Feasibility Report on Mechanized Soya Bean Cultivation and Soya Oil, Hull and Cake Production in Nigeria

Nigeria’s agricultural sector is marked by considerable regional and crop diversity, with the Middle Belt region being a major hub for soybean cultivation. Soybean (Glycine max) is a high-protein, oil-rich legume that has become increasingly important in the country’s food and agro-industrial landscape. On a dry weight basis, soybean contains approximately 40% protein, 20% oil, 35% carbohydrate, and 5% ash, making it a critical raw material for edible oil production, animal feed, and various processed foods. Its protein is heat-stable, which allows it to withstand high-temperature cooking, and its oil is valued both for domestic consumption and industrial applications.

Historically, soybean was introduced to Nigeria in 1908, first cultivated in Ibadan, Oyo State, primarily for export purposes under the guidance of the Groundnut Board. Today, Nigeria produces over one million metric tons of soybeans annually, with Benue, Nasarawa, Kaduna, and Kogi states leading production. Benue State alone contributes around 40–45% of the national output, offering a reliable base for commercial mechanized farming and processing. Modern improved seed varieties such as TGX 1448-2E allow for two production cycles per year, with average yields of 2.5–3 tons per hectare, ensuring steady supply for processing plants.

The proposed project focuses on mechanized cultivation of 150 hectares of soybean farmland in Benue State, with 140 hectares dedicated to cultivation and 10 hectares for infrastructure including administrative offices, warehouses, and processing facilities. Mechanized operations—plowing, planting, harvesting, and post-harvest handling—will improve productivity, reduce labor costs, and minimize post-harvest losses.

The processing plant will convert harvested soybeans into three main products: soya oil, soybean hulls, and soybean cake. The oil extraction process involves cleaning, dehulling, flaking, and mechanical pressing or solvent extraction, followed by refining, bleaching, and deodorizing to produce high-quality edible oil. Soybean cake, a protein-rich by-product, will be marketed for livestock feed and aquaculture, while hulls can be used as fiber supplements or industrial inputs.

The facility is designed to process approximately 20 tons of soybeans per day at 100% capacity, operating at 75–80% capacity for a single 8-hour shift across 300 working days annually. This will yield approximately 400 kg of refined oil, with proportionate volumes of cake and hulls per ton of soybean processed.

The Nigerian market for soybean oil and its by-products is expanding rapidly due to increasing population, urbanization, and rising awareness of nutritional benefits. Locally produced soybean oil competes favorably with imported vegetable oils, and the cake and hulls meet growing demands in livestock, poultry, and aquaculture feed industries. Additionally, there is export potential for both oil and soybean products within West African markets, where soybean consumption is increasing.

Investment in this project not only provides strong financial returns, with estimated profit margins of 12–18% depending on market conditions, but also contributes to national agricultural development, employment generation, and reduction of post-harvest losses. The integration of mechanized cultivation with processing facilities ensures operational efficiency, product consistency, and scalability for future expansion.

Mechanized soybean farming combined with integrated production of soybean oil, hulls, and cake in Nigeria represents a highly viable and profitable venture. It leverages abundant local raw materials, growing domestic demand, and relatively low technology barriers to establish a sustainable agro-industrial operation that contributes to food security, employment, and economic diversification.

Table of Contents

EXECUTIVE SUMMARY 1.0 Business Overview 1.1 Description of the Business 1.2 Vision and Mission Statement 1.3 Business Objective 1.4 Value Proposition 1.5 Critical Success Factor of the Business 1.6 Current Status of Business 1.7 Description of the Business Industry 1.8 Contribution to Local and National Economy 2.0 Agricultural Practice 2.1 Varieties 2.2 Planting 2.3 Manures and Fertilizers 2.4 Weeding 2.5 Climate / Irrigation 2.6 Harvesting and Yield 2.7 Herbicides 2.8 Soil Type 2.9 Diseases and Pests 3. Marketing Plan 3.1 Description of product 3.2 Product delivery 3.3 The Opportunity 3.4 Pricing Strategy 3.5 Target Market 3.6 Distribution and Delivery Strategy 3.7 Promotional Strategy 4. Cultivation / Production Plan 4.1 Description of the Location 4.2 Raw Materials 4.3 Cultivation / Production Equipment 4.4 Cultivation / Production Process 4.5 Production Cost 4.6 Stock Control Process 4.7 Pre-Operating activities and expenses 4.7.1 Operating Activities and Expenses 4.8 Project Implementation Schedule 5.0 Organizational and Management Plan 5.1 Ownership of the business 5.2 Profile of the promoters 5.3 Key Management Staff 5.3.2 Management Support Units 5.4 Details of salary schedule 6. Financial Plan 6.1 Financial Assumption 6.2 Start - up Capital Estimation 6.3 Source of Capital 6.4 Security of Loan 6.5 Loan Repayment Plan 6.6 Profit and Loss Analysis 6.7 Cash flow Analysis 6.8 Viability Analysis 7.0 Business Risk and mitigation factor 7.1 Business Risks 7.2 SWOT Analysis

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