Do you want to start a moringa farm and need to write a plan? If YES, here is a sample moringa farming business plan template & FREE feasibility report.
Moringa farming is known to be a profitable business and over the years, it has evolved from small scale garden farm that is practiced in most countries to become a global industry. Although moringa farming is new in the united states of America, but if you are considering starting a commercial moringa farm in the US, you can’t get it wrong because all the parts of moringa (the root, stem, leaf and seeds) are edible and has several benefits.
It can be used as raw materials in quite a number of industries such as food, beverages, cosmetics, pharmaceuticals, herbal medicine et al.
Moringa has the potential to improve nutrition, boost food security, foster rural development, support sustainable land care and is used for water purification. It may also be used as forage for livestock, a micronutrient liquid, a natural anthelmintic, and possible adjuvant.
It is important to state that starting a moringa business comes with its own fair share of challenges, but that does not rule out the fact that it is indeed a profitable business venture. An aspiring entrepreneur can either choose to start a moringa farm on a small or large scale depending on their financial status.
A Sample Moringa Farming Business Plan Template
1. Industry Overview
Moringa is a crop that is widely cultivated for its young seed pods and leaves used as vegetables and for traditional herbal medicine.
It is also used for water purification. Moringa is a sun- and heat-loving plant, and does not tolerate freezing or frost. Moringa is particularly suitable for dry regions, as it can be grown using rainwater without expensive irrigation techniques.
The moringa tree is grown mainly in semiarid, tropical, and subtropical areas, corresponding in the United States to USDA hardiness zones 9 and 10. It tolerates a wide range of soil conditions, but prefers a neutral to slightly acidic (pH 6.3 to 7.0), well-drained sandy or loamy soil. In waterlogged soil, the roots have a tendency to rot.
A report published by Wikipedia shows that india is the largest producer of moringa, with an annual production of 1.2 million tons of fruits from an area of 380 km². Moringa is grown in home gardens and as living fences in South Asia and Southeast Asia, where it is commonly sold in local markets.
In the Philippines and Indonesia, it is commonly grown for its leaves which are used as food. Moringa is also actively cultivated by the World Vegetable Center in Taiwan, a center for vegetable research.
More generally, moringa grows in the wild or is cultivated in Central America and the Caribbean, northern countries of South America, Africa, Southeast Asia and various countries of Oceania. As of 2010, cultivation in Hawaii, for commercial distribution in the United States, was in its early stages.
As a matter of fact, with the recent advancement in technology, farmers can now comfortably grow moringa in a country where such crops can hardly survive and in places where there are few farming lands, people can make use of the rooftop (basement) of their houses.
One thing is certain when it comes to moringa farming, if you are able to conduct your market research and feasibility studies before choosing a location for cultivating your moringa, you are more likely not going to struggle to grow the business because there are always players in the food industry, cosmetic, toiletries, pharmaceutical, herbal medicine, water purification industries and individuals out there who are ready to buy from you.
Lastly, moringa farming is indeed a profitable business venture and it will pay you to cultivate other medicinal vegetable alongside moringa if indeed you want to maximize profit in this line of business. The good thing is that other medicinal vegetables do pretty well when they are cultivated alongside moringa.
2. Executive Summary
Go Herbal® Moringa Farms, Inc. is a registered commercial farm that will be based in the outskirt of Pearl City, Hawaii – United States. We have done our detailed market research and feasibility studies and we were able to secure a suitable farm land to start our commercial moringa farming business.
We conducted a thorough market research and feasibility studies and we were able to come to the conclusion that Pearl City – Hawaii is the right place to start our moringa farming business if we intend leveraging on economies of scale and highly suitable climatic conditions.
We want to supply immature seed pods, called “drumsticks”, leaves, mature seeds, oil pressed from seeds, flowers and roots as raw materials to several industries. Our commercial moringa farm is a going to be standard moringa farm hence we will be involved in both organic and non – organic moringa farming business.
Go Herbal® Moringa Farms, Inc. is well positioned to become one of the leading commercial moringa farms in the United States of America, which is why we have been able to source for the best hands and farm machineries to run the farm with.
We have put process and strategies in place that will help us employ best practices when it comes to commercial moringa farming business.
Go Herbal® Moringa Farms, Inc. will at all times demonstrate her commitment to sustainability, both individually and as a business, by actively participating in our communities and integrating sustainable business practices wherever possible.
We will ensure that we hold ourselves accountable to the highest standards by meeting our customer’s needs precisely and completely.
Go Herbal® Moringa Farms, Inc. is a family business that is owned by Mr. Anthony Martins and his immediate family members. Before starting Go Herbal® Moringa Farms, Inc., Anthony Martins has worked with some of the leading commercial farms in the United States of America; he has a degree (B.Sc.) in Agriculture Science from University of Hawaii.
3. Our Products and Services
Go Herbal® Moringa Farms, Inc. is a commercial farm that will be involved in cultivating moringa via greenhouse farming model and land farming for both the United States’ market and the global market. We are in business to cultivate organic and non – organic moringa in commercial quantities.
We will engage in the cultivations of moringa so as to supply the following in commercial quantities as raw materials for industrial use;
- Immature seed pods, called “drumsticks”
- Mature seeds
- Oil pressed from seeds
4. Our Mission and Vision Statement
- Our Vision is to become the number one moringa cultivator not just in Pearl City, Hawaii but also throughout the United States of America.
- Our mission statement as a commercial farm is to go into full – time cultivation of organic and non – organic moringa so as to supply immature seed pods, leaves, mature seeds, oil pressed from seeds, flowers and roots as raw materials to several industries not just in the United States of America, but also exported to other parts of the world.
Our Business Structure
Go Herbal® Moringa Farms, Inc. intends starting small, but hopes to grow big in order to compete favorably with leading commercial moringa farms in the industry. We are aware of the importance of building a solid business structure that can support the kind of world class business we want to own.
At Go Herbal® Moringa Farms, Inc., we will ensure that we hire people that are qualified, hardworking, dedicated, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders. As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the management of the farm.
In view of the above, Go Herbal® Moringa Farms, Inc. have decided to hire qualified and competent hands to occupy the following positions;
- Chief Operating Officer
- General Farm Manager
- Field Workers
- Sales and Marketing Executive
- Front Desk Officer
5. Job Roles and Responsibilities
Chief Executive Officer – CEO:
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
- Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for fixing prices and signing business deals
- Responsible for providing direction for the business
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
General Farm Manager
- Responsible for the planning, management and coordinating all farm activities
- Supervise other section managers
- Ensure compliance during project executions (especially in the construction of greenhouse)
- Providing advice on the management of farming activities across all sections
- Responsible for carrying out risk assessment
- Using IT systems and software to keep track of people and progress of the growth of crops
- Represent the organization’s interest at various stakeholders’ meetings
- Ensures that farming goals desired result are achieved, the most efficient resources are utilized and different interests involved are satisfied.
- Oversee the smooth running of the daily farming activities
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Defining job positions for recruitment and managing interviewing process
- Carrying out staff induction for new team members
- Responsible for training, evaluation and assessment of employees
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Responsible for financial forecasting and risks analysis.
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensuring compliance with taxation legislation
- Handles all financial transactions for the farm
- Serves as internal auditor for the farm
Field Workers/Contract Staff
- Responsible for preparing farm land for the cultivation of moringa
- Responsible for weeding or fertilizer and / or pest control application
- Handles farm implements and machines as instructed by the section manager / supervisor
- Assist in handling the harvest of seed pods, leaves, mature seeds, oil pressed from seeds, flowers and roots
- Carries out task in line with the stated job description
- Assist in transport working tools and equipment from the farm and back to the designated store room
- Handles any other duties as assigned by the line manager
Sales and Marketing Officer
- Identify, prioritize, and reach out to new partners, and business opportunities et al
- Identifies development opportunities; follows up on development leads and contacts
- Writing winning proposal documents, negotiate fees and rates in line with company policy
- Responsible for handling business research, marker surveys and feasibility studies for clients
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with customers
- Document all customer contact and information
- Represent the company in strategic meetings
- Help increase sales and growth for the farm
Front Desk/Customer’s Service Officer
- Welcomes guests and clients to the farm by greeting them in person or on the telephone; answering or directing inquiries.
- Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Consistently stays abreast of any new information on the farm’s products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients
- Receives parcels / documents for Go Herbal® Moringa Farms, Inc.
- Handles any other duties as assigned by the line manager
6. SWOT Analysis
Go Herbal® Moringa Farms, Inc. do not intend to launch out with trial and error hence the need to conduct a proper SWOT analysis. We know that if we get it right from the onset, we would have succeeded in creating the foundation that will help us build a standard moringa farm that will favorably compete with leading farms in the United States of America.
We are quite aware that there are several moringa farms all over Pearl City – Hawaii, which is why we are following the due process of establishing a business. We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be equipped to confront our threats.
Go Herbal® Moringa Farms, Inc. employed the services of an expert HR and Business Analyst with bias in the commercial farming industry to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives.
Here is a summary from the result of the SWOT analysis that was conducted on behalf of Go Herbal® Moringa Farms, Inc.;
Our strength as a moringa farm company is the fact that we have healthy relationships with loads of major players in the food industry, cosmetic and toiletries industry, herbal medicine and pharmaceutical industry; both suppliers and buyers within and outside of the United States.
We have some of the latest moringa farming machines, tools and equipment that will help us cultivate moringa in commercial quantities with less stress. Aside from our relationship (network) and equipment, we can confidently boast that we have some the most experienced hands in the business.
Our perceived weakness is the fact that we are just starting hence we may not have business experiences like leaders in the industry who have succeeded in adjusting and re – adjusting to make their business profitable.
The opportunities that are available to us cannot be quantified because consumers of moringa are aware of its benefits. As a result, manufacturers don’t have to spend vast amounts of money in educating consumers on its benefits and applications.
Although the demand of moringa is strong throughout the globe, growth rates in emerging markets such as India, China, Middle East, etc. are expected to be extremely high. Driven by rising economic growth, increasing disposable incomes and low market penetration levels, emerging markets are expected to represent major drivers of future growth. We are ready to take advantage of all the opportunities that is available in the industry.
Both the number of small local farms and larger commercial farms have been growing. Increasing imports of fresh farm produce will slightly constrain demand for moringa. Price fluctuations reflect supply levels, downstream processing activity, global demand and other factors.
The price of moringa and related herbal plants is expected to decrease in the coming year, presenting a potential threat to the industry. So also, bad weather cum natural disasters and unfavorable government policies can a pose a threat to our business.
7. MARKET ANALYSIS
- Market Trends
A notable trend shows that as a result of a rising prevalence of lifestyle related diseases, consumers around the world are becoming more conscious of their health. Driven by this trend, the demand of products containing natural ingredients such as moringa are being perceived by consumers to be safer and healthier than their processed or chemical alternatives.
So also, if you are conversant with rising technology and scientific development in the agriculture industry, you will quite agree that moringa farming via greenhouse commercial farming model is at the front burner. Greenhouse commercial farming is rapidly gaining entrance in our world today. Greenhouse farming gives room for greater control over the growing environment of various crops.
Dependent upon the technicality and specification of a greenhouse design, some of the important factors which may be controlled include temperature, levels of light and shade, irrigation, fertilizer application, and atmospheric humidity et al. Basically, Greenhouses are used to overcome the shortcomings of a piece of land, such as a short growing season or poor light levels. In essence, they are designed to improve food production in marginal environments.
8. Our Target Market
The end users of moringa and also those who benefit from the business value chain is all encompassing; it is far – reaching. Meaning that a moringa farmer should be able to sell his or her farm produce to as many people as possible. In essence we will market our Moringa to;
- Companies in the food and beverage industry
- Companies in the cosmetic and toiletries industry
- Companies in the pharmaceutical industry
- Companies in the herbal medicine industry
- Companies in the water purification industry
- supermarkets and stores
Our Competitive Advantage
Go Herbal® Moringa Farms, Inc. is fully aware that there are competitions when it comes to selling moringa, which is why we decided to carry out thorough research so as to know how to take advantage of the available market in the United States.
We have done our homework and we have been able to highlight some factors that will give us competitive advantage in the marketplace; some of the factors are effective and reliable farming processes that can help us sell our produce at competitive prices, good network and excellent relationship management.
Having a good technical knowledge of the product, access to high quality inputs, optimum capacity utilization, ability to quickly adopt new technology, ability to control total supply on market and upstream vertical integration (ownership links) are part of our competitive advantage.
So also, we have a team of hardworking and highly proficient farmers, a team with excellent qualifications and experience in commercial cultivation of moringa. Aside from the synergy that exists in our carefully selected team members, we have some of the latest and efficient vegetable and greenhouse equipment and we will be guided by best practices in the industry.
Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Go Herbal® Moringa Farms, Inc. is in the moringa farming industry for the purpose of maximizing profits hence we have decided to explore all the available opportunities within the industry to achieve our corporate goals and objectives. In essence we are going to rely only on the cultivation of organic and non – organic moringa so as to supply in commercial quantities the following;
- Immature seed pods, called “drumsticks”
- Mature seeds
- Oil pressed from seeds
10. Sales Forecast
From the survey conducted, we were able to discover that the sales generated by an Moringa farm depends on the size and nature of the farm.
We have perfected our sales and marketing strategies and we are quite optimistic that we will meet or even surpass our set sales target of generating enough income/profits from the year of operations and build the business from survival to sustainability.
We have been able to examine the moringa farming market, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below are the projections that we were able to come up with for the first three years of running Go Herbal® Moringa Farms, Inc.;
- First Fiscal Year (FY1): $250,000
- Second Fiscal Year (FY2): $450,000
- Third Fiscal Year (FY3): $700,000
N.B: This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown that can impact negatively on household spending, bad weather cum natural disasters and unfavorable government policies. Please note that the above projection might be lower and at the same time it might be higher.
- Marketing Strategy and Sales Strategy
We are quite aware that the reason why some moringa farms hardly make good profit is their inability to sell off their farm produce as at when due. In view of that, we have put plans in place to set up a standard distribution network to help us maximize profits.
Our sales and marketing team will be recruited based on their vast experience in the industry and they will be trained on a regular basis so as to be well equipped to meet their set targets and the overall business goal of Go Herbal® Moringa Farms, Inc.
In summary, Go Herbal® Moringa Farms, Inc. will adopt the following strategies in marketing our commercial farm produce;
- Introduce our farming business by sending introductory letters alongside our brochure to stake holders in the food industry, cosmetic and toiletries industry, and the pharmaceutical industry, herbal medicine industry, water purification industry, food hubs, supermarkets, and grocery stores et al in and around Pearl City – Hawaii.
- Advertise our business and agriculture produce in agro – allied and food related magazines and websites
- List our moringa farms on yellow pages ads
- Attend related agriculture expos, seminars, and business fairs et al
- Leverage on the internet to promote our business
- Engage in direct marketing
- Encourage the use of Word of mouth marketing (referrals)
11. Publicity and Advertising Strategy
Any business that wants to grow beyond the corner of the street or the city they are operating from must be ready and willing to utilize every available means to promote the business. Below are the platforms you can leverage on to boost our moringa brand and to promote and advertise our business;
- Place adverts on both print (newspapers and magazines) and electronic media platforms
- Sponsor relevant community based events/programs
- Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, YouTube, Google + et al to promote our business
- Install our Bill Boards on strategic locations all around Pearl City – Hawaii
- Distribute our fliers and handbills in target areas
- List our moringa farms in local directories/yellow pages
- Advertise our moringa farms in our official website and employ strategies that will help us pull traffic to the site.
- Ensure that all our staff members wear our branded shirts and all our vehicles and trucks are well branded with our company logo et al.
12. Our Pricing Strategy
Some of the factors that will help you sell your farm produce at the right price that will guarantee that you make profits is dependent on your strategy while some of the factors are beyond your control. For example, if the climatic condition is unfavorable and if there are natural disasters in the location where you have your commercial farm, then it will directly affect the prices of your farm produce.
If you want to get the right pricing for your farm produce, then you should ensure that you choose a good location for your moringa farm, choose a good breed/seeds that will guarantee bountiful harvest, cut the cost of running your farm to the barest minimum and of course try as much as possible to attract buyers to your farm as against taking your produce to the market to source for buyers; with this, you would have successfully eliminate the cost of transporting the goods to the market and other logistics.
We are quite aware that one of the easiest means of penetrating the market and acquiring loads of customers for our moringa is to sell them at competitive prices hence we will do all we can to ensure that the prices of our farm produces are going to be what other commercial farmers would look towards beating.
One thing is certain, the nature of moringa farming makes it possible for farmers to place prices for their farm produces based on their discretion without following the benchmark in the industry. The truth is that it is one of the means of avoiding running into loss. The easier you sell off your harvest the better for your business.
- Payment Options
The payment policy adopted by Go Herbal® Moringa Farms, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payment options that Go Herbal® Moringa Farms, Inc. will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via online bank transfer
- Payment via check
- Payment via Point of Sale Machines (POS Machines)
- Payment via mobile money transfer
- Payment via bank draft
In view of the above, we have chosen banking platforms that will enable our client make payment for the purchase of moringa without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.
13. Startup Expenditure (Budget)
When it comes to calculating the cost of starting a moringa farm, there are some key factors that should serve as a guide such as the types of moringa species to be cultivated and the size and capacity of the moringa farm.
Besides, in setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to start a world – class commercial farm, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your farm is conducive enough for workers to be creative and productive.
Below are some of the basic areas we will spend our start – up capital in setting up our moringa farm;
- The total fee for incorporating the business in United States of America – $750.
- The total cost for payment of insurance policy covers (general liability, workers’ compensation and property casualty) coverage at a total premium – $9,400
- The amount needed to acquire / lease a farm land – $50,000
- The amount required for preparing the farm land – $70,000
- The cost for acquiring the required working tools and equipment / machines / fencing et al – $10,000
- The amount required for purchase of the first set of moringa seedlings et al – $50,000
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $40,000
- The cost of launching an official website – $600
- The amount required for payment of workers for a period of 3 months – $100,000
- Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $2,000
Going by the report from detailed research and feasibility studies conducted, we will need an average of three hundred and fifty thousand dollars ($350,000) to start a standard moringa farming business in the United States of America.
Generating Funds/Startup Go Herbal® Moringa Farms, Inc.
Go Herbal® Moringa Farms, Inc. is a family business that will be owned and managed by Anthony Martins and his immediate family members. They are the sole financiers of the firm, but may likely welcome other partners later which is why they decided to restrict the sourcing of the startup capital for the business to just three major sources.
- Generate part of the startup capital from personal savings and sale of his stocks
- Generate part of the startup capital from friends and other extended family members
- Generate a larger chunk of the startup capital from the bank (loan facility).
N.B: We have been able to generate about $100,000 (Personal savings $80,000 and soft loan from family members $20,000) and we are at the final stages of obtaining a loan facility of $200,000 from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.
14. Sustainability and Expansion Strategy
Part of the plans we have in place to sustain Go Herbal® Moringa Farms, Inc. is to ensure that we continue to make available fresh moringa immature seed pods called “drumsticks”, leaves, mature seeds, oil pressed from seeds, flowers and roots, deliver quality services, improvise on how to do things faster and cheaper.
We are not going to relent in providing conducive environment for our workers and also the required trainings that will help them deliver excellent services at all times. From our findings, another factor that kills new business such as ours is financial leakages.
In order to plug financial leakages, the management of Go Herbal® Moringa Farms, Inc. will adopt the use of payment machine and accounting software to run the business. We are quite aware that our customers are key component to the growth and survival of our business hence we are going to continuously engage them to give us ideas on how to serve them better.
We will not waste time in adopting new technology, best practices and diversifying what we cultivate in our farm. Go Herbal® Moringa Farms, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of.
Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
- Business Name Availability Check: Completed
- Business Incorporation: Completed
- Opening of Corporate Bank Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Leasing of farm land in Pearl City – Hawaii (preparing the farm land inclusive): Completed
- Conducting Feasibility Studies: Completed
- Startup Capital generation: Completed
- writing of business plan: Completed
- Drafting of Employee’s Handbook: Completed
- Design of The Company’s Logo: Completed
- Printing of Packaging and Promotional Materials: Completed
- Recruitment of employees: In Progress
- Building /construction of greenhouse and hothouse facility: In Progress
- Purchase of the needed farming working tools, machines and equipment: Completed
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business (Business PR): In Progress
- Farm land Treatment, Health and Safety Arrangement: In Progress
- Establishing business relationship with key players in the industry: Completed