Mechanized Soya Bean Cultivation and Soy Flour Production; The Feasibility Report.

Nigeria’s agricultural sector remains a vital pillar of the economy, characterized by significant regional diversity, a wide variety of crops, and strong contributions to food security, employment, and rural development. Although data gaps still exist—particularly within the food sub-sector—available statistics provide a reliable basis for understanding agriculture’s evolving role in Nigeria’s economic transformation.

In the 1960s, agriculture was the dominant sector of the Nigerian economy, contributing over 60% of Gross Domestic Product (GDP), employing the majority of the population, and serving as the primary source of foreign exchange earnings. This position changed with the rise of the oil industry in the 1970s, which shifted policy focus away from agriculture. As a result, the sector experienced stagnation, and its contribution to GDP declined significantly to about 48.8% in the 1970s and roughly 22% in the 1980s. This decline was driven by factors such as inconsistent economic policies, weak infrastructure, poor pricing mechanisms, and the broader impact of oil dependency.

In recent years, agriculture has regained strategic importance as Nigeria intensifies efforts to diversify its economy away from oil. The sector currently contributes approximately 24–26% of GDP and remains the largest employer, engaging over 35% of the labor force. Nigerian agriculture is composed of crop production, livestock, forestry, and fisheries, with crop production accounting for the largest share. This diversity provides strong opportunities for agro-processing, value addition, and export-oriented growth.

Within this framework, soybean (Glycine max) has emerged as one of the most important and rapidly growing crops in Nigeria. Soybean is classified as an oilseed due to its relatively high oil content and is widely valued for its nutritional richness and industrial versatility. On a dry weight basis, it contains approximately 38–42% protein, 18–22% oil, along with carbohydrates and essential minerals, making it one of the most nutrient-dense food crops available. Its protein is heat-stable, enabling it to retain nutritional value during processing and cooking.

Originally native to East Asia, soybean has been cultivated for centuries before spreading to Europe, the Americas, and eventually Africa in the late 19th century. It was introduced into Nigeria around 1908 in Ibadan, and since then, its cultivation has expanded significantly. Today, Nigeria is the largest producer of soybean in sub-Saharan Africa, with annual production estimated at over 1.2 million metric tonnes. The crop is predominantly grown in the Middle Belt region, with Benue State accounting for a significant share of national production, followed by Kaduna, Niger, Taraba, and Plateau States.

Soybean is a highly versatile crop with numerous value-added applications across food, feed, and industrial sectors. It is used in the production of soy oil, soy cake, full-fat soy, soybean meal, soy flour, soy milk, tofu, and textured vegetable protein, among others. Its high protein content makes it particularly important in addressing malnutrition, while its derivatives are essential inputs in the livestock feed and food processing industries.

This report focuses on the financial viability of establishing a mechanized soybean plantation alongside a soy flour processing plant in Benue State, Nigeria, leveraging the state’s comparative advantage in soybean production. The proposed project involves the development of a 130-hectare facility, with 120 hectares dedicated to soybean cultivation and the remaining 10 hectares allocated for administrative buildings, storage facilities, and processing infrastructure.

The farm will utilize improved soybean varieties such as TGX 1448-2E, which mature within approximately 3.5 to 4 months, enabling efficient production cycles and the possibility of two harvests annually under optimal conditions. With good agronomic practices, the farm is expected to achieve an average yield of about 2.5 to 3.0 tonnes per hectare, ensuring a steady supply of raw materials for processing.

The proposed soy flour processing plant is designed with a capacity of 2 metric tonnes per day at full capacity utilization. Operations are projected to run at approximately 70–75% capacity during the initial phase, with a single 8-hour production shift over 300 working days annually. Soy flour, produced through cleaning, dehulling, roasting, and milling of soybeans, is widely used in baking, food fortification, and the production of infant and dietary foods due to its high protein content.

Demand for soy flour in Nigeria is increasing steadily, driven by rising awareness of nutrition, population growth exceeding 220 million people, and the expanding food processing industry. It is particularly valued for its role in improving protein intake in composite flours and fortified food products.

The establishment of a mechanized soybean plantation and soy flour processing plant in Nigeria represents a highly viable and strategic investment opportunity. With abundant raw material supply, strong and growing demand, and increasing emphasis on agro-industrial development, the project offers significant potential for profitability, employment generation, and contribution to Nigeria’s food security and economic diversification.

Table of Contents

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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