How To Start Grain Storage Business In Nigeria/Africa

0
1840
grain storage business

Grain storage business is a very cheap way of making millions within a year. You purchase the grains during surplus then fold your hands and wait for scarcity, you hail the grains and pocket your profits. Some agricultural produce appreciate overtime because of shortage of the produce in the market and increase in consumption rate. Food is largely or excessively available during harvest but reduce within few days. Some farmers don’t have the way withal to preserve crops and others because of pressing needs have to sell out their produce any how. It now presents opportunity for agriculture investors to grab. Grains storage business is very lucrative you can make 100% and above returns on investment.

For about 5 years now the prices of farm produce has consistently been on the increase. Appreciating between 50%-100% local farm gate to local markets even up to international market. Thereby creating opportunity to would be investors in the Agricultural value chain. The list of agriculture value chain are; seed companies, farmers, middle men, (market traders), processors,distributors, retailers and consumers. Whichever one you take part in provides profit but the margin differs. Market traders, distributors and processors make more profit in this chain. But in all market traders make the highest profit because they dictate the prices.Millet farming, cereal, grain storage business

Do you know that people who engaged in grain storage business end up making  more profit than farmers. It is better than fixing money in the bank. Which bank will give you 50% of your fixed deposit within 6 months.

Read Also:  How To Start Sub Distribution Business In Nigeria(Detail Guide)

BUYING AND SELLING OF AGRICULTURAL PRODUCE IN NIGERIA

Agricultural storage business is a process whereby commodities are purchased at a relatively low price either directly from farmers or wholesalers, stored and sold when the produce are no longer in the market or price shoots up drastically. Nearly all Farm produce are in excess during harvest time and become scarce in few weeks.

GRAINS TO STORE

There are many grains that can be stored. These includes;
Melon
Soya beans
Sorghum
Beans
Maize
Millet
Ogbono
Bambara nut (Okpa)
Sesame seeds
groundnut

We can share them into groups
1. Mainly for export
Sesame
Ginger
Cashew

2. Feed mill sector
Soya beans
Maize
Sorghum
Guinea corn
Millet

3. Commodity: for retailers/consumers

Beans
Melon
Dry pepper

BEST TIME FOR PURCHASE OF FARM PRODUCE (ENTRY POINT)

November-December
Bambara nuts (okpa)
Beans
Sesame
Sorghum
Soya beans

October-December
Pepper

September-November
Maize

August-September
Melon

BEANS STORAGE BUSINESS

Cowpea also known as beans come in different varieties with varying protein content and price variations. Types of beans are; company, honey, orobo, iron etc. Seed quality and market demand determines the price. White and brown beans are the two major colours available in Nigeria. The white beans are predominantly grown in up North while very few regions grow the brown beans which are highly priced.

Read Also:  How To Start School Business In Nigeria (Modern, Private)

To succeed in beans storage business, preservation is a major factor. You can easily lose money if you do not use effective preservation method. Because once beans is infested the value drops automatically.

During beans harvest you can buy a bag of beans for #20,000 and sale at over #40,000 during off-season. My sister usually go to village market in Adamaawa State sometimes as far as Taraba State to buy beans for storage. We stored some in drums kept at the garage and under tree but the drums well sealed. The ones in bags were stored inside a well ventilated room.

Investors in grain storage business preserve beans with chemicals that has expiry dates; Either that of 3 months or 6 months duration. You must wait for the months to pass before you start selling the beans. But some investors because of sudden rise in price and demand starts selling their beans before expiration of those chemicals.

Where to buy beans ?

Brown beans can be purchased in large quantities in Adamawa (mubi) and Taraba. You can purchased beans also from Kaduna, Nassarawa, Niger, Yobe, Bauchi, Kano States etc.

Read also: How to start a profitable melon farming business in Nigeria (Egusi)

This has been a major challenged because of the cancerous effort of those chemicals. Residual of the chemical is known to be retained in the grains and can be transferred to consumers. You can actually preserve beans and any other grain without the use of chemical.

MAIZE STORAGE BUSINESS

Maize is another good grains to store and sell later. So many things can be gotten from maize. It is processed into pap (powder/wet), agidi, corn flour for baking, for alubo like semovita etc. A bag of maize can be bought at # and sold costly during scarcity. About 68-75 modu make a 100kg bag of maize depending on the modu size. Maize is preserved just like other grains. Make sure the maize is dried, when it is not well dried it turns black. This is the activity of Aspergillus fungus that produces a liver carcinogen which is dangerous to health.

SESAME SEEDS STORAGE

Sesame also known as beniseed are used globally especially for sprinkled pastries applied on bread and hamburger. It is medicinal, the oil from it, is used for cooking and massaging of the body. The oil has the highest anti-oxidant when compared to other oil sources and are used in Pharmaceutical Industry. It may not be found in most local markets because it has become a major export commodity. Sesame seeds can be bought as low as #18,000 and sold as high as #70,000. It is predominantly sold in the North central; Nasarawa, Bauchi, Kaduna, Niger, Kwara. The purchasing price is majorly set by sesame seed agro commodity agents.Ogbono business, grain storage business

Read Also:  How To Start Kunu Zaki Drink Business Complete Guide

MELON STORAGE BUSINESS

Melon storage is another good business to start. It is grown commercially in large quantities by the people of Nassarawa and Niger State. Provided the melon is dried and kept in a ventilated place it can last till the next planting season with the shelf life intact. You can buy a bag of melon #30,000 during plenty and sell it as much as #60,000 even more during scarcity.

TIPS

You must know the time to store a particular farm produce, it should be during harvest when supply outweighs demand.

It is important to know when to sale your stored grains, it should be 4 months or at most 6 months from the time of harvest. When more than 50% of a produce have been consumed, supply will invariably increase while demand will decrease. You can store up your commodity for the next planting season.

Read also: How to start profitable red palm oil business in Nigeria: complete guide

When price goes up and you refuse to sell but wait for it to skyrocket it means you are planning to fail because of greed. You never can tell if demand will drop. I remember 2016 when the price of palm oil was outrageously high people make 3 times the amount they used in buying the oil. So in 2017 the number of people who stored oil increased. Coupled with the fact that red Palm oil from Malaysia and other African countries penetrated and flood the market. As at the time of Palm oil scarcity investors were making #1,000-#2,000 which didn’t go well with some of the investors who refused to sell. When eventually they sold the oil  some of them loosed. So avoid greed.

WHO SHOULD DO GRAIN STORAGE BUSINESS

Any body that has interest in grain storage business can do it successfully, provided you have the money. It doesn’t take all of your time. You only buy in bulk during surplus and sell them during scarcity.

Our brothers and sisters who stay abroad and are looking for what to do to produce good dividends should start grain storage business. You can determine when to sale your grains. Buy the commodities and store them with the sellers or rent a safe place for storage. It can be inside the market, every market have paid securities.

Another set of people who can do this business are the retirees. Instead of leaving your gratuity in the bank and be withdrawing it small-small until you exhaust it, you can engage yourself in this business. At least you will have something to hold on instead of idling away. Most pensioners who are not doing anything but sit in one place day in day out become prone to sickness and die quick compare to those who are active you can verify my claim.

Read Also:  How To Start Buying And Selling Of Foodstuffs In Nigeria

PROFIT IN GRAIN STORAGE BUSINESS

Grain storage business is very profitable as said. Imagine buying a bag of grain #30,000 and sell at #60,000. Assuming you bought 100 bags of grain that should give you #6,000,000. Lets say you spent #500,000 for transportation, warehouse, security and miscellaneous. You will be left with more than 3 million Naira for your pocket. Can you now see how profitable grain storage business is?. The gain increase as the number of purchase increases. If profit is this much when you sell on a wholesale basis; how much more when you retail them! Your guess is as good as mine.

HOW TO STORE GRAINS

Store grains in airtight containers such as drums, jericane that has cover and make sure the openings are tightened . As long as you don’t allow oxygen inside, the grains will be safe. Keep the containers in an airy environment or a well ventilated room.

CONCLUSION

Grain storage business is encouraged because instead of allowing food to waste away, it can be stored for money.

Also as a result of our population it is ideal we store for the future in other to have every food at all season. That is why grain storage business should be encouraged.

You may not go to the States to purchase the grains by yourself. There are trusted agriculture commodity agents you can use.

If you are interested in any of these farm produce, please contact us. Thanks

Maize                   #8000
Soya beans         #14000
Millet                    #10,000
Sorghum              #10,500

The grains can be delivered anywhere; take advantage of the ongoing harvest season and start grain storage business today.

Please follow us on Facebook and Twitter. Use the comment box for your questions and get a prompt response and don’t forget to subscribe to our newsletter below, just enter your name and email address.
Lastly, if you enjoyed this post, why not share with it your friends by making use of the share buttons below the newsletter form! In case you want us to write on any other topic, please let us know in the comments section or contact us.
We appreciate your support Thank you

JOIN OUR NEWSLETTER
Join over 3.000 visitors who are receiving our newsletter and learn everything you need to know on agriculture and business.
We hate spam. Your email address will not be sold or shared with anyone else.

LEAVE A REPLY

Please enter your comment!
Please enter your name here