ginger

Ginger

The One Pager Business Plan for Ginger

The One Pager Business Plan (Ginger)

Presented in bite size and easy to understand language, The One Pager Business Plan highlights the basic insights and considerations that helps you to decide if and how to engage in agricultural ventures.
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Ginger in The World

Irish Potato
Ginger is one of the most widely used spices and herbs around the world and in Nigeria. Worldwide about 3,299,795 million tonnes of ginger are produced annually. Indian is the largest producer of ginger with with 1,109,00 tonnes production volume per year. Nigeria is second with 522,964 tonnes of production per year production. Around 138 countries and territories import ginger from India with a total export value of about $28.31 million (Connect2India, 2022).
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Ginger in Nigeria

Globally, Nigeria has the 2nd largest production share of about 16% after India with a production share of 33.9%. In the Nigerian market, ginger is not only popular, but it is also a very high-demand crop commodity. Nigeria ginger is extremely tasteful. The products are renowned for their pungency and high levels of oleoresin oil, which provide added flavours to food. Ginger exports increased from N1.13 billion in the second quarter(Q2) 2018 to N1.24 billion in the same period of 2019. It increased in Q2 2020 from N1.57 billion to N3.75 billion in 2021. The growth was maintained in 2022 as export earnings from the crop grew to N4.6 billion. In Q2 2023, it doubled to N10 billion. Main export destinations are diverse and include African, Middle-Eastern and European markets.
Tomato
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Ginger Value Chain

Policy

Goverment AID Multilateral, etc.

Input

Seed Fertilizer services, etc.

Farm

You-Farmer Labour services, etc.

Processing

Manufacturer Marketing Distribution, Export etc.

Consumption

Industry Consumer Export Trader, Etc.

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Calendar Pattern for Ginger Production

Irish Potato
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SWOT Analysis

Strength: Available base resources of land, labour and technical know-how, well known in local and international markets.
Weakness: Financing of new entrants may be difficult, irregularity in rainfall pattern, ginger rhizome rot disease.
Opportunity: Growing market due to international recognition, large ginger value chain.
Threat: Dumping of imported processed ginger into the country.
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PESTLE Analysis

Political
Nigeria's policies favour the growth of Agricultural businesses and exports.
Economic
Well established ginger distribution channel.
Social
Ginger is a common spice and herb in every home.
Technology
Low complexity technology for medium holder mechanization and good spread of digital technology for information and extension.
Legal
Relative ease of doing farming business as little to no licenses or regulation required.
Environment
Suitable geography and climate to support ginger farming.
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Technical Consideration

Ginger plant is an annual crop with a maturity period of 8-10 months. The rhizomes seed called Bits weighing 20-30 g each and having at least one bud are planted in rows, 25 cm apart at distances of 20-25 cm within the row and at a depth of 10cm
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Marketing and Distribution

The ginger market cut across local and international markets. Ginger is harvested and sold at the farm gate to the wholesaler (Middlemen), who then sell to the retailers, process or export traders. Farmers can decide to locate the processors or export trader directly for an increase in profit margin.
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Operations

A medium holder farm can be managed with a lean operational framework of not more than 5 people, mostly contract with little overhead cost. Most administrative tools for such tasks as bookkeeping, project management and reporting can be sourced freely.As farms grow, headcount may grow, however, it is advised to keep operations lean and overhead low by using contract workers for most of the farm tasks while growing capacity in managerial areas.
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Risk

Environment
Unfavourable environments such as land issue, insecurity, and pastoralism
Mitigant
Proper community engagement with legal backing, security assessments for safe areas against pastorals and insurgencies.
Probability Level High Probability
Technical
Poor technical knowledge on tomato production.
Mitigant
Obtain training on production, consult the services of an agronomist
Probability Level Low Probability
Pest & Disease
Outbreak of pest and diseases.
Mitigant
Proper weed control, and use of cultural, chemical, and biological pest control methods
Probability Level Medium Probability
Climate
Incedence of drought or flood
Mitigant
Use weather prediction information from NIMET, avoid flood-prone land. Make use of irrigation facility during dry spell.
Probability Level High Probability
Finance
Lack of funds or poor funding
Mitigant
Access to finance and credit to complete the production.
Probability Level Medium Probability
Market
Product rejection and ripping off by middlemen
Mitigant
Apply good agricultural practices (GAP), produce based on the market quality requirement and understand the market and market channels.
Probability Level Low Probability
Pricing
Poor pricing of commodity
Mitigant
Work with other farmers and associations on pricing. Also, you can get a pre-contract agreement with your buyer
Probability Level Medium Probability
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Economics of Production (July 2023)

AgroMall Market Survey
It is advised that capital expenditure is avoided at this stage and all capabilities are sourced as services. Labour and services costs may vary per state or region and are amortized per hectare.
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Profitability of Production (July 2023)

AgroMall Market Survey
Salaries and operating expenses are amortized per hectare. Profitability can move widely with commodity price movements.
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Funding

There are funding sources for medium-scale tomato farming if capacity and capability are demonstrated. Typical funding sources from formal financial institutions include:
Out Growers
Investors and partnerships
Development interventions
Grants
Banks: Microfinance and commercial
Funding considerations will require that feasibility and viability are demonstrated, some track record in agriculture will also support a positive funding outlook.
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Who is Suited for This?

Anyone interested in agriculture and ready to receive training in ginger production will do well in ginger production. The ginger business is also suited for retirees, students, graduates, professional farmers, side hustles farmers and agriculture enthusiasts. Agronomists, farm assistants and export traders’ services are available for support when needed.
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Consideration Score

  • Viability --- High
  • Feasibility --- High
  • Profitability --- High
  • Ease of entry --- High
  • Aggregate Risk --- Medium
  • Probability for Growth --- High
  • Resilience and Sustainability --- High
  • Aggregate Consideration Score --- High
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Conclusion

Ginger farming is a lucrative business with ready local and international markets.
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pattern

Engage in Agriculture

  • Junction
  • Young Ranchers
  • Boat
  • Telagri
  • Farm Tinder
  • Living
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