Divine Agribusiness Services is an innovative snail breeding company that is introducing unique species of top quality snails using intensive curtain method. It is seeking to build a snail breeding unit of 250m2. Upon expansion; It will increase to 1000m2 unit capacity.
Divine Agribusiness Services is a newly registered company, although, it had operated unregistered since 2016. Its trading arm has done over $5500 since it started trading about a year ago with a $1250 personal seed investment. This gives us a little geographical recognition and market presence in the region.
Divine Agribusiness Services is an innovative snail breeding company that is introducing unique species of top quality snails under intensive curtain method. It is seeking to build a snail breeding unit of 250m2. Upon expansion; we will increase it to 1000m2 unit capacity
There is a ready market for snail products, including export market which will bring foreign exchange earnings. In addition, Nigeria presently consumes 1.5 million of snails annually. There is a flourishing international trade in snails in Europe and North America. In France the annual requirement is about 5 million kg, over 60% of which is imported; the estimated annual consumption in Italy is 306 million snails.
In Nigeria, snail meat has traditionally been a major ingredient in the diet of people living in the high forest belt, where demand is seen to outstrip supply.
As more people become aware of the medicinal and other importance of snail meat, snail might go into extinction with time because the major source of snail supply to most Nigerian consumers is from the wild. In recent years, however, wild snail population have declined considerably, primarily because of the impact of such human activities as deforestation, pesticide use, slash- and – burn agriculture, spontaneous bush fires, and the collection of snails before they reach maturity.
Problem or Opportunity
Divine Agribusiness Services is an innovative snail breeding company that is introducing unique species of top quality snails under intensive curtain method. It is seeking to build a snail breeding unit of 250m2. Upon expansion; we will increase it to 1000m2 unit capacity.Touchstone Snail Technologies Limited,an Europe based company has offered to buy all the annual production of each snail breeding unit of 1000m² upon expansion. There is good market price for export too.
Solution (product or service)
Divine Agribusiness Services will be breeding Helix Aspersa Muller Snail, which are preferred snail species in Europe and around the world.
Divine Agribusiness Services will be producing over 6500kg snails in the first year with 20% and 50% growth in production in the second and third year respectively.
1. Royale Spring Farms,Lagos
2.Supreme Snail Farms,Abuja
3. Bolvicadel Enterprises, Ogun
4. Emelugo Investment,Lagos
5. Wiseiyke Snail Farm,Lagos
Advantages or differentiators
Divine Agribusiness Services has three competitive edges that will help them maintain strong growth rates, increasing their market penetration. The first edge is the innovative nature of breeding the snails through curtain method. Secondly, the Quality. Divine Agribusiness Services prides itself on the high quality Snails products. Third competitive edge is their affordability. Affordable will be the driving force behind generating interest, income and sales or revenue.
According to Irish Times(November,2016),The global market for edible snails is worth $1.769 billion .Our snail price per unit (kg) is $6.23 with a variable cost per unit of $2.71.It has a gross margin of 56.57% per unit.
Break even sales is $26383.46
Liquidity ratio is 2.8,3.9 and 6.7 in the first ,second,and third year respectively.
On profitability ,sales growth will climb to 59.4% and 73.4% for the second and third year respectively.
In 5 years time,we will expand our business and open a snail factory in Nigeria that can process snail meat and collect mucus, as well as grind snail shells into powder for fertilizer and poultry feed possessing.
Ratio Year One Year Two Year Three
Current Ratio 2.8 3.9 6.7
Quick Ratio 1.8 3.0 6.1
Debt to Equity Ratio 0.3 0.2 0.1
Debt to Coverage Ratio 0.3 0.8 2.3
Sales Growth 0.0% 59.4% 73.4%
COGS to Sales 43.4% 43.4% 43.4%
Gross Profit Margin 56.6% 56.6% 56.6%
SG&A to Sales 21.2% 13.9% 8.6%
Net Profit Margin 11.2% 22.3% 34.1%
Return on Equity 6.5% 17.1% 31.2%
Return on Assets 4.9% 13.8% 27.3%
Owner's Compensation to Sales 5.9% 3.8% 2.4%
Buildings/Cost of Materials 9,556
Electric Fence System/24V Power Supply 896
300kg Breeder Snails 2,150
Other Fixed Assets 555
Total Fixed Assets 21,490
Pre-Opening Salaries and Wages 153
Consulting Services fees 2,986
Snails' Feed 7,864
Labour Cost 56
Other Initial Start-Up Costs 7,167
Working Capital (Cash On Hand) 8,333
Total Operating Capital 29,694
Total Required Funds $51,184
Snail breeding has some challenges that need to be attended to with vigor. Several factors can greatly influence the growth of snails including:
-Stress (snails are sensitive to noise, light, vibration, unsanitary conditions, irregular feedings, being touched, etc.),
-Poor feeding, temperature and moisture.
Death of Snails: In Snail farming, one or many snails usually die because of overfeeding and overcrowding. Some factors such as heat and overcrowding causing that death can be controllable. This has been taken care of through the most innovative method of snail breeding which reduces moralities and doubles growth that Divine Agribusiness will be using.
Diseases: Sarkymite and other minor diseases are among problems faced by snail breeders.
Incubation/Acceleration programs accomplishment
Tony Elumelu Entrepreneurship Program
Young African Leaders Initiative-Business and Entrepreneurship