Golden Delta Rice Business Plan — The Business
What the venture does across farming and milling, its legal structure and compliance position, and what it deliberately is not.
The Business
Jump to section
- Overview & contents
- i. Important Notice and Basis of Preparation
- 1. Executive Summary
- 2. The Business
- 3. Why the Mill Is the Business
- 4. Market Analysis
- 5. SWOT and Competitive Position
- 6. Production and Operations
- 7. The Outgrower Scheme
- 8. Organisation and Compliance
- 9. Financial Plan
- 10. Break-Even and Debt Service
- 11. Investment Analysis
- 12. The Finance Rate Decides This Project
- 13. Risk Analysis
- 14. Implementation Roadmap
- 15. Key Performance Indicators
- 16. Key Assumptions
- 17. Conclusion and Recommendation
- A. Appendix A: Consolidated Financial Summary
- B. Appendix B: Capital and Cost Schedules
- C. Appendix C: Funding and Debt Schedules
- D. Appendix D: Risk Register
- E. Appendix E: Glossary
- 2.1 What the business does
- 2.2 Legal structure and compliance
- 2.3 What this business is not
2.1 What the business does
|
Activity |
Scale |
Role in the business |
|---|---|---|
|
Irrigated rice production |
100 ha, two crops a year |
Produces 1 000 t of paddy at full production, at a controlled cost |
|
Outgrower paddy purchase |
620 t a year at maturity |
Fills the mill and builds a supply base the company does not have to finance as land |
|
Parboiling and milling |
1.0 t/h line |
Where the margin is; converts paddy into a branded consumer product |
|
By-product sales |
130 t bran, 324 t husk |
Bran to feed millers, husk for briquettes and poultry litter |
|
Branded distribution |
50 kg bags |
Wholesale, institutional and modern-trade channels |
2.2 Legal structure and compliance
|
Item |
Detail |
|---|---|
|
Entity |
Golden Delta Rice Limited, registered with the Corporate Affairs Commission |
|
Tax |
Companies income tax at 30%; agricultural production attracts concessionary treatment and the model assumes a three-year relief period |
|
Land tenure |
Certificate of Occupancy or a registered long lease, with community agreements documented |
|
Food safety |
NAFDAC product registration for packaged rice; SON quality standard compliance |
|
Environmental |
Environmental impact assessment for the mill and irrigation abstraction |
|
Water |
Abstraction permit from the relevant river basin development authority |
|
Labour |
Employee registration, pension and industrial training fund contributions |
|
Milling licence |
State-level milling and food processing registration |
Two of these deserve emphasis in any Nigerian agricultural plan. Land tenure is the item most likely to delay or defeat a funding application, because customary and statutory rights frequently conflict and lenders cannot take security over land they cannot register. Water abstraction is the item most likely to be overlooked, and without it dry-season irrigation — the source of the second crop — is not lawful.
2.3 What this business is not
▪ It is not a paddy trading business. The plan does not assume the company can profit by buying and reselling paddy; it buys paddy only to fill its own mill.
▪ It is not a large-scale plantation. At 100 hectares it is a commercial but modest operation, too small to influence prices and large enough to justify mechanisation.
▪ It is not a rainfed farm. The entire yield and double-cropping argument depends on irrigation. A rainfed version of this plan would produce one crop at lower yield and would not be viable at current paddy prices.
▪ It is not an import-substitution play dependent on policy. The plan assumes current border and tariff arrangements continue but does not require them to tighten. Section 13 treats policy reversal as a risk, not an assumption.