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 December 3rd 2016. 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)
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.
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: firstname.lastname@example.org, email@example.com
- Tel: 08140000038, 08079060807
We look forward to having you on board and to a very bountiful harvest!!