Rice
The One Pager Business Plan for Rice
The One Pager Business Plan (Rice)
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.
Rice in The World
Rice is one of the most popular stable foods consumed around the world and in Nigeria. About 487 million tons was produced in 2017 with an annual growth of 1%. About 481 million tons is consumed annually, with a 1.2% that is driven mainly by Africa’s growing population. (PwC)
Rice in Nigeria
Nigeria’s annual rice consumption reached 6.4 million tons in 2017 and growing at 4.7% -an addition of about 300 thousand tons per year. Nigeria’s consumption growth outperforms the world’s growth by about 3.7%, which is about 4 times of global growth. An annual population growth of 3% further creates ample opportunity for rice farming business. (PwC)
Rice Value Chain
Goverment AID Multilateral, etc.
Seed Fertilizer services, etc.
You-Farmer Fertilizer services, etc.
Manufacturer Marketing Distribution, etc.
Resturant Consumer, etc.
Calendar Pattern of Rice Production in Nigeria
Crop Calendar For Cereal
Rice Farming in Nigeria
Rice farming happens across Nigeria, and popular in the northern parts. About 12 million farmers cultivate rice annually. Several fragmented rice mills offtake rice paddy from farmers, a few large mills also support and offtake from farmers in out grower schemes. Several government interventions through grower anchors and associations supports rice farmers with financial and technical assistance.
SWOT Analysis
Strength: Available base resources of land, labour and know how.
Weakness: Financing of new entrants may be difficult.
Opportunity: Growing market due to growing population and processors.
Threat: Imported rice and large commercial farmers.
PESTLE Analysis
Political
Economic
Social
Technology
Legal
Environment
Technical Consideration
With a gestation of 4 months, rice can be grown with very little complexity when on a farm of manageable size (up to 100ha) in both wet and dry seasons, in almost all states of Nigeria. A good yield of up between 5 and 7 tons per hectare requires cultivation on well drained loam soil, the use of good seed varieties, adequate fertilizer usage, adequate herbicide and pesticide usage, good spacing, good crop density. The adoption of impactful agricultural practices such as global good agricultural practices will further improve the chances of a good harvest
Marketing and Distribution
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.
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
Rice farming at medium scale is presented with a few risks that can be mitigated with low complexity considerations and actions.
Environment Establishing a Solid Infrastructure and High Preventive such as nets and wire mesh can help protect the catfish from unfavorable environmental conditions. 
Medium Probability
Technical Obtain rice farming knowledge, work with extension agronomist, join communities of rice growers to exchange information. 
Low Probability
Pest & Disease Apply pre and post emergence herbicide, pesticides, and practices. Medium Probability
Climate Avoid flood prone areas, follow climate and weather patterns - use information from NIMET. Low Probability
Finance Ensure financing is secured before cultivation commences. Keep proper book and management systems to demonstrate capability and capacity to financiers Medium Probability
Market Ensure good quality paddy by using good technical and management provisions for cultivation; drying and storing of paddy rice. Low Probability
Pricing Obtain forward contract with off taker and work with aggregating association or commodity board to ensure price stability. Medium Probability
Risk and Mitigants Matrix (July 2023)
Unfavourable production environment such as security issues or poor relationship with host community
Mitigant
Medium ProbabilityPoor technical knowledge and experience of the cultivation and management of rice in farm and paddy rice management.
Mitigant
Low ProbabilityOutbreak of pest and diseases.
Mitigant
Medium ProbabilityIncedence of drought or flood
Mitigant
Low ProbabilityLack of inadequate finance or availability of funds as at when required.
Mitigant
Medium ProbabilityMarket rejection of paddy rice.
Mitigant
Low ProbabilityNegative price movement
Mitigant
Medium ProbabilityEconomics 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 cost may vary per state or region and are amortized per hectare.Profitability of Production (July 2023)
AgroMall Market Survey
Funding
There are funding sources for medium scale rice 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 can create time for farming will do well in rice farming if they put their mind, heart, and effort to it. Best suited are agriculture student, agriculture graduates, professional farmers, side hustle farmers, agriculture enthusiast.
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
Rice farming is a viable option for economic engagement in today’s Nigeria. If properly planned and executed, it will be profitable and sustainable, presenting a path for growth.
