitate cross-breeding. Procreation techniques involving artificial insemination are contributory to rapid animal population growth, survival and disease resistance. Indoor cattle-rearing, among other animal rearing practices, is indeed a very lucrative and fascinating form of agro-business.
The local chicken, duck, geese, turkey, pigeons, guinea fowl, all belonging to the poultry family, could all be reared together in a separate compartment. Poultry business attained a boom in the seventies and early eighties but owing to escalating cost of feeds production, there occurred a decline. Interestingly, the ripe time is here again for a renewed poultry business initiative as the feeds production situation has relatively improved. Gladly, poultry products had over the years consistently been on the Federal Government Import Prohibition List. If this policy measure is sustained, Nigeria might have one of the most modern poultry industries in the world in the foreseeable future. This means that the country would become self-sufficient in poultry production and those who invested in the project yesterday would become potential billionaires tomorrow.
Poultry products, chicken in particular, have indeed very bright market prospects as they constitute major protein resources for human needs. Nigerians eat chicken and eggs on a fairly regular basis particularly during festive periods. Moreover, since the products are less fattening compared to other meat products, they are preferred in a modern society that is concerned about obesity. The shortage of pork and beef is a further boost to the future development of the poultry industry. Hence, it makes a lot of sense to invest in the poultry business.
A good strategy to adopt is to breed chicken that produces meat (broilers); side by side with hens that lay eggs (layers). Layers produce about 250 eggs per year. They begin laying eggs at 5 to 6 months old. Broiler chickens lay fewer eggs than other breeds, usually about 140 per year. Consider a small poultry business that you could start with a capital of about N3m. With this money, you will be able to erect a prefab pen, purchase over 1,000 units each of layer-hatchlings and broiler chickens, feedstuff, water and drugs. If you manage the business well, you will at the end of a rearing season be getting a gross turnover of about N4.4m. With ample land space and additional capital, you can further construct a fish-pond in a corner of the farm. You can go on and on and add a compartmentalized goat/ sheep/ pig pen in another corner of the farm, and finally a cattle-shed in the centre. With this type of expansive investment, solidly established and sustained, you could be saying bye-bye to poverty for the rest of your life.
The investment and profitability profiles of Poultry/ Fishery project (as a simplified example of an integrated animal farmstead) on a small space of land (one or two hectares), may be thus summarized:
Project activity Cost Revenue Profit (per season)
(N) (N) (N)
*Rearing & harvesting1000 Layers from day-old Chicks/ Pullets to mature Hens 1,342,072 1,731,618 389,546
*Egg production by the 1000 Layers @ N720/ crate 100,000 720,000 620,000
Broiler production (1000 birds) 1,269,000 1,950,000 681,000
Sub-total 2,711,072 4,401,618 1,690,546
Establishment & maintenance of one-hectare fish pond, producing Catfish in a different compartment within the Farm 7,636,200 9,620,000 1,983,800
Total 10,347,272 14,021,618 3,674,346
- The cost of rearing and harvesting1000 Layers will cover a greater part of the cost of Egg-production.
Details of the cost of the entire cost of establishing an integrated farm, farm management and maintenance, profitability and other essential information will be embodied in a bankable feasibility report for prospective investors. The author can be reached via his email address: dilisinvest@gmail.com. The next edition of the Digest will pay special attention to the Beef-fattening segment of integrated farming.
SETTING UP INTEGRATED FARM PROJECT (3)
Animal Husbandry (Beef Fattening as a Case-Study)
Let me emphasize the point that we do not need any politically-motivated Cattle Colonies and Ruga Farm Settlements in Nigeria. What we need instead are in-door cattle ranching schemes. Beef-fattening is the simplest form of animal husbandry business; even though cattle may be bred for a wide-ranging purpose of producing meat, milk, hides and skin, hoof, horn, bones and dairy products like butter and cheese. Beef-fattening schemes are modern, innovative, private-sector driven in-door cattle ranches, very easy to set up.
The preferred local breed to stock is Sokoto Gudali, with short horn; the type that has ‘tilled the ground’ and become strong. The best places to buy this breed are Zaria, Kano, Katsina, Sokoto and Niger Republic. The finest attainable time to start stocking a local bull is when the bull has attained the age of between 3 to 4 years. At that age, the bull is fully independent from the parent. Breeding before resale usually lasts for an average duration of 6 months.
The average price per bull of age 3 years is N120, 000 while the resale price of a 3 ½ year old bull is about N260, 000.
The greatest advantage of this project is that Electricity is not needed. There may be need to light up lanterns at night to keep pests and dangerous creatures at bay. This is very encouraging in the Nigeria of today where the problem of electricity has constrained the growth of industries. In this case, because electricity is not needed, costs are drastically reduced. If properly organized and given adequate publicity, a beef-fattening business in Nigeria may become a model that will attract government support and even grants from international development agencies. Another good thing about the project is that a number of people regard it as a prestige project; which implies that many people would have wished to set up it up if they had all it takes to do so – capital, time, knowledge of the business, etc.
The greatest risks facing the Project are health hazards, transportation problems (especially heat during distant journeys, which may result to fatigue and possible death). Fortunately, these risks are largely controllable. For instance, health hazards are handled by taking proactive veterinary measures while heat problems are handled through proper care.
Details of feeding, water, housing, fencing, health-care and labour requirements, market network, profitability and other essential information, will be arranged in a comprehensive feasibility report for interested prospective investors.
Meanwhile the profitability scenario is analyzed in the schedule below:
Cost & Profit analysis of the Bull-fattening Project
Costs
Items Unit (Number) Unit Cost (N) Total (N)
Land (5-yr. lease) & Clearing (lump-sum) 100,000
Fencing (lump-sum) 50,000
Housing units for 10 Bulls 250,000
Other related facilities 60,000
Feeding Utilities 50,000
Sub-total, Fixed Costs 510,000
Stock (10 units of 3 year-old bulls) 10 120,000 1,200,000
Feeds (bags, for 4 months @ N23,750 per Bull per month) 10 95,000 950,000
Water for 4 months @ N1, 000 maximum per bull per month 10 4,000 40,000
Drugs for 4 months @ N1,500 per bull per month 10 6,000 60,000
Wages & Salaries for 4 months 2 50,000 100,000
Sub-total, Variable Costs 2,350,000
TOTAL PROJECT COSTS 2,860,000
Turnover & Revenue Projections
S.P. per unit (N) 260,000
Number of Bulls for resale 10
TURNOVER (N) 2,600,000
Recurrent Expenses (Variable Costs) 2,350,000
Gross Profit for the a season 250,000
ANNUAL GROSS PROFIT (N) 750,000
Details of the cost of the entire cost of establishing an integrated farm, farm management and maintenance, profitability and other essential information will be embodied in a bankable feasibility report for prospective investors. The author can be reached via his email address: dilisinvest@gmail.com.
