Investing in organic fertilizer production

Entrepreneurs who invest in fertilizer production at this period when agricultural production is on the rise in the country can be assured of a vibrant market. It has been computed that the fertilizer requirement in Nigeria is put at about 50 million metric tonnes on annual basis, while the supply level is still less than 10 million metric tonnes. In this regard, there is a ready market for the products of a fertilizer plant in Nigeria. This figure was arrived at from 25 million hectares of cultivated land needing average of 2 tonnes per hectare per annum.

Organo-Mineral Fertilizer plant will make use of such raw materials as cattle dung’s, sawdust, poultry wastes and all sorts of arm yard manure. It is therefore, one of the ways of converting wastes into money and making our environment to be more friendly.

The project is technically feasible because the production technology is simple and the production machines can be managed with middle level manpower.

The profitability of the project is not in doubt as annual profit is put at about N10.5 million.

Other benefits derivable from this project are employment generation, rural development, reduction in social vices, income generation and increased food production which leads to food sufficiency, self reliance  poverty alleviation., optimal resource utilization and environmental development. 

Financial Implication

To establish the project, a sum of N12,500,000 will be required broken down as follows:

N

1. Pre-Investments250,000

2. Accommodation  2,500,000 

(medium sized factory.)

3. Plant and Machinery 6,000,000

4. Utilities/Working capital  3,500,000

TOTALN12,500,000

Technical Information

Organo-Mineral Fertilizer plant utilises such raw materials as poultry droppings, cattle dungs, saw dusts, palm kernel cake and other Agricultural wastes. The production process involves sorting, composting, drying, milling, mixing, pelleting and bagging.  Investors can be put through the establishment of the project.

The project can be financed through a combination of personal savings, term loan, overdraft and Small and Medium industries, equity investment scheme of commercial banks. A comprehensive feasibility study is a pre-requisite to finance sourcing from banks. This can be provided to serious minded and genuine investors.

Profitability

Annual profit of N15million is achievable from this project. Investors can be assisted in the realization of this project. 

OLUMAKINDE ONI

Author’s contact 08023058045, olumakindeoni@yahoo.com.