Agro Outgrowers Partnership Program A Simple, Risk Free & Profitable Opportunity to Co-own Professionally Managed Farms.

INTRODUTION

We are engaged in the cultivation & processing of one of the most interesting tropical crops on the planet- The Sweet Potatoes. Currently, we operate on a 50 Acre farm in Egor LGA, Edo State, Nigeria and utilize the produce from the farm in our processing facilities where we create world class value added products such as Bread Flour, Sweet Potato Chips and a host of other derivatives. Importantly too, we have a huge export demand for our raw produce that is more than ten times our current farm capacity.

We seek partners who would join us in taking advantage of this growing demand and earn healthy profits in return.
1. Land Preparation 2.Sweet Potato Fields 3.Proessing Chips 4.Harvest 5. Export Ready Pack

To meet this ever growing demand, we have developed The OUTGROWER PARTNERSHIP PROGRAM (OPP) where we would be opening up 100 acres (40 Hectares) of fresh fields for sweet potato cultivationThis program allows interested partners the opportunity to co-own professionally managed Sweet Potato farms whose entire produce we would purchase at the time of harvest.

Its a simple, risk free and profitable program perfect for people looking to engage in Agriculture but don't have the knowledge, capacity or time to execute their agriculture desires. The OUTGROWER PARTNERSHIP PROGRAM is the ideal start point as we would provide all the tools and management necessary for a successful farming operation.

We provide the Land, Labour, Training & Mentoring(where applicable), Inputs, Machinery, Expertise and every other necessity. Most importantly, we buy up all the produce at time of harvest. This is a superbly profitable venture with huge growth potential as sweet potatoes have some of the highest yields of any crop and its demand is growing globally due to the superlative health benefits derived from it.

ABOUT SWEET POTATOES

Harvest time: 3 months

Sweet Potatoes are a a very unique crop. There are numerous varieties with the inner flesh color serving as differentiating factor. The 3 main colors are White Fleshed(Popular in Nigeria) Orange Fleshed and Purple Fleshed Varieties. While all varieties are very healthy, the Orange Fleshed Variety has superb health benefits and has been adjudged as among the most nutritious foods on the planet.

The business side of the crop is also very unique. First, they are ready for harvest barely 3 months after planting. Secondly, when properly planted, they have one of the highest yields of any crop in the world reaching up to 35 tonnes per hectare in well managed farms. This makes them a highly profitable crop as they can be planted 3 times on the same land area in one year . Thirdly, as awareness of Sweet Potatoes as a Nutritious food with numerous health benefits grows,so has the demand blossomed globally with Europe seeing the largest increase in imports.

Three different Varieties
Sweet Potatoes can be processed into numerous value added products; Chips, Flour, Starch, Baby Foods, Animal Feed and a whole lot other derivatives.
  • Average yield per hectare: 25 Tonnes (25,000 kg)
  • Crop Duration: 3 Months
  • Planting Method: Vine propagation
  • Soil Type: Best in Loamy. Does well in Clayey Soils too.
  • Season: Year round with irrigation

ABOUT US

www.farmforte.com

Farmforte is an innovative Agricultural company founded in 2012. We play across the value chain of specific agricultural crops. We engage in modern farming using advanced technological methods. We also engage in the use of modern machinery to process raw materials into value added products. And importantly, we create access to global markets for our local produce.

Currently we operate on 50 Acres of land but also have 240 Acres of uncultivated land. We farm various products but have a greater focus on Sweet Potatoes and a few other exotic vegetables. We are run by a top talent team with a global perspective and a staff strength tutored in international best practices. We have developed partnerships both locally and internationally with reputable institutions to enhance our capacity to achieve our visions.

A Gallery of Activities- 2016
Mechanized Land Preparation
Well Prepared Beds- Ready for Planting
On-site Pivot Irrigation Facility
Logistics Vehicles
Strong Labor Force
Happy Workers
Our Sweet Potato Fields at 2 Months old
Ready for Export
THE OUTGROWER PARTNERSHIP PROGRAM

The Outgrowers Partnership Program is simply structured with the aim of ensuring that we can take advantage of the outstanding growth in demand we are experiencing locally & globally both today and in the future. We would achieve this by giving partners the opportunity to co-own Sweet Potato farms. Partners are allocated land which would be prepared, cultivated and managed by our experienced farm experts.

In the course of this process, regular updates in the form pictorial, visual(videos) as well as data sheets of all activities would be presented on scheduled basis. Site visits are also encouraged. Interested partners willing to be schooled and mentored on professional cultivation processes and practices are welcome. All inputs, machinery and land are provided as part of the program. At harvest time, the produce is weighed and thereafter purchased by us at a predetermined price.

OUTGROWER SCHEMES, ALSO KNOWN AS CONTRACT FARMING, ARE BROADLY DEFINED AS BINDING ARRANGEMENTS THROUGH WHICH A FIRM ENSURES ITS SUPPLY OF AGRICULTURAL PRODUCTS BY INDIVIDUAL OR GROUPS OF FARMERS.

The program is first for a duration of one year and covers three planting seasons with a possibility of a renewal afterwards. After the first year, we would assist willing partners in setting up even larger operations either on a managed basis or an independent basis depending on the choice of the partner.

Forty slots are available for participation. Minimum of four slots per partner. Partners with 8 slots and above get added benefits. Required investments and Projected Return on Investment is indicated under financials.

Each slot covers 1 Hectare of land(10 plots) fully planted with 30,000 sweet potato vines thrice over the duration of one year with an expected average yield of 25 tonnes(25,000 kg) per season.

TOTAL COST/SLOT: N 640,000 ($1600) for minimum 4 slots: N 2,560,000 ($6400). PROJECTED RETURNS/SLOT= N1,472,000 ($3680) in a year=130% ROI

FINANCIALS & RETURNS

The total cost of program covers all expenses that would be incurred for the first planting round starting out February 13rd 2017. For the second planting round, repeat funding components would be subtracted from proceeds from the sale of the first harvest. A 20% management fee is subtracted from total returns.

COST COMPONENTS: USD rates are at $1 = N400.
  • Land Use & Preparation: N 90000
  • Sweet Potato Vines: 30,000 Pieces x N 6 per vine = N 180,000
  • Fertilizer, Herbicides & Insecticides = N 90,000
  • Labor: N 125,000
  • Insurance: N 35,000
  • Logistics: N 20,000
  • Exigencies: N 100,000
  • Total: N 640,000 ($1600)
RETURNS PROJECTIONS

1st Planting Round

  • The expected average yield/hectare = 25 tonnes(25,000 kg).
  • The predetermined price per KG of sweet potato= N 40
  • Estimated tuber loss rate-- 20% or 5 tonnes(5,000 kg)
  • Projected Sale on first round harvest : 20,000 kg x N 40= -N800,000($2000)

2nd Planting Round

Second planting cost components include: Land use & Preparation; Fertilizer, Herbicides & Pesticides; Labor all at a sum of N 280,000

  • Balance after 2nd round planting = N800,000 -N280,000= N520,000
  • Projected Sale on 2nd round harvest=20,000kg x N40= N800,000
  • Balance after 2nd Round Harvest: N800,000 + N520,000= N1,320,000($3300)

3rd Planting Round

  • 3rd Planting cost component: N280,000
  • Balance after 3rd round planting= N1,320,000-N280,000= N1,040,000
  • Projected sale on 3rd round harvest= 20,000 kg x N 40= N 800,000
  • Total revenue after 3 Rounds(1 year) = N1,040,000 + N800,000= N1,840,000
  • Management fee of 20% = N 368,000
  • Total projected returns=N 1,840,000-N 368,000 = N 1,472,000 ($3680)

Return on Investment in a year is N1,472,000 ($3680) per slot. On 4 SLOTS, the return is N 5,888,000($14,720) WHICH EQUATES TO 130% ROI.

TIMELINES-First six months
  • Partnership call ends- November 30th 2016
  • Land Preparation begins- 3rd December 2016
  • 1st Planting starts- 18th December 2016
  • Monthly Partners update- 13th January 2017
  • Monthly Partners Update- 10th February 2017
  • 1st round harvest testing- 12th March 2017
  • Monthly Partners Update- 13th March 2017
  • 1st round harvest begins- 14th March 2017
  • Monthly Partners Update- 14th April 2017
  • Second Planting round begins- 17TH April 2017
  • First Returns Announcement would be contained in May 's monthly update.

THE BUSINESS CASE

  • The market potential for Sweet Potatoes is humongous. First, the yields are pretty high at approx 25 tons(25,000 kg) per hectare. Secondly, time to harvest is just 3 months making 2 planting seasons possible in one year.
  • Orange Fleshed Sweet Potatoes are superb for Children as they are extremely delicious and at the same time packed with healthy growth nutrients. Nigeria has the largest population growth of Children aged 2-15 in the entire world making this the best market for products targeting that age range.
  • Sweet Potato is the fastest growing food product in the UK at an average rate of 40% year on year. The Brits spent over £400 million on imported Sweet Potatoes in 2014. Europe doesn't grow Sweet Potatoes. This portends a very massive market potential that seeks to be tapped.
  • The current economic climate and Forex rates in Nigeria makes export a very attractive venture. It makes us able to sell our products overseas at lower pries which our competitors cannot match. A Kilo of Sweet Potato sold at an equivalent about $2.00 per kilo in retail outlets in Europe. In 2014, at an exchange rate of 160 Naira to the dollar, that equals 320 Naira. At the current exchange rate of about 400 Naira, that equals 800 Naira for the same kilo of Sweet Potatoes.

Conclusion

The Outgrowers Partnership Program is a wonderful opportunity to not just earn good returns on investment but also to be a part of an unfolding growth segment, learn & understand the tenets of Enlightened Agriculture as well as gain exposure to other potential profitable partnership options that would come up as we proceed. We desire partners who would not just seek returns alone but also be a part of a network of Enlightened Agricultural Enthusiasts seeking to change the face of farming in Nigeria.

If you want to be a part of this journey, feel free to contact us on the details given below for further inquiries or simply fill out this FORM and we'd get back to you soonest.

  • Email: wenses@farmforte.com, oosayi@farmforte.com
  • Tel: 08140000038, 08079060807
We look forward to having you on board and to a very bountiful harvest!!

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