IVI FARMS LIMITED

FEASIBILITY STUDY

PREPARED BY
FRED ESSIEN UDO & CO.
TABLE OF CONTENTS
Executive Summary
Introduction
Vision
Mission
Success factors
Risk factors
Business ownership
Location factors
Available market
Products
Costing
Market demand
Market analysis
Consumer/Market Segmentation
Marketing Plans
Promotion strategy
Market Strategy
Market Positioning
Sale summary
Technical analysis
Schedule of Operation
Management and Organization
Values and norms
Legal, environmental and social issues
Legal issues
Environmental issues
Social issues
Risk analysis
Summary of project cost
Fixed capital investment
Utility and other expenses
Working capital investment
Profitability analysis
The relevant details
Cash flow projection
Projected balanced sheet
Appendix
 EXECUTIVE SUMMARY
1. The following is a proposal for IVI Farms Limited in Uyo, Akwa Ibom State.
2. This project requires N66,759,000.00 for both fixed assets and working
capital.
3. The vision of this company is to be a sustainable professional organization
for quality farm produce, training and consultancy services.
4. This venture is located in Okobo Local Government Area because of easy
access to the market for sale.
5. Availability of the market for business to serve is very important.
6. The competitive edge of the enterprise lies on the ability to produce
reasonable quantity of fresh maize, poultry feed, swallow, pap, agidi and
popcorn.
7. Financial Projection
 HISTORICAL BACKGROUND
IVI Farms Limited (IFL) is an emerging commercial agriculture giant whose main
focus is maize production. IVI Farms Limited was incorporated as a limited
liability company in Nigeria on 2nd April, 2012 with registration No. RC:1022786
Her Head Office is at No. 3 Enwe Street, Uyo, Akwa Ibom State with a sprawling
farms at Ekeya in Okobo Local Government Area, Akwa Ibom State.
The Company owns and maintains 350 hectares of farm land for maize
cultivation in Ekeya Group of Villages in Okobo Local Government Area Akwa
Ibom state.
PRODUCTS
 Fresh maize for direct eating (either boiled or roasted)
 Poultry feed
 Popcorn
 Fufu
 Pap (akamu)
 Agidi
COSTING: The costing of the products is built around feeding and poultry
rearing.
Feeding: Maize can be eaten directly after boiling or roasting. It can also be
consumed in the form of pap, fufu, popcorn, and agidi.
Poultry feed: It is a good supplement for agricultural fowls. Maize in addition to
other things like crayfish, foster the growth of chickens.
Market Demand: The location of IVI Farms in Okobo Local Government Area
must extend its tentacles to the nearby markets like Uyo market, Aba main
market. This will definitely boost the rate of demand of maize/maize products
and as well the supply.
Projected Demand of maize producers in Uyo, Akwa Ibom State: About 10,000
farmers/producers are needed in Uyo yearly for the past three years. It is
imperative to improve on this number since the demand for maize/maize
products in Uyo Metropolis is increasing.

TECHNICAL ANALYSIS
The use of fertilizers, particularly the NPK 15:15:15 is used in IVI Farms so that
the farm produce can increase exponentially.
Schedule of operation:
For the maize seedlings, about 100 maize sticks under preservation are used for
planting as much hectare of land it can take (i.e. the quantity of seeds removed
from all the 100 sticks are sown).
The planting is done in the first month of the year’s rainy season, say March. At
the end of three months, the farm produce will be ready for harvest and many
more maize seeds /sticks are produced. This is done continually until the end of
the rainy season. It also continues even after rainy season because of the
provision for irrigation.

SUMMARY OF PROJECT COST

The total cost of this project is N1,000,000. This is made up of N600,000 fixed
asset and N400,000 working capital.
Fixed Capital Investments: IVI Farms in Okobo is on a land of about 5 plots
65”X120”. The road is motorable.
TOTAL AMT.
S/N DETAIL QTY UNIT PRICE (N)
1 Farm Office 1 200,000 300,000
2 Farm Vehicle 1 150,000 230,000
3 Reservoir 1 50,000 50000
4 Shovels 10 1,000 10,000
5 Waste Basin Metal 10 1,000 10,000
Grand Total 600,000

Utility and other Expenses:

Types of expenses Year 1(N) Year 2(N) Year 3(N)
Light 10,000 12,000 14,000
Water 12,000 13,000 14,000
Vehicle Maintenance 20,000 25,000 30,000
Advertisement 9,000 9,000 10,000
Business Travel 10,000 11,000 12,000
Miscellaneous 5,000 7,000 9,000
Total 66,000 77,000 89,000
Working Capital Investment:
This takes about 40% of the project cost. Below is total working capital needed
for this project:
S/N CAPITAL ITEM AMOUNT
1 Machinery Equipment 100,000
2 Working Capital requirement 80,000
3 Debt to be paid 50,000
4 Purchase of fertilizers 90,000
5 Purchase of insecticide and sprayers 50,000
Total 37,000

Total Project Direct Cost

Estimates for 350 hectares of Farm land.
One(1) hectare farm land cost N190,740.00.
Therefore 350 hectares farm land will cost 350 X N190,740.00
= 66,759,000.00