Business Plan on Soy – Dawadawa Production from Soya Beans Seed in Nigeria

Soya beans (Glycine max) are a highly versatile leguminous crop, valued for their high protein and oil content, averaging around 40% protein and 20% oil.

Globally, they are used in the production of soy milk, soy flour, tofu, textured vegetable protein, soy oil, and soy cake. In Nigeria, one of the most culturally significant products derived from soybeans is Dawadawa, also referred to as “Iru” in Yorubaland and “Ogiri-Igala” in other regions.

This fermented food condiment is widely used across Nigerian households and West African cuisine to enhance the flavor and nutritional value of soups, stews, and sauces. Rich in protein, essential amino acids, and minerals, Dawadawa also serves as an affordable nutritional supplement, particularly in rural communities.

The market demand for Dawadawa in Nigeria remains robust, driven by its integral role in traditional cooking and growing awareness of its health benefits. With Nigeria’s population exceeding 220 million and urban consumption on the rise, there is a clear opportunity for industrial-scale production of hygienic, standardized, and packaged Soy-Dawadawa. Currently, most Dawadawa is produced using traditional methods, which often compromise uniformity, quality, and shelf life, creating a significant gap that modern processing can fill.

Raw material availability is not a limiting factor, as Nigeria is among the largest producers of soybeans in Africa, generating roughly 1 million metric tonnes annually. The Middle Belt states, including Benue, Kaduna, Nasarawa, and Kogi, are the primary production zones, ensuring consistent supply for industrial processing. The use of improved soybean varieties such as TGX 1448-2E allows yields of 2.5–3 tons per hectare with two cropping cycles annually, further supporting reliable raw material sourcing.

The production process for Soy-Dawadawa involves cleaning, fermenting, drying, milling, and packaging, with modern methods ensuring uniform quality, improved hygiene, and extended shelf life. Equipment for these processes can be locally fabricated or imported, making the technology accessible to medium and large-scale operators. The proposed plant is designed to process one ton of soybeans per day, operating at 90% of installed capacity for a single eight-hour shift over 300 working days per year. This level of production is expected to generate approximately 2.7 million sachets of 100 grams each annually, based on an input-output ratio of one ton of raw soybeans to 0.75 tons of finished product.

Investing in Soy-Dawadawa production in Nigeria offers substantial economic benefits. It adds value to locally produced soybeans, generates employment along the cultivation and processing chain, and provides a high-protein, affordable food product for domestic consumption.

There is also significant potential for regional export to neighboring West African countries where demand for traditional seasonings remains high. The project aligns with national goals for agricultural industrialization and food security, providing a modern alternative to traditional methods while meeting contemporary quality and safety standards.

Soy-Dawadawa production represents a commercially viable and profitable venture in Nigeria. With abundant raw materials, growing consumer demand, and opportunities for both local and regional distribution, the project is well-positioned to succeed while contributing to the development of Nigeria’s agro-processing sector.

Table of Contents

EXECUTIVE SUMMARY 1.0 Business Overview 1.1 Description of the Business 1.2 Vision and Mission Statement 1.3 Business Objective 1.4 Critical Success Factor of the Business 1.5 Current Status of Business 1.6 Description of the Business Industry 1.7 Contribution to Local and National Economy 2. Marketing Plan 2.1 Description of product 2.2 Product Packaging and delivery 2.3 The Opportunity 2.4 Pricing Strategy 2.5 Target Market 2.6 Distribution and Delivery Strategy 2.7 Promotional Strategy 2.8 Competition 3. Production Plan 3.1 Description of the Location 3.2 Raw Materials 3.3 Production Equipment 3.4 Production Process 3.5 Production Cost 3.6 Stock Control Process 3.7 Pre-Operating activities and expenses 3.7.1 Operating Activities and Expenses 3.8 Project Implementation Schedule 4.0 Organizational and Management Plan 4.1 Ownership of the business 4.2 Profile of the promoters 4.3 Key Management Staff 4.3.2 Management Support Units 4.4 Details of salary schedule 5. Financial Plan 5.1 Financial Assumption 5.2 Start -up Capital Estimation 5.3 Source of Capital 5.4 Security of Loan 5.5 Loan Repayment Plan 5.6 Profit and Loss Analysis 5.7 Cash Flow Analysis 5.8 Viability Analysis 6.0 Business Risk and mitigation factor 6.1 Business Risks 6.2 SWOT Analysis

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