Soy Milk Production in Nigeria; The Feasibility Report.

Soybean (Glycine max) is an oilseed legume originally native to East Asia, particularly China, where it remains a staple crop today. Before its widespread use in fermented foods and other products, soybean was highly valued in traditional agriculture as a nitrogen-fixing crop, enhancing soil fertility through crop rotation. On a dry weight basis, soybean consists of approximately 40% protein, 29% oil, 35% carbohydrates, and 5% ash, with its protein being heat-stable, making it suitable for high-temperature cooking and various food processing applications.

Soybean has a long history of cultivation and utilization. It was first used extensively in the Orient as far back as the 11th century, but global cultivation expanded significantly in the 18th and 19th centuries. The crop reached Europe in the 1700s and America in 1804. It was introduced to Africa from China in the late 19th century, with recorded cultivation in Algeria in 1896 and South Africa in 1903. In Nigeria, soybean was first planted in 1908 in Ibadan, Oyo State, initially grown primarily for export with support from the Groundnut Board.

Today, soybean cultivation in Nigeria has expanded across the Middle Belt, with Benue State accounting for nearly 40–45% of national production. Current estimates place Nigeria’s annual soybean output at approximately 1.2 million metric tonnes, positioning the country as one of Africa’s largest producers. This growth reflects both rising domestic demand for protein-rich foods and a steadily expanding agro-industrial sector.

Soybean is highly versatile, with numerous commercial applications. Products derived from soybean include soy cake, soy oil, full-fat soy, soy meal, soy flour, soy milk, tofu, and textured vegetable protein. Among these, soy milk has emerged as a high-demand product in Nigeria due to its nutritional benefits and suitability for various consumer groups.

Soy milk is a creamy, white, high-protein beverage extracted from cooked, ground soybeans. It is naturally cholesterol-free, low in fat and sodium, and rich in protein and iron. While soy milk contains less calcium than cow’s milk, it can be fortified for growing children and is easily digestible by individuals who are lactose-intolerant or allergic to dairy. Its versatility makes it ideal for both household consumption and industrial use in cereals, baked goods, and beverages.

The Nigerian market for soy milk is large and growing, fueled by increasing health awareness, rising population (currently over 220 million people), and expanding urban consumption patterns. Raw materials for production—soybeans—are abundant locally, and processing technology is simple, with most equipment either locally fabricated or easily sourced.

The proposed soy milk production plant is designed to produce 1 ton per day at full capacity, operating at 90% capacity utilization. The facility will run a single 8-hour shift for 300 working days per year, yielding approximately 180,000 cartons of 500 ml glass bottles per annum, each containing 12 bottles. The production assumes an input-output ratio of 1 kg of soybeans to 4 liters of soy milk.

Investing in soybean cultivation and soy milk production in Nigeria presents a highly viable opportunity, combining strong market demand, readily available raw materials, and simple production technology. Beyond profitability, this venture contributes to nutritional improvement, food security, and local industrial development, aligning with Nigeria’s strategic goals for agricultural and agro-industrial growth.

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 5.6 Profit and Loss Analysis 5.7 Cash flow Analysis 5.8 Viability Analysis 6.0 Business Risk and mitigation factor 6.1 Business Risks 6.2 SWOT Analysis

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