The cost of planting coconut per hectare is shown in the below tables.
Cost Analysis for One Hectare of Coconut
Year 1 | |
Cost of Land Acquisition | 100,000.00 |
Cost of Coconut Seedlings | 150,000.00 |
Fertilisers | 75,000.00 |
Manure | 10,000.00 |
Pesticides | 10,000.00 |
Cost of Transplanting | 10,000.00 |
Labour Cost | 50,000.00 |
Herbicides | 15,000.00 |
Farm Tools and Machines | 20,000.00 |
Farmland Preparation | 50,000.00 |
490,000.00 |
Year 2 | |
Fertilisers | 85,000.00 |
Manure | 5,000.00 |
Pesticides | 10,000.00 |
Labour Cost | 50,000.00 |
Herbicides | 15,000.00 |
Farm Tools and Machines | 25,000.00 |
190,000.00 |
Year 3 | |
Fertilisers | 95,000.00 |
Manure | 5,000.00 |
Pesticides | 10,000.00 |
Labour Cost | 50,000.00 |
Herbicides | 15,000.00 |
Farm Tools and Machines | 25,000.00 |
Cost of Harvesting | 20,000.00 |
220,000.00 |
Revenue Analysis
| Revenue Analysis | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 |
| Number of Harvested Coconuts per hectare | 10,000 | 15,000 | 20,000 | 30,000 | 30,000 | 30,000 |
| Price of Coconut | 150.00 | 150.00 | 150.00 | 150.00 | 150.00 | 150.00 |
| Total Revenue | 1,500,000.00 | 2,250,000.00 | 3,000,000.00 | 4,500,000.00 | 4,500,000.00 | 4,500,000.00 |
Profit Analysis
| Profit Analysis | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 |
| Total Revenue | 1,500,000 | 2,250,000 | 3,000,000 | 4,500,000 | 4,500,000 | 4,500,000 |
| Total Cost | 490,000.00 | 190,000.00 | 220,000.00 | 220,000.00 | 220,000.00 | 220,000.00 |
| Profit | 1,010,000.00 | 2,060,000.00 | 2,780,000.00 | 4,280,000.00 | 4,280,000.00 | 4,280,000.00 |
Assumptions of the Cost Analysis of a One Hectare Farmland of Coconut
In year 1, total cost or expenses is expected to be ₦490,000. These costs include cost of land acquisition, cost of coconut seedlings, fertilizers, manure, pesticides, cost of labour, farmland preparation, cost of transplanting and herbicides.
In year 2, total cost is expected to be incurred is ₦190,000. These costs include cost of fertilizers, manure, herbicides, farm tools and machines, pesticides and labour cost.
In year 3, total cost is expected to be ₦220,000. These costs include cost of fertilizers, manure, herbicides, farm tools and machines, pesticides and labour cost.
We envisage that the cost will increase by the annual inflation rate till the foreseeable future. Please note that a coconut tree can fruit for above 25 years. So you would be expected to incur some costs till the foreseeable future.
Assumptions of the Revenue Analysis of a One Hectare Farmland of Coconut
It is assumed that the coconut will start fruiting from the end of year 4. It should be noted that some varieties of coconut can start fruiting after 3 years. Each coconut tree is expected to produce 50 coconuts per tree. A hectare typically has 200 coconut trees, hence, a one hectare farm will produce 10,000 coconuts with a sales revenue of ₦1,500,000 (N150 per coconut).
In year 5, 15,000 coconuts are expected to be harvested with an expected sales revenue of ₦2,250.000.
From year 7 to the 25 – 30th year, about 30,000 coconuts are expected to be harvested each year with an expected sales revenue of ₦4,500,000. Please note that we have not factored inflation. We also assumed the sales price of coconut will remain constant which is impossible.
Assumptions of the Profit Analysis of a One Hectare Farmland of Coconut
Profit on palm oil in year 4 is expected to be ₦1,010,000. Profit in Year 5 is expected to be ₦2,060,000. Profit beyond year 5 is expected to rise significantly because of the expected increase in yield of the coconut.
Note to Computations
The data in the computations were gotten from public records. We did not take into cognizance the effects of inflation and the volatility in the value of the Naira.
Kindly note that the yield we assumed is conservative. Some varieties of coconut can yield 200 coconuts per tree.
You should do your own market research and due diligence before venturing into the business of coconut farming.
Should you need a detailed business plan, market research or feasibility studies for coconut cultivation in Nigeria, kindly reach us through sales@vegieconcept.ng.