NDDC CASSAVA EXPORT REVOLUTION PROJECT

PREPARED BY:
ORBITAL RESOURCES LIMITED
ORBITAL RESOURCES LIMITED- 11 Raymond Njoku Street, SW Ikoyi, Lagos. Telefax +234 1 8753767. +234 80 33489272, +234 80 388 57027
Table of Contents

1 EXECUTIVE SUMMARY ................................................................................................................................. 3

2 OUT-GROWERS SCHEME- TO CREATE 400 ENTREPRENEURS......................................................................... 3
2.1 OUT-GROWERS SCHEME – TRAINING ................................................................................................... 3
2.2 SOME RECOMMENDED RULES .............................................................................................................. 4
3 PROJECT DESCRIPTION AND RATIONALE ...................................................................................................... 4
4 IMPACT ON THE NIGER DELTA & EMPLOYMENT ........................................................................................... 4
5 TAX ADVANTAGE ......................................................................................................................................... 5
6 RISK MANAGEMENT..................................................................................................................................... 5
7 MARKETING STRATEGY ................................................................................................................................ 5
8 TECHNICAL ASPECTS OF THE PROJECT .......................................................................................................... 6
8.1 THE CASSAVA CHIPS FACTORY .............................................................................................................. 6
8.2 PROCESS DESCRIPTION ..................................................................................................................... 6
8.2.1 Transport ...................................................................................................................................... 7
8.2.2 Reception & Weigh‐in ................................................................................................................... 7
8.2.3 Washing & Peeling ........................................................................................................................ 7
8.2.4 Slicing & Drying............................................................................................................................. 8
8.2.5 Packing ......................................................................................................................................... 8
8.3 2,000 HECTARES FARM ......................................................................................................................... 8
8.3.1 Land Development........................................................................................................................ 8
8.3.2 Post‐Planting Weed Control .......................................................................................................... 9
8.3.3 Fertilizer use (type and rate) ......................................................................................................... 9
8.3.4 Cassava Harvesting ..................................................................................................................... 10
9 FARM MACHINERY REQUIREMENTS ........................................................................................................... 10
10 FACTORY RAW MATERIALS AND PROCUREMENT.................................................................................... 13
10.1 INFRASTRUCTURE AND TRANSPORTATION ......................................................................................... 14
10.2 FACTORY PERSONNEL REQUIREMENTS ............................................................................................... 14
11 PERSONNEL REQUIREMENTS IN THE CASSAVA FARM ............................................................................. 15
12 QUALITY SPECIFICATIONS AND STANDARDS ........................................................................................... 15
13 FACTORY CONSTRUCTION AND INSTALLATION ....................................................................................... 17
14 OTHER MANAGEMENT CONSIDERATIONS .............................................................................................. 17
15 PROJECTED INVESTMENT COST .............................................................................................................. 18
15.1 FACTORY AND FARM INFRASTRUCTURE ............................................................................................. 18
 15.1.1 FACTORY INFRASTRUCTURE ........................................................................................................ 18
15.1.2 Farm Infrastructure..................................................................................................................... 18
15.1.3 INFRASTRUCTURE REQUIRED AT THE FARM SITE......................................................................... 18
15.2 MACHINERY REQUIREMENTS ............................................................................................................. 19
15.2.1 FARM EQUIPMENT’S REQUIRED FOR THE 2,000 HA FARM .......................................................... 19
15.3 FACTORY EQUIPMENT ........................................................................................................................ 19
15.4 FARM ENERGY COSTS ......................................................................................................................... 20
15.4.1 FARM INPUTS ............................................................................................................................. 20
15.4.2 ESTIMATED STAFF REMUNERATION PER ANNUM ....................................................................... 20
1 FINANCIALS................................................................................................................................................ 21
3 ........................................................................................................................................................................ 21
1 EXECUTIVE SUMMARY
Orbital Resources Limited is proposing a sustainable and profitable Agriculture development initiative
which will involve, in its pilot phase, the Cultivation of 2,000 Hectares of Cassava and the harvesting and
processing of the Cassava for export to China. The business will have a tremendously positive economic
impact on the livelihood of women, youths and farmers in the Niger Delta.

The business will enlist the International Institute of Tropical Agriculture (IITA- Ibadan) to ensure that the
most sophisticated developers, leading scientists, and crop experts are intricately involved in the project
and that the necessary expertise is employed to plant, cultivate, harvest and process the Cassava.

This Business strategy will include the establishment of a Cassava Processing Factory with a capacity to
process 1,000tons of fresh Cassava roots to Cassava Chips for export to China.

The project will create 400 Farmer Entrepreneurs and hundreds of jobs for Niger Delta people.

2 OUT-GROWERS SCHEME- TO CREATE 400 ENTREPRENEURS

The out-growers scheme will seek to train and empower 400 farmer entrepreneurs. Our proposed 2,000
hectares will be divided into portions of 5 hectares each. Each trainee entrepreneur will serve as
supervisor of his portion. They will be paid from the revenue that is obtained from their 5 hectares and
subsequently be empowered to own and control their own farms.

2.1 OUT-GROWERS SCHEME – TRAINING

It is important to note that a scheme of this sort that involves this much number of persons must prepare
for and anticipate the fact that some of the 400 hundred beneficiaries may not be ready, willing and able to
deliver the kind of commitment that is vital for success. To this end we will first of all organise a one day
training.

The four hundred trainees will be trained over a period of three days and in batches of 150, 150 and 100.
The training will seek to educate the trainees on the vision of the project and the benefits they stand to
gain.

The training will:

a) Demonstrate the profitability of farming as a business.

b) Demonstrate the financial benefits they stand to gain if they work hard and follow the rules.
c) Educate them on the objectives of the scheme.
d) Provide them with information on the rules and guidelines that will govern their conduct as
beneficiaries of the scheme.
e) Inform them of the consequences of not following the rules.
2.2 SOME RECOMMENDED RULES

We hope to lay down the following rules:

1. Trainees must perform all task assigned to them. These tasks will mainly be supervisory in nature.
2. Trainees must spend at least 32 hours per week on site.
3. Trainees must write and submit a weekly report.
4. The best behaved trainee will receive a cash gift and be elected as the trainee of the month.
5. Trainees who do not obey the rules or meet the required standards will be delisted and their
portions allocated to the Trainee of the month.
6. If there are more than one trainee not meeting standards, their portion will be allocated to the second
and third runners up respectively.

3 PROJECT DESCRIPTION AND RATIONALE

Orbital Resources Limited, in Partnership with the Niger Delta Development Commission aims to set up
and operate a vertically integrated cassava based industry complete with a Cassava Chips production Plant
and a Cassava Farm.

The business will develop 2,000 Hectares of Cassava (tapioca) farm in selected Niger Delta States for its
pilot phase. The farm will produce a minimum of 60,000 tons of fresh cassava roots annually at 30 tons per
ha. The yield of 30 tons per ha is a conservative value as yields of upwards of 50 tons per ha are achievable
using best agricultural practices such as mechanization and modern farm management techniques. 30 tons
per hectare has been used to keep the figures as close enough as possible to what the average subsistent
farmer can already achieve.

The business will also purchase raw cassava roots from farmers around the region thereby guaranteeing
them a secure market for their produce.

The proposed Cassava (tapioca) Chips factory will have the capacity to process 1,000 tons per day of fresh
Cassava roots that will yield about 400 tons per day of dry export grade Cassava Chips. The Cassava
farmland area will consists of a Pilot 2,000 hectare (ha) farm which will be derived from the out-growers
scheme. Together with the IITA, acting as Research and Development partners, the farm will aim to
produce Cassava roots with best known practices.

Orbital Resources’ objectives will ultimately strengthen the capacities of farming families and support
smallholder Cassava farmers through adequate provision and employment of modern technology on a
sustainable basis.

4 IMPACT ON THE NIGER DELTA & EMPLOYMENT

The project will create employment opportunities for people in the targeted areas. It is projected that 400
new entrepreneurs and at least 1,000 new jobs will be created to work on the farm and in the Cassava
processing plant. Furthermore, a majority of the jobs created will employ women and thus have a direct
positive impact on the economic empowerment of women.
Financial limitations have led many farmers in Nigeria to produce much less than their land will actually
allow. The lack of supplies, equipment, fertilizer, proper management and information on what the cassava
plant (a natural & potentially abundant source of food in Nigeria) has to offer has led to the continuation of
food shortages, joblessness and suffering.

5 TAX ADVANTAGE
This project will qualify to receive excellent tax breaks. It will be rated as having pioneer status since it will
be located in an economically disadvantaged area. This status will provide a tax holiday for five to seven
years. The company will also be entitled to a 30% tax concession for five years because of its utilization of
local raw materials.

6 RISK MANAGEMENT
Agricultural ventures are especially prone to climatic risks such as drought and flooding. The project may
be prone to flooding and fire due to bush burning activities of local farmers.

These risks are covered by the activities of the Nigerian Agricultural Insurance Corporation (NAIC), which
operates the Nigerian Agricultural Insurance Scheme (NAIS). The Federal Government of Nigeria wholly
owns the Nigerian Agricultural Insurance Corporation. It was established in 1987 to provide risk cover to
Nigerian farmers. It is also the only existing insurance company owned by the Federal Government. The
project will therefore take out an insurance cover against such risks from the Nigerian Agricultural
Insurance Corporation.

Similarly, the project will take out a risk cover for the factory from the NAIC.

7 MARKETING STRATEGY
The marketing of export grade Cassava Chips from the factory is not expected to be a problem as the
product is in high demand internationally. The Federal Ministry of Agriculture is yet to meet demand for
Cassava Chips for export to China. The major demand markets are located mostly in China and Europe. Our
Business Plan is targeted to meet the demand of clients in China. The proposed production capacity does
not meet this demand.
8 TECHNICAL ASPECTS OF THE PROJECT

8.1 THE CASSAVA CHIPS FACTORY

The infrastructure required for the factory include warehouse, factory building, unloading bay, gate house
and weigh bridge, offices, borehole and water tank, generator house, electricity generators, roads and drive
ways, and perimeter fencing.

General Overview of Factory

8.2 PROCESS DESCRIPTION

The production process for our Cassava Chips production factory will be completely automated and will
involve the below stages:

Fresh
Cassava
Cassava Washing Peeling Slicing Drying Weighing
Chips
Tubers
8.2.1 Transport

Moving cassava fresh roots from the farm to point of processing (the factory) should be done within 24
hours after harvesting. Otherwise the harvested fresh roots will begin to deteroriate.

8.2.2 Reception & Weigh‐in

The manufacturing process begins with the reception and weigh‐in of the fresh cassava roots. After the
verification of the trucks and weights, the trucks proceed to the discharge platform (unloading bay) to
deposit the fresh cassava tubers. The discharge platform is usually made of concrete. Here the product is
stored to feed the industrial process.

8.2.3 Washing & Peeling

From the deposit, the cassava roots go to the washers through conveyor screws or conveyor belts. Specially
made equipment makes it possible for washing roots and peeling simultaneously. In this process only the
fine peels or brown peel is removed, avoiding losses. Also, at this point classification and inspection is
performed through the conveyor belts that feed the crushers.

Peeled Cassava
8.2.4 Slicing & Drying

The washed and peeled cassava is sliced and then dried in a Flash Drier.

8.2.5 Packing

The chips are transported to a packing machine. Quality assurance tests are usually done on a sample of
packaged Cassava Chips to ensure that they meet the standards.

8.3 2,000 HECTARES FARM

8.3.1 Land Development

Land development is a fixed capital investment that will require the pushing down of trees, packing and
burning of debris where necessary, ploughing the farm contours and access routes and laying out the plots
in desired 5 ha sizes. The farm area will be located within the rainforest belt in southern Nigeria. Therefore,
two D6 bulldozers and a chain (of 92m long & 6.4cm thick) will be required to uproot large trees with
minimal soil disturbance, develop farm roads and access roads to the farm plots and level out the land for
other farm operations.

8.3.1.1 Land Preparation

1. Pre‐land preparation and weed control:

A total herbicide–Round up will be applied at the rate of 4–5 l/ha 10 days before land preparation. This will
be followed by ploughing, harrowing and ridging with tractors and implements.

2. For cost effectiveness and optimum plant population, mechanisation and planting on ridges will be
practised. The number of tractors provides room for ploughing, harrowing and ridging to be
concluded at 30 day intervals.
 3. Planting and Planting Material

Planting should be concluded within thirty days. With 13 planters, the planting activity can be concluded in
30 days. Sixty (60) bundles of cassava stems are required for 1ha. Stem cutting of 25cm long will be planted
with spacing of 1mx0.8m with cassava planters to give a plant population of 12,500 plants per ha. This will
improve plant cover and reduce weed infestation. A 100% survival rate may be maintained by replanting
dead or nonviable stems but planting in higher densities may suffice to offset the cost of replanting.

8.3.2 Post‐Planting Weed Control

A Pre‐emergence herbicide treatment with boom sprayer immediately after planting (Atrazine +
metholachlor @ 2.5kg a.i per ha) is recommended. Where a total pre‐land preparation herbicide was not
used, it is recommended that a selective pre‐emergence herbicide be applied within 3 days after planting.
Five litres of Primextra may be required per hectare.

One manual weeding after planting may be required if canopy closure was not effective or if low canopy
varieties (e.g. TME 419) were planted.

8.3.3 Fertilizer use (type and rate)

Typical soil test shows that at between 0–15cm depths, Nitrogen (N) is moderately low to medium in the
area. At the same depth, availability of potassium which is a major micronutrient for cassava ranges from
low to moderate. The availability of phosphorous may also be low. This suggests that fertilizer blends for
the farm should have heavier dozes of potassium and phosphorous.

However, any of the following fertilizers and their rate per ha is required:

NPK 15:15:15 – 12 (50kg) bags/ha

NPK 20:10:10 – 9 (50kg) bags/ha

NPK 12:12:17 – 15 (50kg) bags/ha

It is assumed that the farm will either import or buy fertilizer directly from the blending factories or from
Federal Government allocations. We also assume that bulk purchase by the farm from a fertilizer factory
(e.g. Notore Fertilizer plant, former NAFCON, in Onne Rivers State, Ebonyi Fertilizer Blending Plant, and
Abakiliki) will be able to get a discount. Representations will also be made to the Federal Ministry of
Agriculture for bulk purchases on an annual basis. Provision is therefore made for a warehouse for storage
of fertilizer and other farm inputs/chemicals. Organic matter especially the cassava peels and leaves will
also be used in the field.

8.3.3.1 Time and Method of Fertilizer application

The size of the farm suggests that fertilizer should be applied with a spreader before final harrowing or can
be applied at planting with the cassava planter during planting. The first method is recommended.
8.3.4 Cassava Harvesting

The cassava roots will be harvested on a 5ha‐plot area by plot area basis as will be mapped out in the farm
plan and sold to the factory. Each 5ha will be supervised by a trainee.

Excess cassava stems may be sold in bundles to farms that require the seeds for planting. They can be sold
at N300 per bundle. This is based on today’s average price.

9 FARM MACHINERY REQUIREMENTS

Farm machinery requirements are based on a number of machinery required to effectively complete
specific farm tasks namely slashing, ploughing, harrowing, ridging, planting and harvesting, within a 30‐day
period.

Ideally, one tractor of 100hp will plough about 0.4 ha per hour or 4 ha per 10 hours a day. We estimate that
seventeen (17) tractors are required for effective and timely work on a 2,000‐ha farm within 30 days. Each
tractor will have to come with implements namely ploughs (17 nos.), harrows (17 nos.), ridgers (17 nos.)
and trailers. Similarly, a tractor will apply fertilizer on 6.2 ha per day implying that 11 fertilizer spreaders
will be needed to completely apply fertiliser on the farm for 30 days. The two row cassava planter is
recommended because it is simpler to maintain. The two row planter will plant about 7 to 8 ha in one day.
Taking the higher value this implies that the farm will need to provide 10 two row planters to enable
completion of planting within 30 days. To provide 764 tons of cassava a day to the factory, about 17 ha will
be harvested per day. This will require about 14 harvesters which can harvest about 1.2 ha a day. Again
about 5 boom sprayers will be required to complete spraying on the farm within 30 days. Knap sacks (100
nos.) will be acquired to complement boom spraying for weed control after planting.

TRACTOR
A 600 LITRE BOOM SPRAYER

ROW RIDGER
FERTILISER SPREADER

TWO‐ROW CASSAVA PLANTER

HARVESTER

10 FACTORY RAW MATERIALS AND PROCUREMENT

The proposed factory will obtain its raw materials from its own dedicated farm. It will also buy Cassava
Roots from farmers in the region, thus its raw material supply is guaranteed. However, the success of the
factory will depend on the management efficiency of the cassava farm as well as the ability to drop
production costs at the farm level.

Raw cassava roots will be harvested from the farms and processed the same day in the factory.

Cassava varieties will be sourced from the International Institute of Tropical Agriculture and/or the
National Root Crops Research Institute, Umudike, in Abia State.

Over a four year period, the Company’s farms are expected to support 100% of the factory’s need. Yields
should aim to be above 30 tons per ha. In fact, the International Tropical Agriculture (IITA) Ibadan has
already attained yields of 80 tons per hectare in its various demonstration farms. Working together with
this Institute, we believe that yields of 60 tons per ha are achievable. However, 30 tons has been used to
keep the figures as conservative as possible.
10.1 INFRASTRUCTURE AND TRANSPORTATION

Provision for electricity supply, water and factory and farm site roads will be done. Electricity generators
will be purchased to support the farm and factories. Similarly, two deep water boreholes will be sunk in the
site to service the farm and factory respectively. Access roads within the site will be constructed. The
surrounding villages will benefit from the water that will be provided by the factory as they will be allowed
to collect water from the farm/factory site for their domestic use.

Cost estimates are also provided for farm vehicles and trucks for transporting raw cassava roots from the
farm to the factory and for local transportation.

10.2 FACTORY PERSONNEL REQUIREMENTS

Position/function Person per Number of TOTAL

Shift Shifts

Factory Manager 1 1 1

Factory Supervisor 1 1 1

Unloading operator 1 1 1

Factory operator 2 1 2

Packing operator 3 1 3

Laboratory/quality 2 1 2
control

Weigh Bridge 1 1 1
Operator

Operators 3 1 3

Maintenance 1 1 1
engineer

Security 2 2 4

Administration 3 1 3
secretary

Accountant 1 1 1

Casual labour 10 1 10
 TOTAL 33

The Factory Supervisor will have basic technical knowledge in mechanics and electricity.

11 PERSONNEL REQUIREMENTS IN THE CASSAVA FARM

An experienced Manager will be needed to manage the farm. The Manager reports directly to the Managing
Director. All other farm staff will report directly to the Manager.

The farm manager will also be in charge of all field vehicles and machinery allocated for work in his farm
area and will report their use and maintenance on a daily basis to the General Manager. He will also
supervise the delivery trucks and drivers of vehicles to and from the farm/factory and machinery allocated
for his farm operations and reports directly to the General Manager. He will be in charge of vehicle logistics
and ensures that all farm vehicles are in good condition. He will also assist in hiring casual labourers as
needed; this will be subject to the approval of the General Manager.

The supervisor of the Security staff will manage security patrols and ensure security of property in the
farm. At least 9 security patrolmen will be employed for the farm. They will work on an 8‐hour shift basis.
Security posts will be constructed (using traditional materials such as thatched houses) at strategic points
on the farm. Motorbikes will be provided for each security patrol per shift. Five motor bikes will be used by
assistants for local runs within and beyond the farm.

Other permanent staff includes a canteen cook (with assistants to be hired on a casual basis), tractor
drivers (11 nos), who may also double as truck drivers; maintenance (mechanics, electrician, welder,
carpenter, etc. The farm will hire casual labour from neighbouring villages for most of its operations on a
daily basis and at peak periods of farm activities. Such operations include stem cutting during harvest,
planting, weeding using knapsacks, root harvesting and packaging and so on. The farm managers and
supervisors will determine this but subject to approvals by the General Manager. On the whole the farm is
likely to engage 22 staff on a near permanent basis and about 300 casual labourers. This is to ensure timely
completion of farm operations. All permanent staff will be employed on fixed contract basis in line with
Nigerian labour laws.

Finally, it is important to note that from time to time the General Manager will need to engage the services
of professionals and technical experts as consultants with specific skills to deal with specific problems or
issues that may arise in the process of implementation and day to day running of the farm.

12 QUALITY SPECIFICATIONS AND STANDARDS

The Standards Organization of Nigeria (SON) defines the standards for all products produced in Nigeria.
The Standards Organization of Nigeria (SON) also carries out the registration of both locally manufactured
and imported products. The registration program is primarily designed to provide data or inventory of
products and their‐specified quality parameters. It also provides information about the manufacturer or
importer and therefore affords trace‐ability of the product especially when considering specific quality
requirements and consumer advocacy/protection.
Product registration involves initial application to SON, return of filled form review/processing through the
enforcement section, laboratory, quality assurance, report and recommendations received by DG, payment
of necessary fees to SON upon satisfactory reports, issuance of registration certificate and renewable
yearly. The factory will need to register with the Standards Organization of Nigeria once it is commissioned.

MANPOWER REQUIREMENTS BY EQUIPMENT TYPE FOR THE CASSAVA FARM

Operation Equipment Quantity Tractor & Capacity Manpower

Ploughing 3 Disc Plough 17 1 Tractor (100Hp) 17 Operators

0.40/ha/hour

Harrowing 2m offset 17 1 Tractor (100Hp) 17 Operators

harrow
0.40/ha/hour

Ridging Ridger 17 1 Tractor (75Hp) 17 Operators

1.10ha/hour

Fertilizer Fertilizer 11 6.2ha/day with 75 Hp 11 operators and 11

spreader tractor assistants

Planting 2‐ Row Cassava 10 7‐8Ha/Day with 1 tractor 10 Operators, 20

Planter with (75
fertilizer Planting Mates
applicator HP)

Weed Control Boom Sprayer 5 20Ha/day with 1 Tractor 5 operators, 10

(75Hp) Herbicide mates

Post Knapsack 100 30 ha /day 100 spraying Men, 4

Establishment Sprayer
Mixing assistants
Weed Control

Harvesting Chain Saws 5 2 ha /day per chain saw 5 men each with two
(Stems) or assistants (10) for
packing & handling
20 ha in all per day

Harvesting 2 Row Cassava 14 Tractors (75Hp) 1.2 14 operators

(Roots) harvester, Ha/Day

Tractor trailer 17 Tractors (75Hp) 17 operators

 Cassava Root Root Collection 4 30 ton capacity Trucks 4 truck drivers and
Collection Trucks 40 casual labour
assistants

Note: All assistants and mates are to be employed on a casual basis. The 100 knapsack sprayers can also be
employed on a casual basis.

13 FACTORY CONSTRUCTION AND INSTALLATION

Following from a technical agreement, the plant manufacturer will set up the factory on the site. The plant
will be set up with test runs for a period of one month and output from the plant during the test run will be
sent to Standards Organisation of Nigeria for quality assessment in order to obtain the NIS permit and also
be used to apply for ISO90001 certification.

14 OTHER MANAGEMENT CONSIDERATIONS

The factory and farm working conditions and personnel regulations will be guided by the provisions of the
Nigerian labour and related laws. The Nigerian law makes general and special provisions for the health,
safety and welfare of persons employed in places statutorily defined as “factories” and for which a
certificate of registration is required by law. It makes general provisions as to the standards of cleanliness,
crowding, ventilation, lighting, drainage of floors, and sanitary conveniences: e.g. all factories must have
potable water and washing facilities.

The factory will ensure basic safety and health standard for workers. In respect of safety, there are general
provisions as to the securing, fixing, usage, maintenance and storage of prime movers, transmission
machinery, other machinery, unfenced machinery, dangerous liquids, automated machines, hoists and lifts,
chains, ropes and lifting tackle, cranes and other lifting machines. There are in addition to these, standards
set for the training and supervision of inexperienced workers, safe access to any work place, prevention of
fire and safety arrangements in case of fire and first aid boxes.

Also, the law provides that adequate arrangements should be made for the removal of dust or fumes from
factories, provision of goggles to protect the eyes in certain processes and the prevention of eating and
drinking in places where poisonous or injurious substances give rise to dust or fumes. It is mandatory that
all accidents and industrial diseases be notified to the nearest inspector of factories and be investigated; it
is prohibited for the occupier of a factory to make any deductions from the wages of any employee in
respect of anything to be done or provided in pursuance of the Factories Act.

The law under the workmen’s compensation act provides for the payment of compensation to workmen for
injuries suffered in the course of their employment. The workweek is set at 48 hour week with adequate
provisions made for medical, annual, casual and sick leave and other personnel obligations for all staff
engaged on a permanent basis. Some of the factory staff will be required to work on an eight hour shift
basis for six days.
 15 PROJECTED INVESTMENT COST

15.1 FACTORY AND FARM INFRASTRUCTURE

15.1.1 FACTORY INFRASTRUCTURE
The factory will be located in a 2 ha land area within the farm. Additional factory infrastructure
will be developed to meet the requirements of good factory management practices and work
conditions. The following infrastructure will be required at the factory:

FUNCTION NAIRA

WAREHOUSE 65,600,000
FACTORY BUILDING 153,200,000
UNLOADING BAY 16,750,000
GATE HOUSE AND WEIGH BRIDGE 86,400,000
OFFICES 43,000,000
QUALITY CONTROL LABORATORY 12,960,000
FACTORY MANAGER RESIDENCE 33,600,000
BOREHOLE AND WATER TANK (5000 LITERS 28,800,000
CAPACITY)
GENERATOR HOUSE 21,600,000
2 NOS GENERATORS (500 KVA EACH) 48,000,000
A 300 KVA ELECTRICITY TRANSFORMER AND 18,000,000
LOW TENSION POLES/TENSION WIRES
ROADS AND DRIVE WAY 40,000,000
PERIMETER FENCING AND LAND DEVELOPMENT 37,200,000
TOTAL 605,100,000

15.1.2 Farm Infrastructure

Similarly, additional farm infrastructure will be developed on the farm to ensure security of equipment.
The following infrastructure as enumerated in table below will be required at the farm:

15.1.3 INFRASTRUCTURE REQUIRED AT THE FARM SITE

S/NO INFRASTRUCTURE/FACILITY N
1 A farm office with offices for the farm manager, admin officer, 28,800,000
accountant, nurse, store keeper, and other supervisors
2 Office furnishing 10,250,000
3 Ware houses and store 40,000,000
4 Canteen with kitchen 16,000,000
5 Gate house 2,500,000
6 20 nos. Field huts and security watch out points 1.500,000
7 Borehole and Water Tank (5000 litres capacity) 28,800,000
8 Generator house and 2 Generators 200 KVA each 25,000,000
 9 Perimeter fencing in the residential and office area 38,000,000
10 Bathing bay/locker rooms for casual labourers 2,500,000
11 A 200 KVA Electricity transformer and low tension 13,125,000
poles/tension wires
12 Radio mast and Motorola radio equipment 10,000,000
Total
214,975,000

15.2 MACHINERY REQUIREMENTS

The following machinery listed in table will be required for the farm.

15.2.1 FARM EQUIPMENT’S REQUIRED FOR THE 2,000 HA FARM

EQUIPMENT NUMBER REQUIRED NAIRA
TRACTOR 17 255,,887,808
PLOUGH 17 ‐
HARROW 17 ‐
RIDGER 17 ‐
SUBSOILER 17 -
TILLER 17 -
TRACTOR TRAILERS 17 ‐
CASSAVA PLANTER 13 67,719,820
CASSAVA HARVESTER 14 65,074,032
BOOM SPRAYER 7(Nos.) (20m2 ) 22,400,000
KNAPSACK SPRAYERS 300 (Nos.) 8,000,000
OTHER TOOLS (e.g. 10 chain saws, farm tools and 8,000,000
implements, etc.)
TRUCKS 5 nos. 30t trucks 120,000,000
HAYAP CRANE TRUCK 2. 55,000,000
FARM PERSONNEL 5 nos. Toyota Hilux field 55,000,000
FIELD/PATROL
VEHICLES
MOTORCYCLES 10 nos. 3,200,000
FORK LIFT 2 nos. 10,800,000
TOTAL 415,193,852

15.3 FACTORY EQUIPMENT

EQUIPMENT NUMBER REQUIRED NAIRA
CASSAVA PEELER 13 25,673,300
CASSAVA SLICERS 13 24,318,160
FLASH DRYERS 50 478,042,000
IMPLEMENTS 10,000,000
TOTAL 538,033,460
15.4 FARM ENERGY COSTS
ENERGY CONSUMPTION BY ACTIVITY FOR EQUIPMENT
EQUIPMENT/ACTIVITY DIESEL/PETROL REQUIREMENT TOTAL
(N)
TRACTOR HARROWING 11 litre diesel/ha x 2,000ha = 22,000 litre x N130/l 2,860,000
TRACTOR PLOUGHING 11 litre diesel/ha x 2,000ha = 22,000 litre x N130/l
2,860,000
TRACTOR RIDGING 11 litre diesel/ha x 2,000ha = 22,000 litre x N130/l 2,860,000
TRACTOR PLANTING 10 litre diesel/hax2,000ha= 20,000x N130/l 2,600,000
TRACTOR HERBICIDE SPRAYING 4 litre diesel/hax2,000 = 8,000x N130 1,040,000
TRACTOR ROOT HARVESTING 11 litre /ha x 2,000 = 22,000x N130 2,860,000
BULLDOZER, FORK LIFT, FIELD Liberal estimate for 22000l/pa 2,200,000
VEHICLES
CHAIN SAWS, OTHER 2 litre petrol/ha x2,000 x 5 chainsaws =20,000l x N100/l 2,000,000
EQUIPMENT
GENERATORS 72,000litres 9,360,000
TOTAL 28,640,000

15.4.1 FARM INPUTS

Material Number required Naira
Cassava Stems 120,000 bundles @N300 36,000,000
Fertilizer 24,000 bags@N4,000 96,000,000
Herbicides N4,090 per hectare 8,180,000
Total 140,180,000

15.4.2 ESTIMATED STAFF REMUNERATION PER ANNUM

STAFF POSITION NUMBER MONTHLY TOTAL WAGE/ ANNUAL TOTAL
WAGE MONTH (N) WAGE (N)
(N)
FACTORY MANAGER 1 250,000 250,000 3,000,000
FACTORY SUPERVISOR 2 100,000 200,000 2,400,000
PROCUREMENT MANAGERS 2 60,000 120,000 1,440,000
UNLOADING OPERATOR 1 100,000 100,000 1,200,000
FACTORY OPERATOR 6 60,000 360,000 4,320,000
PACKING OPERATOR 3 60,000 180,000 2,160,000
LABORATORY/QUALITY 2 70,000 140,000 1,680,000
CONTROL
WEIGH BRIDGE OPERATOR 1 50000 50,000 600,000
OPERATORS 30 100,000 3,000,000 36,000,000
MAINTENANCE ENGINEER 1 100,000 100,000 1,200,000
SECURITY 2 30,000 60,000 720,000
ADMINISTRATIVE SECRETARY 1 60,000 60,000 720,000
ACCOUNTANT 1 80,000 80,000 960,000
SUB TOTAL 4,700,000 56,400,000
CASUAL LABOUR (4MTHS) 500 N2,000/day ‐ 104,000,000
PROFESSIONAL FEES PA 10,000,000
TOTAL 170,400,000
1 FINANCIALS
NDDC CASSAVA EXPORT REVOLUTION PROJECT
2 CONTENTS
PROJECT TOTAL COST

1 EXECUTIVE
FUNDING
SUMMARY ........................................................................................... 0 ₦
2 OUT-GROWERS
Funding SCHEME- TO CREATE 400 ENTREPRENEURS .................................. 3
NDDC 2,229,122,312
2.1 OUT-GROWERS SCHEME – TRAINING ............................................................. 3
2,229,122,312
2.2 SOME RECOMMENDED RULES........................................................................ 4
3 PROJECT DESCRIPTION AND RATIONALE ................................................................
Total
4 -
4 IMPACT ON THE NIGER DELTA & EMPLOYMENT..................................................... 4
-
5 TAX ADVANTAGE ................................................................................................... 5
Total FUNDING 2,229,122,312
6 RISK MANAGEMENT .............................................................................................. 5
COSTS Estimated
7 MARKETING STRATEGY .......................................................................................... 5
Fixed Costs
Factory Infrastructure 605,100,000
8 TECHNICAL Farm
ASPECTS OF THE
Infras PROJECT .................................................................... 6
tructure 214,975,000
Factory Equipment 415,193,852
8.1 THE CASSAVA CHIPSpment
Farm Equi FACTORY ........................................................................ 6 538,033,460
Cas s ava Stems 36,000,000
8.2 PROCESS DESCRIPTION ............................................................................... 6
Ferti l i zer 84,000,000
Herbi ci des 8,180,000
8.2.1 Transport................................................................................................ 7
Fuel 28,640,000
8.2.2 Res erve&for
Reception Conti.............................................................................
Weigh‐in ngenci es 7 15,000,000

8.2.3 Washing
Setup,& Peeling
i ns ..................................................................................
tal l ati on and cons ul ti ng fees 7 20,000,000
[42] Total Fixed Costs 1,965,122,312
8.2.4 Slicing & Drying ...................................................................................... 8
Average Monthly Costs
8.2.5 Packing ...................................................................................................
Advertising (print, broadcast and Internet) 8 1,000,000
Repai rs and Mai ntenance 6,000,000
8.3 2,000 HECTARES
Empl oyee FARM ...................................................................................
Sal ari es and Commi s s i ons 8 9,400,000
Mi s cel aneous 4,000,000
8.3.1 Land Development ................................................................................. 8
Uti l i ti es 6,000,000
8.3.2 Post‐Planting Weed Control .................................................................... 9
Total Average Monthly Costs 26,400,000
8.3.3 Fertilizer use (type and rate) ...................................................................
x Number of Months9 10
Total Monthly Costs 264,000,000
8.3.4 Cassava Harvesting ............................................................................... 10
Total COSTS 2,229,122,312
9 FARM MACHINERY REQUIREMENTS ..................................................................... 10
ORBITAL RESOURCES LIMITED- 11 Raymond Njoku Street, SW Ikoyi, Lagos. Telefax +234 1 8753767. +234 80 33489272, +234 80 388 57027
10 FACTORY RAW MATERIALS AND PROCUREMENT ............................................. 13
10.1 INFRASTRUCTURE AND TRANSPORTATION ................................................... 14
10.2 FACTORY PERSONNEL REQUIREMENTS ......................................................... 14
 NDDC CASSAVA EXPORT REVOLUTION PROJECT
3-Year Profit and Loss Projection
Cassava Chips 24,000tons 48,000tons 70,000tons

INCOME 2015 % of TS 2016 % of TS 2018 % of TS

Sales
Cassava Chips 1,200,000,000 100.0% 2,400,000,000 100.0% 3,500,000,000 100.0%
- - -
- - -
- - -
Other - - -
Total Sales (TS) ₦ 1,200,000,000 100.0% ₦ 2,400,000,000 100.0% ₦ 3,500,000,000 100.0%

Cost of Goods
Cassava Stems 36,000,000 3.0% 72,000,000 3.0% 108,000,000 3.1%
Fertilizer 84,000,000 7.0% 168,000,000 7.0% 252,000,000 7.2%
Herbicides 8,180,000 0.7% 16,360,000 0.7% 24,540,000 0.7%
Labor (wages and payroll) 170,400,000 14.2% 255,600,000 10.7% 383,400,000 11.0%
Energy Cost 28,640,000 2.4% 57,280,000 2.4% 85,920,000 2.5%
Less Ending Inventory - - -
Total Cost of Goods Sold $ 327,220,000 27.3% $ 569,240,000 23.7% $ 853,860,000 24.4%

Gross Profit $ 872,780,000 72.7% $ 1,830,760,000 76.3% $ 2,646,140,000 75.6%

Non-Operating Income
Interest Income
Rental Income
Other
Total Non-Operating Income $ - $ - $ -

Total INCOME ₦ 872,780,000 72.7% ₦ 1,830,760,000 76.3% ₦ 2,646,140,000 75.6%

PAY BACK DURATION

Loan Information Summary

Loan Amount 2,229,122,312.00 Rate (per period) 2.083%
Annual Interest Rate 25.00% Number of Payments 60
Term of Loan in Years 5 Total Payments 3,925,661,389.21
First Payment Date 01/09/2014 Total Interest 1,696,539,077.21
Payment Frequency Monthly Est. Interest Savings 0.31
Compound Period Monthly .
Payment Type End of Period .

Monthly Payment 65,427,689.83

[42]
Rounding On
Amortization Schedule TRUE

No. Due Date Payment Additional Payment Interest Principal Balance

2,229,122,312.00
1 9/1/14 65,427,689.83 46,440,048.17 18,987,641.66 2,210,134,670.34
2 10/1/14 65,427,689.83 46,044,472.30 19,383,217.53 2,190,751,452.81
3 11/1/14 65,427,689.83 45,640,655.27 19,787,034.56 2,170,964,418.25
4 12/1/14 65,427,689.83 45,228,425.38 20,199,264.45 2,150,765,153.80
5 1/1/15 65,427,689.83 44,807,607.37 20,620,082.46 2,130,145,071.34
6 2/1/15 65,427,689.83 44,378,022.32 21,049,667.51 2,109,095,403.83
7 3/1/15 65,427,689.83 43,939,487.58 21,488,202.25 2,087,607,201.58
8 4/1/15 65,427,689.83 43,491,816.70 21,935,873.13 2,065,671,328.45
9 5/1/15 65,427,689.83 43,034,819.34 22,392,870.49 2,043,278,457.96
10 6/1/15 65,427,689.83 42,568,301.21 22,859,388.62 2,020,419,069.34
11 7/1/15 65,427,689.83 42,092,063.94 23,335,625.89 1,997,083,443.45