Rice Business in Nigeria: How To Start in 2022
Updated: Jun 15, 2022
Nigerian Rice Business in 2021: You may believe that this is impossible, but allow me to assure you that making a high profit of Naira from the rice distribution company in Nigeria is possible.
Simply follow the guidelines outlined in this article.
Rice is the most widely eaten staple food in Nigeria. This demonstrates that any rice-related businesses, whether it is rice farming, rice hulling, or rice wholesale distribution, would have a ready market for its goods or services.
Let us understand about the rice business distribution company, including why you should establish one and how to get started and become a large-scale wholesale rice distributor in Nigeria.
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What You Need to Get Started a Rice Business in Nigeria
To start and operate a successful rice distributor business, you'll need to have the following items in place:
1. A Rice Supplier
This should preferably be a rice farm since, as a wholesale distributor, you need to acquire rice in big quantities and at the lowest feasible price so that you can still earn money after paying for the logistics of transporting the rice from the supplier to the retailers.
Contact the best Rice Supplier in Nigeria.
2. Warehouse
Most of the time, you won't be able to sell the entire bulk of your supply to retailers at once since market demand may be low at times. This is when you'll need a warehouse to keep your rice until you're ready to send it out to retailers.
3. Capital
To become a wholesale distributor, you must buy in bulk from rice farmers or rice bulk suppliers and sell in smaller increments to retailers; hence, beginning a rice distribution firm demands a significant amount of cash.
The only exception is if you have a mutual understanding and arrangement with the farmers in which they supply you with commodities on credit, and you sell to the merchants and pay them off as soon as the sales are completed.
4. Transportation
You may be responsible for carrying rice from the rice field to your warehouse or delivering it to consumers when orders are placed as the distributor.
You may need a few trucks to manage the distribution process, or you may be able to work out a deal with a logistics business to handle the logistics.
With these four factors in place, you're ready to launch your new rice distribution company in Nigeria.
Follow the above 4 factors on starting your rice business.
Contact us for bulk rice importing to nigeria.
For any investor looking for a business to invest in, the rice distribution industry in Nigeria offers a very bright future. Are you a self-starter who wants to get into the distribution or supply business? Then explore rice distribution or supply as a unique business opportunity that will make your bank happy.
You would agree with me that rice is consumed by almost every family in Nigeria. This indicates that this firm will provide a strong return on investment. Rice's value to the typical Nigerian cannot be overstated. This essay will discuss rice distribution and supply, as well as why it is a smart investment opportunity.
Profit Potential in Rice Business
You may start this business with 5 million naira or less, depending on your financial strength. Rice distribution is a lucrative company with a high return on investment. For example, a 50kg bag of conventional rice seed costs 8,200 naira at retail, whereas the smaller seed costs around 8,100. Consider the business's earnings potential in the next section.
As a distributor or wholesaler, you may obtain a bag from the importers for N8,000, N8,100, or even less. If you sell 50 bags of rice each day for 8,200 naira, you would make a profit of 200 x 50 = N10,000.
Types of rice you can choose and start your business
Rice Ofada
Ofada rice is a general term for locally produced rice that is regarded as one of the best by millions of Nigerians. It's made in Nigeria's southwest and southeast. The price is a little on the expensive side when compared to others, but demand is high since nutritionists feel it provides more nutrients.
Stallion/Aroso
Stallion/Aroso rice is one of the most popular and extensively distributed rice in the world, with high quality and unique brands available all over the world.
Some of the Stallion brands are Caprice, Tomatoes King, African Princess, Caprice Gold, and others. In Nigerian marketplaces, they are quite prevalent.
Rice Basmati
Because of the production procedure, this is another type of rice that is extremely nice and of great quality.
The good news is that it has a distinct spectacular taste, is gluten-free, and includes eight important elements such as amino acids, salt, and folic acid, among others. It has a distinct fragrance that distinguishes it. It is mostly consumed in African francophone countries.
Rice (brown)
Brown rice is a whole grain that has a mild, nutty flavour and is chewier, requiring more chewing before swallowing.
Brown rice is more healthy than white rice and may be found mostly at supermarkets and mega supermarkets.
Jasmine Rice
It's a fragrant rice type with long grains, commonly known as aromatic rice. When cooked, it has a juicy, soft texture and a somewhat sweet flavour.
Broken Rice
Broken rice is rice grain pieces that have been broken in the field, during drying, transport, or processing. Separating broken grains from whole grains and sorting them by size is done with mechanical separators.
There is nothing wrong with broken rice because it is fragmented rather than faulty. It has the same amount of nutrients as unbroken rice. It's a budget-friendly bag of rice that can be used to make everyday recipes without sacrificing quality or aroma.
Where to Buy Rice in Bulk in Nigeria
Rice-Vietnam is Nigeria's leading rice hub, serving rice merchants, dealers, and wholesalers as well as rice importing and exporting companies. We also handle the purchase, storage, and distribution of raw food goods such as rice, sugar, spices, wheat, oil, and other similar items for both large and small businesses.
Contact us for rice business partner - (+84) 70 340 1976
The Most Important Reasons to Invest in Rice Distribution
1. Rice is not a perishable food like vegetables; if water is not allowed to reach it and it is stored on wooden pallets, it will deteriorate in at least four years. There's no chance you won't be able to sell your rice supply during this time.
2. Nigeria has the largest economy in Africa. Nigeria has a population of 170 million people, which is expected to increase to over 200 million by 2021.
Every month, nearly 22 million bags of rice are eaten, according to the data. As a result, rice has a large and expanding market in Nigeria.
3. In nearly every location, there is always a ready market. If you work as a wholesaler, you will always have a large number of merchants in your area that will buy from you on a regular basis.
4. Rice, like salt and sugar, is a necessary item. It's no surprise that Aliko Dangote, a wealthy industrialist, is spending $1 billion on integrated farming. This is a business where you can't go wrong.
How to Start a Rice Distribution Business Plan
1. Conduct a Feasibility Analysis
Even if your rice business has a ready market, you should still do a feasibility study on the need for rice in your area.
You'll need to find out whether there are any shops willing to buy your rice and how quickly they sell out to customers. How many customers they have, and how often they buy rice.
This will give you an idea of the market you have in your area; but, as a distributor, you are not bound to a certain place since you should be able to distribute quickly and widely both inside and beyond your nation, anywhere there is a demand for your goods.
2. Obtain the Required License to Become a Distributor-:
Some states may need you to obtain a licence in order to operate as a wholesale distributor. Find out what licences and other legal requirements your state requires and obtain them.
3. Obtain Rice from Rice Farmers
Once you've completed your feasibility study and determined that there is a demand for your goods, contact your supplier to have the first consignment of produce sent to you.
When you receive the goods, you have the option of repackaging it to create your own brand. Packing the rice in customised sacks might be part of the branding process.
4. Market Your Products to Retailers in the Area:
Now that you've completed the licence, supply, and branding phases, it's time to seek out merchants and market your product to them.
Also, chances are they already buy from other distributors, so you'll need to give them a cause to buy from you. Here are some incentives you may provide retailers to get them to buy from you:
Free Samples - Some retailers may be hesitant to order from new distributors because they are unfamiliar with the quality of rice on offer; one way to get past this is to provide a small bag of rice, say 2kg, as a sample to any shop who believes they are a possible client.
Discount - You may also provide a percentage discount to any distributor who orders a particular quantity of bags or refers other distributors to purchase from you.
Free Delivery - If merchants order a specific amount of bags of rice from you, you may offer them free delivery to any location of their choice.
Payment on Delivery - You may provide this service to shops in another place to earn their confidence; you ship the product, and they pay when they see it.
Credit Supply - Once you've secured a few regular merchants with a substantial client base, you may work out an agreement to supply them on credit, with after-sales payments.
5. Accounting
Once your firm is up and going, you'll need to keep track of your income and expenses using a decent accounting system.
This will allow you to keep track of your company's growth and make required changes to financial structures.
How To Start A Rice Farming Business in Nigeria
Let us also check more information on rice farming business in nigeria.
Because rice farming has become one of the most profitable types of farming in Nigeria, I'm confident the cost of beginning a rice farm in Nigeria in 2021 would pique your curiosity.
Rice is widely considered to be one of Nigeria's most popular dietary staples, with demand for the grain rising year after year.
Due to a lack of rice supply from local farmers, Nigerians spend billions of Naira purchasing and importing rice from other nations.
Because of the strong demand for rice and the high rate of rice consumption in Nigeria, local rice farmers have been able to stay competitive in the Nigerian agro-allied industry.
What Are the Requirements for Starting a Rice Farm?
Rice cultivation and processing in Nigeria comprises many key steps, beginning with planting and ending with harvesting and processing.
Is it difficult to cultivate rice? Rice is often inexpensive to grow. Rice is a simple crop to grow, and the output is usually remarkable. But it requires patience and hard work.
What is the cost of starting a rice plantation in Nigeria?
Land labour is one of the most expensive aspects of developing a rice plantation in Nigeria. Other costs will be spent on the rice nursery and processing.
Starting a giant rice farm in Nigeria would cost between 700,000 Naira (N700,000) and two million Naira (N2,000,000) in 2021.
Starting a small scale or micro rice farm in Nigeria might cost anywhere from 200,000 Naira (N200,000) to 500,000 Naira (N500,000), depending on the cost of land leasing in that particular region.
And one more important thing it will cost you “6-7 months TIME”.
Cost Analysis/Breakdown
Rice farming is profitable. And anyone can do it, with small investment.
Is it profitable to grow rice in Nigeria? Yes, absolutely!!! Rice cultivation is a lucrative agricultural business in Nigeria.
Rice cultivation is a simple and inexpensive enterprise to start. Because of the high rate of rice consumption in the country, it is extremely profitable.
What is the annual income of rice farmers?
In Nigeria, a mega rice farmer will make an average annual profit of Ten Million Naira (N10,000,000) or more, and a micro (small scale) rice farmer will make an average annual profit of Two Million Naira (N2, 000,000) or more.
How many times can you harvest rice in a year?
The rainy season in Nigeria is the best time for planting. If a rice farmer in Nigeria is reliant on the rainy season, he or she may only be able to harvest rice once a year.
However, a rice farmer in Nigeria who does not plant according to seasons would be able to plant and harvest rice three to four times a year if he or she plants a rice species that can be ploughed all year.
How Do You Start a Rice Farm in Nigeria?
Let's look at the real process of beginning a rice farm in Nigeria in 2021 now that you know how much it costs to start a rice farm in Nigeria in 2021.
The preparation of the farmland is the first step in the rice planting process. Clearing, levelling, and flooding (assuming the area isn't already marshy) are all part of the preparation.
Following land preparation, the farmer can proceed to seed airdropping/planting (some may utilize Nursery), fertilizing, and weed control.
Rice growers in certain areas begin by retaining a nursery, which is subsequently moved to the main field when the ground has been prepared.
Suggestions for a Better Result:
For a better result in rice farming, the farmer must exercise extreme caution from the start of the farm till harvest. As a result, the following points must be carefully considered:
Choose a decent rice variety.
Make use of a marshy, productive area.
Make sure that any weeds that may compete with the rice are removed.
Protect your rice from pests, birds, and other creatures that might harm it.
For a higher yield, add manure to your rice field.
On a yearly basis, evaluate the growth and outcome of your harvest.
When it comes to rice harvesting, how long does it take?
In Nigeria, the most prevalent rice species may be harvested in 3 to 6 months. In Nigeria, common rice species can be sown and harvested three to four times each year.
If you're thinking about opening a rice farm in Nigeria, you've probably already learned how much it costs.
Rather than waiting for white collar employment or for someone to hire you, you could start your own rice farming business now and start generating your own money.
Is the rice business profitable in Nigeria?
To be really honest, Rice cultivation or selling is, indeed, a lucrative industry in Nigeria. Rice is one of Nigeria's most reliable foods. If you're in the rice business, I can assure you that you can sell it in any region of the country and earn a profit.
However, if you're in the agricultural business, you'll need to examine the land area because food does not grow well in every section of the country.
So next time if you are looking for a rice exporter in nigeria, please do contact :
My HANG or David SEN
RICE-VIETNAM
Office Address: SCREC TOWER
L/C /13 04 Truong Sa / Q12 / District 3
HO CHI MINH City
VIET NAM
Vietnam Mobile: (+84) 70 340 1976
WhatsApp / Viber Number: +84 703401976
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