Henry's Farm Plan

Business Farm Development & Management Plan r

Henry Prichard’s Farm

Owen’s Growth Administrative District Grand Bassa County

AUGUST 2021

COCOA

OIL PALM

PLANTAIN

CASSAVA

Table of Contents Executive Summary ....................................................................................................................................................... 2 Mission ………………………………………………………………………………………………….... 2 Vision …………………………………………………………………………………………………..… 2 Keys to Success .............................................................................................................................................................. 2 Farmland Summary ........................................................................................................................................................ 2 Farm Ownership ............................................................................................................................................................ 3 Start-up Summary .......................................................................................................................................................... 3 Products ……………………….………………………………………………………………………… 3 Market ………………………………………………………………………………………………….... 3 Strategy and Implementation …………………………………………………………………………..... 4 Financial Plan ………………………………………………………………………………………….…. 4 Market Analysis Summary ............................................................................................................................................ 5 Market Segmentation .................................................................................................................................................... 6 Target Market Segmentation …………………………………………………………………………...... 6 Industry Analysis ............................................................................................................................................................ 6 Competitive and Buying Patterns ……………………………………………………………………….. 7 Operations ...................................................................................................................................................................... 7 Production Cost ……………………………………………………………………………....…………. 7 Cropping Calendar ………………………………………………………………………………….….. 10 Training and Skill Development ................................................................................................................................ 10 Competitive Edge ........................................................................................................................................................ 10 Marketing Strategy....................................................................................................................................................... 10 Sales Strategy ................................................................................................................................................................ 11 Farm Management ....................................................................................................................................................... 11 Personnel Plan .............................................................................................................................................................. 12 Risk Assessment ……………………………………………………………………………………...… 12 Direct Beneficiaries …………………………………………………………………………………….. 12

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Executive Summary: Liberia is a country where 70% of its population of about 4.5 million people are farmers.

Agriculture is the highest employer with small holder farmers lacking the requisite technical trainings in crops production and marketing. Approximately 90% of smallholder farmers in Liberia lacked basic agricultural trainings and business skills to run a farm sustainably. The agriculture sector still has potential to contribute to the Gross Domestic Product of the country.

Henry Prichard’s farm as a commercial farm will employ good agriculture practices (GAP) and business skills evidenced by the farm development and management plan. The farm will minimize harvest and post-harvest losses and create direct rural employment. The farm will support various agricultural value chains efforts and provides an environment for learning and adaption of best practices.

Henry Pritchard’s farm is located in Owen’s Growth Administrative District, Grand Bassa County. The farm plan covers two (2) cash/tree crops: Cocoa and Oil palm to be cultivated on 10 hectares of land, and two (2) annual crops: Plantain and Cassava to be cultivated on 1 hectare using the intercropping farming system.

Mission: To produce high quality food and cash crops that meet domestic and global markets demand in order to contribute to societal development and nation building.

Objective: The farm plan seeks to achieve the following objectives:  To produce high quality farm products suitable for both domestic and global markets  To operate a profitable farm business, envisioning a long-term economic benefits  To create rural employment and support community development programs  To integrate environmental sustainability in the farm operational and management system Keys to Success: Cassava, plantain, cocoa and oil palm farming in Liberia are established industries that have seen steady growth and competitive market demand. Online marketing outlets will further increase opportunity to produce. For this business to be successful, management must ensure:  Staff are trained and equipped to deliver high quality farm produce and services for both domestic and global customers.  Markets relationships are established with various outlets.  Harvest and post-harvest losses are significantly minimized.  Commitment to increase productivity and consistent supply.

Farmland Summary: Henry Prichard has a property of vast farmland of more than 100 acres in Owen’s Growth Administrative District, Grand Bassa County. This area has an ideal soil type, access to water, and an appropriate elevation. These factors1 make the area suitable for the production of variety of crops. Agriculture activity on fallowed land can attract short-term employment opportunity 1

This was based on physical assessment conducted on the farmland on April 23, 2021

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for rural community dwellers especially women and youth. Fallow land could become productive once farm management best practices are incorporated. And can encourage other farmers to adapt best practices. The farm will invest in plantain, cassava, cocoa and oil palm on 11 hectares of the more than 100 acres as initial investment.

Farm Ownership: The farm is solely owned by Henry Prichard and family at his discretion. Henry will decide on how he wants the farm to be managed, ensuring upgrading practices and scaling-up production to meet market demands. As Chief Executive Officer, Henry will work with a team of technicians to sustainably manage the farm.

Start-up Capital Summary: The initial investment of the farm is projected at $9,741.25 as a startup cost. Henry will either source this amount from his personal earnings, agricultural loan or who be partner/s. The startup cost is broken down as follows: Table 1: Start-up Capital: Budget Line

Projected Cost

Cassava and plantain production

$1,041.70

Cocoa production

$1,574.65

Oil palm production

$2,319.90

Farm General Operation (inputs, salary, transportation and feeding)

$4,805.00

Total Start-up Capital

$9,741.25

The costs shown in the startup table is the reflection of the current market realities in Liberia which is impacted by the global market. Cost of items was collected in United States Dollars.

However, transactions can be done in Liberian Dollars equivalent.

Products: While the market for literally all types of crops is huge with great potential in Liberia, Henry Prichard’s farm will focus on 2 cash crops: Cocoa and Oil Palm, and 2 annual crops: Plantain and Cassava. Determined by revenue, the farm will initiate activities that add value to its raw materials.

Henry Prichard’s farm will engage into value chains derived from its customized crops. The farm products range from quality cocoa bean, fresh oil palm fruits and its value chain, plantain and cassava production and value addition.

Market: Cocoa and oil palm are purchased for export with an appreciable price. Companies are found in Liberia buying cocoa to supply the world market for consumable finished products. There is a likelihood of oil palm companies like Mano Palm Oil Industries, Golden Veroleum Liberia and the

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Maryland Oil Palm Plantation purchasing oil palm fruits for processing in a not too long distance from smallholder farmers. However, oil palm has a huge local market.

Henry Prichard farm is also closed to Monrovia and Buchanan as commercial hubs for transactions. The farm will supply Harbel, Buchanan and Monrovia with plantains and cassava. The farm will focus on value additions for specific markets. Cocoa, oil palm, plantain and cassava products have a huge potential for local and global markets.

Strategy and Implementation: The farm will focus on using this FARM DEVELOPMENT AND MANAGEMNT PLAN as a roadmap to implementing its activities. A farm management team will be established to play a sustainable leadership role when it comes to the provision of high quality cocoa bean, healthy oil palm fruits, plantain and cassava for the market. To accomplish this, the following Strengths, Weaknesses, Opportunities and Threats must be taken into consideration to ensure the smooth operations of the farm.

Table 2: SWOT Summaries: Strengths - Demonstrated expertise - Well defined strategies for implementation - Farmland and Technical Support Opportunities - Increasing demand for cocoa, oil palm, plantain and cassava product - Integration with support services - Availability of startup funds and technical support

Weaknesses - Lacks mechanized farming equipment - High cost on farming inputs - Lack of proper infrastructure - Inadequate access to information Threats - Challenge with Transportation - Limited finances for sustained production - Weak agricultural regulations in country - Farm product theft

Financial Plan: The farm development and management plan contained a financial projection based on a set of assumptions as found in the financial plan. Chief of those assumptions is that Henry Prichard will cultivate one hectare of farmland with cassava and plantain. Five hectares each of farmland for hybrid cocoa and oil palm production.

Based on the projection, Henry Prichard’s farm will see a total sales for plantain and cassava beginning the 10th to 11th months of production sales of $2,501 for year one and growing up to $3,389 in year five. These sales translate into net income of $2,289 beginning year two up to year five. Achieving these sales will requires the collective efforts of all the farm management team members.

Cocoa will begin to generate gross sale of $3,000 in year 4, and $5,000 in year 5 with a net income of $1,900 and $3,900 respectively. Whereas, oil palm will begin to generate actual gross revenue of $3,750 in year 5. It is projected that cocoa and oil palm will generate a revenue of $8,750 in year 5. These sales will increase exponentially year by year.

During these years, the management team will have a learning curve of farm management and could do an expansion of the farm. At that point, they will need to revise or modify the farm 4|Page Final: 8/2/2021

management plan to suit at hand reality. The table below shows gross profits in relations to net income for the farm.

Table 3: Projected Sales:

Crop

Description

YEAR 1 (2022/2023 Unit Total Qty price cost

YEAR 2 (2022/2023 Unit Total price cost

Qty

YEAR 3 (2023/2024 Unit Total price cost

Qty

YEAR 4 (2024/2025 Unit Total Qty price cost

Cassava

Bag

145

5.00

725

145

5.00

725

145

5.00

725

145

5.00

725

Plantain

Head

888

2.00

1,776

1,332

2.00

2,664

1,332

2.00

2,664

1,332

2.00

2,664

Cocoa

Kilogram

0

0.00

0.00

0

0.00

0.00

0

0.00

0.00

3,000

1.00

3,000

Oil Palm

Gallon

0

0.00

0.00

0

0.00

0.00

0

0.00

0.00

0

0.00

0.00

YEAR 5 (2025/2026 Unit Total Qty price cost 145

5.00

725

1,332

2.00

2,664

5,000

1.00

750

5.00

5,000 3,750

Table 4: Projected Profit Analysis: YEAR 1 (2022/2023 Crop

Cost / Ha

Sales

YEAR 2 (2022/2023 Profit/ Loss

Cost / Ha

Sales

YEAR 3 (2023/2024 Profit/ Loss

Cost/ Ha

Sales

YEAR 4 (2024/2025 Profit/ Loss

Cost / Ha

Sales

YEAR 5 (2025/2026 Profit/ Loss

Cost/ Ha

Sales

Profit/ Loss

Plantain and Cassava (1 Ha)

1,041.70 + 1,601.66 (2,643.36)

2,501

142.38

1,100

3,389

2,289

1,100

3,389

2,289

1,100

3,389

2,289

1,100

3,389

2,289

Cocoa (5ha)

1,574.65 + 1,601.66 (3,176.31)

0.00

0.00

1,100

0.00

0.00

1,100

0.00

0.00

1,100

3,000

1,900

1,100

5,000

3,900

Oil palm (5ha)

2,319.90 + 1,601.66 (3,921.56)

0.00

0.00

1,100

0.00

0.00

1,100

0.00

0.00

1,100

0.00

00.0

1,100

3,750

2,650

3,300+ 4,062.23 (7,362.23)

12,139

4,776.77

Annual profit/ Loss

(9,741.23)

Farm General Operation

(4,805.00)

2,501

(7,240.23)

3,300 + 7,240.23 (10,540.23)

3,389

(7,151.23)

3,300 + 7,151.23 (10,451.23)

3,389

(7,151.23)

3,300.00 + 7,151.23 (10,451.23)

6,389

(4,062.2 3)

Market Analysis Summary: The demand for cassava and plantain products is high; and so is the demand for cocoa and oil palm. With the support of international organizations and projects, processing facilities have been established across the country for mainly cassava and then plantain. Cocoa export companies are willing to pay premium prices on quality bean to farmers in Liberia for the production of more cocoa in the country. However, due to challenges faced by local farmers such as unfair pricing, poor infrastructure and uncoordinated production. There is an opportunity to differentiate and grow Liberia cocoa industry by focusing efforts on attracting investment from premium buyers willing to pay much more than conventional buyers. There is also an emerging local chocolate manufacturing industry in Liberia.

Oil palm has a potential market locally and there is a likelihood of oil palm companies buying from small scales farmers for industrial processing. The farm is proximity to the market in Monrovia and accessible by road.

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Market Segmentation: The potential market for cassava, plantain, cocoa and oil palm continues to grow in Liberia. As the population and export companies increases in the country; the demand for these agricultural produce and strengthening of value chain activities continue to increase. The farm will focus on bulk/wholesalers.

Target Market Segment Strategy: The strategy for engaging in farm business anywhere in the world is straightforward: Focus its energies and resources on growing the best quality crops that have greater market value. The farm included in its projections the cost for transportation so as to remedy the challenges of deliveries in the first one year for the plantain and cassava. By the fourth year, holding all things constant, the farm should be strong enough to hire pickup, a delivery vehicle, to transport produce from the farm to the wholesale markets. This approach ensures that customers have access to the various crops produced in time.

Table 5: Bulk Purchasers: Potential buyers for Plantain and Cassava Potential buyers for Cocoa and Oil palm Falama Inc. AYA Group Inc. Business Incubator

Purchase Agriculture Products Inc.

Bravo Sister

SUSCOM AG Ltd

Liberia cassava and Plantain chips buyers and suppliers

Golden Veroleum Liberia

Redlight Market

Maryland Oil Palm Plantation

Weekly market outlets

Mano Palm Oil Industries

Industry Analysis: International investment in Liberia continues to grow by the year. Liberia is harnessing efforts aim at adding value to cassava and plantain through the production of consumable products.

Businesses have started exporting cassava and plantain finished products to the USA and EU markets for immigrants.

Liberia’s agricultural sector was largely developed as a dual system consisting of a commerciallyoriented plantation sector and subsistence producers. The majority of rural Liberians have worked as laborers on commercial plantations or on small subsistence farms with a relatively small percentage of farmers involved in cash crop production. Liberia thus lacks a dynamic smallholder sector in which farm households manage an integrated and diversified cash crop food production system (including cocoa and oil palm).

Within this reality, the farm will create short terms rural employment along its value chains production. A key challenge remains developing policy, strategies and technical support mechanisms ad hoc for the sustainable management of small scales commercial farms that contribute to economic improvement of Liberian farmers like Henry farm. Liberia contribute just 6|Page Final: 8/2/2021

0.2-3% of the world cocoa production. There is a wide range of industry participants in the cassava, plantain, cocoa and oil palm sectors in Liberia.

Competition and Buying Patterns: While there are a number of emerging commercial farmers in Liberia, farm planning had not been taken into consideration on the wider scale. The farm management team will institute measures that offer the best agricultural commodities available to meet customers’ demand. The farm will sell at farm gate and deliver its products to clients as appropriate at a designated point.

Liberia has been reported as having expansive soil quality for the growing of most crops. Many areas require remarkably little, if at all, any fertilization. In maintaining the plantain and banana field, sword suckers will be extracted and sold as extra income for the farm management. Similarly the farm will also sell cuttings from its cassava field during harvest at a reasonable price.

Operations: Henry Prichard farm management team will grow crops based upon the information provided in the below recommended planting guide.

Dec

Nov

Oct

Sep

Aug

Jul

Jun

May

Apr

Mar

Feb

Crop

Jan

Table 6: Crops Planting Calendar:

Cassava Plantain Cocoa Oil palm

Planting time----Harvesting time--

Production costs: This section highlights the production costs for four crops Henry Prichard farm intents to cultivate. The cost is captured in United States Dollars because of its stable exchange rate than the Liberian Dollars currency. The projected production cost could have a variance during the expenditure period based on prevailing economic variables.

A projected cost of farm general operation for materials, salary, feeding and transportation is at USD$4,805.00. This cost is shared among the crops being cultivated added to their initial cost of productions.

The below tables detailed different budget lines for each crop production cost:

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PRODUCTION COST FOR ONE Ha OF PLANTAIN & CASSAVA Operational cost

UNIT

# OF UNIT

Land clearing/brushing Mandays 13 Felling and cross-cutting Mandays 10 Lining and digging holes Mandays 10 Planting of suckers and cuttings Mandays 10 First weeding and mulching Mandays 10 Pruning of plantain Mandays 3 Staking and support plantain fruits Mandays 3 Plantain harvesting Mandays 5 Hauling plantain fruits Mandays 5 Harvesting tubers Mandays 10 Cassava haulage Mandays 5 Subtotal 84 Material/inputs cost Plantain suckers Each 1,300 Cassava cuttings Bundle 85 Subtotal Insecticides Liter 2 Contingency (10% of labor and material) Grand total

OPERATION COST

DESCRIPTION

One time One time One time One time Every 2 months Every 3 months Every 9 months Every 10-11 months Every 10-11 months Every 9-10 months Every 9-10 months

$ 3.00 $ 3.00 $ 3.00 $ 3.00 $ 3.00 $ 3.00 $ 3.00 $ 3.00 $ 3.00 $ 3.00 $ 3.00

One time One time

$ 0.30 $ 3.00

PRODUCTION COST FOR 5 Ha OF COCOA UNIT # OF DESCRIPTION UNIT

Land clearing/brushing Mandays 50 Selective felling/debarking Mandays 5 Pegging and digging holes Mandays 25 Transplanting Mandays 15 First weeding and mulching Mandays 15 Manure/compost application Mandays 10 Nursery preparation Mandays 10 Sowing seeds Mandays 3 Subtotal 133 Material cost Seeds and poly bags Each 6,250 Manure Bag 10 Insecticide Liter 2 Fungicide Liter 2 Subtotal Contingency (10% of labor and material) Grand total

UNIT COST

One time One time One time One time Every 2 months Before transplanting One time One time

One time One time

COST

$ 39.00 $ 30.00 $ 30.00 $ 30.00 $ 30.00 $ 9.00 $ 9.00 $ 15.00 $ 15.00 $ 30.00 $ 15.00 $252.00

$390.00 $255.00 $645.00 $ 25.00 $ 50.00 $ 94.70 $1,041.7

UNIT COST

COST

$ 3.00 $ 3.00 $ 3.00 $ 3.00 $ 3.00 $ 3.00 $ 3.00 $ 3.00

$ 150.00 $ 15.00 $ 75.00 $ 45.00 $ 45.00 $ 30.00 $ 30.00 $ 9.00 $ 399.00

$ 0.15 $ 1.50 $ 25.00 $ 15.00

$937.50 $ 15.00 $ 50.00 $ 30.00 $ 1,032.50 $ 143.15 $ 1,574.65

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PRODUCTION COST FOR 5 Ha OF OIL PALM ITEMS

UNIT

# OF UNIT

Operational cost Land clearing/brushing Mandays 50 Felling and cross-cutting Mandays 20 Pegging and digging holes Mandays 20 Transplanting Mandays 15 Seedlings fencing Mandays 20 First weeding and mulching Mandays 15 Manure/compost application Mandays 10 Nursery preparation Mandays 15 Sowing seeds Mandays 3 Subtotal 168 Material cost Pre-germ seeds Each 750 Polythene bags (pre & main) Each 750 Nematocide Sachet 1 Insecticide Liter 2 Fungicide Liter 2 Manure Bag 10 Subtotal Contingency (10% of labor and material) Grand total

ITEMS Cutlasses Files Rake Wheel barrow Twine rope Pickaxe Axe Shovel Deka meter Watering can Rain gears (suit and boot) Subtotal Transportation Feeding Subtotal Salary Consultancy Subtotal

DESCRIPTION

One time One time One time One time One time Every two months Before transplanting One time One time

One time One time One time

One time

UNIT COST

$ 3.00 $ 3.00 $ 3.00 $ 3.00 $ 3.00 $ 3.00 $ 3.00 $ 3.00 $ 3.00

$ 150.00 $ 60.00 $ 60.00 $ 45.00 $ 60.00 $ 45.00 $ 30.00 $ 45.00 $ 9.00 $ 504.00

$ 1.00 $ 1.00 $ 10.00 $ 25.00 $ 15.00 $ 1.50

$ 750.00 $ 750.00 $ 10.00 $ 50.00 $ 30.00 $ 15.00 $1,605.00 $210.90 $2,319.90

FARM GENERAL MATERIALS/INPUTS COST UNIT # OF UNIT DESCRIPTION UNIT COST Each 12 One time $ 5.00 Each 24 One time $ 2.00 Each 3 One time $ 4.00 Each 3 One time $ 50.00 Each 5 One time $ 2.00 Each 5 One time $ 10.00 Each 5 One time $ 10.00 Each 3 One time $ 10.00 Each 2 One time $ 20.00 Each 3 One time $ 10.00 Each 5 One time $ 25.00 General General Month Quarter

All All 12 4

Grand total

Monthly Quarterly

COST

$ 100.00 $ 500.00

COST $ 60.00 $ 48.00 $ 12.00 $ 150.00 $ 10.00 $ 50.00 $ 50.00 $ 30.00 $ 40.00 $ 30.00 $ 125.00 $ 605.00 $ 500.00 $ 500.00 $ 1,000.00 $1,200.00 $ 2,000.00 $ 3,200.00

$ 4,805.00

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Cropping Calendar: The crop development and management startup plan is a timeline of activities to be implemented throughout the calendar year. Every other activity timeline can be adjusted except to meet up with the specified planting timeline according to the calendar year. Time for planting is very cardinal to crop development and management.

This calendar activities plan can be translated into daily, weekly, monthly, quarterly and annual work plans.

Dec

Nov

Oct

Sept

Aug

July

June

May

Apr

Mar

Feb

Crop development and Management Activities

Jan

Table 7: Cropping Calendar

Site clearing and land preparation

Polythene bags filling and nursery establishment Routine nursery management Out planting in main field Farm routine management(weed, pests and disease control mechanism) Planting of cuttings and suckers Harvest and post-harvest management period (Grading and sales period) Legend Plantain Cassava Cocoa Oil palm

Training and Skill Development: To ensure that the farm operates profitably, the management must ensure various capacity building trainings to enhance effective and efficient delivering of produce and services. The training capacity building package could be divided in two: Production training which include site preparation, nursery establishment and management, integrated pests management, harvest and post-harvest handling, and business training which include marketing, sales, customer service, and budgeting.

Competitive Edge: On the supply side, the competitive for the farm will be the guaranteed payments that they receive for the produce. On the demand side, the competitive edge will inevitably be the assurance of crops delivered directly to wholesale customers and bulk buyers.

Marketing Strategy: Marketing is the most salient factor to be considered before venturing into the farming business.

The hard facts are that to be profitable, a small, new operation needs to be related to a sales 10 | P a g e Final: 8/2/2021

outlet either on the farm or in a community nearby. In this instant case, the sales outlets will be the doorsteps of our bulk purchasers and wholesale customers who choose to have Henry Prichard deliver to them. For those who do not desire delivery will receive supply at the farm gate. The farm will mostly sell to clients adding value to its crops such as cassava, plantain, cocoa and oil palm. Production and harvesting schedule will be made available to customers and key personnel will stay in regular contact with its customers, and will be able to respond to changes in market much faster than its competitors.

Sales Strategy: The best sales strategy that the farm will employ will be to ensure that produce are preserved properly in order to reach the consumers in good condition. The management team will agree on a credit policy of the farm along with its CEO to implement for the farm. Because a major mandate of the farm would be to get the best price possible for its produce, it will cut out the middle-men by selling directly (wholesale) at primary markets. The cut of the middle men will allow the farm to price discounts where appropriate. This also supports sales.

Farm Management: The Chief Executive Officer will appoint or hire one experienced personnel (business savvy) to manage the farm as a business enterprise. The hired personnel will serve as manager of the farm who will supervise the day-to-day affairs. A consultant to provide a quarterly technical support to the farm. The farm manager will do daily hire for work that needs to be done speedily while at the same time carrying on daily routine maintenance. Daily hire laborer will always be contacted once there is more work to be done on the farm for a specified period. Four portfolio will constitute the management team to include the Chief Executive Officer, Farm manager, External Consultant and Daily Hire Laborers.

As the farm improves its operation, a business manager will be hired to oversee the business activities. This will happen till a full management team gets in place. Below is the proposed starting structure of the management team: Figure 1: Proposed Management Team Structure Chief Executive Officer

Farm manager

External consultant

Daily hire laborers

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Personnel Plan: The strength of the farm will be in the farm manager who run its day to day activities. The farm manager will be directly supervise by the Chief Executive Officer supported by external consultant. Daily hire laborers will support efforts of the farm manager to execute tasks that require more men power. To ensure the farm manager meeting performance expectations, the CEO and EC will hold a minimum of one meeting every quarter with him/her so that results can be reviewed and future plans discussed. Key to the success of the management team will be continuous training in crops production and marketing techniques. These trainings are essential for the effective management of the farm. The manager will also have the opportunity of attending available trainings from national government and partners.

Risks Assessments: It is difficult getting a reliable community or family member to sustainably manage the farm on a daily basis. Many young people are not willing to voluntarily provide their services for farming enterprises as a practical learning curve for them.

To mitigate this risk, the farm has projected a monthly remuneration for a farm manager, external consultant and the daily hire laborers. The farm manager is literate and willing to be trained at all time in basic production and marketing techniques.

Direct Beneficiaries: With few long-term employment opportunity, Henry Prichard farm will provide a more shortterm employment to about 40 persons mainly women and youth. This will financially empower them to meet their individual household economic and social needs. Students that will gain vacation employment will be able to meet school needs including tuitions and necessities. Not only that Henry Prichard farm will provide compensation for variety of services to be provided by these persons, they will only gain farm production and management skills to be replicated on their home garden. Also, Henry Prichard farm will provide farm product to buyers mainly women involve with retailing of plantain and cassava products at various commercial and retail markets which will enhance these products value chains.

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