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Investors Corner: Commercial Farming Ideas - Business (3) - Nairaland

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Re: Investors Corner: Commercial Farming Ideas by chigomiced: 1:24am On Jul 18, 2019
FMCASH:
so rude, no problem if you can teach me. Do you have a farm?

Oga

This is not animal nutrition
Re: Investors Corner: Commercial Farming Ideas by Nobody: 4:37am On Jul 18, 2019
FMCASH:
If broiler is 100% all farmers could have been doing it. Moreover you can't compare east and south south market with south west
How much is retail market per kg in South West?
Re: Investors Corner: Commercial Farming Ideas by lahify(m): 7:03am On Jul 18, 2019
EMMAACHILE:

How much is retail market per kg in South West?
at ibadan, market women buy them by their looks, the comb must be fully developed before they buy at 2500, processors buy between 525 to 550 per liveweight while frozen food stores and cold rooms buy processed chicken at 800 to 900 per kg
Re: Investors Corner: Commercial Farming Ideas by Nobody: 7:11am On Jul 18, 2019
Opportunities for Nigerians in Diaspora Who can Afford to Spend 90 Days in Nigeria Annually

lahify:
your analysis is SPOT ON, but if you do poultry well you will always smile after 6 to 8 weeks, broiler has higher roi than layers from my own pov, let me explain, if you spend 1k on a bird to get 2.8 to 3kg in 6 to 8 weeks, let's say you sell at 520 or 550 per kg let's say 520*2.8=1456.
let's say you make 456# on each bird . let's limit mortality to 10% you would still get reasonable profit, FYI processors buy At #525 mostly but if you sell to frozen food stores or cold rooms and you Target a liveweight of 2.8kg after evisceration you should have 1.9 to 2kg left and selling at 800 per kg you should make 1600 per bird .In poultry Business all would fall in place for you if you avoid mortality and your management is top notch. if you can get good breed from the hatcheries and not the runts marketers sells (this one na big Tory, I know how these demons sell runts as premium broilers) you would really love broilers biz. emmachile and jjbest have one of the best threads about broilers on Nairaland

It is very funny that the default thought of everyone not in poultry is that: poultry is egg production. Lol.

One strategy of mine which works everytime is: Generating income from multiple turn over of 30 - 90 days cycles ventures. But I know it is always fast paced businesses which need ones attention. I have friends living in diaspora who I introduced fast paced ventures to, and are really enjoying it. All they do is come to live in Nigeria annually for 3 months. From airport to farm. lol. And just like that, they return with what their mates spend 12 months to gather hustling abroad. I just let them know that they must not leave anything with farm managers if they don't want trouble. So, I personally trained all these guys.

It is not always about cultivating economic trees like how they always say . Corn will yield more profit than Oil Pal, Cocoa, Rubber, etc if well maintained. But it beats my imagination why new comers think only long term crops or animals give more profit. Corn, tomatoes, and potato are rated more than any cash crop produced in Nigeria. We can debate this if anyone doubts me. So, why the big deal about "if not cash crop, it is not a good business"? grin

Note: I am not saying cash crops are inferior to corn and vegetables, or layers is inferior to broiler, my point is that new comers should research these businesses very well, and choose the options which suit them more. I will not be surprised if another user comes online and promotes layers more than broiler. lol.

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Re: Investors Corner: Commercial Farming Ideas by excanny: 7:31am On Jul 18, 2019
chigomiced:


Most toothpastes use glycerin, which is a sweet, odorless, clear liquid at room temperature and sourced from animal fat (pig and cow) and/or vegetable oil (corn or soybean). If your toothpaste states "vegetable glycerin", it is most likely from GMO corn and/or soy. Glycerin is most commonly used in toothpastes and soaps and it is added to toothpaste to keep it from drying out.

How many Muslims know This?


I'm not Muslim and I don't get the rationale in avoiding pork for religious reasons. But for health reasons, I understand.

If a product is made from pig products, as long as I don't get worm infestation from them, I'm fine.


But you haven't still answered my original question. How many Nigerian eat pork?
Re: Investors Corner: Commercial Farming Ideas by FMCASH(m): 8:15am On Jul 18, 2019
chigomiced:


Oga Emma

Abeg no mind those lazy youths trying to dispute ur claims

To me ooOOooOooOo
Any Agricultural venture that can yeileds 50% in 2 months gets a pass mark from me

With time we will no who is lazy between me and you.

For you claiming 50% in any agriculture shows vividly that you're and Internet farmer.

For your information I'm versatile, I've various client I consult for on fish farming, piggery, poultry and nutrition.

Took me years to reach this level. I'm not tata in this game. So mind your statement.

That's one of the reason people keep trade secret to themself.

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Re: Investors Corner: Commercial Farming Ideas by chigomiced: 8:30am On Jul 18, 2019
excanny:


I'm not Muslim and I don't get the rationale in avoiding pork for religious reasons. But for health reasons, I understand.

If a product is made from pig products, as long as I don't get worm infestation from them, I'm fine.


But you haven't still answered my original question. How many Nigerian eat pork?

Oga this you question

Even federal bureau of statistics no fit answer am




Thing is pig meat is consumed more in the the South than in the north


Drops pen
Re: Investors Corner: Commercial Farming Ideas by chigomiced: 8:44am On Jul 18, 2019
FMCASH:


With time we will no who is lazy between me and you.

For you claiming 50% in any agriculture shows vividly that you're and Internet farmer.

For your information I'm versatile, I've various client I consult for on fish farming, piggery, poultry and nutrition.

Took me years to reach this level. I'm not tata in this game. So mind your statement.

That's one of the reason people keep trade secret to themself.



Story for the gods


Consultant my foot



Take ur silly ass off my mentions



You cannot just come online to be debunking people up and down without any data to back up ur claims


I

1 Like

Re: Investors Corner: Commercial Farming Ideas by chigomiced: 10:14am On Jul 18, 2019
EMMAACHILE:

How much is retail market per kg in South West?

Good question
Re: Investors Corner: Commercial Farming Ideas by chigomiced: 10:15am On Jul 18, 2019
FMCASH:


With time we will no who is lazy between me and you.

For you claiming 50% in any agriculture shows vividly that you're and Internet farmer.

For your information I'm versatile, I've various client I consult for on fish farming, piggery, poultry and nutrition.

Took me years to reach this level. I'm not tata in this game. So mind your statement.

That's one of the reason people keep trade secret to themself.


Last time I checked

No body was asking for ur trade secret
Re: Investors Corner: Commercial Farming Ideas by Juliana7: 1:53pm On Jul 18, 2019
chigomiced:



Story for the gods


Consultant my foot



Take ur silly ass off my mentions



You cannot just come online to be debunking people up and down without any data to back up ur claims


I
bros! Pls lets take things easy biko. We don't need to cast aspersion on one another to prove a point. There is always something to learn from one another, wisdom/knowledge doesn't reside with one man in any field in life that is why we have thread/platform like this to learn from one another. The best thing that can happen platform as this is when constructively pooh-pooh people's opinion/fact by producing a superiot opinion/fact. Pls lets learn to respect each other. I have known FMCASH some years back from a piggery whatsapp group and some other groups, the guy is good. Pls anytime we want to puncture ppl's opinion lets do it love to benifit all. Thanks

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Re: Investors Corner: Commercial Farming Ideas by chigomiced: 2:13pm On Jul 18, 2019
Juliana7:
bros! Pls lets take things easy biko. We don't need to cast aspersion on one another to prove a point. There is always something to learn from one another, wisdom/knowledge doesn't reside with one man in any field in life that is why we have thread/platform like this to learn from one another. The best thing that can happen platform as this is when constructively pooh-pooh people's opinion/fact by producing a superiot opinion/fact. Pls lets learn to respect each other. I have known FMCASH some years back from a piggery whatsapp group and some other groups, the guy is good. Pls anytime we want to puncture ppl's opinion lets do it love to benifit all. Thanks

You and your fmcash should go to hell for all I care
Re: Investors Corner: Commercial Farming Ideas by chigomiced: 2:52pm On Jul 18, 2019
lahify:
at ibadan, market women buy them by their looks, the comb must be fully developed before they buy at 2500, processors buy between 525 to 550 per liveweight while frozen food stores and cold rooms buy processed chicken at 800 to 900 per kg

70%. Of the poultry meat and eggs raised in oyo/ogun and the likes find thier way down to Lagos State where a kg of chicken goes for 1400-1800
Re: Investors Corner: Commercial Farming Ideas by chigomiced: 2:58pm On Jul 18, 2019
excanny:


I'm not Muslim and I don't get the rationale in avoiding pork for religious reasons. But for health reasons, I understand.

If a product is made from pig products, as long as I don't get worm infestation from them, I'm fine.


But you haven't still answered my original question. How many Nigerian eat pork?

You can as well get worms from poultry and cow meat too if you don't cook your meat properly

Commercial pig farms have vaccination schedules
Re: Investors Corner: Commercial Farming Ideas by Nobody: 6:34pm On Jul 18, 2019
Rice

Nigerians eat too much rice. Lol. I wonder why rice doesn't grow on Nigerians' head. Hehehehehe.

It is true, Nigeria is not yet producing enough rice for local consumption. Rice farming is huge business.

No irrigation, No Rice
Just find a very good way to get water into the roots of your rice plants. That's the secret. I do not know why people depend on only rain. To me, it is a stu.pid idea to depend on rain. Make sure you add the cost of Irrigation to your set up cost. Or any means of getting water. Just do it.

Prepare to tackle Birds
Whether you prefer to use juju, voodoo, pay children who will shoot stones, or technology, make sure your adopted method is efficient. I strongly advise farmers to look into installing nets.

One assured hectare is better than 100 gambled hectares
You think you are a wise farmer by cultivating on large hectares. Hmmm! "Instead of wasting money on irrigation and nets, I will rather use it to cultivate more areas of land". Don't worry, your 100 ha might be free food for those creatures in the sky.

Ofada rice is a nice business.

Just make sure you use planters to sow seeds so you get good population. Rice cultivation is a very nice business if done very well.

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Re: Investors Corner: Commercial Farming Ideas by ogb5(m): 1:18am On Jul 22, 2019
Pistotita:
1. Cassava
World Bank is really interested in this crop the moment bio-technology made it possible to produce cassava with extreme high starch content. Funny that Nigerians are not interested in starch but in the most common end products in SW and SE which are garri, and another one called "fufu" in the west. Hahaha! The Ijebus (a popular mini tribe in the Yoruba land which spreads from Epe, Lagos to Ogun State with their main town in Ijebu Ode) have a special fermented garri with peculiar aroma. It just must be sour, else it is worthless in the market. Actually, I enjoy drinking garri with powdered milk, nuts, and without any sweetner. Hahaha! But I do not so much like eating "eba", the cooked form of garri because it takes too long to digest. I just do not like it, and fufu is a capital NO for me too. While the Ibos hate so much this fermented version, they usually make their garri by adding palm oil to it which turns the color to yellow. Yeah! This version of "eba" tastes better in my mouth, while drinking it as garri is disastr.ous. And they even pound it to make it smoother.

Value Chain
1. Cassava Tubers --> Cooked tubers
2. Cassava Tubers --> Processed to garri ---> Local Market --->Packed for grocery stores
3. Cassava Tubers ---> Processed to Fufu wet/dry powder -->Local Market --> Packed for grocery stores
4. Cassava Tubers ---> Cassava Flour ---> Used in 10-20% flour proposed for bakery esp bread, but not used OR Exported
5. Cassava Tubers ---> Starch ---> Replace Corn Starch by Many industries OR Exported

Cassava Starch is the reason World Bank got involved, and it is expected that cassava starch will overtake corn starch in the world market. But it has its limitation too. One of it is that cassava tubers must be processed immediately after harvest, not even 24 hours after. The earlier it's processed, the better the starch or flour from it. Therefore, it is expected to situate the factory right inside the farm.

Huge Challenge For Corn and Starch Production
How is it possible to situate a huge factory in the bush? Where is the power to drive the equipment? Or do you want to use solar energy to drive huge equipment? Hehehe. I believe World Bank should be tired to pushing cassava starch at this stage because Africa, especially Nigeria is not ready. The world expects more productivity from Nigeria, but she is slacking. This country should be great, but her obituary is coming out soon with the kind of people in power, and I seriously pray against it.

Free Trade Zones and the World Starch Market
It sounded like a good idea to situate ones business in the free trade zone to enjoy free taxes since the business is going to be more of exportation. In 2013 when I was writing 2 billion naira 80 tons of cassava starch daily production business for Lekki Zone (actually the optimum production of the factory was suppose to be 100 tons daily), I realised that the road network even from Epe town to the destination might be ok at the initial stage, but may be hard in the future. I just know most of our tubers would not gain easy access to the factory because of congestion, and we would run at loss. My partners were trying to force it just to take advantage of the already available loan and other incentives attached. But I was going to be most likely the CEO of the firm, and I would be the one with sleepless nights during operation. I looked at the incentives attached, and what we would likely face in the nearest future, and I just said No. I was not going forward. Since there was no way to install another form of plant to generate energy for the factory in the bush at the time, I could not run the business..They felt I was joking with all the benefits attached, but they were wrong. While I was trying to convince myself if their proposal could be looked into, I met the expat who is the MD of the firm which was about installing the factory in Eko Hotel. Fortunately, he came to Lagos from Europe for a week business meetings, and he was the one who told me about all the failed factories his company had installed in West Africa, even one along Ibadan Express Way just because the factories were not in the bush. That was when I quit the business. No power in the bush, forget Cassava Starch production in a very big way. Except you just can arrange smooth transportation from farm to your factory continuously. Do not ever depend on farmers for tuber supply. You have just dug out the pit your factory will be buried before you start operation by relying on farmers. Dead on arrival!

Subsistence Cassava Farming
Until power improves tremendously in Nigeria, Cassava cultivation will stil continue to be dominated by subsistence farmers. In fact by indegenes of the areas garri, fufu, and starch food are known for.

Low Yield
Since the sponsors of mandates of research institutes are not interested in cassava production for local diets, old cultivars are still mostly used. Well, might be IITA has got some better versions, I do not know. But I am sure that these indegenes are so concerned about a peculiar aroma, taste, or whatever they want which warrants them to stay more with low yield cultivars. There is a saying amount them that Never use fertilizer to grow cassava . Is it true? Waoooo! Therefore, land rest is vital since they need natural nutrients only. It's cheap for them too. But they always run out of land faster than expected; therefore, they remain extremely poor. Please, if you are a cassava farmer producing for making garri, kindly share with us more information about this believe of not cultivating cassava with fertilizer, and why is the believe so common among them. Or has it changed? I doubt it. lol.

Cassava production leads me to my first 2 principles for commercial Agro farming business in Nigeria.

Principle 1: Be extra careful with Agro processing businesses which require heavy equipment usage, especially if the product has short shelf life, or just avoid them
Power needs to be available. Until power is supplied uninterrupted, Nigeria cannot fly like eagle on her coat of arm. Mark my words, power is the main ingredient lost in taking our economy to the next level. APC and Buhari are jokes concerning their next level without sufficient power. I believe we should let any incoming president know that if he cannot supply minimum of 50MW power, he should forget it. For Christ sake, Lagos population is millions. I believe the official figure for Lagos population is flawed as the real figure is much more than the official figure. It is cra.zy. Something is wrong with Nigeria. And can you imagine how big the north is, and the population there is so scanty compared to Lagos. Even hausas are migrating to Lagos to hustle. And Buhari wanted cows to join the population too in the name of creating farm ranches (Ruga) across the country. Hahahahah. Ma.dness dey oooo. Walahi! Federal Government does not understand anything about economy. Standard and confirmed! Full Stop!

Thank God President Buhari admitted yesterday that his best is not good enough for the power sector. Click HERE

On the otherhand, I don't still know how anything which requires physical wire electricity distribution will work in Nigeria. The people themselves are hear.tless, wic.ked, and they are their own wor.st ene.mies. Telecommunication did not work until physical wire distribution was dumped. Is there any wifi electrical distributions which Nigerians can use? Why? Nigerians tamper with these cables. When a man has the confidence to tamper with high voltage transformer powering several streets with minimum of 30 houses in each, then you realise that de.vil resides in many Nigerians. Hehehehehe! When you gat the confidence to climb a ladder and tamper with live cables without consulting the authority so that experts can be sent to check the fault. But the so called experts too are ma.d set of humans. Seriously, the man who will solve Nigerian Power challenges might be more powerful than Angel Michael, and softer than Gabriel.


Principle 2: An agro processing firm should produce at least 80% of its raw material
The second principle was confirmed after the collapsed of Dangote tomato factory and I think he is trying to correct it. Your business is dead on arrival if you rely on farmers to supply up to 50% of the raw materials for your factory. This is not a trading business. After the tomato factory issue, Alhaji Dangote approached another governor in the North for land for farming, and that one too was asking him to liase with farmers. Dangote just told the governor that he, his farmers, their land will be alright. lol. They lost huge investment from Dangote Who has resources to waste on lazy farmers. That's even in the north..South is worse. Hehehe! The northern farmers still produced, but these southern farmers will definitely divert the money invested in them elsewhere. Never work with the do - called Togolese, Cotonou, Benue, etc workers if you do not know how to handle them. They are de.mons on farms. Your investment will start evaporating like boiled water in your presence using these people as workers. They do not care. They just want to collect salary. And if you know any farmer who is using them, tell him to take Blood Pressure test, and you will understand. Even the boss on farms ages faster than the boys working because of unrest mind set. Hehehehe! Please, do not ever write me to come manage your farm, esp if it's located in the south. I beg you in God's name. I gat my challenges in my business to address. Lol.

Lessons learnt
1. Becareful with government, IMF, and World Banks proposals. They are not the best in most cases. Personally, I do not like most of their solutions for developing nations. They are more interested in serving the developed nations funding them. Until Nigeria starts funding them too, I do not expect much from them.
2. Stay away from using too much power in your farm. Push forward any farming operation that require power till Nigeria gets it right. Maybe not in our generation. So, do not do it.
3. Farmers are not reliable. Be the farmer of what you want to process. Infact, cover about 80% of the value chain of the industry you want to dive in. Else, you will have serious and many challenges in the nearest future after the commencement of operation.

Recommendations for Cassava Business
1. Cassava is not meant for subsistence farming. You need minimum of 10 ha to do it well with tractors of yours; else, you will be poor like the indegenes.
2. Your best bet as at this moment is still local food production such as garri/fufu/food starch, etc..
3. Consult IITA to get local manufacturers of equipment used for such processing. Make sure you calculate the energy needed before you dived into it. Never go for too heavy equipment. Look for equipment which are very good on low power or manually easily operated. Never listen only to those manufacturers because they want to sell. Consult users of their machines. Not only the ones they send you to, but dig deep to find angry customers and listen to them very well.
4. Consult a vegetable expert to take you on ways to boost nutrients in your soil organically so you can keep down the quantity of fertilizer. Check this other thread of mine to start thinking like a vegetable farmer. Click HERE.
5. For uninterrupted operation, plan towards getting your own mini tractor.
6. Do not expand too fast. Since you do not have power to operate heavy equipment, you are going to still rely on moderately to heavily on human resources.
7. Cassava tuber sales is not profitable. Aim at processing your tubers.
8. Personally, I think if you cannot monitor harvest and processing through a trusted manager or by yourself, keep off cassava business. It takes minimum of 8 months to mature, and then, you run at loss during harvest and processing just because you cannot monitor it well. So, if you are in diaspora, consider all these issues before setting up a cassava farm. It is not such a wonderful business as promoted by consultants as at this moments. It is ok, but it has got its challenges which they will not tell you.
9. That cassava farming involves lower production risks does not mean the losses are low. Infact, cassava tubers and wholesale end products prices are highly volatile. 8 months is a long time to predict sales price. So, I put it under high risk farming business. And cassava removes too much nutrients in the soil. It's a tricky farming in my opinion, and can be ridiculous if you do not know the tricks

I think cassava processing factory will be really profitable if situated in the rainforest zone. Places like delta and Edo state produce vast amounts of cassava. Putting a cassava plant in Lekki because it is a free trade zone is a joke. Cassava is bulky and transportation will be a problem for any plant situated far away from the source of cassava.
Re: Investors Corner: Commercial Farming Ideas by Nobody: 1:58am On Jul 22, 2019
ogb5:


I think cassava processing factory will be really profitable if situated in the rainforest zone. Places like delta and Edo state produce vast amounts of cassava. Putting a cassava plant in Lekki because it is a free trade zone is a joke. Cassava is bulky and transportation will be a problem for any plant situated far away from the source of cassava.

You still do not understand the logic behind what I passed out here. Lekki is close to Epe who are ijebus. Who produces garri ijebu? Are they not the ijebus?

Also, are there more showers of rain in Edo and Delta than South West? So, is Epe not rainforest zone? Cassava is the main business there too.

The challenge is power. Is there power in the Edo and Delta you recommended? To cultivate cassava is not the isdue. It can be done anywhere. But to process it is what we are trying to say is hard. And the reason is lack of power. If logistics can be assured, it's more profitable to have a large farm close by and situate the factory in the free trade zone where power is assured. That one is not assured too. But it is better to think in that direction than invest heavily in a factory in the bush. Another option is to run the equipment on diesel in the farm. But is it profitable?

Any farm situated anywhere can be profitable with manual or less auto equipment for making garri and fufu as long as the owner can monitor workers. Is it someone in diaspora that will sit down with them in the farm?

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Re: Investors Corner: Commercial Farming Ideas by ogb5(m): 3:05am On Jul 22, 2019
Pistotita:


You still do not understand the logic behind what I passed out here. Lekki is close to Epe who are ijebus. Who produces garri ijebu? Are they not the ijebus?

Also, are there more showers of rain in Edo and Delta than South West? So, is Epe not rainforest zone? Cassava is the main business there too.

The challenge is power. Is there power in the Edo and Delta you recommended? To cultivate cassava is not the isdue. It can be done anywhere. But to process it is what we are trying to say is hard. And the reason is lack of power. If logistics can be assured, it's more profitable to have a large farm close by and situate the factory in the free trade zone where power is assured. That one is not assured too. But it is better to think in that direction than invest heavily in a factory in the bush. Another option is to run the equipment on diesel in the farm. But is it profitable?

Any farm situated anywhere can be profitable with manual or less auto equipment for making garri and fufu as long as the owner can monitor workers. Is it someone in diaspora that will sit down with them in the farm?

If you take a look at the rainfall distribution map for Nigeria you will discover that Edo and delta state have higher rainfall than Ogun state.

Cassava yield in Edo and delta state per hectare is higher than what you can achieve in the south west for the same effort and input. I have farms in delta state, Edo state and Oyo state, I know what I am saying.

Nigeria does not have adequate electricity and the way it is going the situation will remain like this for the foreseeable future. Any one who wants to go into production must factor his own power generation into his plans. Waiting for public power supply is a mirage.

In your case, you should have move your cassava processing factory to delta or Edo state and situated it where you can get natural gas supply. You can generate your electricity using natural gas, instead of allowing the business idea to die.

I am currently setting up a cassava starch processing factory in Delta state. It will be powered by diesel and wood gas. The wood gas should reduce my diesel cost by over 60 %.

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Re: Investors Corner: Commercial Farming Ideas by Nobody: 9:22am On Jul 22, 2019
ogb5:

If you take a look at the rainfall distribution map for Nigeria you will discover that Edo and delta state have higher rainfall than Ogun state.
It is an advantage when it is true, but not true in all cases. Lagos, Ondo, Ekiti, Osun, Ogun, and Oyo are South West states. And Oyo is very large with different rainfall patterns. I know Delta and Edo very well too. Even down to Calabar, and up in the north. I have worked everywhere.


Cassava yield in Edo and delta state per hectare is higher than what you can achieve in the south west for the same effort and input. I have farms in delta state, Edo state and Oyo state, I know what I am saying.
I choose cassava stem cultivars based on my final product (garri, fufu, starch, or flour) and according to the rain pattern of the location of the farm. There are sections I might deliberately decide to irrigate too during dry season, and so that means, I may want sone areas near a big river. Nevertheless, I agree with you that the areas with higher rainfall are at advantage, but that's not the end of the story.


Nigeria does not have adequate electricity and the way it is going the situation will remain like this for the foreseeable future. Any one who wants to go into production must factor his own power generation into his plans. Waiting for public power supply is a mirage.

In your case, you should have move your cassava processing factory to delta or Edo state and situated it where you can get natural gas supply. You can generate your electricity using natural gas, instead of allowing the business idea to die.
Firstly, natural gas energy generation was not that common practice at the time. We are still saying same thing. Yeah! We considered it, but our prediction was accurate. Looking back, I am glad I did not proceed. I think you really need to know what Free Trade Zones are about. Why do you think having shops, stands, restaurants, bureau de change, etc inside airports are like jackpots? Most are free trade zones. You need to check it out. In the long run, it makes sense to have any business there.

Secondly, there is going to be sea port, airport, and many industries in the area very soon. Businesses there are secured.

Thirdly, every zone generates it's power. It is 24/7 power there. You misunderstood it again. They are well managed business areas that expats always want to check out first everywhere in the world. Electricity are generated specially for the zones. It is not waiting for public distribution of power like you wrote in your post.

Fourthly, it's free trade because tax is free for life, and that's easy exportation. Don't you get it? Well, most farmers do not pay taxes, but you are going to start producing starch, you should pay; else, your enemies will wait for you at the time you are about to make another major breakthrough. lol. Do you understand the huge burden of cutting off tax? No rigorous business registration with C.A.C is another vital advantage. Businesses are just very smooth to run in the zones.

I can go on and on. It's not just feasible for industries to make generation of electricity via gas as the first alternative. Nigeria is just a careless nation. The cleanest, best, and cheapest energy generation method is nuclear. I will write about it soon.


I am currently setting up a cassava starch processing factory in Delta state. It will be powered by diesel and wood gas. The wood gas should reduce my diesel cost by over 60 %.
Not sure of the capacity or how modern your equipment will be, but it is rare to run on wood to power standard factories. And most banks will find it hard to borrow anyone trying to use wood. World Bank that we were trying to work with at the time definitely would throw our proposal inside trash can. Wood energy is not good for the environment as professionals claim. They say it's bad for ecosystem and it a major cause of deforestation which leads to extinction of animals spices in the jungle. However,if there is a solid plan to re plant as one is cutting down, it can be accepted. And if the system will not pollute air, it can be accepted. For you, no one will question you because you are funding it yourself, or using connection to make local banks overlook it. lol. That's from my experience. Where is the law enforcement agency in Nigeria? Hehehe!

Not saying wood option should be discarded, but I would try to see how to address the points I mentioned in this post if I was to use wood.

Diesel is not cheap, gas is not cheap too. Not to talk of the high cost of initial set up. Factories that ran from Lagos to Accra some years back had the option of generating power, but they all knew they were really running at super high cost. Therefore, I have not said one cannot do it, but my advice is that potential owners should count the costs very well, and they should try to accurately predict the future condition of the set up before embarking on it.

Lekki Free Trade Zone even makes more sense than all other zone because of Dangote oil refinery in the area. Lagos is the capital base of the Nigerian economy. Not saying Edo and Delta are wrong places, I can establish it there too.

Finally, I backed out of the business because other shareholders (actually they gat the link of the loans we wanted to use) were only interested in the incentives for their own selfish interests, while they wanted to put the burden of running it on just two of us. They will continue taking the benefits and sharing it among themselves, while the CEO who was suppose to be me and the other guy will be running the business on huge debt which would have been created before operation started. My partner and I saw the ma.dness because we were diligent in our investigation, and we ran away from that crazy trap.

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Re: Investors Corner: Commercial Farming Ideas by ogb5(m): 4:39am On Jul 23, 2019
Pistotita:

It is an advantage when it is true, but not true in all cases. Lagos, Ondo, Ekiti, Osun, Ogun, and Oyo are South West states. And Oyo is very large with different rainfall patterns. I know Delta and Edo very well too. Even down to Calabar, and up in the north. I have worked everywhere.


I choose cassava stem cultivars based on my final product (garri, fufu, starch, or flour) and according to the rain pattern of the location of the farm. There are sections I might deliberately decide to irrigate too during dry season, and so that means, I may want sone areas near a big river. Nevertheless, I agree with you that the areas with higher rainfall are at advantage, but that's not the end of the story.


Firstly, natural gas energy generation was not that common practice at the time. We are still saying same thing. Yeah! We considered it, but our prediction was accurate. Looking back, I am glad I did not proceed. I think you really need to know what Free Trade Zones are about. Why do you think having shops, stands, restaurants, bureau de change, etc inside airports are like jackpots? Most are free trade zones. You need to check it out. In the long run, it makes sense to have any business there.

Secondly, there is going to be sea port, airport, and many industries in the area very soon. Businesses there are secured.

Thirdly, every zone generates it's power. It is 24/7 power there. You misunderstood it again. They are well managed business areas that expats always want to check out first everywhere in the world. Electricity are generated specially for the zones. It is not waiting for public distribution of power like you wrote in your post.

Fourthly, it's free trade because tax is free for life, and that's easy exportation. Don't you get it? Well, most farmers do not pay taxes, but you are going to start producing starch, you should pay; else, your enemies will wait for you at the time you are about to make another major breakthrough. lol. Do you understand the huge burden of cutting off tax? No rigorous business registration with C.A.C is another vital advantage. Businesses are just very smooth to run in the zones.

I can go on and on. It's not just feasible for industries to make generation of electricity via gas as the first alternative. Nigeria is just a careless nation. The cleanest, best, and cheapest energy generation method is nuclear. I will write about it soon.


Not sure of the capacity or how modern your equipment will be, but it is rare to run on wood to power standard factories. And most banks will find it hard to borrow anyone trying to use wood. World Bank that we were trying to work with at the time definitely would throw our proposal inside trash can. Wood energy is not good for the environment as professionals claim. They say it's bad for ecosystem and it a major cause of deforestation which leads to extinction of animals spices in the jungle. However,if there is a solid plan to re plant as one is cutting down, it can be accepted. And if the system will not pollute air, it can be accepted. For you, no one will question you because you are funding it yourself, or using connection to make local banks overlook it. lol. That's from my experience. Where is the law enforcement agency in Nigeria? Hehehe!

Not saying wood option should be discarded, but I would try to see how to address the points I mentioned in this post if I was to use wood.

Diesel is not cheap, gas is not cheap too. Not to talk of the high cost of initial set up. Factories that ran from Lagos to Accra some years back had the option of generating power, but they all knew they were really running at super high cost. Therefore, I have not said one cannot do it, but my advice is that potential owners should count the costs very well, and they should try to accurately predict the future condition of the set up before embarking on it.

Lekki Free Trade Zone even makes more sense than all other zone because of Dangote oil refinery in the area. Lagos is the capital base of the Nigerian economy. Not saying Edo and Delta are wrong places, I can establish it there too.

Finally, I backed out of the business because other shareholders (actually they gat the link of the loans we wanted to use) were only interested in the incentives for their own selfish interests, while they wanted to put the burden of running it on just two of us. They will continue taking the benefits and sharing it among themselves, while the CEO who was suppose to be me and the other guy will be running the business on huge debt which would have been created before operation started. My partner and I saw the ma.dness because we were diligent in our investigation, and we ran away from that crazy trap.

We learn everyday. I want you to learn something this year. Visit a cassava farm in Delta or Edo state during harvest. Compare the yield per stand to what you see in the south west. Ensure you visit the farm in the rainforest belt of the state, not farms in the fresh water swamp forest belt.

Energy from wood is classified as renewable energy. So western donors can not discriminate against it. Sweden generates over 20% of its electricity from wood biomass. In Nigeria you can power your electricity biomass generator without cutting down any tree. There are enough waste biomass around to use. There are heaps of sawdust in the south, heaps of palm kernel shells in the east, tree tops and branches are left to rot in the forest by logging people when the go to collect timber.
Million of tons of plant debris that are cleared and burnt annually during land preparation for farming can turn into wood chips and used to power biomass generators.
Infact you can get biomass supplied to your factory for less than 30 USD per ton

My point is that there are other energy sources that can be looked at to power ones plant if you have the money to set it up, so using lack of power to justify not setting up a plant is not really a nice idea.

There are several industrial estates with natural gas supply, the Agbara industrial estate for example is connected to the gas grid. If you have a gas power generator then you can produce your own electricity from gas at the industrial estate.

You can even get charcoal at less than 50,000 naira per ton. Brazil still uses charcoal to power its steel plants, why can't we use charcoal to power our agricultural processing plants right in the bush.

If all this is difficult, then hook up your company to the 66kv or 132kv power lines if you have the money. Those lines pass through the bush and are reliable.

But walking away from setting up a factory if the proponents of the factory are just after incentives is a good idea. A factory should only be set up if the feasibility study show that it is viable.

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Re: Investors Corner: Commercial Farming Ideas by Nobody: 4:54am On Jul 23, 2019
ogb5:
.

If all this is difficult, then hook up your company to the 66kv or 132kv power lines if you have the money. Those lines pass through the bush and are reliable.

How do you connect to a 132kv line? It's not possible. You will need a substation to do that.
Re: Investors Corner: Commercial Farming Ideas by ogb5(m): 4:59am On Jul 23, 2019
EMMAACHILE:

How do you connect to a 132kv line? It's not possible. You will need a substation to do that.

You look for a substation and connect at the substation. So you situate your plant close to the substation or you build a substation if you have the money.

Those who have taken this route have much more reliable power from the grid.

1 Like

Re: Investors Corner: Commercial Farming Ideas by Nobody: 5:04am On Jul 23, 2019
ogb5:


You look for a substation and connect at the substation. So you situate your plant close to the substation or you build a substation if you have the money.

Those who have taken this route have much more reliable power from the grid.
That will be very expensive. At 33kv or 11kv, one can connect directly.
Agriculture is expensive if you want it done well.
Re: Investors Corner: Commercial Farming Ideas by ogb5(m): 6:03am On Jul 23, 2019
EMMAACHILE:

That will be very expensive. At 33kv or 11kv, one can connect directly.
Agriculture is expensive if you want it done well.

The point I was trying to make is that you can get reliable power in Nigeria if you have the money and the knowledge of what to do.

If you connect to the 33kv line or the 11kv line then you are exposed to load shedding at the substation. Since the generated power is not enough load shedding is done at the substation by turning off the 33kv and 11kv lines. Being connected to the 66kv line isolates you from the major load shedding scenarios. But being exempted from load shedding can be done by agreement with the power distribution companies.

When you say it will be expensive, what is really the difference in cost between a 500 kva 33kv transformer and a 500 kva 66kv transformer?

Also note that electricity tariff drops the higher the voltage that you are connected to.

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Re: Investors Corner: Commercial Farming Ideas by Nobody: 7:03am On Jul 23, 2019
ogb5:


The point I was trying to make is that you can get reliable power in Nigeria if you have the money and the knowledge of what to do.

If you connect to the 33kv line or the 11kv line then you are exposed to load shedding at the substation. Since the generated power is not enough load shedding is done at the substation by turning off the 33kv and 11kv lines. Being connected to the 66kv line isolates you from the major load shedding scenarios. But being exempted from load shedding can be done by agreement with the power distribution companies.

When you say it will be expensive, what is really the difference in cost between a 500 kva 33kv transformer and a 500 kva 66kv transformer?

Also note that electricity tariff drops the higher the voltage that you are connected to.
Is there a provision to connect to a 66kv line in Nigeria?
Alternatively, there are parts of cities with almost 24 hours electricity like Abuja, Lokoja and Makurdi. Plants can be sited there too if the raw materials are plenty.

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Re: Investors Corner: Commercial Farming Ideas by ogb5(m): 8:39am On Jul 23, 2019
EMMAACHILE:

Is there a provision to connect to a 66kv line in Nigeria?
Alternatively, there are parts of cities with almost 24 hours electricity like Abuja, Lokoja and Makurdi. Plants can be sited there too if the raw materials are plenty.

There are provisions to connect to 66kv lines.

I have seen two facilities connected to the 66kv line in delta state and one residential estate in Lekki connected to the 66kv line.

The fact that you get lower tariff when connected to the 66kv line compared to the 33kv or 11kv lines means that you are actually being encouraged to connect to the 66kv line.

However it is not cheap to connect to those lines, the power has to be switched off when you want to connect and you will have to pay for the lost revenue for that period. But if you are planning a big company then the cost can easily be offset during your operation.

The steel plant at Aladja for example is connected to the 132 kV line.

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Re: Investors Corner: Commercial Farming Ideas by Nobody: 8:59am On Jul 23, 2019
EMMAACHILE:

Is there a provision to connect to a 66kv line in Nigeria?
Alternatively, there are parts of cities with almost 24 hours electricity like Abuja, Lokoja and Makurdi. Plants can be sited there too if the raw materials are plenty.
The questions about substations are:
1. Are the legal ways of tapping into such opportunities straight forward, and easy? Not to go through back doors, and then after spending millions of naira, one is cut off the lines.
2. The areas of land sorrounding where such opportunities are, is there no tendency that Government might decide to use them later in the future? Or has government not already acquired the sorrounding area?
3. Will government not ask farms and industries to move away from the locations in the future if all is done legally? These areas are government owned locations. I run away from such, or I have temporary plans for such places. Are temporary plans my goals for opening big factories?
4. Obviously, if the farm is not near the area too, cassava production is not possible. Vegetable oil might should be checked well too because it can be too expensive to move huge fruits bunches. Again, is the location near my point of sales? How convinient is logistics? What is the present cost? And what will be the future cost? Perhaps, future government policies can make new entrants create their factories at strategic locations which will push mine out of operation easily. When is the future? Can I easily predict it? The uncertainties are endless.

I remember an unverified story about Bishop Benson Idahosa who had a project in a region in FTC during the Abacha era. The narrator said the whole area was government owned because power lines or maybe road had been planned there. But many people just built houses and created businesses there unknowingly. When the destruction of properties almost reached Idahosa's, he marched to Aso Rock, and Abacha gave the order to divert the movement of the project so that it will not affect Idahosa's property, and many near him benefited from his connection. Obviously, that was additional cost on the part of tax payers. Lol. Is it fair on the people whose properties had been destroyed, and were even destroyed after the order from Abacha? This is an unverified story anyway, but there are cases like this. We are all these things.

I know what I am saying. I know most of these tips about free access or back door, or even so called legal ways to constant power, but one must be extra careful, esp in a country where laws are changed anyhow. If a whole minister of finance can fall into NYSC exemption fraud, who are ordinary Nigerians? Yet in the same country, a court said recently that certain level of education is ok for presidency just to favor a particular group, and even the battle of eradication of NYSC is on because most of their children don't participate any longer. This is Nigeria!

The fear about situating factories in areas where electricity is temporarily with constant supply is that nothing is guaranteed. We have experienced such previously. We are talking about a long term investment. I cannot take such risk.

Again, I reapeat: The uncertainties are just too many. I hope you get my points. No matter how we see it, power is still a big challenge. I am not saying that one cannot find a way around it, infact, the few who find solutions to challenges faced by many always make huge wealth. The process is called opportunity. For the economy of a nation to move forward, for factories to produce effectively, it is not a wise decision individuals should start generating power. It's just counter productive.

It is why I left the option opened for investors to find ways to navigate around. But generally speaking, it is not advisable. And it's the reason Nigeria is still facing serious challenges economically.

Finally, I agree with you that the cost of generating ones power is expensive. And it's more expensive to go through back door and later have one cut off from such temporary access to power.

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Re: Investors Corner: Commercial Farming Ideas by Nobody: 9:46am On Jul 23, 2019
ogb5:


We learn everyday. I want you to learn something this year. Visit a cassava farm in Delta or Edo state during harvest. Compare the yield per stand to what you see in the south west. Ensure you visit the farm in the rainforest belt of the state, not farms in the fresh water swamp forest belt.

Energy from wood is classified as renewable energy. So western donors can not discriminate against it. Sweden generates over 20% of its electricity from wood biomass. In Nigeria you can power your electricity biomass generator without cutting down any tree. There are enough waste biomass around to use. There are heaps of sawdust in the south, heaps of palm kernel shells in the east, tree tops and branches are left to rot in the forest by logging people when the go to collect timber.
Million of tons of plant debris that are cleared and burnt annually during land preparation for farming can turn into wood chips and used to power biomass generators.
Infact you can get biomass supplied to your factory for less than 30 USD per ton

My point is that there are other energy sources that can be looked at to power ones plant if you have the money to set it up, so using lack of power to justify not setting up a plant is not really a nice idea.

There are several industrial estates with natural gas supply, the Agbara industrial estate for example is connected to the gas grid. If you have a gas power generator then you can produce your own electricity from gas at the industrial estate.

You can even get charcoal at less than 50,000 naira per ton. Brazil still uses charcoal to power its steel plants, why can't we use charcoal to power our agricultural processing plants right in the bush.

If all this is difficult, then hook up your company to the 66kv or 132kv power lines if you have the money. Those lines pass through the bush and are reliable.

But walking away from setting up a factory if the proponents of the factory are just after incentives is a good idea. A factory should only be set up if the feasibility study show that it is viable.


I want to appreciate your participation in this discussion. I truly appreciate it. Please, just try to understand that I am trying to balance everything. I am very appreciative of your input. And I have learned new things from you.

The truth is that I never really paid much attention to the fact that Delta and Edo have higher rain in these recent years. I know that SW's rainfall is depreciating, but the issue is that these scientists always have solutions to most challenges. And perhaps they should just leave some challenges for nature to correct. Lol. They end up messing things up at times. Concerning yield lower in lesser rainfall area, there are solutions that you will also be shocked. Yes, I agree with you that general speaking it's at advantage to situate such farms in heavy rainfall region, and I mentioned it earlier that you ate right. Again, I am saying it that I agree with you. You are right. But I said, the story does not end there. However when planning busineses, there are other factors which definitely come into influencing the location of factories and farms. Hope you get my point.

Regarding wood as renewable energy, you are very right too. But my point again was that World Bank frowns against it in Africa. Lol. I am well aware that not only Sweden generates power from wood, even Russia and the United States do. But the issue is that: what is the % of carbon monoxide released to the atmosphere? Unknowingly, these are factors affecting us. Let's take for instance importation of over 5 years old cars to Nigeria which to me is crazy. If we understand the impact of these old cars to our environment, we will stop it. It is one of the reasons Lagos and Ogun are experiencing lower rainfall and higher heat. Ozone layers are damaged daily. That of Bayelsa is no go area. Lol. Those guys there don't have "commas" to flaming gasses. Hejehhe. That place is terribly hot now.

If we look at the negative impact of allowing more than 5 years old vehicles into Nigeria, we will understand it is costlier than the present inconveniences of not having many private cars. Masses don't get it. They pay more for tjat stu.pid act in other ways. Food is getting expensive, yet they keep shouting government this, and government that. Whereas, they are the ones contributing to high cost of food because they use old cars which release damaging gasses into air. Thereby altering the climate negatively which is counter productive for farmers. I pray we get it right in this country. South Korea is not stupid for crushing those cars our boys disengage and import home as replaceable parts. We always think we are smart, but the impacts are always disastrous, and are costlier at the end of the day.

I think I have written about our we sabotage everything in Nigeria somewhere. General Obasanjo banned 10 years and above vehicles from entering Nigeria during his era, and that's when our custom officers in land borders decided to enrich themselves by allowing smuggled vehicles. It was Jonathan that reversed the law when Nigeria Port Authority cried that they are losing seriously due to smuggling at borders. Instead of Jonathan to find ways to be ruthlessly curb smuggling, and police our borders like what Trump is doing at US/Mexico borders, he cheaply accepted defeat and here we are with even 30 years old trucks in Nigeria. Why won't containers fall on people while such trucks are moving? We are are own worst enemies. I forbid anything older than 5 years old car. Rather, I would use Uber when necessary, and used BRT or cabs until I could buy a quality car. All these people who are buying cheap used cars (and they aren't cheap due to high import tax) can actually save to buy quality brands if they have no alternative. Funny that NPA takes huge tax for new cars too instead of lowering it encourage better quality. "Nigeria get enough wahala oooo". And then, local producers like Innossons will surely cry against such act. lol. If I start with Innossons and other issues, we will cross over the objectives of this thread.

Having explained the prons of using wood as energy, I am not saying I am against it. My point is that World Bank is a bit biased, or maybe people are treated the way they present themselves. Malaysia is not spared. Why? They produce so much vegetable oil but they are reckless with preserving jungle lifes. They continue contributing to extinction of rare species in the jungle just because of generating income from oil palms. These are the issues.

You have made good points, and I agree with you. But kindly try to read my comments above concerning using substation options. These are good opportunities for people in the system. If I have such too, I will tap into them. But my concern is always the future. I hope you get my points.

Please, I have a question bro/sis. A beg oooo. Can I get an affordable biomass system with 2kva to 10kva output? Can you recommend a brand I should look into? Or any local manufacturer? This Info HERE that you dropped is a reminder for me. And it has just awaken a neglected option for a project I am presently working on. I appreciate your effort. I don't mind options like this too. "Make World Bank and it's like go siddon for dem corner for now". grin

4 Likes

Re: Investors Corner: Commercial Farming Ideas by RealityShot: 10:04am On Jul 23, 2019
Writer pistolaxxx above.. Your epistles are TOO long
Re: Investors Corner: Commercial Farming Ideas by Nobody: 11:07am On Jul 23, 2019
RealityShot:
Writer pistolaxxx above..
Your epistles are TOO long

Writer Realityxxx above, unfortunately the "reality" is that you will need the service of consultants since you cannot read the epistles. I am sorry this thread is not for you. Actually, it is not for everyone. You should hunt more for front page summarized contents. Thanks for your comment anyway.

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Re: Investors Corner: Commercial Farming Ideas by SocialJustice: 11:44am On Jul 23, 2019
chigomiced:


Most toothpastes use glycerin, which is a sweet, odorless, clear liquid at room temperature and sourced from animal fat (pig and cow) and/or vegetable oil (corn or soybean). If your toothpaste states "vegetable glycerin", it is most likely from GMO corn and/or soy. Glycerin is most commonly used in toothpastes and soaps and it is added to toothpaste to keep it from drying out.

How many Muslims know This?

grin grin Muslim folks be like "What's going on here?"

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