PEPPER PRODUCTION AND OTHER AGRO PRODUCTIONS

Introduction

            Pepper is an important agricultural crop not only because of its economic importance but also due to the nutritional, medicinal value of its fruits as well as being excellent source of natural colours and antioxidant compounds (Howard et al., 2000). It is the world’s second important vegetable, ranking after tomatoes and it is the most produced type of spice flavouring and colouring for food while providing essential vitamins and minerals. The nutritional value of pepper merits special attention. It is a rich source of vitamins A and E. Both hot and sweet pepper contains more vitamin C to prevent flu colds than any other vegetable crop (Bosland and Votava, 2000). In many household, pepper provides the only needed flavor to enhance intake of otherwise blend diets.  Rubatzky and yonaguchi 1997 pointed out, in addition to the use of pepper as food that pepper is used for cosmetic production, condiment and medicine as well as ornamentals in gardens.

            Gruben and Tahir (2007) pointed out that Food and Agricultural Organization (FAO) statistics estimated world production of capsicum spp in 2001 at 21.3 million tonnes from a harvested area of 1.6 million ….(ie an average yield of 13.4/ha). Comparatively, yield in the developing countries is about 10-30% of that in developed countries (Erinle, 1989 anibben and Tahir, 2004). However Nigeria is known to be one of the major producers of pepper in the world accounting for about 50% of the African production and the major area of production is northern Nigeria (Business day, 2007; Erinle, 1989). High potential pepper producing areas of Nigeria such as Kaduna, kano, Jigawa, katsina, sokoto, plateau and bauchi states (Most of which also he within the derived savannah zone) produce enough pepper to meet the need of the people in the deficit areas (eg. southwest .ie ogun, oyo, ondo, Ekiti and Lagos states). Although, pepper is widely cultivated throughout Nigeria, yields obtained by present farmers are often very low (Adingun, 2001).

2.0       Wet And Dry Season Pepper Production     

            Pepper can be grown as a rain-fed crop or raised entirely under irrigation in areas where there is very low amount of rainfall. Yayock et al (1988) reported that pepper can be successfully grown in areas with annual rainfall between 60c-2500mm. the moisture content of the soil and the prevailing temperature have important effects on the growth and yield of pepper. The growing and cultivation of pepper in the wet and dry season begins in the month of April and August respectively. In general, the maximum growth and production of pepper occur between a temperature range of 18⁰c and 30⁰c (Arubben and Tahir, 2004).

            However the dry season pepper production is said to be more profitable compare to the wet season production. This is as a result of the ambient environmental factors that tend to limit the activities of pest and pathogenic organization such as fungi and nematodes in the dry season. Photo, periodism may also be another important factor.

Table 1: Results from trails on 10 accessions of pepper production in the wet season.

Economic Analysis of production of 10 accession of pepper in the wet season

Accession number	Accession name	Yield kg/ha	Gross return N/ha	Cost of production N/ha	Net returns N/ha	Benefit to cost ratio
/A108 – 1	Sango	866 .  67	173.334	251, 755	78, 441	0.7
/A108 – 2	Saasa	2020. 00	404,000	251,755	152.225	1.6
/A108 – 3	Oja-oba	2266. 67	453,334	251, 755	201,559	1.8
/A108 – 4	Bodija	2500. 00	500,000	251, 755	248, 225	2.0
/A108 – 5	Ogbomoso	1553 .33	310, 666	251, 755	58, 891	1.2
/A108 - 6	Odo – oba	1716.67	343, 334	251, 755	91,579	1.4
/A108 – 7	Saki	2220.00	444.000	251,755	197,225	1.8
/A108 – 8	Ikire	1933.33	386,666	251,755	134, 891	1.5
/A108 – 9	Ile – ife	2173. 33	434, 666	251, 755	182 911	1.7
/A108 – 10	Osogbo	2546. 67	509,334	251, 755	257, 579	2.0

Source: NHRII Field data, 2008.

Table 2: Results from trials on 10 accessions of pepper production in the dry season

Economic Analysis of production of 10 accession of pepper in the dry season        

Accession number	Accession name	Yield kg/ha	Gross return N/ha	Cost of production N/ha	Net returns N/ha	Benefit to cost ratio
/A108 - 1	Sango	2356.67	353,500	268, 699	84, 802	1.3
/A108 - 2	Saasa	4536.67	680,500	268,699	411,801	2.5
/A108 - 3	Oja-oba	5686.67	853, 000	268,699	584,301	3.1
/A108 - 4	Bodija	5936.67	890,500	268, 699	621,801	3.3
/A108 - 5	Ogbomoso	3956.67	593,500	268,699	324,801	2.2
/A108 - 6	Odo – oba	3363.33	504,499	268, 699	235, 800	1.9
/A108 – 7	Saki	4813.33	721, 999	268,699	453,300	2.7
/A108 – 8	Ikire	5310.00	796.500	268,699	527,801	3.0
/A108 – 9	Ile – ife	3493.33	523,999	268,699	255,300	2.0
/A108 – 10	Osogbo	3080.00	462,000	268,699	193,301	1.7

Source: NHRII Field data, 2008.

            With regards to the economic performance, the result of the different accessions of pepper indicated that the maximum gross returns of (N509,334/ha), net return (N257,579) and benefit to cost ratio of (2:0:1) were obtained for /A108-10 accession during the wet seasons (table 1). In the same manner, the maximum gross return of (N890.500/ha), Net returns (N621, 801/ha0 and a benefit to cost ratio of (3:3:1) were obtained from /A108-4 during the dry season (table 2). The highest profit (N3.30) per naira invested was recorded in the /A108-4 accession during the dry season. The result on the average indicated that pepper production was more profitable during the dry season.

2.1       Varieties Commonly Produced

            The following varieties are widely grown in Nigeria

·         Bird peppers – atawere (capsicum frutescens)

·         Cayenne pepper or red pepper – sambo (capsicum frutescens)

·         Atarodo (capsicum annum)

·         Tatase (capsicum annum)

            The fruits of these types of pepper vary in size, colour, shape, and pungency. They are all hot as bird pepper and cayenne pepper. Both bird pepper and cayenne pepper are used either fresh or dried, atarado and tatase are mosthy used fresh.

2.2       Seedling production

Nursery preparation – select a good soil medium for raising seedlings. The soil should be rich, well – drained and free of diseases and insect pests. A soil mixture consisting of compost and top soil in equal proportions can be used in making seed beds or filled in trays (30 x 45 x 8cm) to produce the seedlings. Press the soil quite firmly in the trays allowing a space of 20cm watering. Make beds of about 1 meter long. Allow 1 metre path between beds. The bed surface should be level to avoid erosion. In the absence of appropriate soil mixture apply 1kg or 3 small milk tins of 15:15:15 compound fertilizer per bed of 10sq. metres or it available 2-4 head pans of well – ratted farm yard manure or poultry manure plus 1 milk tinful of superphosphate and 2 milk tinfuls of sulphate of ammonia.

Bed fumigation- it is usual to treat nursery soil mixture with fumigant to kill pests, fungi, weeds etc. in the soil. VAPAM is recommended at the rate of 1 litre to 20 litres of water per bed of 1m x 10m. When used, wet soil heaving to a depth of 15cm and cover with palm fronds. Do not sow seeds until after 9-10 days after treatment in the absence of fumigants, apply heat treatment by burning trash on the beds and removing the ash.

Sowing – water the nursery well a day before saving. Make drills about 5 – 10cm a part across the bed and sow about 10 seeds per drill. 15-20 days after sawing. Alternately holes can be made at 4x4cm apart on the bed and 3-4 seeds dropped in each hole. Similarly seeds can also be planted in specific spacing (4cm x 4cm) in the tray.           

Shading – provide shade in the nursery to protect seedlings from hot sun and heavy rains. A palm frond on a one half metre pole frame work is adequate. Remove half of the fronds 30 days after sawing and the rest 40 days later, so as to harden the seedlings before transplanting.

·         Watering – water seedlings every morning. Reduce quantity and frequency of watering during hardening of seedling

·         Disease and insect control – the seedlings should be sprayed regularly with insecticides like Ambush and fungicide distance for control of insect and disease before transplanted.

·         Land preparation- plough, harrow, and make beds a week before transplanting is done. Make beds. 1.0 metre wide and of any convenient length.

·         Transplanting – transplant seedlings on beds 1.0 metre wide. The plants should be arranged in two rows on the bed. The rows are spaced 70cm apart while the plants are spaced 50cm apart in the rows. Water the seed trays and beds in the nursery before lifting the seedlings

·         Fertilizer application – A complete fertilizer such as N.P.K. 15:15:15 can be carried out about 2 weeks after transplanting at the rate of one match box fertilizer to two plants, using the ring method of application. A distance of about 4-7cm from the plant stem.

            The second application should be performed at 50% flowering – the application rate is one match box per plant water the plant immediately after applying the fertilizer. 

·         Pest control:- spray every week with the insecticides: saving 85 w.p. 10gm/10l of water

DISEASE:-

 Bacterial wilt: The infected plants shows wilting and death of the growing point and upper leaves. It can be controlled by removing and destroying affected plants, and the use of resistant varieties.

Virus:- Reduce size of young leaves with leaf curl, motting vein clearing, puckering, stunted growth and shorter inter nodes. It can be controlled by practicing crop rotation.       

·         Harvesting:- colour is an important item of quality therefore fruits should be harvested when they are red or yellow

2.3       Economic Importance of Pepper

·         Pepper production in Nigeria has serve as a good source of income to our local farmers

·         Pepper serves as  raw materials for our industries. E.g cosmetic production

·         It has improve the standard of living thereby creating employment opportunities to the citizens

·         Pepper production has also contributed to the national income through exports

·         Pepper serves as spice, adding flavor and colour to our food and also provide essential vitamins and minerals (Nutritional value)

·         Pepper is used as a carminative (a substance that helps prevent the formation of intestinal gas), stimulants, antidepressants, antioxidant that helps in lowering the cholesterol level to a great extent, counter-irritant e.t.c. (Medicinal functions).

2.4       Constraints in pepper production

·         With respect to the problem of pests and disease attack, which is a one among he major problem facing pepper farmer/production, has subsequently cause a reduction in the yield and income accruable to the pepper farmer

·         Problems of inadequate storage of pepper also abound in nigeria. majority of farmers has problems in storing their produce. Due to the perishable nature of pepper are stored mostly for consumption purposes. Processing is only in the farm of parboiling with palm oil after which the pepper is sun-dried.    

·         With respect to transportation, majority of farmer and been faced with the problem of transportation. This is as a result of bad roads leading to high cost of transportation which could be contributing to problems in sourcing for improved seeds and fertilizer and also making available of pepper in areas of high demand.

·         High percentage of pepper farmers are faced with the problem of finance/credit to acquire production inputs, transportation, pest and disease control, expansion of farm business, etc.   

3.0       Summary, conclusion and recommendations

3.1       Summary

            Pepper production in Nigeria is of great economic medicinal and nutritional importance as well as being an excellent source of natural colour. Its production is carried out both in the wet and dry season. The dry season production can be achieved through irrigation. Its production follows a series of nursery and filed operations and techniques to achieve greatest productivity. Pepper is majority grown in the Northern Nigeria in high quantity. Nigeria is known to be one among the major producers of pepper as it accounts for 50% of the African production. Though the problems of pest and disease, credit/finance, transportation and storage facilities have to an extent affected the output of pepper production in Nigeria.

3.2       Conclusion and Recommendation     

            The importance of pepper can not be over emphasize as it has play a major role in the economy of Nigeria. Its medicinal and nutritional value as well as it flavor has increase its production in recent years world wide. Pepper grown in Nigeria is of high demand due to its pungency and good flavor. Its production in the dry season is more productive and profitable due to the effect of ambient environment factors.

            Pepper is widely produce or cultivated throughout Nigeria but yields obtain are deficient to an amount due to production constraints

            In order to boost the level of output and productivity, the following are been recommended.

1.      Government should provide financial assistance and credit facilities to pepper farmer in the country

2.      Research in agricultural engineering and food technology should be focused on viable methods of storing pepper.

3.      Government should provide good infrastructures most especially good roads in the rural areas where most of the pepper production is carried out.

4.      A mechanism ensuring availability of inputs should be instituted by the government in all areas where pepper production is done within the country

5.      For a profitable production purposes, attention should be focused on varietals preference for different production season.

Chris Farm Nigeria develops well self-explanatory, irresistible feasibility studies or business plan for your Business start ups, Business Growth or Expansions through either personal funds, Grants, or loans, which could be new or existing ones. We delight in writing for people under Academic sectors, production sectors, manufacturing sectors, processing or packing sectors, advertising sectors, marketing sectors and other related sectors on mini, middle and large scale businesses.

For your Agribusiness, either production, processing, marketing of any Agro-industry, our feasibility studies or business plan are explicit.

Generally, our feasibility study and business plans are developed so well that it becomes irresistible when you show them to your investors or sponsors. It gives you a clear picture of what you are expected to see when you put the feasibility study or business plans into use. It also shows how much it will cost you to own your desired business, what your money can afford. The kinds of product you will need to minimize input in other to maximize output, and how much returns you will get at the end of each accounting year until your business break-even on its initial investment capital. This will give the intending business person or investor or farmer, a vivid idea on the possible benefit he or she stands to gain, when he or she starts doing the business. With that, the intending business person or investor or farmer will not need a soothsayer to make decision for him or her.

NOTE; According to our policy, we are not “allowed / permitted” to disclose peoples business or written feasibility study, “to anyone”, irrespective of their personality.

BUT, WE are permitted to display executive summary,

And these are some executive summary of some feasibility study carried out. 

1^st sample;

EXECUTIVE SUMMARY

•      Feasibility study on fishery farming business, on 2oplots of land, using new karshi as a case study.

•      New Karu is the headquarters of Karu local Government Area, Nasawara State. It grew up with other towns and villages as a result of the expansion of administrative and economic activities of the Federal Capital Territory “Abuja”, Nigeria. This rapid growth has increased the general demand of goods and services in which agriculture production is not left out.

•      Farming business is a lucrative business and also an important sector of the economy that can provide significant, economic, and social impact which will affect the general public positively, both in food provision, skill acquisition, employment opportunities and many more…..

•      After carrying out the feasibility study on new karshi, it was discovered that farming generally will do well both on crop and animal production.

•      For poultry and fishery business, there is good market for them since there are big markets in Mararaba, Ado, New Nyanya and other dispatch outlets like; hotels, spotlights, bars, bakeries, event planners, families and nearby towns like Abuja (about 30km from the site).

•      It will take about N233, 274,590 to construct the farm from the farm plan. Due to low investment capital of 20million, we applied selective measure of N23, 091,480 and only 2plots was used and the left over will be used as the business expands.

•      Investing N46, 073,080 (N23, 091,480 →for construction, N22, 981,600→For Production and Running cost) on fishery business using 2 plots of land is a very lucrative one. Using profitability index to determine how lucrative the business is, we got a viable result of 1.05% returns on business in the next sixth year. That tells us that, after the sixth year time, the businesses will break-even and your profit projection will emerge.

•       2^nd sample;

EXECUTIVE SUMMARY

USING N47, 158,000 and N8, 164,000 AS AN INITIAL INVESTMENT IN TWO FARMS

•      Feasibility study on fishery and poultry farming business on 1plot of land, using owerri town as a case study.

•      Imo state is one of the states in Nigeria which share boundaries with Abia, Enugu, Anambra and Rivers state, having owerri as it capital territory.

§  Farming business is a lucrative business that lurches millions into anyone's pocket irrespective of what you do or your qualifications. Is an important sector of the economy that can provide significant, economic, and social impact which will affect the general public positively, both in food provision, skill acquisition, employment opportunities and many more…..

•      To obtain a land in owerri town will cost about N1, 200,000 and about N800, 000 on its out sketch. 

•      Lands sold for a plot in owerri measures 100meters by 50meters

•      With N1, 500,000 you can own your own C of O on any location in owerri town. Via these researches, N1, 500,000 was use as a study guide for cost of land. 

•      After carrying out the feasibility study on owerri town, it was discovered that owerri had a lot of market to dispatch these product. Some of these prospective buyers are; hotels, spotlights, bars, markets, bakeries, event planners, families and nearby towns.

•      Investing N47, 158,000 and N8, 164,000 on fishery and poultry business on a plot of land using different land is a very lucrative one. Using profitability index to determine how lucrative the business is in a year. We got a viable result of 1.08 and 1.10 returns on the same year. That’s tells us that before the year runs out, the businesses will break-even.

OUR TABLE OF CONTENT INCLUDE;

SECTION 1(Business plan section)

• SECTION I – EXECUTIVE SUMMARY
• NAME OF BUSINESS / COMPANY
• OFFICE & SITE LOCATION
• MOTIVATION
• MISSION STATEMENT
• SOCIAL/ECONOMIC VALUE
• PROJECT STATUS & START UP
• WHY PREPARE THIS BUSINESS PLAN?
• SECURITIES FOR THE PROPOSED LOAN
• REPAYMENT
• SECTION II – STUDY AREA
• STUDY AREA
• COMPANY OVERVIEW
• MANAGEMENT TEAM
• DEPARTMENTS IN THE COMPANY
• EXPERIENCE
• MANAGEMENT TEAM GAPS
• SECTION III – INDUSTRY ANALYSIS
• DEFINING YOUR INDUSTRY
• YOUR INDUSTRY SIZE GROWTH RATE AND SALES PROJECTIONS
• INDUSTRY STRUCTURE
• MARKET OVERVIEW
• MARKET SEGMENTATION
• RELEVANT MARKET SIZE
• KEY SUCCESS FACTORS
• LONG TERM PROSPECTIVE
• MARKET CHARACTERISTICS
• SAMPLING TECHNIQUE
• SECTION IV – CUSTOMER ANALYSIS
• TARGET CUSTOMERS
• CUSTOMER NEEDS
• MARKET NEEDS / SOCIAL PROBLEMS AND SOLUTIONS
• BUYERS BEHAVIOUR
• MARKET SHARE
• SALES FORECASTING
• SECTION V – COMPETITIVE ANALYSIS
• DIRECT COMPETITORS
• COMPETITIVE ADVANTAGES
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• PRODUCTS & SERVICES
• FINISHED PRODUCTS
• PRODUCT QUALITY AND PRODUCTION QUANTITY
• PRODUCTION CAPACITY
• PRICING
• PROMOTIONS PLAN
• DISTRIBUTION PLAN
• SECTION VII – OPERATIONS PLAN
• GENERAL APPROACH TO PRODUCTION
• TECHNICAL ANALYSIS / PRODUCTION PROCESS
• EQUIPMENT
• PACKAGING REQUIREMENTS
• SECTION VIII – FINANCIAL PLAN
• REVENUE MODEL
• FINANCIAL ANALYSIS
• FINANCIAL ASSUMPTIONS
• FINANCE CHARGES
• FINANCIAL PROJECTIONS
• FUNDING REQUIREMENTS/USE OF FUNDS
• CRITICAL ASSUMPTIONS

SECTION 2(Feasibility study section)

• FINANCIAL MODELS
• SUMMARY OF PROJECT COST
• BUDGET OF FIXED ASSETS / CAPITAL EXPENSES / INVESTMENTS
• DEPRECIATION
• UTILITIES
• OPERATING EXPENSES (OPEX)
• TOTAL REQUIRED INVESTMENT OUTLAY (REQUIRED START-UP CAPITAL)
• FINANCING PLAN
• INSTALLED / AVAILABLE EQUIPMENT
• BREAK-EVEN ANALYSIS
• LOAN REPAYMENT SCHEDULE AND INTEREST PAID
• FORECAST OF PROFIT AND LOSS
• CASH FLOW
• BALANCE SHEET
• GENERAL ASSUMPTIONS (BREAK EVEN ANALYSIS)
• BUSINESS RATIOS - PROFITABILITY ANALYSIS
• CONCLUSION
• SECTION 3 – APPENDIX

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