Alfalfa Export Project

A premium agricultural investment opportunity in Yola, Nigeria

Market Opportunity

The Gulf Cooperation Council (GCC) region represents a significant and growing market for high-quality alfalfa hay, driven by expanding dairy operations, equestrian activities, and limited local production capacity due to water scarcity.

With a target sales price of USD 550 per metric ton (with 3% annual escalation from Year 2 onwards under Scenario 3), the 2000-hectare project is positioned to capture a valuable share of this market while offering competitive advantages:

  • Geographic proximity compared to traditional exporters
  • Year-round production capability (10 cuttings annually)
  • Developing trade corridors between Africa and the GCC
  • Cost competitiveness in land and labor

Project Highlights

Premium Export Product

High-quality alfalfa hay production targeting the lucrative Gulf Cooperation Council (GCC) market, with a focus on Dubai, UAE as the primary export destination.

Strong Financial Returns

Projected Year 1 revenue of NGN 28,160 million (USD 17.6 million) with net profit of NGN 16,974 million (USD 10.61 million) and a rapid payback period of less than 8 months.

Strategic Location

2000-hectare farm in Yola, Adamawa State, with ideal agro-climatological conditions and access to the River Benue for irrigation, enabling 10 cuttings per year and 40,000 metric tons of annual production.

Key Financial Metrics (Scenario 3)

Initial Investment

NGN 10.71B
(USD 6.69M)

Year 1 Revenue

NGN 28.16B
(USD 17.6M)

Payback Period

0.63 Years
(< 8 months)

ROE (Year 1)

396%
Return on Equity

Production System

Land Allocation and Development

Our alfalfa production system utilizes 2,000 hectares of prime agricultural land in Yola, Adamawa State. The land is laser-leveled to ensure optimal irrigation efficiency and equipped with state-of-the-art irrigation infrastructure drawing water from the River Benue.

Variety Selection

We cultivate specially selected varieties with high protein content (18-22%), excellent leaf-to-stem ratio, and adaptation to local conditions, ensuring premium quality for export markets.

Irrigation Management

Our precision irrigation system delivers water with high efficiency, utilizing:

  • Center pivot systems for large-scale application
  • Soil moisture monitoring for optimal scheduling
  • Water-conserving technologies to minimize waste

Nutrient Management

Our balanced fertilization program ensures optimal plant nutrition while maintaining soil health, with careful monitoring and application based on soil testing and plant analysis.

Harvesting System

Our precision harvesting system maximizes quality and minimizes losses:

  • Cutting at early bloom stage for optimal protein content
  • Modern self-propelled windrowers with conditioning rollers
  • Timing based on moisture content and weather forecasting
  • 10 cuttings annually, significantly exceeding global averages

Processing and Export

Our state-of-the-art processing system includes:

  • Advanced drying and conditioning to preserve nutritional quality
  • High-density compression for export efficiency
  • Comprehensive quality control ensuring premium products
  • Direct relationships with major importers in GCC countries

Competitive Advantages

Ideal Climate

Year-round growing conditions with optimal temperatures and abundant sunshine maximize photosynthesis and crop development, enabling 10 cuttings annually.

Water Resources

Reliable water supply from the River Benue ensures consistent irrigation throughout the year, mitigating drought risks and maintaining production stability.

Export Logistics

Strategic location with established export corridors to Arab Gulf countries, where alfalfa demand consistently exceeds supply due to water scarcity constraints.

Cost Efficiency

Competitive advantages in land and labor costs compared to traditional exporters from North America and Europe, enabling attractive margins while maintaining price competitiveness.

Integration with Other Value Chains

Our alfalfa production is fully integrated with other agricultural operations, creating synergies and efficiencies:

Livestock Integration

Lower-grade alfalfa and processing by-products are utilized in our cattle operations, providing high-quality protein for beef and dairy production.

Nutrient Cycling

Manure from livestock operations is composted and returned to alfalfa fields, reducing chemical fertilizer requirements and improving soil health.

Crop Rotation

Alfalfa fields are rotated with other crops every 3-4 years, improving soil structure, breaking pest cycles, and enhancing overall farm productivity.

Shared Infrastructure

Irrigation systems, machinery, and processing facilities are shared across multiple crop operations, maximizing capital efficiency and utilization.

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