Operational and
Financial Projections​​

The calculator enables you to evaluate numerous scenarios by adjusting assumptions. These should be updated to reflect your particular circumstances.

The Wazobia team’s goal is to sell 500 MTs of G4 tubers by year five. It used the following business model assumptions as a starting point within the Seed Yam P&L Calculator and then customized assumptions around multiplication rate and cost of product. These assumptions should be updated to reflect your specific circumstances.​

Profit and Loss

Based on these operational and cost assumptions, Wazobia anticipates cash outflows of ~$430k through Year 4 before its first sale of seed tubers (~300MT for $360,000). It expects to breakeven in Year 5 after reaching its production capacity and selling ~500MT of seed yam tubers (G4) for $600k. ​
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Seed production is a capital-intensive business. One of the key enablers, particularly for vegetatively propagated crops like yam, is working capital.​

Wazobia’s 5-year cash flow view based on P&L calculator assumptions​.​

Screenhouse and field production of seed yam​

Based on Wazobia’s 500 MT target of marketable seed yam by Year 5, its management expects to require nearly 50 hectares of unirrigated land for G4 production, 7 hectares of irrigated land for G3 production, and a hydroponics-based screenhouse for the multiplication of breeder seed over two generations.​

Fixed and Variable Costs​

Cost of goods sold and overhead assumptions can be updated to reflect your organization’s specific situation and prevailing market conditions. ​

In Wazobia’s case, its management assumes that the cost to setup and manage a seed yam production system will increase from ~$48K in Year 1 to ~$330K in Year 5.

This increase is largely driven by the cost of field production, which scales in relation to the number of irrigated and unirrigated hectares that Wazobia cultivates.