Thursday, 4 January 2018

HOW TO MAKE A STAGGERING AMOUNT OF MONEY FROM MILLING AND PACKAGING LOCAL RICE FOR EXPORT

Folks, this is a truism. Virtually all households eat rice at least two times in a week in Nigeria. What this simply implies is that investment in rice is a big business. So, investors can start looking the way of investing in the packaging of local rice now that the government has placed ban on the importation of foreign rice into the country. Rice is one of the most consumed food in Nigeria and some other countries. However, we have 2 major type of rice and they are white rice and brown rice.

White rice contains high amount of carbohydrates which is not healthy for individuals struggling with weight loss and diabetics and better choice for healthy eating and this white rice is the one imported into the country.

Brown rice however has enormous benefits and some of them are:
The immerse presence of soluble fibre makes it a better choice for controlling blood sugar for a diabetic patient.
It is rich in manganese and this reduces the severity of asthma.
It is rich in antioxidants which has tremendous health benefits.
It lowers high blood pressure; prevent stroke and heart attack and many more.

The focus however is how investors can make money in packaging Ofada rice which is brown rice both for local and international market. With more Nigerians living in diapora, you will definitely record a good return on investment.

Packaging is an interesting aspect of rice production and you don’t really need to go into farming of the rice. However you can either do the milling yourself or take it to the commercial milling operators and all you need to do is just the packaging.

However below is the process which will grant you the success you desired:
MILLING
The process involves the following: Pre-cleaning, Dehusking, Paddy removal, Polishing or whitening Grading and separation of white rice

MIXING
Mist polishing, Weighing of rice, Bagging of rice

RESEARCH
Do your research and know about the rice milling and packaging business. Get your hands on the available documents you can get that can help you in the business. If you have a rice milling factory in your area, visit the place to know the mode of operation and some equipment. The knowledge will give you a clear picture of what you need and expect from the business.

BUSINESS PLAN
The business plan should contain all the money required to buy and set up the business, a number of people you intend to hire, profit and loss analysis, cash flow analysis and the projected rice mill business. The business plan is what will keep you on track when you want to deviate from the business goals. It also is another document that you can use to attract investors.

FUNDING
Since you know the money you need for capital and recurrent expenditure, then you can begin sourcing for the money that you can use to finance the rice packaging business. You can ask family and friends, look for investors or loan to finance the business. Using your business plan, it becomes easier to convince investors to build the business.

LOCATION
Get the land you intend to build your rice mill and packaging factory. The location should be in a place that will be easily accessible to both young and old. The land should have enough space for sun drying the rice, setting up the rice mill and storage place. You’ll need to put a structure that should have a place for drying and storing, a place where the process of rice mill takes place. Create a section where you can receive customers and sell your item.

EQUIPMENT
In the rice milling business, you’ll have to get some equipment in other to carry on the process of rice milling successfully. Some of the modern rice milling machines are: Rice cleaning machine, Rice de-stoner machine, Paddy husker machine, Rice color sorter, Paddy separator machine, Rice whitener machine, Rice polishing machine, Grading machine, Grain dryer, Measure and packing machine, Rice milling detection machine, Lighting equipment. Most of the equipment are durable and stands the test of time. Some of the equipment can be fabricated. The fabricated one will be less expensive compared to the real one. However you will need to be sure that the fabricated machine will do the work it is meant to be else, it will amount to waste of money.

BUSINESS REGISTRATION
Register a business name with the Corporate Affairs Commission (CAC) to give you a unique identity. Once you build a reputation, it’s your name that will keep singing a good song. It also prevents other business from stealing your identity. Besides registration with the CAC, you may need to get all necessary certification from agencies like NAFDAC, SON and other state authorities.

EMPLOYEES
It is important to hire good hands to work for you. In rice milling and packaging business one important factor to consider when hiring people is their experience. This will ease the stress going through the process of training before commencing operation. It is important to hire both technicians and administrators. The technicians are responsible for operating and maintenance of the machines. While the administrators do the paperwork on a daily basis.

RAW MATERIAL
The rice milling business success will be on how you maintain production all year round. Getting raw materials from guaranteed sources is really important. You can buy rice from farmers or using the farmers market.

PRODUCTION
By now, you must have everything in place. You can go ahead and begin production. Packaging is really important. In other to get people to notice your product in the marketplace, you will need to package your product in a customised sack or other packaging materials. Attractive designs help in marketing. However, you can hire a graphic design firm to do the designs for you.

PRICES
Set your packaged rice prices. The price should be competitive to attract customers. You can do a market research to know the prices in the market before setting your own. But you have to make sure it covers all expenses and brings profit. The prices for suppliers should be different from consumers.

MARKETING
Create awareness for your packaged rice using social media, television and radio adverts, and print media to pass the message. Do a road show, hold raffle draw to attract and further expose your products. Build your chain of distributors. You can build a chain of distributors who can help sell your products by giving incentives them. 

Have you heard this? Many Nigerian exporters have been defrauded of huge amount of money in the process of exporting commodities to foreign countries. Do you know why? They were not trained on export operations, management, documentations and the best methods of payment in export trade. This is terrible!!! Nigerians cannot continue to lose money to foreigners in the course of export business. Exporters, why don’t you get a practical manual that teaches the stages of export trade from processing and packaging of commodities to receipt of payment by the foreign buyers. It teaches export operations, export management, export documentations and methods of payment in export trade? It is a contemporary step-by-step guide to export trade. It tells all the contemporary dynamics in export trade. To get it, click on the link below: