Afrankon Integrated Services Grains Storage Business Proposal

FRANKLIN ONAH GRAINS STORAGE BUSINESS PLAN
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Table of Contents
INDUSTRY OVERVIEW..........................................................................4
VALUE CHAIN.........................................................................................6
EXECUTIVE SUMMARY.........................................................................7
OUR PRODUCTS AND SERVICES......................................................10
AGRICULTURAL STORAGE BUSINESS..........................................10
Mainly for export............................................................................11
Feed mill sector...............................................................................11
Commodity: for retailers/consumers..............................................11
Purchasing Time for Grains in Nigeria............................................12
August-November...........................................................................12
BEANS STORAGE BUSINESS........................................................12
Locations of Purchasing beans in Nigeria.......................................12
OUR VISION STATEMENT................................................................13
OUR MISSION STATEMENT.............................................................13
OUR BUSINESs STRUCTURE..........................................................13
ORGANOGRAM....................................................................................15
ROLES AND RESPONSIBILITIES........................................................16
MANAGEMENT TEAM.......................................................................19
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SWOT ANALYSIS..................................................................................20
PESTLE Analysis...................................................................................23
MARKET ANALYSIS..............................................................................26
SALES AND MARKETING STRATEGY................................................28
Sources of Income..............................................................................28
Sales Forecast....................................................................................28
annual sales forecast.............................................................................30
Marketing Strategy and Sales Strategy..............................................32
MONTHLY CASH FLOW PROJECTION...........................................35
RISK AND MITIGANTS FOR ANFRANKON INTEGRATED
SERVICES GRAINS STORAGE........................................................37
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INDUSTRY OVERVIEW
Major grain staples in Nigeria comprise maize, wheat, soya beans
and rice, which are consumed either in their raw form or as more
processed goods. Grain farming is predominantly undertaken by
smallholder farmers.
Of the four major grains produced in the country, corn is most
commonly produced with volumes of 10.7 million metric tonnes in
2018/19, according to data from the US Department of Agriculture
(USDA). Domestic production of corn fell short of satisfying demand,
with 11.3 million metric tonnes consumed in 2018/19, approximately
60% of which is consumed as processed maize flour for animal feeds.
Maize flour is also used to make a variety of staple local dishes and
confectionary products. Corn is also consumed in its unprocessed form
as a snack.
Rice, which is a staple food in Nigeria consumed by most
households on a daily basis, is the second most produced grain in the
country. Production in 2018/19 reached 7.6 million metric tonnes, 2.7%
higher than the previous year and above the consumption level of 7.2
million metric tonnes. Sorghum follows rice with 6.8 million metric tonnes
harvested in 2018/19, a 7.9% increase from the previous year.
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Consumption for the year ending 2019 was fully met by local supply at
6.7 million metric tonnes. End users are predominantly industrial
companies producing beverages, cereals and confectionery; a small
percentage of the grain is also used for animal feeds.
Importation of rice through land borders has been banned by the
federal government since 2015. The value of rice imports in 2018 was
$5.3 million, a dramatic 99% reduction from 2014 when imports cost the
country $640 million.
Importation of corn is comparatively low at 400,000 metric tonnes
in the year ending 2019; the majority of this is imported by feed millers
and poultry farmers who purchase foreign corn when there is a shortfall
in local supply.
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VALUE CHAIN
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EXECUTIVE SUMMARY
While the agricultural value chain is steadily growing, majority of
entrants into the agriculture space, appear to be focused on such
aspects as more efficient cultivation of crops and animal husbandry,
value addition to agricultural commodities via food processing, logistics
and others.
These are all critical elements in the continuing growth of the
agricultural sector in Nigeria. Entrepreneurs, however, must also spare
some time to examine the prospects of food storage.
Food storage is particularly critical in Nigeria because of the sheer
volume of food that goes to waste after harvests annually. From grains
like rice, beans, soya beans and maize which may get infested by
insects such as weevils or moulds; to tubers like yams and potatoes
which become rotten and even vegetables and fruits, which wilt and rot;
tonnes of food commodities are wasted after harvests annually. Farmers
and other members of the agricultural value chain often have challenges
in the handling and storage of these agricultural commodities.
Anfrankon Integrated Services Grains Storage has been providing
customers with the finest quality grains for over five years. The business
is primarily grains wholesale supply to major processing companies like
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Olam, Labana, Waccot, Stallion Etc. We purchase grains directly from
local farmers and contacts across the entire northern Nigerian states.
This allows us to pick from the finest selection of grains available
anywhere in Nigeria. Currently we sell to over 5 major grains processing
business in Nigeria.
The estimate operating capital for the business is N 202, 810, 000
(twenty hundred and two million, eight hundred and ten thousand naira)
with an estimated annual total sales of N 710, 900, 000 generating an
average monthly net flows of N 8, 319, 416.
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FINANCIALS SUMMARY
Prepared By: Company Name:
ANFRANKON
INTEGRATED
XTRATECH DIL LTD SERVICES GRAINS
(xtratechdil@gmail.com) STORAGE
Operating Capital Amount
Soya Beans (340 Bags x 10Trips) ₦ 125,800,000.00
Transportation ₦ 3,500,000.00
Loading ₦ 170,000.00
Additional Expenses ₦ 340,000.00
Maize (450 Bags x 10Trips) ₦ 67,500,000.00
Transportation ₦ 3,500,000.00
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Loading ₦ 450,000.00
Additional Expenses ₦ 450,000.00
Total Operating Capital ₦ 201,710,000
Total Required Funds ₦ 202,810,000
Sources of Funding Percentage Totals Loan Rate Term in Months Monthly Payments
Owner's Equity 0.00% -
Outside Investors 0.00% -
Additional Loans or Debt
Loan 100.00% 202,810,000 9.00% 12 17,736,034

₦
Total Sources of Funding 100.00% ₦ 202,810,000 17,736,034
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OUR PRODUCTS AND SERVICES
Anfrankon Integrated Services Grains Storage’s aim is to minimize
cost while maximizing profit and output.
The grain that will be stored includes;
Soya Beans
Maize
AGRICULTURAL STORAGE BUSINESS
Agricultural storage business is process of buying
Agricultural commodities at a relatively low price (either directly from
farmers or wholesalers). Stores for time and resell at a relatively higher
price within a short period of time. Furthermore, there are several Grains
you can buy, store and resell at of season. some of which are listed
below;
 Paddy Rice
 Soya beans
 Sorghum
 Beans
 Maize
 Millet
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 Ogbono
 Bambara nut (Okpa)
 Sesame seeds
 groundnut
Similarly, we can broadly group them into
Mainly for export
 Sesame
 Ginger
 Cashew
Feed mill sector
 Soya beans
 Maize
 Sorghum
 Guinea corn
 Millet
Commodity: for retailers/consumers
 Beans
 Melon
 Dry pepper
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Purchasing Time for Grains in Nigeria
October-December
 Bambara nuts (okpa)

 Beans
 Sesame
 Sorghum
 Soya beans
August-November
 Maize
BEANS STORAGE BUSINESS
During beans harvest, a bag of beans can be bought for #20,000
and sale at over #40,000 during off-season.
Investors in grain storage business preserve beans with chemicals
that has expiry dates; Either that of 3 months or 6 months duration.
Locations of Purchasing beans in Nigeria
Various beans can be purchased in large quantities in Adamawa (mubi)
and Taraba also from Kaduna, Nassarawa, Niger, Yobe, Bauchi, Kano
States etc.
MAIZE STORAGE BUSINESS
Maize is another good grains to store and sell later. So many
things can be gotten from maize. It is processed into pap (powder/wet),
agidi, corn flour for baking, semovita etc. A bag of maize can be bought
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at #15,000 and sold costly during scarcity. About 68-75 modu make a
100kg bag of maize depending on the modu size. Maize is preserved
just like other grains.
OUR VISION STATEMENT
Our vision is to rank among the foremost Storage companies in
Nigeria.
OUR MISSION STATEMENT
Our mission is to ensure that we deploy the best storage
techniques in ensuring that our customers get the best service from us.
We also intend to provide the best customer service so that our
customers not only come back, but refer new clients to us as well,
thereby giving us an edge over our competitors.
OUR BUSINESS STRUCTURE
Anfrankon Integrated Services Grains Storage intends to become
a well-known brand nationally. This will be achieved through our various
strategies.
We know how important our customers are, and so while we
develop other important strategies aimed at moving the business
forward, we will put our customers first by ensuring that we provide a
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quality customer service that is second to none. Aside from promptly
attending to the complaints and enquiries of customers, we will use the
best CRM software that will help in providing this quality service.
While treating our external customers as topmost, we intend to
also give a high priority to our internal customers, such as our
employees and stakeholders, for we know how important dedicated
employees with the right attitude is. We will ensure that our employees
understand our corporate culture as well as our vision and objectives.
We intend to employ those with the right skill set and
understanding of our policies into these positions;
Managing Director
Maize Aggregator
Soya Beans Aggregator
Accountant/Cashier
Quality Inspector
Truck Driver
Security Guard
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ORGANOGRAM
Aggregators
Soya Beans
Aggregator
Maize Aggregator
Managing
Accountan Quality Inspectors
Director t/Cashier Truck Drivers
Security
Guard
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ROLES AND RESPONSIBILITIES
Managing Director (Owner):
 See to the day-to-day management of the business, which
includes direction, supervision and human resource issues; while
carefully contributing to the interest of the business.
 Responsible for ensuring that contracts with business partners and
clients are negotiated in favor of the business.
 Ensuring that the agreements and obligations of the duly
monitored and fulfilled according to the practice of the business
 Responsible in ensuring that bills, payroll taxes and salaries are
paid accordingly
 Responsible in ensuring the business remains afloat with a healthy
bottom line
 Investment of cash assets that are short-term in nature with low
credit loss risk
 Responsible in ensuring that the financial affairs as well as the
accounts of the business are up-to-date and accurate.
 Responsible for the creation of business policies, structure, vision,
goals and objectives as well as business culture

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 Draft strategies that would move the business forward and also
remove or modify strategies that aren’t working well
Aggregators:
 Oversees and executes the aggregation processes.
 Responsible for loading and offloading
 Responsible for making sure the trucks to transport the goods are
certified road worthy
 Reports directly to the managing directors especially in matters
that are above his jurisdiction
 Responsible for ensuring that the business runs efficiently
 Comprehends directives from the Managing Directors and
translate them to those below him as well as staff
 Ensure the that weight and measure of the bags of grains are
accurate and within acceptable range
 Ensure that quality control is maintained
Accountant/Cashier:
 Responsible for ensuring that invoices are booked into the right
account
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 Responsible for reconciliation of both cash and bank statements
by month end
 Ensures on-time payment of all invoices and all other financial
implications of the business
 Ensures that cash is kept in a safe place and know the minimum
and maximum level
 Carries out accounting operations that relate to cash handling
 Ensures that the correct taxes are deducted and paid
Quality Inspector:
 Responsible for final inspection
 Corrects whatever faults are found during the business process
and ensuring that the customer has a better product according to
the stated requirements
 Works with manager and aggregators to ensure that the customers
are satisfied always
Truck Driver:
 Responsible for loading and unloading of truck
 Ensures truck is kept clean at all times
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 Carries out light maintenance work on truck routinely
 Works hand in hand with Manager especially when enrout a
location
Security Guard:
 Ensures the facility is secure at all times
 Scrutinizes incoming and outgoing vehicles
 Submits security report regularly
MANAGEMENT TEAM
ANFRANKON INTEGRATED SERVICES

MANAGING DIRECTOR
Mr Anfrankon Integrated Services is a Professional
Food Storage Consultant, an enterpreneur and
seasoned business man in the indsutry, he also has a
strong background as Storage manager for Cellulant
(an international renowned company in the grains
Storage business across continents).
He will be overseeing the Management of the

Business to profitability by strategic aggregation,
marketing and supply/sales. He will be introducing
relevant innovations in upgrading the products and
services through the test of time. He will also ensure
proficiency by employing more people with
aggregation and logistics.
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SWOT ANALYSIS
A grains Storage business production business is a capital and
labor-intensive business, and so require huge sums. Our awareness of
this fact has created in us a resolve to ensure that the business
becomes profitable and breaks even in its second or third year. This is
where our experience comes to bear and separates us from newbie
entrepreneurs that have no knowledge of the business.
We know how necessary carrying out a SWOT analysis is for any
business and while we would attempt to do these ourselves, we also
have gotten input from an expert consultant on certain trends. The
SWOT analysis that we conducted with input from an external consultant
for Anfrankon Integrated Services Grains Storage business is as follows;
Strength:
Anfrankon Integrated Services Grains Storage is a regional
business with easy access and existing relationship with most the
localities where these grains are sought. This is regarded as strength
because of the convenience to effectively execute strategies given the
existing network and contacts thereby improving the efficiency of the
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process flow. Other strengths of Anfrankon Integrated Services Grains
Storage include the offering of additional but related services such as
consultancy and quality control testing.
Weakness:
Our perceived weakness stems from the fact that we will be
operating regionally (owing to the fact that most of our grains are sought
from the Northern part of the country where the climate is favorable for
their production), and it could take a while for us to be seen as a national
business instead of a regional business.
Opportunities:
Without an iota of doubt there are loads of opportunities in Nigeria.
The market is a very big one and we would also have the opportunity to
market our goods to other parts of the Nigeria as well as other parts of
the world. Our nearness to the big market will be of great advantage
while we will also work critically at converting potential consumers to
actual clients. And we have very good rapport with the local grains
Storage businesses who will be the major suppliers of the raw material
as well.
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Threat:
There are several threats that face every business and this is the
downturn of the economy as well as the arrival of close competitors to
the market.
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PESTLE ANALYSIS.
This is another tool used to analyses the external factors that are facing
a business. PESTLE being an acronym for Political, Economic, Social,
Technological, Legal and Environmental.
Political
Since 1970, the government has been showing interest in Grains
production yet the turn out in terms of production is not commiserated
with the money invested in the rice sector. On May 21 1978, the Federal
Government launched Operation Feed the Nation (OFN) to address
decline in agricultural productions, galloping food prices, increasing food
import bills and accelerating rural-urban flight of youths.
The Nigerian government has actively interfered in the Nigerian rice
economy over the last thirty years as a result of the strategic nature of
the commodity. However, policy intervention has been largely
inconsistent and to some degree ineffective.
Economic
Current spike in inflation of grain price has caused the start-up cost to
increase. This in turn would cause the period of brake even to increase.
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Social impact
Even though the cost of local grain is higher than that of imported grain,
the various Government projects on agriculture has been able to put the
price of the local grain on check. Thereby encouraging consumers to opt
for local grains and this has in turn created new jobs and business
opportunities across the nation.
Technological:
The emergence of new technologies has enhanced the production of
grains for inputs in other industries. These technologies have also made
it possible for the locally produced grains to compete favorably with
imported ones in quality.
Legal
Compliance of legal documentation and contractual obligations: it is
always important to get things right with the law. Though sometimes they
could stand as hindrances especially in the issuance of relevant
registration certificates or licenses.
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Environment
The environmental hazards caused by improper disposal of grain husk,
and other waste products from the grains Storage business can cause
significant environmental concerns especially for large scale processors.
Faulty vehicles could have an adverse effect on the business, especially
when there is no proper provisions.
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MARKET ANALYSIS
Market Trends
The fact that more grains Storage business are springing up
locally, mostly due to the special interest that the Nigerian government
has in local grains production; This has made the business become
more competitive as grains Storage business strive to leverage on every
competitive advantage chief of which is offering additional but related
services as well as continually improving on its customer service.
Our Competitive Advantage
Our research did not however look into what sort of competition we
were likely to have but also what their weaknesses were so that we
could come up with strategies that would ensure we have competitive
advantage over them and become the go-to grains Storage business for
our target customers.
One of our competitive advantages is in ensuring that we are
strategically located.
Another competitive advantage we have is the vast combined
experience of the owners who have not only brought this in to bear on
the business but have also given them an edge in being proactive in the
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market by ensuring that unique solutions are given for every challenge
and obstacle that arise during the course of running the business.
Asides, from offering additional but related services; we tend to
employ not only the best hands to help run the business, but also
employees that understand the vision and philosophies of our business
and know how this translates to offering the best service to our
customers. We intend to ensure that the working conditions for our
employees are the envy of other employees from our competitors.
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SALES AND MARKETING STRATEGY
SOURCES OF INCOME
Like every other business, Anfrankon Integrated Services Grains
Storage was established with the intention of making profit, in the agro-
allied industry. This means that generation of income via several sources
is our top priority, and this would be done via our main service as well as
other additional but related services that we would be offering as well.
We intend to generate income by offering the following services listed
below;
 Grains Storage business
 Sale of by-products such as hull, bran layers, germ and fine
broken
 Transport facilities
 Storage facilities
SALES FORECAST
The forecast for our sales will largely be hinged on where we are located
and this we have achieve by being located in an area that is easily
accessible so as to easily attract more customers especially potential
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ones. We know that having more customers translates to an increase in
generation of revenue.
Asides having a good location, we intend to ensure that our machines
and other facilities especially that of storage is not only up to standard
but also continually reviewed and inspected by our internal inspectors so
that our customers can continue to have faith in our business.
In critically analyzing the agro-allied and processing industry, and after
several researches and feasibility study, we have confidently come up
with a sales forecast that we feel isn’t extravagant and will moderately
serve as a model for us and our stakeholders.
Our several years of experience were brought to bear in the sales
projection as we were entitled to several information that is not
necessarily available to greenhorn entrepreneurs. Below are the sales
projection:
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ANNUAL SALES FORECAST
ANFRANKON
XTRATECH DIL LTD
INTEGRATED
xtratechdil@gmail.com
SERVICES
+2349053309100
COGS Per
Product Lines Units
Sales Price Unit Margin Per
Per Unit Unit
₦ ₦ ₦
SOYA BEANS BAGS
42,000 37,000 5,000.00
₦ ₦ ₦
MAIZE BAGS
21,000 15,000 6,000.00
Annual
Product Lines January February March April May June July August September October November December Totals
SOYA BEANS
BAGS Sold 850 850 850 850 850 850 850 850 850 850 850 850 10,200
3 35 3 3 ₦
Total Sales
35,700,000 35,700,000 35,700,000 35,700,000 35,700,000 35,700,000 35,700,000 5,700,000 ,700,000 5,700,000 5,700,000 35,700,000 428,400,000
3 31 3 3 ₦
Total COGS
31,450,000 31,450,000 31,450,000 31,450,000 31,450,000 31,450,000 31,450,000 1,450,000 ,450,000 1,450,000 1,450,000 31,450,000 377,400,000
4 ₦
Total Margin
4,250,000 4,250,000 4,250,000 4,250,000 4,250,000 4,250,000 4,250,000 4,250,000 ,250,000 4,250,000 4,250,000 4,250,000 51,000,000

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MAIZE
BAGS Sold 1,125 1,125 1,125 1,125 1,125 1,125 1,125 1,125 1,125 1,125 1,125 1,125 13,500
2 23 2 2 ₦
Total Sales
23,625,000 23,625,000 23,625,000 23,625,000 23,625,000 23,625,000 23,625,000 3,625,000 ,625,000 3,625,000 3,625,000 23,625,000 283,500,000
1 16 1 1 ₦
Total COGS
16,875,000 16,875,000 16,875,000 16,875,000 16,875,000 16,875,000 16,875,000 6,875,000 ,875,000 6,875,000 6,875,000 16,875,000 202,500,000
6 ₦
Margin
6,750,000 6,750,000 6,750,000 6,750,000 6,750,000 6,750,000 6,750,000 6,750,000 ,750,000 6,750,000 6,750,000 6,750,000 81,000,000

Total Units Sold 1,975 1,975 1,975 1,975 1,975 1,975 1,975 1,975 1,975 1,975 1,975 1,975 23,700
₦ ₦ ₦ ₦ ₦ ₦ ₦ ₦ ₦ ₦ ₦ ₦ ₦
Total Sales
59,325,000 59,325,000 59,325,000 59,325,000 59,325,000 59,325,000 59,325,000 59,325,000 59,325,000 59,325,000 59,325,000 59,325,000 711,900,000
Total Cost of Goods ₦ ₦ ₦ ₦ ₦ ₦ ₦ ₦ ₦ ₦ ₦ ₦ ₦
Sold 48,325,000 48,325,000 48,325,000 48,325,000 48,325,000 48,325,000 48,325,000 48,325,000 48,325,000 48,325,000 48,325,000 48,325,000 579,900,000
₦ ₦ ₦ ₦ ₦ ₦ ₦ ₦ ₦ ₦ ₦ ₦ ₦
Total Margin
11,000,000 11,000,000 11,000,000 11,000,000 11,000,000 11,000,000 11,000,000 11,000,000 11,000,000 11,000,000 11,000,000 11,000,000 132,000,000
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MARKETING STRATEGY AND SALES STRATEGY
Our marketing strategy would be hinged on providing standard
Storage services as well as additional but related services to our
customers. We intend to cultivate a loyal customer base where we not
only increase our customer retention but also attract new customers to
patronize our services.
We intend to use our loyal customers to get new customers by
deploying a referral system that would see the customer get a
discount or recognition in return for referring new customers to us.
Other strategies we intend to adopt is in ensuring that we engage
existing and potential customers on our social media platforms,
and also from time to time give out tips and suggestions that will
ensure that the businesses of our clients improve.
We also intend to engage in massive publicity through our partner
website as well as other forums that are agro related so as to
garner more customers. Some of the marketing and sales
strategies that we will adopt include;
Introduce our business officially to grains Storage businesses and
large dealers in the grains processing businesses across the
nation.
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Ensure we open as many storage facilities as possible spread
across several strategic locations to capture products from various
localities where they are cultivated right after harvest while the
prices are down.
Make use of our official website in promoting our grains Storage
business by deploying SEO to ensure that it tops the online search
for potential customers
Make use of our social media platforms such as LinkedIn,
Facebook and Twitter to promote our brand
Meeting and exceeding the expectations of our clients and through
this improving the performance of our brand.
Ensuring there is a consistency in customer experience in all our
locations
Use attractive billboards and banners to ensure that potential
customers are aware of our services
Create awareness by passing out handbills and fliers and pasting
same in strategic areas
Ensure that we deploy the direct marketing approach
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Make use of word of mouth marketing to increase awareness of
our existence and invariably our products and services
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MONTHLY CASH FLOW PROJECTION
XTRATECH DIL LTD ANFRANKON

(xtratechdil@gmail.com) INTEGRATED
+2349053309100 SERVICES
January February March April May June July August September October November December Totals
₦ ₦ ₦ ₦ ₦ ₦ ₦ ₦ ₦ ₦ ₦ ₦
Beginning Balance - - - - - - - - - - - -
Cash Inflows
₦
59,325,00 711,900,00
Cash Sales 0 59,325,000 59,325,000 59,325,000 59,325,000 59,325,000 59,325,000 59,325,000 59,325,000 59,325,000 59,325,000 59,325,000 0
Accounts ₦
Receivable - - - - - - - - - - - - -
₦ ₦
59,325,00 ₦ ₦ ₦ ₦ ₦ ₦ ₦ ₦ ₦ ₦ ₦ 711,900,00
Total Cash Inflows 0 59,325,000 59,325,000 59,325,000 59,325,000 59,325,000 59,325,000 59,325,000 59,325,000 59,325,000 59,325,000 59,325,000 0

Cash Outflows
Investing
Activities
₦
Cost of 48,325,00 579,900,00
Goods Sold 0 48,325,000 48,325,000 48,325,000 48,325,000 48,325,000 48,325,000 48,325,000 48,325,000 48,325,000 48,325,000 48,325,000 0
Operating
Activities
Operatin ₦
g Expenses 120,000 120,000 120,000 120,000 120,000 120,000 120,000 120,000 120,000 120,000 120,000 120,000 1,440,000
₦
Payroll 303,550 303,550 303,550 303,550 303,550 303,550 303,550 303,550 303,550 303,550 303,550 303,550 3,642,600
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₦
Taxes - - 2,052,452 - - 2,099,117 - - 2,146,864 - - 2,195,715 8,494,148
Dividend ₦
s Paid 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 2,400,000
₦ ₦
66,684,58 ₦ ₦ ₦ ₦ ₦ ₦ ₦ ₦ ₦ ₦ ₦ 812,275,50
Total Cash Outflows 4 66,733,648 68,835,491 66,846,442 66,896,585 69,046,180 67,011,870 67,063,116 69,261,567 67,180,947 67,233,320 69,481,758 8
-₦
-₦ -₦ -₦ -₦ -₦ -₦ -₦ -₦ -₦ -₦ -₦ -₦ 100,375,50
Net Cash Flows 7,359,584 7,408,648 9,510,491 7,521,442 7,571,585 9,721,180 7,686,870 7,738,116 9,936,567 7,855,947 7,908,320 10,156,758 8
Operating Cash -₦ -₦ -₦ -₦ -₦ -₦ -₦ -₦ -₦ -₦ -₦ -₦
Balance 7,359,584 7,408,648 9,510,491 7,521,442 7,571,585 9,721,180 7,686,870 7,738,116 9,936,567 7,855,947 7,908,320 10,156,758
₦
Line of Credit ₦ ₦ ₦ ₦ ₦ ₦ ₦ ₦ ₦ ₦ ₦ ₦ 100,375,50
Drawdown 7,359,584 7,408,648 9,510,491 7,521,442 7,571,585 9,721,180 7,686,870 7,738,116 9,936,567 7,855,947 7,908,320 10,156,758 8
₦ ₦ ₦ ₦ ₦ ₦ ₦ ₦ ₦ ₦ ₦ ₦
Ending Cash Balance - - - - - - - - - - - -
₦ ₦ ₦ ₦ ₦ ₦ ₦ ₦ ₦ ₦ ₦ ₦
Line of Credit Balance 7,359,584 14,768,232 24,278,722 31,800,165 39,371,750 49,092,929 56,779,800 64,517,916 74,454,483 82,310,430 90,218,750 100,375,508
Page 38 of 41
RISK AND MITIGANTS FOR ANFRANKON INTEGRATED SERVICES
GRAINS STORAGE
RISKS MITIGATION
Storage Risk We have an existing profile of

experts that will work for us in the
Some of the risks we are likely to
business and we have put in place
encounter includes spoilage of
capacity building programe to bring
stored products and lack of
the new workers up to speed on
improved variety of product, or
latest/modern grains storage
inefficient technology and well as
business practices.
lack of skilled workers in the field.
Marketing Risk We have earlier outlined the

marketing strategies which we
Marketing is the activity that
intend to employ in order to ensure
transforms production into financial
that we always have market for our
success and some of the apparent
products.
risks in Marketing risk that may
surface includes weather or
governmental actions that can lead
to dramatic changes in price of
inputs and outputs.
Social Risk Being able to make sure that

everyone connected to the
People managing risk may also be
business remains safe, happy and
the ones to have created it.
creative is termed the management
Page 39 of 41
of human risk.
Financial Risk We have mitigated this by

introducing our grains Storage
These are risks that looms over the
business to a potential financier for
financial status of the grains
a formal credit with reasonable
Storage business which may
interest rate and ample
include the cost and availability of
amortization.
capital, the capability to meet cash
flow needs in time, the right team to
maintain and grow equity or the
ability to take in short term financial
shocks.
Page 40 of 41
AMMORTIZATION
Loan
₦
Principal 202,810,00
Amount 0
Interest Rate 9.00%
Loan Term
in Months 12.00
Monthly
Payment ₦
Amount 17,736,034
January February March April May June July August September October November December Totals
Year One
1,39 1,27 1,153 1,029,1 90 777, 650 522, 393 263,07 132,0 ₦
Interest 1,521,075 9,463 6,939 ,495 26 3,824 583 ,395 252 ,149 7 30 10,022,408
₦
16,33 16,45 16,582 16,706,9 16,83 16,958, 17,085 17,213, 17,342 17,472,95 17,604,0 202,810,00
Principal 16,214,959 6,571 9,095 ,539 08 2,210 451 ,639 782 ,885 7 04 0
Loan 186,595,04 170,25 153,79 137,216 120,509,9 103,67 86,719, 69,633 52,419, 35,076 17,604,00
Balance 1 8,470 9,374 ,836 28 7,718 267 ,628 846 ,961 4 -
Page 41 of 41

Afrankon Integrated Services Grains Storage Business Proposal

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Afrankon Integrated Services Grains Storage Business Proposal

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FRANKLIN ONAH GRAINS STORAGE BUSINESS PLAN

OUR PRODUCTS AND SERVICES......................................................10

AGRICULTURAL STORAGE BUSINESS..........................................10

Mainly for export............................................................................11

Feed mill sector...............................................................................11

Commodity: for retailers/consumers..............................................11

Purchasing Time for Grains in Nigeria............................................12

BEANS STORAGE BUSINESS........................................................12

Locations of Purchasing beans in Nigeria.......................................12

OUR VISION STATEMENT................................................................13

OUR MISSION STATEMENT.............................................................13

OUR BUSINESs STRUCTURE..........................................................13

ROLES AND RESPONSIBILITIES........................................................16

SALES AND MARKETING STRATEGY................................................28

annual sales forecast.............................................................................30

Marketing Strategy and Sales Strategy..............................................32

MONTHLY CASH FLOW PROJECTION...........................................35

RISK AND MITIGANTS FOR ANFRANKON INTEGRATED

SERVICES GRAINS STORAGE........................................................37

Major grain staples in Nigeria comprise maize, wheat, soya beans

processed goods. Grain farming is predominantly undertaken by

Of the four major grains produced in the country, corn is most

commonly produced with volumes of 10.7 million metric tonnes in

2018/19, according to data from the US Department of Agriculture

(USDA). Domestic production of corn fell short of satisfying demand,

with 11.3 million metric tonnes consumed in 2018/19, approximately

60% of which is consumed as processed maize flour for animal feeds.

confectionary products. Corn is also consumed in its unprocessed form

Rice, which is a staple food in Nigeria consumed by most

households on a daily basis, is the second most produced grain in the

country. Production in 2018/19 reached 7.6 million metric tonnes, 2.7%

harvested in 2018/19, a 7.9% increase from the previous year.

6.7 million metric tonnes. End users are predominantly industrial

companies producing beverages, cereals and confectionery; a small

percentage of the grain is also used for animal feeds.

Importation of rice through land borders has been banned by the

country $640 million.

Importation of corn is comparatively low at 400,000 metric tonnes

While the agricultural value chain is steadily growing, majority of

entrants into the agriculture space, appear to be focused on such

aspects as more efficient cultivation of crops and animal husbandry,

value addition to agricultural commodities via food processing, logistics

These are all critical elements in the continuing growth of the

agricultural sector in Nigeria. Entrepreneurs, however, must also spare

some time to examine the prospects of food storage.

Food storage is particularly critical in Nigeria because of the sheer

insects such as weevils or moulds; to tubers like yams and potatoes

tonnes of food commodities are wasted after harvests annually. Farmers

in the handling and storage of these agricultural commodities.

Anfrankon Integrated Services Grains Storage has been providing

is primarily grains wholesale supply to major processing companies like

Olam, Labana, Waccot, Stallion Etc. We purchase grains directly from

This allows us to pick from the finest selection of grains available

anywhere in Nigeria. Currently we sell to over 5 major grains processing

with an estimated annual total sales of N 710, 900, 000 generating an

average monthly net flows of N 8, 319, 416.

Operating Capital Amount

Soya Beans (340 Bags x 10Trips) ₦ 125,800,000.00

Additional Expenses ₦ 340,000.00

Maize (450 Bags x 10Trips) ₦ 67,500,000.00

Additional Expenses ₦ 450,000.00

Total Operating Capital ₦ 201,710,000

Total Required Funds ₦ 202,810,000