How To Start A Watermelon Growing Business

This business idea is aimed at growing and marketing of watermelons. The idea is premised on harvesting 12,000 watermelons per quarter which translates into 48,000 watermelons per year. The revenue potential is estimated at NGN 3,600,00 per quarter, which translates into NGN 14,400,00 per year. The business has a good market demand throughout the year and can provide employment to the youths and women. The Project cost is about NGN 638,000 with a net profit margin of 84%.

Production process

Dig plenty of organic matter into the soil to provide the conditions watermelons need: a light, sandy, fertile loam soil that is well-drained yet retains moisture. Plant Watermelons after both air and soil temperatures have reached 65°F usually two to three weeks after the last rainfall. Direct sowing is best if your growing season is long enough for the plants to mature. For each plant, dig a hole two feet in diameter and a foot deep, and add at least a shovelful of compost or well-cured manure and a trowel or two of bone meal. Set hardened-off transplants into the ground at the depth they were growing in their pots. Sow seeds an inch deep in hills. Water thoroughly with compost tea. Allow plenty of space between plants. Apply a thick organic mulch to hold in moisture, Remove all covers as soon as flowers appear so that bees and other insects can pollinate the plants, and begin fertilizing with compost tea every three weeks and should be ready to pick about 3 months later.

Investment Requirements (CBN exchange rate -$1 to 415.37NGN) as of 18th of June 2022.

Capital investment item	Units	Qty	Cost in NGN	Cost in USD
Wheel Barrow	No.	2	32,000	77.039
Hand tools	No.	1	10,000	24.075
Land	acres	1	250,000	601.873
Total cost of machinery			292,000	702.988

Production and operating costs

Cost Item	Units	@ NGN	Qty/ quater	Pdn cost/ year In NGN	Pdn cost/ year In USD
Watermelon seeds	No.	10000	12,000	40,000	96.299
poles	No.	5000	2000	20,000	48.149
Mulches	No.	2500	100	10,000	24.075
Sub-total		17,500		70,000	168.525

General costs (overheads)

	Cost Per Month NGN	Cost Per Year NGN	Cost Per Year USD
Utilities(water)	3,000	36,000	86.736
wages	20,000	240,000	577.798
Sub –total	23,000	276,000	664.467
Total Operating Costs	109,500	346,000	832.992

Production is assumed for 312 days per year.
Depreciation assumes 4 year life of assets written off at 25% per year for all assets.
A production Month is assumed to have 26 days.

Project product costs and Price structure

Item

Qty /Quater

Qty/yr

Pdn cost /yr

NGN

Pdn cost /yr

USD

In NGN

In USD

watermelon

12,000

48,0000

3000

346,000

832.992

14,400,000

34,667.886

Profitability Analysis

Profitability Item	Per Quater	Per Year NGN	Per Year USD
Revenue	3,600,000	14,400,000	34,667.8865
Less production and operating Costs	109,500	346,000	832.992
Profit	3,491,000	14,054,000	33,834.894

Market Analysis

There is a growing market for fruits such as watermelon countrywide, especially in urban areas. Watermelons can be supplied to Fruit vendors, markets, hotels, supermarkets, and canteens.