Read on Twitter
'form m' documents from the CBN shows that Nigeria spends $200m importing frozen french fries every year, from mostly Belgium.
Now Belgium only 30 years ago was producing 500k tonnes of Irish potato yearly compared to the 300k tonnes Nigeria produces yearly with 70% in Plataue
Now Belgium only 30 years ago was producing 500k tonnes of Irish potato yearly compared to the 300k tonnes Nigeria produces yearly with 70% in Plataue
Now Belgium processed 5m tonnes of Irish potatoes and exports to 150 Countries. In 2018/2019 financial year, the 5m tonnes generated €1.7bn in export revenues for the Belgian economy.
Can we do backward integration of frozen Irish
Potatoes through import substitution? Yes!
Can we do backward integration of frozen Irish
Potatoes through import substitution? Yes!
Nigerian enterpreneurs can set up a processing plant that has machines installed for:
* Washing
* Sorting
* Peeling
* Slicing
* Bagging
* Freezing
What's the value chain?
1. Aggregate potato farmers to supply you a minimum guaranteed quantity
* Washing
* Sorting
* Peeling
* Slicing
* Bagging
* Freezing
What's the value chain?
1. Aggregate potato farmers to supply you a minimum guaranteed quantity
2. Set up processing plant
3. Sign production offtake agreements with restaurants, hotels, departmental stores, etc.
4. Set up trucks to deliver product to markets
This is purely a business to business (B2B) model
Now imagine you've only 10% of a $200m a year market? $20m
3. Sign production offtake agreements with restaurants, hotels, departmental stores, etc.
4. Set up trucks to deliver product to markets
This is purely a business to business (B2B) model
Now imagine you've only 10% of a $200m a year market? $20m
Now the Central Bank has added a 20% tarriff on all Imports of frozen french fries, and a 5% VAT to encourage import substitution. Now a tonne of frozen french fries in the intl market goes for $900.
Today be the one person that helps put an end to a factor that collectively contributes to Nigeria having a weak exchange rate. The NIPC will give you a Pioneer status that gives a 5 year tax holiday for Corporate Income Tax (CIT). Start today!
Cc: @asemota Big Chief
