How To Make Millions With Flour Business Anywhere
One of the best ways to develop any nation is through investment in the real sector. The real investor is the development of the productive areas that will generate employment for the unemployed youths, increase the nations’ GDP, encourages exports and generation of foreign exchange and at the same time create self reliance.
Any nation that neglects Agriculture, technology, and manufacturing is not moving towards economic development. For the nation to accomplish the vision 2020, there is need to develop the real sector.
The manufacturing/productive sector can only be developed by provision of the basic infrastructures such as electricity, provision of good roads and other basic amenities. The rural development is very important because when you talk of Agricultural development, you cannot achieve that in the cities.
Nigeria is blessed with vast natural resources. Apart from oil, there are other agricultural products that can be processed and exported to generate more foreign exchange like oil. Most of the crops such as cassava, yam rice, etc are grown in abundance in most parts of the country.
The topic in this investment profile is production, processing of these crops into flour for local consumption and export.
The Federal Government has been working very hard to promote the growth and development of cassava and other economic products such as rice. Apart from cassava flour, one can process yam, plantain, rice etc into yam flour, plantain flour, rice flour etc, which can be packaged carefully for both local and export market.
Taking Investment Considerations
Some of the fundamental considerations to make when looking for any investment areas to embark upon so as to increase local production are
(1) Availability of local raw materials
(2) Technology convenience
(3) Human Resources
(4) Capital availability
(5) Infrastructural adequacy
Of all these factors, the availability of local raw materials seems to be the most vital. It is based on these factors that the writer has carried out research and market survey for setting up of this project.
Flour has recorded a very high importation level in this county. Despite the input of few companies like Nigeria flour mills and others, the demand has overgrown the supply, hence some Nigerian companies resort to importation.
The Market Analysis
From statistics, about 60 percent of the total demands are sourced from overseas countries.
Looking at the applications of the flour generally, the demand for the envisaged products of the proposed project remains dutiful.
Flour is used in various projects as inputs or raw materials. It is used in making bread, biscuits (cookies), cakes, chin-chin, puff-puff, pudding, pancakes, and as a substitute for baking wheat flour. With the growth in the numbers of bakery firms, fast food industries, Biscuits producing firms, and other end-users of the product, the demand increases every day.
Our research indicated that this product could be sold to overseas countries located in America, Europe, and Asian countries. That means that flour business has a very good market.
Nigeria starch and flour are regarded as one of the best in the world today and have international demand and respect too. Also, some foreign companies within the ECOWAS region do come to Nigeria to purchase in bulk.
It should be pertinent to mention at the same time that anybody that wants to succeed in this business must not compromise on the internationally acceptable quality.
Raw Material Inputs and availability
Flour could be produced from cassava etc. The machines are made to use any of these products as raw materials. There is abundant cassava in all parts of the country. There are also various varieties of these products, therefore adequate care must be taken to use the appropriate variety for this project.
The main machinery and Equipment recommended for this project are Peeling machine, Grater, Fermentation tank, Grinder, flash Dryer, Siever, Sealing or Hand Sewing machine, international scale, and other miscellaneous equipment. All these machines can be fabricated locally for any capacity needed.
This plant can produce 2500MT of flour for a year or10MT per day, working for 250days days in a year at 8 hours per day.
By estimation, 624MT of wet tubers would be used as inputs to produce the same quantity.
Apart from locally made machines, there is provision for the use of foreign-made machines by prospective investors. These machines are produced in Europe and can be procured and installed on an agreement.
Production Processes and Charts
The production process for the production of flour generally is summarized below purchase and weighing of the raw materials; Sorting the tubers and washing them; Peeling & Slicing the raw materials into smaller units or pieces; Washing these sliced pieces; fermentation of the sliced pieces and washing thereafter; Grating to get mash either before or after fermenting; Drying and sieving, packaging and bagging into 2kg, 5kg, 10kg, 25kg, and 50kg packs.
The sizes can be varied to cater to individual foreign consumers according to agreed specifications.
The project can be sited in any part of the country since the inputs are grown in virtually all the states of the federation.
Estimated Number of Personnel
In a small scale staff strength of about 12 would be needed. The number can be more than this if it is planned to operate on a medium scale.
Projected Financial Implications and Analysis
The project can be started with an estimated sum of N16, 750,000. The cost may be higher than this if the project is to be of a medium or large scale.
Based on the investment analysis carried out, the project has very high returns. The projected return on investment is about 53 percent. It is more if the products are exported. The payback period is about 2 years depending on the level of dedication and experience of the employees.
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