Maize
The One Pager Business Plan for Maize
The One Pager Business Plan (Maize)
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.
Maize in The World
The US Department of Agriculture’s World Agricultural Supply and Demand Estimates (WASDE) projects the world will produce 1.172 billion tonnes of corn in marketing year 2022-23, of which 183.58 million tonnes will be exported. The WASDE sees individual countries’ domestic feed production using 743.05 million tonnes of corn, and global ending stocks at 304.53 million tonnes. The United States holds the highest producer of maize, followed by China and Brazil
Maize in Nigeria
Nigeria’s agricultural sector accounts for a sizable portion of the country’s GDP. Agriculture contributed 22.35 percent of total GDP between January and March 2021, increasing nearly one percentage point over the same period in 2020. Maize alone accounts for 5.88 percent of Nigeria’s agricultural GDP. Nigeria is expected to produce 23 million metric tonnes (mmt) of maize in 2022. This will represent a 12% increase from what was produced in 2021. This increase is however short of the country’s annual demand of 30 million metric tonnes. There will be a gap of 7 million tonnes which will be filled with imports.
Maize Value Chain
Goverment AID Multilateral, etc.
Seed Fertilizer services, etc.
You-Farmer Labour services, etc.
Manufacturer Marketing Distribution, Export etc.
Industry Consumer Export Trader, Etc.
Calendar Pattern for Maize Production
| Scientific Name | Zea Mays |
| Botanical family | Poaceae |
| Sowing/Planting period (South) | 15th March - 7th August |
| Sowing/Planting period (North) | 1st May - 31st June |
| Sowing/Planting rate | 25 - 30kg / ha |
| Length of the cropping cycle | 100 - 120 days |
| Weeding | 3 - 4 weeks after planting (WAP) | 5 - 6 WAP |
| Fertilizer | Basal @ planting, 3 - 4 WAP | 5 - 6 WAP |
Maize Farming in Nigeria
Maize is an important staple food in Africa, and in Nigeria, aside from being consumed locally in roasted or boiled form, it is also consumed in other processed forms such as cornflakes, custard, pap (ogi), golden morn, and more. An International Institute of Tropical Agriculture (IITA) Survey conducted in 2003 showed maize is the most consumed staple food in households at about 20%, followed by cassava – 16.5%, rice – 11.9%, and cowpea grain – 11.8%. Maize is grown in all the States in Nigeria. The Northern part of Nigeria accounts for most of the production.
SWOT Analysis
Strength: Available base resources of land, labour and technical know-how.
Weakness: Financing of new entrants may be difficult and climate change is a weakness.
Opportunity: Growing local and international market and high population of consumers.
Threat: Global economic downturn, bad weather cum natural disasters (draughts, epidemics), unfavourable government policies and the arrival of a competitor.
PESTLE Analysis
Political
Economic
Social
Technology
Legal
Environment
Technical Consideration
Maize is an annual crop. A minimal range of 480–880 mm of well-distributed rainfall is adequate for maize, depending on the variety. Maize is especially sensitive to moisture stress during flowering when a short spell of stress can reduce the crop yield by up to 30–35%. About 15–20 kg of maize seeds is required to plant a hectare. Sowing of maize seed is done at 3 seeds per hole at a spacing of 50 X 75cm, it can later be thinned to 2 plants per stand at about 1–2 weeks after germination. Proper weed and pest management is required. Ensure the soil fertility is maintained by applying 3 bags of NPK 15-15-15 at planting and 3-4 weeks later applying 2 bags of Urea. Maize matures in 4months, and a yield of 4-8 tonnes per hectare is expected depending on the cultivar seed yield potential.
Marketing and Distribution
Increased production has been prompted by the rapid development of the poultry industries and an increase in population. As is common with most crops, the price is usually lowest during the harvest period and increases during the period of scarcity. Farmers are advised not to rush all their harvest to the market immediately after harvest but to provide good storage to derive more profits by selling when demand for grain is highest. Maize is always in high demand as the poultry industry, food processing and manufacturing industry are in high demand of maize.
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.
Risk
Maize farming at medium scale is presented with a few risks that can be mitigated with low complexity considerations and actions.
Unfavourable environments such as land issue, insecurity, poaching, and pastoralism.
Mitigant
High Probability
Poor technical knowledge on maize production.
Mitigant
Low Probability
Outbreak of pests such as armyworms, rodents, birds and diseases such as aflatoxin, maize smut etc.
Mitigant
Medium Probability
Drought or flood.
Mitigant
High Probability
Lack of funds or poor funding.
Mitigant
Medium Probability
Product rejection and ripping off by middlemen.
Mitigant
Low Probability
Poor pricing of commodity.
Mitigant
Medium ProbabilityEconomics of Production (October 2023)
AgroMall Market Survey
Cost of Cultivation - Maize Per Ha
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.
Profitability of Production (October 2023)
AgroMall Market Survey
Salaries and operating expenses are amortized per hectare. Profitability can move widely with commodity price movements.
Funding
There are funding sources for medium-scale maize 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.
Who is Suited for This?
Anyone interested in agriculture and who can create time for farming will do well in maize farming if they put their mind, heart, and effort into it. The best-suited are agriculture students, graduates, professional farmers, side hustle farmers, and enthusiasts.
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
Conclusion
Maize production is a lucrative venture. With the application of the best agronomic practices and mitigating against all the risk factors, good yield is guaranteed
