Mechanized Soya Bean Cultivation and Soy – Dawadawa Production in Nigeria; The Feasibility Report.

Nigeria’s agricultural sector is highly diverse, both in terms of crops and geographic distribution, encompassing staple food crops, tree crops, livestock, forestry, and fisheries. While comprehensive and up-to-date data for the sector remain limited, available statistics indicate that agriculture continues to play a critical role in national development, providing food security, employment, and a foundation for industrial growth.

Historically, agriculture was the backbone of the Nigerian economy. In the 1960s, it accounted for over 60% of GDP, provided the bulk of employment, and was the country’s primary source of foreign exchange. However, the discovery of oil and the subsequent oil boom of the 1970s shifted economic focus away from agriculture. Between the 1960s and 1980s, the sector’s contribution to GDP declined sharply—from 60% to just over 22%—as inconsistent economic policies, inadequate infrastructure, and neglect of the sector undermined growth. Despite this, agriculture remains the largest employer in Nigeria, engaging more than 35% of the labor force, and contributes around 24–26% of GDP today.

Within this diverse agricultural landscape, soybean (Glycine max) has emerged as one of the most important and versatile crops. Native to East Asia, soybean has been cultivated for over a millennium and was introduced into Africa in the late 19th century. It reached Nigeria in 1908, first planted in Ibadan, Oyo State, primarily for export under the encouragement of the Groundnut Board. Since then, soybean cultivation has expanded across Nigeria’s Middle Belt, with Benue State alone accounting for nearly 40–45% of national production.

Soybean is classified as an oilseed and is highly valued for its nutritional and industrial versatility. On a dry weight basis, soybean contains roughly 38–42% protein, 18–22% oil, 35% carbohydrate, and about 5% ash. Its protein is heat-stable, enabling it to retain nutritional value even during processing or cooking. Soybeans are used in producing soy cake, full-fat soy, soy flour, soy milk, tofu, textured vegetable protein, and soy-dawadawa, among other products.

Soy-dawadawa, known in Nigeria as “Iru” in Yoruba, “Dawadawa” in Hausa, and “Ogiri-Igala” in Igbo regions, is a fermented soybean-based condiment widely consumed in West Africa. It is an essential flavoring agent that enhances the taste and nutritional quality of soups, stews, and traditional dishes. Beyond its culinary importance, soy-dawadawa serves as a source of plant-based protein and micronutrients, making it critical in regions affected by protein-energy malnutrition.

Nigeria’s current soybean production is estimated at over 1.2 million metric tonnes annually, positioning the country as one of the largest producers in Africa. Despite this, domestic consumption of soybeans remains high, particularly in food processing and protein-fortified products, while the export market continues to grow, reflecting rising global demand for soy and soy-based products.

This feasibility report examines the financial viability of establishing a mechanized soybean plantation and soy-dawadawa processing plant in Benue State, Nigeria. The proposed project is designed to integrate farm production with value addition, ensuring a steady supply of raw soybeans to the processing facility.

The project site spans 65 hectares, with 60 hectares dedicated to soybean cultivation and 5 hectares allocated for administrative buildings, storage facilities, and civil works. The farm will utilize improved soybean varieties such as TGX 1448-2E, which mature within four months, allowing two production cycles per year. Under optimal agronomic practices, the farm is expected to yield 2.5 tons of soybeans per hectare per cycle, providing sufficient raw material for processing.

The soy-dawadawa plant is designed with a production capacity of 1 ton per day at full capacity utilization. Operations are projected to run at 90% of installed capacity, using a single 8-hour shift across 300 working days per year. The plant is expected to produce approximately 2.7 million sachets of 100g soy-dawadawa annually, assuming an input-to-output ratio of 1:0.75 (tons of raw soybeans to finished product).

Given the growing domestic demand for traditional condiments, the expanding population of over 220 million people, and the increasing appreciation for plant-based protein, the establishment of a mechanized soybean plantation with integrated soy-dawadawa processing presents a profitable, sustainable, and socially impactful investment opportunity. The project not only addresses local nutritional needs but also contributes to employment generation, value addition, and food security in Nigeria.

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 2.1.0 Varieties 2.1.1 Planting 2.1.2 Manures and Fertilizers 2.1.3 Weeding 2.1.4 Climate / Irrigation 2.1.5 Harvesting and Yield 2.1.5.1 Herbicides 2.2 Factors of Production/ Cultivation 2.2.1 Soil Type 2.2.2 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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