How to Start Garri Processing Business in Nigeria
The word, “process” means to convert something from one form to another. “Business” on the other hand is the exchange of value for value, especially monetary value. So, Garri Processing Business here simply refers to the conversion of Cassava tubers into a fine-grained or semi-powdered food item popularly referred to as “Garri” in Nigeria for profits.
Of course, for you to run this as a business and succeed in it you need to carefully plan and sequentially execute this plan. Remember, our utmost goal is to make a profit in this business.
This article contains a business plan as well as a step-by-step workflow for executing this business the proper way. It shows at a glance how to start Garri Processing Business in Nigeria and make huge profits from it.
Now, you want to go into the Garri processing business for financial gains (i.e., to make money), isn’t it? Mind you, this is not Garri selling business but rather I am discussing Garri processing business here. For you to succeed in this business here are the 2 cardinal things that you need:
- Proper Market research
- Careful Plan Execution
Market Outlook and Profitability Overview
As a prospective Garri producer, you might want to ask, “Is there a market for this business?”
Well, the answer is YES, there is a huge market for Garri business in Nigeria and beyond. You see, Garri is and has been a staple food in Nigeria for many years. As it stands, there is no likelihood that this will revert any time soon.
Also, almost every household in Nigeria eats Garri in one form or the other. If Garri is not soaked in hot water and made into eba and thereafter eaten with soup, it could be soaked in cold water and drunk as a snack popularly referred to as “psype”.
Besides, the product is affordable – almost everyone in Nigeria can buy it. In some places, a cup of Garri can sell for as low as N30. This means that both the rich and the poor in Nigeria can afford this food product. Hence, its salability potential is very high.
1. Market Research Phase
Now, you don’t just rush into this business without a careful survey of the present market for this business. You need to do some forecasting.
Yes, we understand that this product is highly saleable, affordable, and widely consumed. But what about those who have been in this business long before you? Do you think you have a chance against them?
Do you know the current price for a bag of Garri in the market presently?
Do you know where you could sell your Garri faster after producing it?
Do you know the best seasons/times to produce and sell Garri in Nigeria for higher profits?
Do you know the production cost, source of raw materials, the machinery involved, staffing, and logistics to kick-start this business, keep it running and make a lot of profit from it?
These and more are what careful Market research on the Garri processing business will help you to discover. So, before you jump into this business, ensure that you conduct careful market research or survey on it. That will help you to avoid unnecessary losses and avoidable risks.
Based on the knowledge that you gain from your market research, you would be able to draft your Garri business plan. Yes, you need a good Garri business plan to avoid losses, save costs, and perhaps get a loan when the need arises in the business.
2. Execution Phase
Now that you have an idea of what to find out while undertaking market research on the Garri processing business, what would follow is the execution phase.
For you to execute this business properly, you need the following:
- Efficient Manpower
- Quality Tools and machinery
- Accessible and Affordable Raw materials
- Steady power and water supply
- A business space (i.e., a factory) and,
- Effective management.
All these hang on your Garri business plan and how qualitative it is.
Garri Business Plan – Why You Need It.
A Garri production business plan will help you to execute Garri business in Nigeria and make high profits and have minimal losses, lower operating costs, deficiencies. You can draft a business plan by yourself or you simply consult an expert business plan writer to help you with that. Even when you draft the business plan by yourself, try to show it to an expert to guide you on the technical aspects of it.
Your business plan should show the following:
- The startup, running, and recurrent costs (i.e. the cost of raw materials and inputs, labour, machines, tool, and equipment respectively)
- Expenditure analysis
- Risk analysis
- Your sustainability, Transfer, and Exit strategies
Pitching For Clients
In the course of conducting your feasibility study, one group of persons that you should identify is the prospective buyers of your product. In the case of Garri, the buyers’ list is almost limitless but even at that you still need to identify your core (key) customers.
For example, you need to finalize if your prospective customers will be wholesalers, distributors, or the end-users. Once you have done this, proceed to approach these people and let them know that you (or will soon be) in business.
This is called “PITCHING FOR CLIENTS.”
Pitching for clients entails creating awareness in the mind of your prospective customers and clients so that when you are done with your production, you would find a ready market to sell your product.
Now, when it comes to the Garri processing business, there are 4 parts to it. They are
- The Capital,
- Garri factory,
- The Machinery, and
- Marketing and Sales.
Setting Your Capital
How big you want your business to be is determined by how much you want to invest in it.
Bear in mind that you will buy equipment, tools, and inputs even if you operate this business from your home and/or with rented facilities. Yes, you can start small and grow into a big business as time elapses.
You don’t have to buy all that you need for this business at the start. You can rent some things like some of the machines you would use and get hired laborers that you would pay daily for the job done. If you are on a low budget, in-house staffing is not necessary. Simply hire laborers and pay them wages.
Also, to save the starting and running cost which comes with getting an office space, you can operate from home for a start. As you earn more money from the business, you may buy land and erect a factory on it.
However you look at it, anyway, this business needs about N300,000 for a low-budget startup especially if you are buying the major inputs like the cassava tubers and water. If you want to go into it at a medium-scale, N800, 000 should be enough. But if you want to build a full-scale Garri processing plant, you should keep between N5, 000,000 and N10, 000,000 for the business.
If you need a loan to start and effectively manage your Garri processing business, try CBN Agricultural Loan.
Getting A Space For Your Garri Processing Business
A well-drained soil especially sandy soil is highly recommended for erecting a Garri factory. The same goes for if you are processing your Garri from home. The floor of this piece of land should be well-cemented to prevent insects and pests from penetrating, feasting on, and infesting the product. Besides, sealing the place makes it neat, keeps flies at bay, and keeps the place hygienic.
It is on this piece of land that you would erect houses for storing your machines, tools, equipment, and your stores. The machines would process the Cassava into Garri while the stores would house the finished product, inputs, and implements. Other houses that you can erect within your factory are office spaces and a toilet.
You should sink your borehole to have a steady supply of water to the factory instead of buying the water. This will greatly reduce your cost of operation in the long term.
There are many machines used for processing Garri. Some of the ones you must have are Cassava fryer, Miller, cassava washing machine, cassava grinder/grating machine, fermentation rack, and hydraulic press.
Sieve and Trough may not be considered machines if we are looking at their sizes. They would be properly be categorized as “tools although there are gigantic Sieves and Troughs for processing Garri these days.
Sourcing Your Cassava Tubers
Cassava tubers are the main inputs or raw materials for this business followed by water. Well, you can decide to grow your cassava plantation and get your tubers from there. Though not a bad idea, this may be a costly thing to do especially in a situation that you do not have access to a free or leased piece of land.
Even if you have one, you would have to wait a long time for your Cassava to grow so that you may obtain the tubers and use them to produce your Garri.
But how can you be sure about that? It may turn out that at the end of the day you have a low yield and this could sabotage the plans that you had for your business.
Besides, it takes Cassava about 6 months to mature and yield. Would you wait this long when you want to start this business immediately and make a profit?
So, what is the better idea?
The more preferable thing to do is to buy the cassava tubers from Cassava farmers and dealers. That way, you are sure of being in business all year round.
You may own and grow your Cassava farm to complement what you buy from the vendors. But for a start, buy the tubers and use them to run your business. But ensure that your suppliers are consistent in supply, are within your reach, and are affordable. This way, you will stay in business for a longer time.
Garri Processing Machines, Tools, and Equipment
The list below shows some of the key machines, tools, and equipment for processing Garri. Some of them were mentioned somewhere in this article.
- Peeling machine
- Hydraulic press/Presser
INPUTS: The main inputs for Garri processing are Cassava tubers and Water.
Packaging, Marketing, and Sales
Garri from the factory is packaged and sold in 50kg Sack bags. 1 bag contains between 18 paint rubber and 22 paint rubber. Once your product is ready for sale, contact your prospective customers to come and buy. You should start contacting your prospective customers 2 weeks before packing the product and keep them on continuous notice until the product is ready for sale.
You can complement the effort above by doing outreaches on the internet and offline to get more people to know about your business.
For the online advertisement, you can run free and paid adverts on blogs/websites, Social Media, and Search Engines. Offline, you can advertise over the radio and TV. You can also advertise in Magazines and Newspapers. Word-of-mouth advertisement still works. So, you can use that too. Finally, you could speak at events and get people to know about your Garri processing business.
I know this article made sense to you. If it truly did, let me know in the comments section. You may also drop your questions and contributions. Sure, I will attend to them!