Soy – Dawadawa Production From Soya Beans Seed; The Feasibility Report

Soybean is one of the most valuable leguminous crops in Nigeria and globally, with immense nutritional, industrial, and economic importance. It is rich in protein and oil, making it a critical raw material for both food and industrial applications. Nigeria is currently the largest producer of soybean in sub-Saharan Africa, with annual production estimated at over 1.2 million metric tonnes, cultivated mainly in states such as Benue, Kaduna, Niger, and Taraba.

The crop supports a wide range of value-added products including soybean oil, soy cake, full-fat soy, soy meal, soy flour, soy milk, tofu, and textured vegetable protein, among others. Its versatility and strong market demand make it a strategic crop for agro-industrial development and import substitution.

The focus of this study is the commercial production of soy-based dawadawa, a fermented food condiment made from soybean as an alternative to the traditional locust bean. Dawadawa, known as “iru” in Yoruba and “ogiri” in parts of southern Nigeria, is a widely consumed seasoning used to enhance the flavor of soups and local dishes. Traditionally produced from locust beans, the use of soybean provides a more readily available and cost-effective raw material while maintaining similar taste, aroma, and nutritional benefits.

Dawadawa belongs to the condiments and seasonings segment of the food and beverage industry, which has grown significantly in Nigeria due to rising population, urbanization, and changing dietary habits. The Nigerian seasoning market is currently estimated to be worth over ₦20 trillion, driven by strong demand for both traditional and processed flavoring products. While multinational brands dominate the packaged seasoning segment, there remains a large and growing market for locally produced, natural condiments such as dawadawa, particularly among consumers seeking traditional taste and healthier alternatives.

Soy-dawadawa is produced through a controlled fermentation process that involves cleaning, boiling, fermenting, and drying soybean seeds to develop the characteristic flavor and aroma. The final product can be sold in paste form or processed into dried granules or powdered form and packaged in sachets for convenience and extended shelf life. Compared to traditional locust bean dawadawa, soybean-based dawadawa offers advantages such as lower production cost, consistent raw material supply, and scalability for commercial production.

The proposed production facility has an estimated capacity of 2,250,000 sachets of 100 grams each per annum, operating at about 80% of installed capacity. This scale of production is suitable for supplying both local markets and regional distribution channels. With Nigeria’s population now exceeding 220 million people and growing at approximately 2.5–3% annually, the demand for affordable and accessible food condiments continues to rise. Urbanization and the increasing number of working households have also boosted demand for packaged, ready-to-use seasonings, creating a strong market for soy-dawadawa.

The market for local condiments in Nigeria is nationwide, cutting across all socio-economic classes. Traditional condiments like dawadawa remain widely consumed in both rural and urban areas, particularly in northern Nigeria and among health-conscious consumers who prefer natural seasonings over synthetic alternatives. In addition, there is growing interest in African food products in international markets, presenting export opportunities for well-packaged and standardized soy-dawadawa products.

The commercial production of soy-dawadawa in Nigeria represents a highly viable and profitable agribusiness opportunity. With abundant availability of soybean, strong and growing demand for traditional condiments, and increasing consumer preference for natural food products, the business offers significant potential for profitability and expansion. By adopting improved processing techniques, ensuring quality control, and investing in branding and distribution, entrepreneurs can successfully establish a competitive position in Nigeria’s seasoning market while contributing to food security, job creation, 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. Marketing Plan 2.1 Description of product 2.2 Product Packaging and delivery 2.3 The Opportunity 2.4 Pricing Strategy 2.5 Target Market 2.6 Distribution and Delivery Strategy 2.7 Promotional Strategy 2.8 Competition 3. Production Plan 3.1 Description of the Location 3.2 Raw Materials 3.3 Production Equipment 3.4 Production Process 3.5 Production Cost 3.6 Stock Control Process 3.7 Pre-Operating activities and expenses 3.7.1 Operating Activities and Expenses 3.8 Project Implementation Schedule 4.0 Organizational and Management Plan 4.1 Ownership of the business 4.2 Profile of the promoters 4.3 Key Management Staff 4.3.2 Management Support Units 4.4 Details of salary schedule 5. Financial Plan 5.1 Financial Assumption 5.2 Start- up Capital Estimation 5.3 Source of Capital 5.4 Security of Loan 5.5 Loan Repayment Plan 6.0 Business Risk and mitigation factor 6.1 Business Risks 6.2 SWOT Analysis

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