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Business Plan Africa Investor-Ready Plans

Golden Delta Rice Business Plan

Investor-ready integrated rice farm and mill business plan: N1.09bn funding, 100 hectares double-cropped, Year 5 revenue N1.75bn at a 23.1% margin.

Golden Delta Rice — grain storage silos at an integrated rice farm and mill
Business Plan & Investment Proposal · Nigeria

Rice Farming Business Plan — Nigeria

Golden Delta Rice · Grow The Paddy, Mill The Rice, Sell The Bag.

An integrated rice farm and mill in Nigeria — 100 hectares of irrigated lowland
double-cropped at 5.0 tonnes a hectare against a national average near 2.0, feeding a 1.0 tonne-per-hour parboiling
and milling line, with an outgrower scheme supplying the balance. Total funding of
₦1 093 653 000: ₦320 million promoter equity, a ₦60 million grant and
₦713.65 million agricultural term debt at 9.0 per cent with a two-year capital moratorium.

₦1.09bnTotal funding
100 haDouble-cropped
₦1.75bnYear 5 revenue
23.1%Year 5 EBITDA margin

Read the executive summary →

This plan opens with a market fact that would sink most rice proposals and turns it
into the reason for the venture. Nigerian paddy prices roughly halved between the 2025 peak and 2026 while
fertiliser costs rose sharply, so growing paddy to sell as paddy has stopped paying. Golden Delta’s response is to
own the next step: cheap paddy is an input cost to a miller, and the margin that has left the field now sits in the
mill. Around that sit two assumptions a funder should test hardest. The first is yield — 5.25 tonnes a hectare
against a national average near 2.0, from irrigated lowland cropped twice a year. The second is the money: term debt
at 9.0 per cent with a two-year capital moratorium, which the plan admits in its own section is what decides
whether this project works at all.

The plan at a glance

Six measures that determine whether this venture and its funding stand up.

₦1.09bnTotal funding requirement₦320m promoter equity, a ₦60m grant and ₦713.65m agricultural term debt at 9.0% with a two-year capital moratorium.
9.0%The rate the project rests onConcessional agricultural finance. At commercial Nigerian rates this project does not work — the plan gives that its own section.
5.25 t/haYear 5 paddy yieldAgainst a Nigerian national average near 2.0 t/ha. Irrigated lowland, double-cropped, with the agronomy set out in full.
1 189 tMilled rice sold at Year 5From 1,918 t of paddy processed through a 1.0 tonne-per-hour parboiling and milling line.
23.1%Year 5 EBITDA marginFrom minus 2.1% in Year 1. The margin sits in milling, not in growing — which is the plan’s central claim.
20.0%Project IRRWith debt service cover moving from negative in Year 1 to 2.53x by Year 5, bridged by the capital moratorium.

Where the margin went

Why a collapsed paddy price is a problem for growers and an opportunity for millers — and why this plan owns both ends.

The fieldWhere the margin used to beNigerian paddy prices roughly halved between the 2025 peak and 2026 while fertiliser rose sharply. Growing paddy to sell as paddy is now the losing half of the trade.
has moved to
The millWhere it is nowCheap paddy is an input cost, not just a revenue problem. Integration turns a collapsed farmgate price into a milling margin — which is why this plan owns both ends.

Five years of trading

Revenue and EBITDA on the base case. Yield per hectare and the finance rate are the two assumptions that matter most, and both are stressed in Sections 12 and 13.

Revenue build, and the milled rice behind it

Revenue is milled rice sold. Hectares cropped rise from 60 to 100 and yield from 4.30 to 5.25 t/ha — against a Nigerian average near 2.0 — taking paddy processed from 733 t to 1,918 t.

Year 1

₦432m · 454 t rice

Year 2

₦811m · 764 t
Year 3

₦1,187m · 1 004 t
Year 4

₦1,450m · 1 100 t
Year 5

₦1,748m · 1 189 t

EBITDA and margin, Year 2 onward

Year 1 runs an EBITDA deficit of ₦9.0m and a ₦132m loss after tax while the farm establishes. The margin then climbs to 23.1% as the mill fills and yields reach plan.

Year 2

₦125.6m · 15.5%

Year 3

₦257.9m · 21.7%
Year 4

₦328.5m · 22.7%
Year 5

₦403.1m · 23.1%

Why this plan works the way it does

1
The margin has moved from the field to the millNigerian paddy prices roughly halved between the 2025 peak and 2026 while fertiliser costs rose sharply. For a grower that is ruinous; for a miller it is cheap input. Owning both ends is what makes the arithmetic work.
2
The finance rate decides the projectTerm debt at 9.0% with a two-year capital moratorium is the assumption everything rests on. The plan gives that its own section rather than burying it, because at commercial Nigerian rates the return does not survive.
3
Yield is two and a half times the national average5.25 tonnes a hectare against roughly 2.0 nationally, from irrigated lowland double-cropped twice a year. That gap is the most aggressive assumption in the plan and the agronomy behind it is set out in full.
4
Outgrowers fill the mill the farm cannotOwn production alone will not keep a 1.0 tonne-per-hour line busy. The outgrower scheme supplies the balance — and brings counterparty and quality risk the plan treats separately.
5
Year 1 is a funded lossAn EBITDA deficit of ₦9.0m and a ₦132m loss after tax while the farm establishes and the mill commissions. The capital moratorium exists precisely to carry that year.

Financial snapshot

Four charts from the plan. The full set of twenty-four appears throughout the sections below.

Value per tonne of paddy, sold raw against milled
Figure 5. Value per tonne of paddy, sold raw against milled.
Yield ramp against the break-even and the national average
Figure 10. Yield ramp against the break-even and the national average.
Cash flow — the two-year moratorium carries the ramp
Figure 14. Cash flow — the two-year moratorium carries the ramp.
The same farm financed three ways
Figure 20. The same farm financed three ways.

Contents

Seventeen sections and five appendices. Every page carries full navigation, a section outline and links to the sections either side of it.


!
Important Notice and Basis of PreparationBasis of preparation, data sources and forward-looking statement caveats. Please read first.

Appendices
Confidential. This document is provided for the purpose of evaluating an
investment in Golden Delta Rice and may not be reproduced or distributed without written consent. Projections are
forward-looking statements based on the assumptions registered in Section 16 and are not guarantees of future
performance.