EXECUTIVE SUMMARY

Feasibility Study on the establishment of a Tomato farm is based on the survey made by ETEFIA,
SALOME SATURDAY and the business wholly owned by her. The name of the Tomato producing
farm will be ETEFIA TOMATO PRODUCTION FARM and will concentrate on sales of Tomato
products.

We will supply Tomatoes to different quick service restaurant within the States and our vision is
to be one of the known Tomato farm product supplier in Nigeria with a mission to raise healthy
and highly nutritive Tomatoes at a very profitable venture.

From the research that was carried out, it was discovered that the demand for Tomato is not
fully satisfied around some areas of Akwa ibom state, this is due to the fact that, Tomato farms
are not really sited within the state, the Tomato production farm will be sited at INI LOCAL
GOVERNMENT AREA IN AKWA IBOM STATE, the legal requirements for the establishment of
this venture such as local government revenue (tax) per month and security payment (vigilante)
per month have been inquired and will be carefully complied with. The venture will help in
providing employment to the locals, meeting the demand of tomatoes and making the price
affordable in future, ETEFIA TOMATO PRODUCTION FARM VENTURE intends to develop into
other cultivation of crops likes water leaf and fluted pumpkin.

OUR PRODUCTS AND SERVICES

ETFP is going to be a commercial vegetable farm that will be involved in cultivation of

vegetables specifically on Tomatoes and then cultivating Fluted pumpkin and water leaf as side
attachments, this will be done via Nursery practices and then transferred to the permanent site.

We will also ensure that we operate a standard tomato cultivation and then site Fluted
pumpkin and water leaf plants as part of our complimentary business. We will be involved in
the,

 Cultivation of vegetables such as; Tomatoes, Fluted pumpkin and water leaf.
 Supplying to industries where the processing and canning take place for tomatoes
processing.

1.0 INTRODUCTION

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Tomato farming is a niche idea in the Hydroponics and Vegetable farming industry and
operators in this industry grow a wide variety of vegetables in open fields and in greenhouses
but we want to go into pure Nursery stage practices and Transferred to the permanent site. Its
nutritional facts includes 95% water, contains 4% CHO and less than 1% each of fat and protein.
In a 100g amount, raw tomatoes supply 18 calories and are a moderate source of vitamin C
(17% of the Daily Value). Tomatoes are easy to preserve whole, in pieces, as tomato sauce or
paste by home canning. The fruit is also preserved by drying, often in the sun, and sold either in
bags or in traditionally made baskets.

Starting Small scale and then later move into the commercial stage of tomato farming business
is very easy and simple. The tomato plants generally require less caring and other management
practices. So, we intend to easily start and then operate this business, even when we're
beginners still when we become bigger. We intend to get all necessary Infrastructures ready
and set before beginning this life journey such as locating a good site, a good soil type (A sandy
loamy soil with the soil of pH 7 to 8.5), good seed varieties and hardworking laborers.

The tomato plants generally grow well in almost all types of environment with the availability of
full sun. And almost all types of soil are good for tomato farming. With this, ETEFIA TOMATO
PRODUCTION FARM will reside its business in INI LGA where the soil type us suitable for its
growth and production. We plan to not just start, have a taste of the difficulties and then run
away but to strive during the difficulties and succeed.

1.2 STRATEGY AND SUMMARY OF OBJECTIVES

 To make sure there is an increase in the production of tomato in oder to reduce the
excess in demand which results in its high costs.
 To control the different losses often recorded due to lack of processing ability or post
harvest inadequacies.
 To evaluate our strategic marketing by every three months and to keep and maintain
hygienic farms for healthy production of quality Tomato produces.

2.0 TECHNICAL FEASIBILITY

1.) SOIL PREPARATION: Before we raise our tomatoes, the soil is prepared by ploughing,
levelling, and manuring because it is our intension to go into organic farming of tomatoes.

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2.) VARIETY: There are numerous types of tomatoes that can be grown in Nigeria if when the
required soil type is available but the one variety we want to specialied in, is called, BEEFSTEAK
TOMATOES. The tomatoes is also known as BEEF TOMATOES, and can be differentiate by their
large varieties, and sizes. The Beefsteak tomatoes crops weighed 500g and some of them even
weighed more than the grams. Moreso, colours of these varieties and types of tomatoes are
pink while some are red when matured.

3.) NURSERY: Seed treatment (the seeds with the fungicide Thiram or Captan, 2.5 gm/kg of
seeds) should be done first, this will increases the quality of the crop and also increases the
yield of our crops. In the nursery, plants will be prepared on raised beds. The length of these
beds will be at least 3 M length and width 0.6 M. Sow seeds in rows and keep the sowing depth
about 1.5 to 2 CM.

After sowing, ETFP hasn't forgotten the importance of organic farm production practices, the
seeds will be covered with a mixture of cow dung manure and soil, giving light irrigation to it Or
we'll consider covering the beds with straw or hay till the deposition of seed occurs, so that the
beds retain proper moisture. In 35 to 40 days, we expects our seedlings to be ready for
transplantable.

4.) TRANSPLANTING: The first transplanting is done in December to January, second in June to
July and third in September to October with our proper well fixed irrigation facilities available.
While conducting our transplanting, we'll be consider row to row distance between 45 - 60 CM
and plant to plant spacing should will be 30 - 45 CM. Transplanting will be done in the evening
where there's is still some warmne in the soil. It is good to start in pots or container and then
transplant. The seedlings will be ready for transplanting when they are of approximately 6
inches height. Set the transplants outdoors in the shade for a couple of hours for the first day
and then gradually increase the amount of time your plants are kept outside each day. We will
be placing our tomato stakes in the soil, during the time of planting.

5.) WEEDING AND FERTILIZERS: Frequent weeding will be done using hoes and earthing up
and keep field weed free till 45 days, other measures that will be adopting prior to our
tomatoes maintenance are Mulching (An effective way to reduce soil temperature along with
weed control) and Prune (By pinching off side stems (suckers) keep only a couple of branches).

6.) CLIMATE / IRRIGATION: Adequate irrigation during winter will be an interval of 6 to 7 days,
summer months, apply irrigation with an interval of 10 to 15 days, Period of drought followed
by heavy watering can lead to cracking of fruits. Flowering stage is critical for irrigation,
According to our researchers, it is found that, half inch irrigation at every fortnight causes
maximum penetration of roots and thus gives high yield.

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7.) HARVESTING AND YIELD: Beefstake tomatoes starts yielding by 70 days after
transplantation. Harvesting is done depending upon purpose like for fresh market, long
distance transport. Mature green tomatoes, moreso, colours of these varieties and types of
tomatoes are pink while some are red when matured. Almost all fruits turn into pink or red
color but having firm flesh are harvested for local markets. For processing and seed extraction
purpose, fully ripe fruits with soft flesh are used. After harvesting, GRADING will be done. Then
the fruits are packed in bamboo baskets or crates or wooden boxes. To increase self-life of
tomato during long distance transport pre-cooling is carried out.

8.) DISEASES AND PESTS: ETPF has made some serious research in the case of pests and
diseases of tomatoes, we will be considering the major disturbing ones but not neglecting
others ofcourse, we have found out the major ones and have come up with the best means of
controlling them,

PESTS: Common pest of Beefstake tomatoe plants is WHITEFLY, the adult whiteflies lay eggs on
the underside of the leaves and APHIDS, we will try to spray with water to wash them off,
doing this immediately when you see the eggs or remove the eggs by hand.

DISEASES: The TOMATO BLIGHT is caused by the FUNGUS PHYTOPHTHORA INFESTANS, Brown
marks on the leaves are the common signs of this which increases in size quickly and MOSAIC
VIRUS (Infectious virus and can be transmitted from plant to plant by humans), Planting
resistant tomato varieties or use of least-toxic, natural pest control products for prevention
such as neem oil, soap, diatomaceous earth etc.

CRACKING is also a common problem for the tomato plants, the skin of the fruits will crack,
especially during drought or excessive rainfall or by unevenly watering supply. We will go with
the control steps of consistent mulching and watering, and keeping the moisture levels
constant.

3.0 MARKET FEASIBILITY

3.1 DESCRIPTION OF PRODUCT: There won't be any packaging or processed products but we'll
be selling them in their raw forms to either the marketers and industries that processed them.
The fruits are commonly eaten raw in salads, served as a cooked vegetable, used as an
ingredient of various prepared dishes, and pickled.

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3.2 PRODUCT DELIVERY: Our products will be delivered to our customers based on their
preferred locations.

3.3 PRICING AND PAYMENT STRATEGY: ETPF intends to make our products prices convenient
to our customers for the first six months by selling at lesser rate compared to the actual prices
of this products. We have put in place business strategies that will help us run on low profits for
a period of 6 months it is a way of encouraging people to buy into our tomato farming business,
this will be carried out in KG, 40KG - #30,000 AND 25KG - #20,000. The payment policy adopted
by ETPF puts first the customer preferences, here are the payment options that ETPF will make
available to her clients, Payment via bank transfer, Cash, Online bank transfer, Checks, Point of
Sale Machines (POS Machines), Mobile money transfer and via bank draft. Other necessarily
requirements like Our bank account details and Email accounts will be made available on our
website and promotional materials.

3.5 TARGET MARKET: It is our priority to make it available to them both in quantity and quality.
We will ensure that we position our business to attract consumers within and outside the state.
In essence, our target markets are; Tomato paste production companies, Caterers, Restaurant
operators, Hotels, Households, Pizza production companies, Ketchup production companies
and Juice production companies.

3.7 SALES STRATEGY: From the survey conducted, we were able to discover that the sales
generated by a commercial tomato farm depends on the size and nature of the farm. We have
been able to examine the vegetable farming industry, we have analyzed our chances in the
industry and we have been able to come up with the following sales forecast. Below are the
projections that we were able to come up with for the first one years of running ETPF, using
40KG of tomatoes,

Cost of tomatoes in 1baskets = #30,000

I year of operation = 12 months

For 1basckets of tomatoes, we'll be having a return of #30,000 X 12 = #360,000

A.) First Fiscal Year (FY1): #360,000

N.B: Please note that the above projection might be lower and at the same time it might be
higher due to possible threats analyzed on SWOT.

3.8 Marketing Strategy: We are quite aware that the reason why some vegetable cum tomato
farms hardly make good profits is their inability to sell off their farm produce as at when due. In
view of that, we decided to set up a standard tomato processing plant to help us maximize
profits. We have adopted the following steps in carrying out our market strategy, By sending

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introductory letters alongside our brochure to stake holders in industries, supermarkets,
grocery stores, hotels and restaurants and tomato merchants, Advertise our business on
websites, Attend related Agriculture and food expos, seminars, and business fairs, promote our
business online, Engage in direct marketing and Encourage the use of Word of mouth marketing
(referrals).

3.9 OUR COMPETITIVE EDGE: Our competitive edge lies in our vertically integrated value chain
that offers the most advanced inputs with the support and training to maximise the full
potential of our network farmer’s small holding and offers access to guaranteed pricing. This
places ETPF products to a uniquely unoccupied territory in Nigeria,
1. Reduced Input costs
2. Vertical integration: One stop shop for farmers and training to optimize inputs.
3. Local Nigerian brand: Government and consumer support.
4. Skills acquisition for farmer: From farmer to businessman.

4.0 ORGANIZATIONAL STRUCTURE AND MANAGEMENT TEAM

Chief Executive Officer (CEO): Increases management’s effectiveness by recruiting, selecting,
orienting, training, coaching, counseling and disciplining managers, Communicating values,
strategies, and objectives, assigning accountabilities, Creating, communicating, and
implementing the organization’s vision, mission, and overall direction, Responsible for fixing
prices and signing business dealsdea, Responsible for signing checks and documents on behalf
of the company and Evaluates the success of the organization

General Farm Manager: Planning, management and coordinating all farm activities across the
various sections on behalf of the organization, Ensure compliance during project executions,
Providing advice on the management of farming activities across all sections, Responsible for
carrying out risk assessment, costing and sale of farm produce after harvest, Represent the
organization’s interest at various stakeholders’ meetings, Ensures that farming goals desired
result are achieved, Efficient utilization of resources (manpower, equipment, tools and
chemicals) and Oversee the smooth running of the daily farming activities across the various
farming sections.

Administrator/Accountant: Responsible for overseeing the smooth running of HR and

administrative tasks for the organization, Responsible for preparing financial reports, budgets,
and financial statements for the organization, Responsible for financial forecasting and risks
analysis, Responsible for administering payrolls, Ensuring compliance with taxation legislation
and Serves as internal auditor for the company.

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Farm workers: Responsible for planting, maintenance of the cultivated crops, harvesting
tomatoes and Assist in loading tomatoes meant for deliveries.

Sales and Marketing Executive: Their job is to drive sales by designing and implementing
targeted marketing strategies, maintaining customer relationships, tracking sales data, and
creating performance reports.

Front Desk Officer: Responsible for welcoming guests, responding to all incoming and outgoing
mail and packages and all calls and directing as needed, scheduling meetings, and coordinating
office activities.

5.0 SWOT ANALYSIS

SWOT analysis is a tool that helps you evaluate the Strengths, Weaknesses, Opportunities, and
Threats (SWOT) involved in any business enterprise including farms and ranches. Here is a
summary from the result of the SWOT analysis that was conducted on behalf of ETFP,

Strength: Our strength as a tomato farming company are Healthy relationships with some of
the major players in the Agriculture industry both within and outside of the States, Have latest
equipments that will help us cultivate tomatoes in commercial quantities with less stress and
have the most experienced hands in the business.

Weakness: Our weakness could be that for now we lack economies of scale, Lack tomato
processing plant (we hope to build one within the first 1year of operation). We have been able
to put up structures that will help us overcome this initial setback within the shortest time
frame.

Opportunities: An increase in the price of vegetables positively affects returns at the farm gate;
as the price of vegetables increases, farmers collect higher revenue because changes in price do
not drastically affect demand. Price fluctuations reflect supply levels, downstream processing
activity, global demand activity and several other factors.

Threat: Possible threats pests and diseases, Harsh drought conditions, Excessive rainfall and
unevenly water supply, this threat can destroy crops, drastically affecting industry production
and revenue levels and its something as a company starting new do not want to experience in
large extent.

6.0 FINANCIAL FEASIBILITY

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Start up capital estimation is #8,000,000, this amount is the amount gotten from the bank as a
long given to us which we were recommended by on of the Agricultural strong merchant. The
loan will be paid monthly at the amount of #100,000 that minus from the generated revenue.

Cost of land and infrastructure development - Land acquisition of 2 hectares

ACTIVITY AMOUNTS (#)

A.) COST OF LAND AND DEVELOPMENT

Land purchase 1,000,000

Survey of land (Soil test) 10,000

Construction of farm houses 500,000

Land clearing 100,000

Cross cutting 10,000

Subtotal 1,620,000

B.) INFRASTRUCTURE DEVELOPMENT

Cost of farm house/office 1,000,000

Fencing of the farm 50,000

Generation of power (2.7KVA) 100,000

Pumping machine (1hp) 40,000

Borehole 150,000

Subtotal 1,340,000

C.) FARM EQUIPMENTS

Equipments (Machetes, Holes and more) 10,000

Tractor (YTO-904(90hp)) 600,000

Disc harrow (IBJ- 3.0 3,520) 500,000

Sub soiler (IS-200G 3,250) 500,000

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Soy seeder (2BFY-6C 4,950) 500,000

Tripper (7CX-8T 9,45) 500,000

Filters and knobs 35,000

Combine Harvester (4YZ-6 103,500) 500,000

PVC pipes 2,000

Knapsack sprayer 5,000

Boom sprayer (3W-1000L-18 6,950) 500,000

Electrical wires and sockets 10,000

Pick up truck 300,000

Bamboos for staking 30,000

Front loader (TZ10D) 25,000

Subtotal 3,517,000

D.) SALARIES AND WAGES OF STAFFS

Chief executive officer 150,000

General manager 100,000

Accountant 50,000

Farm workers (8) 240,000

Sales personnel 25,000

Front desk officer 25,000

Security 20,000

Subtotal 460,000

E.) VARIABLE INPUTS

Fertilizer 20,000

Pesticides 20,000

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Manure 20,000

Hybrid seeds 30,000

Transportation 60,000

Subtotal 150,000

F.) OTHER OPERATIONAL COSTS/MISCELLANEOUS

Fuel Maintenance on equipment 200,000

Stationeries 50,000

Subtotal 250,000

GRAND TOTAL 7,277,000

7.0 FINANCIAL AND ECONOMIC EVALUATION

It is assumed that one acre of land will yield 500 baskets of 40kg (20 tonnes) of fresh Tomato
products after 3 months. Like we stated earlier, a basket will be sold at the rate of #30,000 at
40kg. Net Revenue in Tomato farming can vary a great deal. This is an estimation of revenue for
1 year.
7.1 TOMATO FARMING PROFIT ANALYSIS SCENERIO FOR ONLY 1 YEAR

ESTIMARION OF NET REVENUE

Cost of 1basket of Tomato product = #30,000

At 3 months, baskets of tomatoes produced = 500

Total costs of expenses for COLUMN A and B (Cost of land and development and
Infrastructure development) = #1,620,000 + #1,340,000 = #2960,000.

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Total sales = 500 baskets X #30,000 = # 15,000,000

Total cost of expenses = #2,960,000

Net Revenue = Total sales --- Total cost of expenses

Net Revenue = #15,000,000 --- #2,960,000= #12,040,000 (This revenue gotten can be use to
the run the farm .as much things that required has already been purchased).

N/b: It is not advisable for us to add all expenses carried out during the process in one year so
as not to run loss but subsequently will be added in years where there's isn't enough expenses.
The remaining total cost of expenses is #7, 277,000 --- #2,960,000 = #4,317,000

8.0 LEGAL FEASIBILITY

This is a study to know if the proposed report conform the legal and ethnical requirements. All
this have been settled with the cheifhead of the local government and also as an indigen, i have
my benefits also and also our registration with the ministry of Agriculture will be carried our in
due time, licenses, certificate, insurance, tax number, health and safety measures and many
more are valid. There are some things such as ethnical issues and social issues, these are
privacy, nepotism and accountability.

9.0 CONCLUSION
The project is technically feasible and commercially viable. It is therefore recommended for the
year. The ETPF when in full operation would have tremendous economic and socio economic
well-being of the people in INI LGA and the entire AKWA IBOM STATE. The farm would greatly
contribute to the up coming Tomato production farms and thereby increase the supply of
tomatoes products to the people around the project site. This can aid the increased intake of
protein by majority of the people as it would be affordable and accessible. The business would
provide direct employment for people for this operation. This is a significant contribution to the
economic well being of the people and social improvement of the business environment. The
ETPF would be a highly profitable businesz which would generate sufficient cash to sustain
production from the second year. The profits from the business would be able to repay the loan
and interest.

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10.0 RECOMMENDATION
From the research conducted by ETPF, it is known that tomatoes are consumed on a daily bases
and is highly demanded in this study area, INI LGA, on this note, with humble appeal that our
project is accepted for the commencement of the project.

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