Table of contents

1. Executive Summary 2

2. Business overview 2
2.1. The problem 3
2.2. The solution 3
2.3. Product description 3
​FAM for customers 3

3.Marketing analysis 4
3.1 Target Market 4
3.2. Competitive analysis 4
3.3. Marketing strategy 5

4. Economic analysis 5
4.1. Capital Investment 5

5. Implementation 6
5.1. Future Potential 7

References 8

1. Executive Summary
Nigeria is facing about 80 % of huge post-harvest losses of agriculture products, caused by long distance
travel and crop storage Inadequacy (Ibemere, 2021). As a result, farmers are not able to maximize their profits
and customers are not satisfied neither with the quality and the price of the goods that are increasing
because of the deficit between supply and demand.

To address the problem and make improvements, Fresh Agro Marketplace (FAM) is established as an
application that will connect farmers and customers such as individuals, households and restaurants. The
solution aims to enlarge the market, reduce losses due to storage and long distance transportation, and
relieve the farmers of the high transportation costs that we will take in charge through partnership, thus
increasing their income. Therefore, customers will receive vegetables in better condition, in sufficient
quantity, and at an affordable price.

Each transaction and delivery made through our app will only cost 1 and 2 Nairas (0.0024 and 0.0048 $)
(Nigerian currency). As a result, the net cash flow for the fifth year will be around 4,302,167 million Nairas
(10,392 $). The necessary capital to build the FAM is only about 1,473,500 Nairas (3,560 $).

Therefore, FAM addresses the 1st , 2nd and 12th United Nations Sustainable Development Goals (SDG),
which are respectively about ending poverty in all its forms everywhere, zero hunger, and responsible
consumption and production, by avoiding fresh crop losses, giving access to the biggest markets and
providing large income for farmers.

2. Business overview

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2.1. The problem
Nigeria has one of the greatest food wastage problems in the
world. Yet it is also one of the largest producers of food in
Africa and the world. With 3.8 million tonnes of onions, 6
million tonnes of tomatoes, 35 million tonnes of citrus and
11.6 million tonnes of maize (Idah, Ajisegiri, & Yisa, 2007).
Nigeria is the largest producer of tomatoes in Africa, which
are important for the rural economy and a critical source of
vitamins. Despite being a large producer, up to 86% of
tomatoes are not consumed due to losses throughout the
value chain: during production, harvest, local collection
centers, cross-country transportation, and at retail markets.

Approximately 41% of tomatoes are lost during

transportation, as tomatoes are primarily produced in
Northern Nigeria and consumed in Southern Nigeria, some 1,000 kilometers away.

An estimated 80% of the food produced in Nigeria is wasted every year. Contributing factors to the levels of
food wastage include: lack of refrigerator storage, loss during transportation and insufficient and inefficient
agro-processing skills among smallholder farms. The problem is heightened when 82 million of Nigeria's
population lives below the poverty line, operating on an income of $1 per day (Ibemere, 2021). The main
causes of Nigeria's food problems are: how to transport and store food better and reduce the waste of food in
the middle of the journey? How to open up the food market and the food industry as much as possible under
the poor market access conditions in Nigeria?

2.2. The solution

In order to reduce the levels of food wastage in Nigeria, whilst increasing productivity, efficiency and
accessibility, we propose an app based marketplace: FAM ( Fresh Agro Marketplace).

The FAM platform has two main shareholders: Customers i.e. individuals, households and restaurants, and
farmers in Nigeria. FAM works to mitigate food wastage by combating the issue of food perishing in the
transportation stage. As FAM puts customers and farmers in the same location in contact, Customers are able
to order food products in their area, which will then be delivered to their doorstep. Additionally, the majority
of farms in Nigeria are small farms which allows FAM to access their food products and loyalty with ease as
they do not belong to a pre-existing contract with farming MNEs. FAM also works to mitigate the issue of lack
of innovation and tech.

2.3. Product description

​FAM for customers

The FAM app for customers works to
connect them with farms in a 50km -
100 km radius of their location.
Customers are able to identify these
farmers and browse their produce

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 and prices. Once they have decided upon the products they are wanting to purchase and the quantity, they
are asked to fill out their details to complete their order. FAM requires customers to share their address (for
delivery), their phone number (for delivery reasons), and offers them a range of payment options.

FAM for farmers

The FAM app for farmers allows farmers to list their produce. In
order to list their produce, they must have a verified Nigerian
farming license. After they have verified their identity and their
farming license they are free to add as many or as little products
as they wish. Adding a product involves taking a photo, adding a
quantity and a price, as well as their location . The price after
FAM’s 5% cut is also shown, which allows farmers to see whether
they wish to raise their price. Everytime the farmer gets paid,
they get paid into their FAM bank account. They are able to withdraw this money whenever they want.

3.Marketing analysis

3.1 Target Market

As previously stated FAM has two main target markets; customers / buyers and farmers / producers. There
are an estimated 206.1 million people living in Nigeria. However FAM is unable to target all of Nigeria,
namely because not all Nigerians have access to a mobile phone or the internet. Of the 206.1 million
population, 51.59 % have access to a mobile phone and internet connection. Research suggests that Nigeria
as a country is an early adopter of e-commerce. With a recent study conducted in Nigeria found that 88% of
the respondents have purchased products online (Mccrocklin, 2018).
Therefore we can assume that the adoption of FAM within the target market will be seamless.
- Buyers / customers: 25-34 year olds were found to earn a high income relative to other age groups. With
females attributing a high portion of that population. Making women between the ages of 25-34 years old to
have the greatest buying power.(Mccrocklin, 2018).
Women within the 25-34 year old age bracket are statistically mothers. Women within this age bracket and
earning this level of income are found to hold higher purchasing decision making powers. Particularly when it
comes to household goods. (Anyasor, 2018)
- Farmers: 70% of households in Nigeria own a farm. (Sasu, 2022)
The average age of parents in Nigeria is 22 years old, at least for the first child. (National Population
Commission [Nigeria], 2014) Small farms are often run by the husband and wife, yet research has found that
men have a higher level of decision making when it comes to the running of the farm (on average).
Both customers and farmers are based in Nigeria.

3.2. Competitive analysis

- Supermart.ng is one of the largest online grocery stores in Nigeria. Which also offers delivery options.
- Shoprite is a leading supermarket chain in Nigeria. That competes on lower prices.
- US agriculture imports. In 2020 Nigeria imported 1.29 million tonnes of wheat from the US. As well as
soybeans, vegetables and fish products.(Country Commercial Guides, Nigeria - Agriculture Sector, 2021)

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 3.3. Marketing strategy
- Partnering with BOA: Bank of Agriculture is a farming / agriculture agency that operates in Nigeria. Their
mission is to stimulate agriculture and improve the lives of farmers. Their focus is value chains and technical
/ financial support to farmers (Bank of Agriculture, n.d.). We can assume that BOA would want to partner
with FAM due to the values shared. Due to the connection and influence BOA has with farm owners, would
allow FAM to easily access their pre-existing farming connections.
- Partnership with transportation companies: FAM is looking to partner with transportation services in
Nigeria. The transportation service is able to showcase FAMs app as well as their service to their current
database.
Each driver is able to showcase a FAM driver badge. Which adds credibility and sustainability to the drivers
and their business.
- Digital marketing : FAM operates a mobile application. In order to meet the target market where they are
online. Therefore a digital marketing strategy across the platforms; Instagram, facebook, whatsapp and
youtube, which are the most popular platforms used in Nigeria. (Kamer, 2022)
This can look like establishing social media pages on these platforms and promoting the service through the
means of digital ad campaigns. Research suggests that Nigerian consumers view social media as a major
influence whether to adopt a new product/service. (Mccrocklin, 2018)

4. Economic analysis
The project will be very profitable according to the Net Cash Flow equals to 4.302 million of Nairas (10,392
$). With a gain of 1 Naira after every purchase through the app, and 2 Nairas on every delivery, we will have a
return on the invested currency unit of 5.07 Nairas. The financial risk of the project is low, with an internal
rate of return (IRR) equaling 52.37 %. The payback period of the invested capital is 1 year 6 months 3 days.

4.1. Capital Investment

The FAM Project will be partly financed by our team members with supplementary investment from partners
in terms of logistics and the construction of a solar powered cold station for 24/7 storage and preservation of
our farm produce (vegetables and fruits). The total investment capital needed is 1.474 million of Nairas
(3,600 $).

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5. Implementation
The implementation of the project will be done In Kano, the largest and most developed city in
Northern Nigeria, in several phases over the five years of the project. We will not spend much money on
transportation and storage, since it is close to the farms also located in the Northern villages of the
country.

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 4 phases
- Phase 1: Meeting with a large number of farmers to inform them of
the new opportunities that our project brings them.
- Phase 2: Signing of partnership contracts with companies for the
management of logistics and storage of our products.
- Phase 3:
Year 0: 1. Information on the production of the growers concerning their
Establishment of the quantity and variety.
company 2. Creation of the mobile application and website
3. Implementation of the growers' product information in our
application and website
4. Obtaining a location in Kano to coordinate our activities and
various operations.

Year 1:
Development of our
relationships and increase Increase sales and work on more visibility
of our sales/transactions

Year 2: Development of strategies to increase our sales in Kano and have more
Business growth revenue.

Year 3: 1. Expansion of the activity in the city of Abuja, central city and
Increasing distances political capital of the country.
between delivery 2. Deliveries to Lagos, the economic capital of the country and the
locations and operation most populated city in the country, located in the South, therefore
location further away from Kano.

1. Consolidation of our expansion by offering impeccable quality

Year 4: services.
Consolidation of the 2. Increase the number of farmers to offer a greater variety and
activity quantity of fresh products
3. Targeted marketing to reach more customers

Year 5: Confirmed establishment of the company with 5 million customers and

Growth and diversification 1 million farmers using our platform and then proceed to
diversification.

5.1. Future Potential

Diversification of the company's activities: Allow customers to invest in farms by adding an investment
component on our application and online platform and thus increase our revenue; proposing transformed
product and meals delivery made by cooperative farmers.

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References

● Ibemere, D. (2021). UN report ranks food wastage by Nigerians as highest in Africa. Ripples
Nigeria.
● Idah, P., Ajisegiri, E., & Yisa, M. (2007). Fruits and Vegetables Handling and Transportation in
Nigeria. Department Agricultural Engineering, Federal University of Technology Minna, Niger
State, Nigeria, 175-183.
● Olubiyi, T. (2021). Tackling hunger amid food loss and waste: A concern in Nigeria. Vanguard.
● Oriaifo, E. (2019). How Much Does It Cost to Develop a Website in Nigeria? : Individuals and
businesses are becoming to accept the fact that they need online presence to increase
patronage to their businesses and services. Contemporary Media Solutions.
● (s.d.). Recovered from Bank of Agriculture: https://www.boanig.com/
● Anyasor, M. (2018, February ). Socio-economic Role on Spouse‟s Dominance of Purchase
Decision of Household Goods in Nigeria . International Journal of Trend in Research and
Development, p. 193.
● Country Commercial Guides, Nigeria - Agriculture Sector. (2021, 10 13). Récupéré sur Official
Website of the International Trade Administration:
https://www.trade.gov/country-commercial-guides/nigeria-agriculture-sector
● Kamer, L. (2022, May 11). Total number of active social media users in Nigeria from 2017 to
2022. Recovered from Statista:
https://www.statista.com/statistics/1176096/number-of-social-media-users-nigeria/#:~:text=
Number%20of%20active%20social%20media%20users%20in%20Nigeria%202017%2D2022&te
xt=WhatsApp%20is%20the%20most%20popular,social%20media%20platforms%20in%20Niger
ia
● MCCROCKLIN, S. (2018, DEC 06). The Connected Nigerian Consumer: Nigeria Consumer
Behaviour, Income, and eCommerce.
● National Population Commission [Nigeria], I. (2014). Nigeria 2013 Demographic and Health
Survey.
● Sasu, D. D. (2022, April 5). Agriculture in Nigeria - statistics and facts. Recovered from Statista:
https://www.statista.com/topics/6729/agriculture-in-nigeria/#dossierKeyfigures

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