How To Start Rice Business, Milling, Packaging And Distribution

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rice packing business

Rice business is now a hot cake venture l. It is a staple food in Nigeria, Africa and most parts of western countries. Rice is a kind of food that is eaten everyday all over the world. The old, young and children eats rice but children love eating it the most. Gone are those days it was only eaten in the home of the rich. For some people then they only cook rice on Sundays while others only on Christmas day.

Today if you check the menu of some families, many will have rice in their daily list. Food is one of the basic necessity of life. Whether there is recession or not food items will always sale. Rice is a staple food in Nigeria, Africa and most parts of western countries.

The ban on rice importation in Nigeria has created opportunity for rice business to grow before now rice was imported from Thailand, India, Brazil etc. We now have many rice farmers, States are now planting rice example Borno, Sokoto, Kebbi, Akwa Ibom, Lagos, Ebonyi, Anambra, Abia, Cross River etc. With the growing population in our nation the business will ever remain evergreen. More than 22 million bags of rice is consumed every month in the country.Rice business

HOW TO START RICE BUSINESS

There are many ways to start rice business, you can be; a rice farmer, farm worker in a rice farm, a miller or buying of already process rice to package. But if you are into rice farming it will pay you more to add value to your farm business. Rice value chain opens opportunity for many entrepreneurs to participate in rice profit-sharing. Processed rice sells higher with more profits.

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SOURCE FOR CAPITAL

This is very important because you need it to start the business. It must not be too much money before you venture into rice business with #100,000 you can start. Collect money from family members, co-operative society, friends or save money from other small businesses.

CHOSE THE TYPE OF RICE TO SALE

Carry out feasibility studies to know which rice is consumed most in your location. Some people prefer long grains while others prefer the short grains. Get to know the popular rice in the market and note the popular ones. Example of rice include Ofada rice, Abakaliki, Faro, Nerica etc.

RICE MILLING

If you have the money you can buy the milling machines and be milling the rice by yourself. But you have to undergo training from experienced millers. Or you pay millers to process the rice for you. The miller should have:

  • modern equipment
  • Good knowledge in both parboiling and drying methods.
  • Good environmental condition; this should be put into consideration.
  • Our local rice is healthy for consumption on like the imported.

PACKAGING OF RICE IN BAGS

Purchase good quality packaging bags, sack or paper carton and give to graphic designers to put good designs on the bag for you. Con out a nice name for your rice business and stamp the name on the bag. Package them in different sizes such as quarter bag, ½ bag or full bag (50kg). You can take a clue on how brown rice sold in the supermarkets are packaged.

NOTE: small bags captures every class, the low, medium and high) so it will sale faster. Besides most rice producers use 50kg bags to package their rice. Is only few of them that uses small bags so you can carve a niche for yourself by maintaining the use of small bags.

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rice packing business eni best

MARKETING

Identify where market is and sale there. Supply to market traders, supermarkets, provision shops etc. Sale to family members, friends and neighbours. Use online/offline advert; use social media such as Facebook, Watsapp, Instagram etc. Get a shop opposite market, inside market, a busy commercial area. Others are community where there are no rice wholesalers etc.rw

COST OF PROCESSING PADDY RICE

Processing of rice depends on your location, it can be from #50-#100 per kilo.. A ton (1000kg) will be 100×1000=100,000 the price is not fixed it keeps fluctuating. You will get 90%, raw rice from processed rice paddy. Before now rice was #135,000 a ton and #16,000 for a bag.

Buy paddy rice from rice farmers or as a commodity from dealers in the market. My sister used to go as far as Ngorode market in Adamawa state to purchase paddy rice.

The processes involved in the production of rice:

  • Harvest the rice
  • Trash the rice paddy
  • Boil the paddy rice
  • Dry the paddy rice
  • Mill the paddy rice

After processing your rice paddy, dry them where stones will not enter if you have a rice de-toner the better for it.

HOW TO BECOME RICE WHOLESALER/DISTRIBUTOR

Before now you have to go to places like Aba or Lagos to buy rice in bags in large quantities and transport them to your State or location. Now that we have so many companies producing rice like the Olam rice etc. You have to contact them, register with them and deposit certain amount before you can start rice distribution. Also to start a wholesale rice distribution business; you have to deposit amount which may not be as big as a mega distributor.

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Open a rice city shop and start distributing to retailers and consumers.

WHY YOU SHOULD START RICE BUSINESS

  • It is very lucrative
  • Rice is not a perishable foodstuff, it can stay for about 4 years before it get spoilt.
  • The demand for rice is increasing every day. That means it is a sustainable business
  • Rice business can be started from home.
  • It doesn’t need any qualification the only requirement is willingness to start and execution.
  • Some companies for example Bournvita uses our local rice for promo

CONCLUSION

In conclusion make sure you are consistent in your rice business. I remembered when Ebony, rice came to Akwa Ibom we visited home then and I so loved the rice within a short time the rice disappeared from the market.

To tell you that rice business is a money spinner, the richest man in Africa has invested $1 billion dollars into integrated rice farming.

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