2020
IFIDI, Joshua
Tenadou
18/Eng02/044
COMPUTER
ENGINEERING
A Business Plan for the Development of a Two Thousand (2,000) Capacity
Snail Farm at Agudama-Epie, Yenagoa, Bayelsa State by DIBA Ventures.
ENTREPRENEURSHIP
Contents of the Project plan
1. Executive Summary/Brief Description of the Project
2. Sponsorship, Management and Technical Assistance
3. Market and Sales
4. Technical Feasibility, Resources and Environment
5. Government Support and Regulation
6. Timelines of Projects
7. Estimated Project Cost and Revenue
8. Funding Mechanism
9. Conclusion
1.0 Executive Summary/Brief Description of the Project
This plan looks into the practicability of setting up a two thousand (2,000) capacity
snail farm at Agudama-Epie, Yenagoa, Bayelsa State by DIBA Ventures. The farm will
produce 2,000 Giant African snails each production cycle. The processing facility will extract
snail slime for the cosmetics and beauty industries and will also ground snail shells into
powder to serve as fillers in the ceramic, paint, animal feed, construction, and paper
industries.
The domestic demand for snail and its products are higher than its supplies as such;
the market potential of snail is inexhaustible.
2.0 Sponsorship, Management and Technical Assistance
This business will be sponsored by Abariowei Agba, a retired Agricultural Economist
and Extension expert with years of supporting agricultural ventures in the Niger Delta region
of Nigeria. Before his retirement, he played a vital role in the establishment of the
Agricultural Village in Bayelsa as well as was monumental in attracting federal loans through
the Central Bank of Nigeria to local farmers in both Bayelsa and Akwa Ibom states.
The business is a medium scale enterprise therefore it will possess a simple
management structure. It will be a partnership between DIBA Ventures and ABAEBIBO
GETT Enterprises with the latter being a silent partner. DIBA Ventures will produce the
Managing Director with responsibilities pertaining to the co-ordination of the daily
management of the snail farm. They will be accountable to both partners; and will ensure that
resources will be channelled towards optimising profit.
The Sponsor, Abariowei Agba has good working relations with the Bayelsa State
Ministry for Agriculture and Natural resources as a result of his involvement in the
establishment of the Bayelsa State Agricultural Village. As a result, his enterprise will obtain
technical support from this in terms of production through contract farming. Additionally,
Mr. Agba has a long lasting relationship with the Central Bank of Nigeria’s Development
Finance Department as well as the Izon Ibe Micro-Finance bank in Bayelsa. This relationship
will grant the business access to Small and Medium Scale Enterprise loans from both
organisations to fund the farm.
3.0 Market and Sales
Market orientation: Domestic; South South, South West, and South East Nigeria
Market Share: 10% niche market in South South, South West and South East Nigeria
Users of Products: Edible food for humans, snail shell powder as fillers in the ceramic, paint,
animal feed, construction, and paper industries; snail slime in cosmetics and beauty
industries.
Competition analysis
The market for the Giant African snail production in Bayelsa and Rivers states are
stiff as snails are easily picked from the bush and sold especially during the rainy season.
This is why the business will focus on making sales during the dry and harmattan seasons
when snails are not readily available in the region and the competition is low.
Consequently, in the South West and South East, the demand for snail meat and its
products are higher than the supplies as such; the market potential of snail is inexhaustible.
Our observation shows that out of 100% snail needed in both regions annually, only 68%
was available. There is, therefore, the need for increased production in other to meet up the
100% snail demand.
Finally, our biggest edge in the snail farming business is the extraction of slime as
well as snail powder. A lot of snail farmers are oblivious of this aspect thereby creating a big
gap in this area. From our research, only about 5% of snail farmer are into making snail shell
powder and the lot of this percentage are in the South West, leaving a huge market to serve.
Profitability
The basic threats to the business are mainly unsystematic risks including the
following: Presence of predators such as insects, birds, lizards, toad, frogs, nematodes,
millipedes, and house flies; Human interferences including vibration and unnecessary noise
from automobiles and industries within; Harsh lighting torch, lanterns and sounds; Theft and
lastly pens wetting especially during the dry season. The other threats confronting the
business are systematic and as such, the business shall be insured to overcome unstable
government policies and regulations. However, from our analysis, it is clear that the
opportunities of the business outweigh the challenges. Hence, the business idea is feasible
and can be executed without running at lost because the financial benefits levels out the
challenges.
4.0 Technical Feasibility, Resources and Environment
A plot of land will be used for the snail farming with a half plot dedicated to the snail
farm itself which will be structured to be a green house style of farm. The green house will
be built with mesh covered with nets with fine wood as pillars that will not rot during the
rainy season. Every bit of the green house will be covered to prevent predators from gaining
access to the farm. The nets will also grant access to rain during the rainy season. Within the
farm, the floor will be cemented lightly to prevent ants, crickets and other ground insects
from feeding on the snails. Several demarcations will be installed to separate the eggs from
the juveniles and the juveniles from the adults.
The other half plot will be dedicated to the processing area. It will house three
standard refrigerators required to keep the processed raw snail frozen before distributing to
the various eateries, food stores and places of needs. A grinding machine to transform the
snail shells into powder as well as a sink area where the snails will be washed and the slime
extracted. A bore-hole unit to supply water to the sprinklers especially during the dry and
harmattan season and a 6.5 KVA generator set to power the bore-hole unit, grinder and
refrigerators.
Other direct raw materials required for the snail farm business are stated below:
1. Plastic aquarium for transportation
2. A sophisticated water sprinkler system
3. Sponges or rags
4. Pebbles holes
5. Soil (humus, from gardener’s shop)
6. Ashtray or small plastic box.
5.0 Government Support and Regulation
With the need for the government to diversify the economy of Nigeria as well as the
economic boost provided by small and medium scale enterprises, this business will benefit
greatly from government agriculture credit facilities. Furthermore, this provides employment
and supports food security.
6.0 Timelines of Projects
The project will be completed within 2 months preferably between June, 2020 to July,
2020 to meet up sales in December 2020 and January 2021 after the 5 – 6 months growth
cycle.
7.0 Estimated Project Cost
7.0.1 Green House Construction
Activity QTY ₦ K
Land Clearing 1Plot 20,000 00
Cement 10 bags 50,000 00
Mesh 20 yards 10,000 00
Wood 50 pieces 20,000 00
Sand 10 bags 15,000 00
Pipes 10 yards 10,000 00
Bore-hole 1 tank 8,000 00
Total 133,000 00
7.0.2 Processing Facility
Activity QTY ₦ K
Refrigerators 3 300,000 00
Cement 10 bags 50,000 00
Zinc 20 sheets 20,000 00
Sand 10 bags 15,000 00
Wood 50 pieces 20,000 00
Grinding Machine 1 45,000 00
Pipes 10 yards 10,000 00
Sink 3 units 30,000 00
Generator 6.5kva 1 300,000
Total 790,000 00
7.0.3 Snail Rearing
Activity QTY ₦ K
Snails 500 200,000 00
Plastic Aquarium 200 50,000 00
Sponges/Rags 100 15,000 00
Pebbles holes 100 pieces 50,000 00
Ash stray 100 38,000 00
Humus Rich Soil 20 bags 70,000 00
Total 423,000 00
7.0.4 Annual Operating Expenses
Activity QTY ₦ K
Labour 2,100,000 00
Packaging Bags 250,000 00
Utilities 200,000 00
Snail Feed 200,000 00
Liability Insurance 80,000 00
Total 2,830,000 00
7.0.5 First Year Estimated Profit and Loss
Activity ₦ K
FIRST PRODUCTION CYCLE
Packed Snails 1,500,000 00
Packed Snail Slime 300,000 00
Packed Snail Powder 500,000 00
Total 2,300,000 00
Production Cost 4,176,000 00
LOSS 1,876,000 00
SECOND PRODUCTION CYCLE
Packed Snails 1,500,000 00
Packed Snail Slime 300,000 00
Packed Snail Powder 500,000 00
Total 2,300,000 00
Production Cost 1,876,000 00
PROFIT 424,000 00
7.1 Financial Feasibility
From the tables above, it is evident that the profit from the first year alone will be sufficient
to cover the fixed and variable costs as well as any interest incurred as a result of obtaining a
loan for the farm. Within two to three years of running, the partners would have cleared their
debts and will be profiting greatly from the farm.
8.0 Funding Mechanism
Abariowei Agba will provide the one plot of land for the 2,000 capacity green house
farm in Yenagoa. He will also invest funds for the establishment of the greenhouse. Lastly,
through his relations with the Central Bank of Nigeria’s Development Finance Department in
Yenagoa, the business will secure a loan at the rate of 7% interest.
9.0 Conclusion
The business from the above plan appears to be technically practicable and profitable. It
should therefore be granted funding.
