COMMERCIAL TIGER NUT MILK

PRODUCTION
By agroraf
- July 27, 2019
- in FEASIBILITY REPORTS
1997
9

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Executive Summary

Tiger nut milk is one nutritious milk that will be made from 100% agricultural products such
as tiger nuts, coconut etc. It is a nutritious drink rich in calcium, iron, potassium, oleic acid,
vitamin B, C, and E. It is sugar free! Analyzing the profitability of commercial tiger nut milk
production is therefore of essence.

In a developing economy with a burgeoning population like Nigeria, it is generally agreed by

experts that what sells most and appeals to the sensibility of an average Nigerian is a
relatively cheap traditional food or drink of good quality.

Tiger nut milk /beverage/drink commonly called kunnun aya’ in Northern Nigeria is a
healthy drink with many nutrients. It is a nourishing and energetic product recommended by
experts to be taken during any season of the year, especially in dry season when the sun is
hot. In Spain, it is called chufa de horchata. It is a rich source of nutrients such as vitamin C
and E, and minerals such as phosphorus, magnesium, potassium, calcium, iron, and also
carbohydrates, unsaturated fats, proteins and some enzymes which helps indigestion. In fact
this drink contains more iron, magnesium and carbohydrate than the cow’s milk. It has also
the advantage of not containing lactose, casein, sugar or proteins of milk, or cholesterol and is
therefore an ideal drink for people who do not tolerate gluten or cow’s milk.

The analysis of data collected from the field (both the supply end and demand end) shows
that the present market situation will comfortably accommodate tiger nut milk products
which are presently non-existence in the saturated market. And that the raw materials for
constant production will easily and reliably be sourced from their areas of concentration in
the north. More so, financial analysis shows that the proposed commercial tiger nut milk
production is not only feasible, but also profitable, and sustainable.

TABLE OF CONTENT

Cover sheet                                                                                                                             1

Executive summary                                                                                                                 2

Table of content                                                                                                                      3

List of tables                                                                                                                           4

Introduction                                                                                                                            5

Production Plan                                                                                                                      7

Marketing Strategy and Plan                                                                                                 12

Organizational and Management Plan                                                                                    17

Financial Analysis                                                                                                                   18

SWOT Analysis                                                                                                                      28

Conclusion                                                                                                                              29

Appendix                                                                                                                                30

 Supply End questionnaire

o Market Intelligence Survey (wholesale trader)
o Market Intelligence Survey (final consumer)
o Pictures from the field

LIST OF TABLES

Table 1: Consumer Price Suggestion

Table 2: Assumed Input Suppliers and Target Markets

Table 3: Cost Analysis (For a medium scale factory)

Table 4: Returns Analysis

Table 5: Depreciation of Tiger nut Milk Production Equipment

Table 6: MS-Excel worksheet showing estimated NPV and IRR

1. Introduction: Business Overview

Tiger nuts are not actually a nut. They are a tuber (root vegetable). Tiger nuts are a superfood
that originates in the Mediterranean and North Africa. They are very abundant in northern
part of Nigeria and produced in large proportion. They are very high in fiber, as well as iron
(as much as red meat), potassium (as much as coconut water), magnesium, zinc, phosphorus,
and vitamins E and C.

Tiger nuts can be grown during the rainy season or through irrigation. This means that
cultivation can be done all-year round. Mild weather forms the perfect condition for growing
Tiger nuts. It can be planted through its seeds/tubers or through its rhizomes which is the part
after the root. Plant them 5 to 9 cm into the soil. The spacing should be from 15 cm between
seeds. After it first sprouts, it normally starts growing tubers 3-4 weeks after. The tubers will
reach maturity within 2 months. Seeding depth is between 2 and 3 inches when the ground is
ready. Sowing density is an important aspect, as the output and quality of the tuber heavily
depend on it. There is an optimal density, which should not be exceeded because the tuber
does not develop properly and plants grow poorly, prematurely lodging. The optimal planting
density is between 120kg to 140kg per hectare. In order to be able to carry out the harvest, the
plant must be completely withered and dry. That is the reason why it takes place from
November to January. Afterwards the area of the plant is burned in a controlled manner and
then the ashes and the remainders are cleaned. Tiger nut can be stored dry and rehydrated by
soaking without losing the crisp texture. Soaking is often done overnight. Dried tiger nuts
have a hard texture and soaking is indispensable to render them edible with ease and to
ensure acceptable sensory quality.

The milk extracted from tiger nuts and other ingredients have been proven by many
researches to be of health and reproductive benefits. Hence, the need to beam a search light
on the feasibility of commercial production of tiger nut milk in Nigeria.

1. Description of Business

It is no news that few people are into tiger nut milk production in Nigeria, and the few are the
micro-small scale producers; yet the local demand is very high. To thrive in the business as a
new entrant, creativity and innovativeness in sourcing raw materials and marketing is
necessary. The export of tiger nut itself is still grossly underexplored and underexploited.
Studies have shown that there is a high demand for tiger nut on Amazon and ebay. Hence, the
opportunity of export to this companies, Europe and America. It is sold abroad as high as £2
for 200g. See Picture 1 (in APPENDIX) for details. International buyers all over the world
are always looking to purchase tiger nuts from Nigeria because of its quality, abundance, and
price. They come into the country on a regular basis for meetings with commodity trading
companies and farmers to see how they can establish long-term relationships with them to
guarantee a steady supply of the commodity every month for at least one year. Depending on
what they agree, they decide which supplier or suppliers to go with, issue an ICPO
(Irrevocable Corporate Purchase Order), sign a contract, and start transacting.
The tiger nut milk production and packaging is planned to be at a permanent location in Ogun
state (along Abeokuta – Ibadan road), Nigeria.

1.2 Vision and Mission

VISION

To enrich Nigerian lives with nutritive drinks, while maintaining a steady investment pool
that will generate continuous source of income.

MISSION

To supply consumers with the most nutritious and healthy farm product that is produced,
processed and packaged under the best hygienic condition. Hence, sustaining the business
model, expand and diversify in the long run, to increase employment opportunities.

1.3 Business Legal Status

We understand the importance of business registration and incorporation, and the role it plays
in every business setup. Hence we have taken extra step to be registered as a limited liability
company and to register with NAFDAC.

2.0 Production Plan

2.1 Tiger nut milk Production: Materials and Machines

Raw materials needed to produce standard tiger nut milk are:

 Dried tiger nuts;

 Date fruit;
 Coconut;
 Ginger; (optional but depending on consumer’s preference)
 Honey; and
 Water.
Fig 1: Multi-purpose tiger nut grinding machine

Though, this and the automated one can be locally fabricated in Nigeria by: 

Federal Institute of Industrial Research , Oshodi

3, FIIRO Road, Near Cappa Bus Stop

Off Agege Motor road, Oshodi

P.M.B 21023, Ikeja, Lagos

Phone: 08023415016, 07053294072, 08039191669,  08033863474, 09090795118,

08133013062

Official E-Mail: [email protected]

OR –

Capsfeed Limited,

Olaogun Bus Stop, Old Ife Road, Ibadan, Nigeria, Ibadan, Oyo 200001, NG

Email:
[email protected]

Phone Number(s):
(+234) 8033244318, 8033506514, 7038572090
2.2 Production Procedure: Standard Recipe

Ingredients

 3 cups of raw tigernuts

 1 cup of date fruit
 1 coconut
 4 cups pure water (to initiate grinding)
 Flavorings of your choice (optional) – vanilla, cinnamon, nutmeg, honey, maple
syrup, etc. are all lovely.
 Additional water for pureeing

Instructions

1. Place your tigernuts in a bowl.

2. Pour water over the tigernuts, cover, and let soak for 24 hours.  The longer they soak,
the softer they will be and better they will puree into milk.
3. Once soaked, pour the tigernuts and liquid through a sieve and rinse well.
4. Place the tigernuts in any blending machine and add 2 cups of pure water. Add the
coconut pieces and soaked date fruit pieces to it, then grind together.
5. Puree on high until smooth and creamy (2-4 minutes, depending on the grinding
machine).
6. Pour through a fine mesh strainer, nut bag, cheese cloth, etc. to separate the milk from
the pureed tigernuts.
7. Place the tigernut puree back in the blender and add another 1-2 cups of water. Puree
again for a couple minutes.
8. Strain off the milk. And combine with the first batch. The subsequent batches won’t
be as rich and creamy as the very first batch though.
9. You can re-process the tigernuts 2-3 times.

For more information about the standard recipe for tiger nut milk production, Please see this
YouTube video

2.3 Production Capacity

This report is tailored towards production of just 1,800 litres using small machines.
Expansion can be carried out as desired according to available resources. Remember, though
in commercial production, there is huge financial investments in terms of assets; however,
there is also a huge economics of scale embedded therein.

3.0 Marketing Plan

3.1 Description of Products, Packaging and Delivery

Even though, there is no known branded product of tiger nut milk in Nigeria presently,
serious marketing efforts will be made to create a unique brand. The processes involved in
the production are grinding, sieving, bottling, and packing. All necessary distribution
networks will have to be marked out, while personal selling and digital selling will all be
employed. Tiger nut milk will be branded in a way that it can increase product awareness,
build strong customer relationship and put the product on a pedestal of a competitive edge so
that it creates a high likelihood of repeat purchase.

3.2 Competition and Target Market

Neatly packed tiger nut milk in well branded bottles (in cartons) will be directly sold to
wholesalers of drinks at a unit price of #130. The proposed product is targeted to be readily
available in wholesale stores across provision markets in Nigeria, and consequently in retail
shops littering our motor parks and garages, and other retail access across the country.
Provision stores in our higher institutions and general hospitals will not be left out. Method of
advertising is going to be through personal selling and digital marketing. In addition, our
market areas will cover food producing businesses like bakeries, eateries, and big stores like
Shoprite etc. There is no direct existing competition for traditional drink such as tiger nut
milk except for other cola and yoghurt drinks inundating the market presently.

3.3 Sector and Industry Analysis: A Market Survey

In a bid to glean information from both supply end (of raw materials) and the demand end (of
tiger nut milk) and to have a lucid picture of an inclusive and sustainable market; three
questionnaires were administered. The first is the supply end survey (for farmers), and the
second is the market intelligence survey (for wholesale traders). The third is the market
intelligence survey (for the final consumer). 

3.3.1 Market Intelligence Survey (for wholesale traders)

A market intelligence survey was carried out on 20 randomly selected wholesale traders
(specialized in soft drinks) at Apata- Ido LGA in Oyo State and Abeokuta- Abeokuta South
LGA in Ogun State. All the respondents from the 2 study areas were women ranging from
age 35 to 65 years. None of them have sold tigernut milk before but close to that
(comparatively in their experience) is soy milk; which 95% of them have sold at one point in
time. 75% of the respondents describe the demand of soy milk as low while 25% of them
described it as moderate. More so, 95% of the respondents agreed that the soy milk product
was priced above the reach of the average consumer. Meanwhile, 90% of the respondents are
willing to try out selling tigernut milk; and they all suggested #150 retail price (for 50cl
tigernut milk) will be affordable to an average Nigerian.

3.3.2 Market Intelligence Survey (for final consumer)

A market intelligence survey was carried out on randomly accosted consumers of soft drinks
at Alimosho LGA of Lagos State and Abeokuta South LGA of Ogun State. 60% of the
respondents were men while 40% of them were women; all ranging between the ages of 18
and 55 years. 65% of them claimed they have consumed tiger nut milk before. And they
described its taste as refreshing. While all those who claimed they have never tasted it before
affirmed their willingness to have an experience. According to all the price suggestions
received from the respondents, an average, modal and median price reached (as analyzed by
Microsoft Excel) was #150 as shown in Table 1.

Table1: Consumer Price Suggestion

CONSUMER      PRICE SUGGESTION

1A 100
1B 150
1C 100
1D 150
1E 150
1F 150
1G 200
1H 200
1I 150
1J 150
2A 100
2B 150
2C 100
2D 150
2E 200
2F 150
2G 200
2H 150
2I 150
2J 150
TOTAL 3000
AVERAGE PRICE 150
MEDIAN PRICE 150
MODAL PRICE 150

Analytical Tool: Microsoft Excel

PS: It should be noted that 1A to 1J are respondents sampled from Abeokuta while 2A to 2J
are those sampled from Lagos.
Fig 2: Chart showing Price suggestions by Consumers

3.5 The Opportunity Rationale

Most kunu milk sellers in Nigeria presently sell their products in used bottles of other
beverages, and they are never sealed with serious accompanying health challenge. Our
tigernut milk will however be hygienically prepared and packaged in sealed bottles. It has a
different list of ingredients from those of its competitors. Nutritious fruits like the date fruit,
coconut and tigernut are the main ingredients. In Nigeria, and most parts of the world, bottled
drinks are in constant demand year rounds; hence we are not challenged by the demand of
this tigernut milk.

Yufahz’s grip on the supply end of raw materials from the north makes it confident of all year
round production, making it possible to meet its yearly demand.

Meanwhile small scale tigernut milk producers in the country at the moment suffer a great
setback in preserving the drink for days. However as a company, Yufahz Investment shall go
full scale commercial (in the long run) by procuring and making the optimum use of the Ultra
Heat Treatment (UHT) plant that can preserve it for more than a year.

Table 2: Assumed Input Suppliers and Target Markets

Company Supplies Farm Supplies

Target Market
Wholesale traders
Tiger nut farms from
FIIRO—processing equipments specialized in selling drinks
the northern Nigeria
to retailers
ADEFOLORUNSHO TECH. Date fruit supplies
Super stores like Shop rite.
VENTURES (AFTV) — plastic bottles from the north
Coconut farm
  supplies from the  
south

4.0 Organizational and Management Plan

 Management and Personnel Requirement

As the project is launched and stabilizes, Yufahz Investment will recruit a merit studded
proposed personnel such as the factory manager, accountant, secretary, quality control
officer, production manager, packaging staff, marketers, security personnel and cleaners.
However, this study focuses on only a factory manager and 2 packaging staff (i.e. on a
medium scale production level). The proposed project will require a qualified factory
manager with profound knowledge and experience in factory management and two packaging
staff with experience in factory work and drink packaging. 

Only two packaging staff are needed to do production from grinding, sieving, then to bottling
and packaging because only two batches of production is planned for a start at the moment.
And each packaging boy will be paid N20, 000 per month while the factory manager will be
paid N40,000 monthly.
5.0 Financial Plan/Projection

5.1 Cost and Return Analysis

5.1.1 Operating costs

Operating costs include fixed costs and variable costs. Fixed costs are associated with the
long-term operation of a factory. Examples include: cost of procuring the fixed items,
depreciation, interest, amortization payments (for repayment of borrowed money) etc. These
costs are often overlooked but must be considered in assessing the financial situation of the
factory. Variable costs are the costs that vary with the size of the factory or the capacity of
plant being installed. Larger factories have much greater total variable production costs than
smaller factories. Examples include: bottling, transportation costs, labour, cost of marketing
etc.

5.1.2 Expected returns

Returns include the money that the factory receives from the sale of tiger nut milk. Profit is
the most important return and is determined by subtracting the costs of production from the
amount received when the tiger nut milk is sold. (Note: start-up costs, annual fixed costs, and
variable production costs were all used in calculating production costs.)

Returns from tiger nut production may be reported as “gross” or “net” returns –the distinction
between the two is important. Gross return refers to the total amount of money received for
the tiger nut milk that is sold. Gross return is calculated by multiplying the total number of
bottles sold by the price received per bottle for the tiger nut milk.

Net return refers to the total amount of money remaining after all costs of production have
been subtracted from gross returns. Net return is also known as profit. It is a more important
measure of a factory than gross return. Net return also reflects on the efficiency of the
factory.

EXPECTED RETURNS

1800 litres of honey is the project quantity or scale of production. And this translates to 3,600
bottles to be used for bottling using the 50Cl bottle. Meanwhile, market intelligence survey
has shown that #150 (retail price) and #130 (wholesale price) is the most apt price to tag
along with especially at the inception of the project when market penetration and dominance
is the core objective.

Therefore, the expected revenue from a single production batch is:

3,600 X N130 = N468, 000.

Assuming there is only two batches of production in a month;

Expected Revenue per month = N468, 000 X 2 = N936, 000.

And Total Expected Revenue (per annum) = N11, 232,000

Table 3: Cost Analysis (For a medium scale factory)

PER PER PER ANNUM

COSTS
BATCH N MONTH N N
Fixed Cost      
Stainless steel Grinder     70,000
3 Stainless steel Containers     45,000
Pack of strainers     20,000
Generator     80,000
NAFDAC Registration     250,000
Total Fixed Cost (A)     465,000
Variable Costs      
Tiger nut (360kg) 60,000 120,000 1,440,000
Date fruit (72kg) 38,400 76,800 921,600
Coconut (120 whole fruit) 12,000 24,000 288,000
Honey (5L) 9,000 18,000 216,000
Fuel     14,500 14,500 174,000
Utilities: Petrol for grinder @ 10Ltrs/batch) 2,900 5,800 69,600
Bottling (3600 branded bottles @ #30 each) 10,800 21,600 259,200
Packaging cost (cartons) 18,000 36,000 432,000
Transportation of Materials (10% of Mat.
    380,040
Inputs equally Spread)
Processing Structure @ =N= 20,000/mth   20,000 240,000
Marketing cost   20,000 240,000
Salary (Manager)   40,000 480,000
Salary (2 processors) 20,000 40,000 480,000
Miscellaneous   5,000 60,000
Total Variable Cost (B)     5,680,440
TOTAL COSTS (A+B)     6,145,440

N.B: It is assumed that the rented processing structure is equipped with a clean water
system.

Table 4: RETURNS ANALYSIS (Estimated for 5 Years)

Quantity Quantity Quantity Total Revenue/

YEAR Revenue/month  (₦)
per batch per month per year annum  (₦)
IST
86,400
production 3,600 bottles 7,200 bottles 936, 000 11, 232,000
bottles
year
2cd
86,400
production 3,600 bottles 7,200 bottles 936, 000 11, 232,000
bottles
year
3rd production 86,400
3,600 bottles 7,200 bottles 936, 000 11, 232,000
year bottles
4th 3,600 bottles 7,200 bottles 936, 000 86,400 11, 232,000
production bottles
year
5th
86,400
production 3,600 bottles 7,200 bottles 936, 000 11, 232,000
bottles
year

The depreciation of stainless steel grinder, stainless steel containers, strainers, and generator
is estimated in Table 5 using the straight line method:

i.e. dt = C – S

                 L

Where dt = depreciation;

            C = cost of asset;

            S = salvage value.

Table 5: Depreciation of Tiger nut Milk Production Equipment

COST SALVAGE USEFUL LIFE DEPRECIATION

ITEM
(N) VALUE (N) (YRS) (N)
Stainless steel
70,000 20,000 5 10,000
Grinder
3 Stainless steel
45,000 15,000 10 3,000
Containers
Pack of strainers 20,000 10,000 5 2,000
Generator 80,000 20,000 5 12,000
TOTAL N 27,000

Therefore, profit from the first year of production is:

Profit = TR – TVC – Total Depreciation

= N (11, 232,000– 5,680,440– 27,000)

            = N 5,524,560

While gross margin for the first production year is,

Gross Margin = TR – TVC

                        = N (11, 232,000– 5,680,440)

                        = N 5,551,560

5.2 Break-Even Analysis

The Break-Even Point is the point or level of financial activity at which expenditure equals
income, or the value of an investment equals its cost, with the result that there is neither a
profit nor a loss. Hence, any return accruable thereafter is a continuous gain or surplus to the
business.

TFC = N 465,000

Unit VC = N 65.745 ≈ N 66

Unit Price = N 130

Contribution = Unit Price – Unit VC

                     = N (130 – 66)  

                     = N 64

To break even in this proposed tiger nut milk production, the amount of bottles that must be
sold is:

TFC / Contribution;

i.e.    Break-Even Point =   N 465,000 / N 64

                                      = 7265.625 ≈ 7266 bottles

In order words, the factory will break even during the second month in the first year of
production because the expected sale in the first month is 7,200 bottles. Therefore, any return
accruable from subsequent sales after the sale of 66 bottles in the second month is a profit in
continuum. Hence, signifies the birth of a surplus after paying for the initial outlay.
Therefore, payback period is obviously one year.

5.3 Investment Analysis

Net Present Value (NPV) and Internal Rate of Return (IRR) were used to assess the
investment risk of the proposed factory. The NPV is equal to the present value of future net
cash flows, discounted at the cost of the capital. The NPV, calculated with 15% discounting
rate was positive, implying that the venture is feasible. The payback period (expected number
of years required to recover the original investment) is 1 year. The quick payback period
implies low risk in the proposed investment. 

Table 6: NPV
AND IRR OF
THE TIGER
NUT MILK
PRODUCTIO
N
ENTERPRISE
FOR THE
FIRST 5
YEARS
(USING 15%
DISCOUNT
RATE)
CASH CASH
YEAR                                 
YEAR FLOW/YEA FLOW/YEA
    
R R
1 – 6145440    1 – 6145440
11232000 11232000
2 11232000    2 11232000
3 11232000    3 11232000
4 11232000    4 11232000
5 11232000    5 11232000
NPV= TOTAL PV
(for 5 years) –          IRR = 182%  
INITIAL OUTLAY
NPV= NGN  
(37,651,406.06 –
6,145,440.00)        
= NGN  
31,505,966.06

Analytical Tool Used: MS-Excel

PS.: This is based on the assumption that all variable cost of production and the price of
tiger nut milk remain constant throughout a 5 year period.

The IRR is the discount rate that equates the present value of the project’s expected cash
inflows to the present value of the project’s cost. The IRR on a project is its expected rate of
return, if the net present value exceeds the cost of the funds used to finance the project, a
surplus remains after paying for the capital, and this surplus accrues to the project. The IRR
for the tiger nut milk factory is about twelve times greater than the discounting rate; meaning
the venture is profitable to operate even if the planning horizon is only five years.
Meanwhile, the NPV shows that in the next 5 years, the project would have built up about 31
million naira after settling the initial outlay.

The findings of the analysis indicate that the proposed tiger nut milk production is financially
feasible. The results obtained indicate a positive NPV and acceptable IRR. Hence, this
business is sustainable because production and market capacity can be built to sustain
improvements over time without continued support.

5.4 Performance Indices of the Tiger nut milk Project

The performance indices include:

a. Gross Margin = Total sale income – Total variable cost

b. Gross Margin per bottle produced = Gross Margin / Total Production

c. Production costs of tiger nut milk per bottle = Total variable cost / bottles of tiger nut milk
produced

d. Percentage return on variable cost = (Gross Margin /Total variable cost) x 100

a) Gross Margin = Total sale income – Total variable cost

 = N (11, 232,000– 5,680,440)

= N 5,551,560

b) Gross Margin per bottle produced = Gross Margin / Total Production per annum

Gross Margin per bottle produced = N 5,551,560 / 86,400 bottles

                                                               = N 64.25 ≈ N64

c) Production costs of tiger nut milk per bottle = Total variable cost / bottles of tiger nut milk
produced

Production costs of tiger nut milk per bottle = N 5,680,440 / 86,400 bottles

                                                                                     = N 65.745 ≈ N66

d) Percentage return on variable cost = (Gross Margin /Total variable cost) x 100

Percentage return on variable cost = (N 5,551,560 / N 5,680,440) X 100

                                                                   = 0.9773 X 100% = 97.7%

e) Return per capital invested= Net income/Gross return

= ₦ (11, 232,000 – 6,145,440) / ₦ 11, 232,000

= ₦5,086,560/ ₦ 11, 232,000 = 0.452 ≈ 0.45

The return per capital invested was found to be (0.45). This means that for every naira
invested in the tiger nut milk project, a 45K gain will be realized. The Benefit-Cost Ratio was
also estimated.

f) Benefit-Cost Ratio (BCR) = Benefit/Cost

=       ₦ 11, 232,000 / ₦ 6,145,440

=          1.82769 ≈ 1.83

Indeed, tiger nut milk production can be adjudged to be a viable venture since the Benefit-
Cost Ratio is greater 1.

6.0 Business Risk and Mitigation Factor

6.1 Business Risks

The profitability of the tiger nut production investment is most sensitive to its sales price. The
number of batches per month is the next factor and market penetration comes third. It should
be noted that a 20% decrease in sales price results in an IRR of 145% which is still very
acceptable (because it’s about ten times the discounting rate); but could turn out to be of a
high risk especially if the number of batch per month drastically reduces and at the same time
if there is laxity in market penetration.

6.2 SWOT Analysis

It is not enough to emphatically adjudge a business profitable and viable without a proper
analysis of Strengths, Weaknesses, Opportunities and Threats at one’s disposal. A detailed
and convincing SWOT analysis is the mainframe of any successful business. Hence, SWOT
analysis of this proposed tigernut milk project is pivotal to its success. The strengths,
weaknesses, opportunities and threats of this proposed project are as follows:

6.2.1 Strengths

First, is the supposed availability of the required land or warehouse for production and
storage. Next is, the technical know-how, passion, preparedness, zeal and zing to diligently
manage the project and judiciously appropriate all resources. 

6.2.2 Weaknesses

Paucity of funds is largely a greater constraint especially with regards to large scale
production. Without means of finance, even the best of ideas may not come to fruition or
reality. Positive idea on how to get funding for a project and the present economic state of the
country can be an albatross.

6.2.3 Opportunities

The idea of tiger nut milk was borne out of the loopholes observed in the way and manner
other types of kunu (traditional drinks) have been produced locally and marketed. Hence,
Our competitive edge will make this product stand out because it’s highly nutritional; a
naturally sweetened drink with no sugar that leaves a cooling and refreshing effect on the
consumer. Unlike its existing competitors, our tiger nut milk will not expose consumers to
infections or diseases because it will be hygienically prepared and packaged in sealed bottles.
It will be produced in a clean environment using treated water.

The bourgeoning Nigerian population is seen as a great opportunity to tap into. The buying
behaviour of an average Nigerian is such a random one; hence, likelihood that our tiger nut
milk will be an alternative to be considered as against the sweetened artificial drinks
inundating the market. There are also multifarious market options in Nigeria.

6.2.4 Threats

Epileptic power supply characterizing the Nigerian economy is a great threat. However, a
generator will be bought and efficiently maintained to serve as an option. Existing and
prospective competitors could also be a threat, but with the accentuated competitive edge,
they could be tamed. Due diligence is required when employing workers to prevent giving
jobs to eccentric, disloyal, indolent, mendacious and unscrupulous people.

CONCLUSION

The tiger nut milk business is not only profitable but feasible, viable and sustainable.
Domestic demand for refreshing traditional drinks produced under highly hygienic condition
is growing as Nigerians are increasingly becoming more aware of the nutritional, medicinal
and aphrodisiac benefits of tiger nut milk. More so, the willingness of consumers to try out
tiger nut milk according to the survey carried out during the study can never be over-
emphasized.

It is hoped that within a short period of time, Yufahz tiger nut milk will become a household
name in events/parties, homes, offices, workshops, hotels, schools and hospitals.

APPENDIX

AGRORAF AGRICULTURAL        INVESTMENT Iwo-Alli  Village, Odeda LGA, Osiele,

Abeokuta

[email protected]; www.agroraf.com.ng  [08051942496; 08168925545]

MARKET INTELLIGENCE SURVEY (WHOLESALE TRADERS)

Section A: Respondent’s Bio-data

 Name:
 Gender:
 Age:
 L.G.A. and State:

Section B: Sales Pattern

 Have you sold soy milk before?

 Yes       b) No
 If yes, how will you describe the demand?
 High   b) Moderate   c) Low
 What about the pricing of the soy milk product, was it affordable to the average
consumer?    A) Yes      B) No
 Will you like to try selling tigernut milk?

                     a) Yes     b) No

       IV)       If yes, how much do you think will be affordable to an average Nigerian for a
50Cl tigernut milk produced under hygienic condition with NAFDAC certification?

Thank you for your response.            

AGRORAF AGRICULTURAL        INVESTMENT Iwo-Alli  Village, Odeda LGA, Osiele,

Abeokuta
[email protected]; www.agroraf.com.ng  [08051942496; 08168925545]

MARKET INTELLIGENCE SURVEY (FINAL CONSUMER)

Section A: Respondent’s Bio-data

 Name:
 Gender:
 Age:
 L.G.A. and State:

Section B: Consumption Pattern

 Have you taken tigernut milk before?

 Yes       b) No
 If yes, how will you describe the experience?
 Disappointing  b) Refreshing  c) I don’t know
 If no, will you like to try one?

                     a) Yes     b) No

       IV)     How much can you afford to buy a 50Cl tigernut milk produced under hygienic

                 condition with NAFDAC certification?

Thank you for your response.            

PIC 1: Tiger nuts at premium price in UK
PIC 2: Farm workers harvesting tiger nuts
PIC 3: Farm workers carrying out the sieving
PIC 4: Heaps of collected tiger nuts after sieving
PIC 5: A root lump of tiger nuts

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better economic pedestal. If you are interested in venturing into this lucrative business in
Nigeria, you can reach us through our CONTACTS.

Thank you.