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Redesigning large-scale rice to integrate ingrower scheme
H&W Rice has developed a rice production project with Expert Farmer and started with the construction of a paddy rice mill. The company wants to secure the influx of paddy rice to the mill by developing contracts with private growers within the project land and outside. Expert Famer has been remobilized to design the project execution plan for contract farming.
Redesigning large-scale rice to integrate ingrower scheme
Location
Nigeria
Production
Rice
Delivery
2022
Area
5 000 ha
Client
H&W Rice Co. Ltd.
Sector
Private
Service(s)
Agri-feasibility study
The challenge
As the H&W Rice relies on the farmers to run its mills profitably, it is critical to secure a good relation with farmers so that both sides find interest in collaboration. In-growers can foster a closer relationship than the out-growers but require more investment. Once the in-growers are secured, the out growers can be targeted more widely
The result
Expert Farmer has detailed the strategy and operational management of the contractualisation with farmers, with sizing and organization of the management, technical aspects with crop husbandry requirement and logistics, as well as the economic dimension of the project.
Brief of the project
Expert Farmer as successfully provided the following scope of services.
Management support
- Definition of the sizing of the operations, with number of contracting parties and surface covered,
- Nature of the contracting conditions with outputs of both sides of the contract, and targeted performance per phase of the project,
- Mapping of the area secured for the project with relevant data (economic, geographic),
- Management structure of the contractualisation, for ingrower and outgrower systems,
- Operation management organization with an emphasis on the data recording and processing of the project.
Technical aspects
- Advanced design of the crop husbandry plan dressed with all relevant matters: equipment, inputs, water requirements, genetics, rotation, activities, manpower, cropping schedule, soil quality,
- Scaling of infrastructure requirement for the project, and all investment necessary,
- Training requirements and inventory of skills for the project prior to the project, and during the project to ensure quality of operations,
- Proposition of tools to help in the management of operations (software and hardware).
Economic topics
- Analysis of the Operational expenditures (OpEx) of the project
- Analysis of the Capital expenditures (CapEx) of the project
- Global financial analysis of the project
Highlights
What is an ingrower scheme ?
In this scheme, the buyer leases land to small farmers (ingrowers) who receive comprehensive support, including irrigation infrastructure and water, quality inputs (seeds, fertilizers, agrochemicals), mechanized services (soil preparation, transplanting, harvesting), and technical assistance. These farmers operate under a contract farming system. The industrial entity provides them with the necessary resources upfront, then recovers costs by deducting them from the harvested paddy rice, which they must exclusively supply to the company’s mill. This model aims to be socially inclusive and economically scalable, securing a reliable rice supply chain while empowering local farmers.