Nigeria is a large country with many rice producing regions. Rice production in Nigeria has been steadily growing over the years, from 4.9 million metric tons in 1990 to 6.5 million metric tons in 2014.
With this growth, there are opportunities for entrepreneurs who want to start their own rice business and produce more rice within the Nigerian market or export it abroad, depending on what kind of business you want to begin with!
This blog post will teach you how to get started by discussing some of the steps that need to be taken before starting your first batch of 100kgs worth of raw materials needed for processing (rice).
This includes: sourcing your equipment; finding suppliers; determining where you will store your processed goods after they have been manufactured and determining the quantities you will need.
The first step in getting your business quickly out of the ground is to acquire some basic equipment for manufacturing rice- perfecting your designs through trial and error, which is better known as manual techniques.
The process involves several steps, beginning with sorting, fermenting, cooking (parboiling), steaming, drying and polishing the rice.
Before you can even begin to do any of this, you will need to source your equipment.
This is extremely important because you will want all pieces of machinery that are bought by yourself or getting from an existing manufacturer to be in good working order so that they don’t waste time and money (rusted gears in machinery can lead to rice grains sticking to it, for example).
The best way to acquire your equipment is through the internet. Posting on relevant websites (such as Alibaba) will make you able to access a wide range of suppliers overnight, and because most of these people work from their home offices, this means that they can deliver the goods within a month or less.
Find out which brands are recommended for manufacturing machines, such as Winnowers, Cooking Trommels and Paddy Washers (some of the most common kinds in use today).
It is also necessary to understand what kind of machinery you need to make and why before the actual purchase can be made — this is because you need to be able to explain yourself clearly and precisely, so that it will not take up too much of your time.
After you have done this, all that is left is testing out the machinery and see how long it takes for them to get manufactured in a factory; usually, the manufacturer will use different kinds of rice to test out the machinery and see how it performs.
After you have acquired your machines, you need to source your raw materials for processing –rice, which is also commonly known as paddy rice in Nigeria (the harvested rice stalks from fields).
Rice comes from a plant called Oryza Sativa L., and it grows on every continent except Antarctica; it grows in many parts of the world, although there are slight differences in rice quality.
This brings us to the question:
where do you get your raw material from? You have a few options here — first, you can either import paddy rice into Nigeria and process it yourself or you can try searching for villages which grow and harvest their own rice.
This is a more costly option because you don’t know the quality of the raw material that will be delivered to your doorstep; it can also take longer than expected due to customs checks which are placed in different countries by government officials.
If you go for this option, you will need to contact individual suppliers and have them deliver their own products to your place.
The cheapest way of getting your raw material
Rice, is through a third party which has already imported it into Nigeria. You can also purchase paddy rice directly from business owners who have their own farms in rural areas.
The best time of year for purchasing this kind of product is between the months of July and December, because during the rainy season, this is when rice plants are harvested.
Purchasing directly from farmers can be cheaper for you, but then again, it will depend on how much of a discount they are willing to accept as payment and also where exactly these farmers are located (because if they don’t live in an easily accessible place, transportation costs will be added to your farming costs).
Traders usually have a lower price range than farmers, because they are able to buy from it elsewhere at a higher cost (this depends on the location you choose to get your seeds from; for example, if you choose a trader over a farmer in the city as opposed to one in the countryside, there is a bigger chance of the rice being cultivated by machinery and not by farmers — this means that your seeds can be of lower quality than if you choose to purchase from a farmer).
You also need to measure out your production costs with tariffs on imported goods . This will help you figure out which option is better for yourself.
Before you purchase rice, make sure you know the prices of each option so that you can figure out how much to pay for which kind.
After your paddy rice is ready for processing, it is now time to start making your machines work — this can be done by mixing the paddy in a trommel which separates all pieces of unwanted debris, like stones, which will then be discharged at the bottom of the machine.
Next, a blower or a fan is used to blow air through the rice and remove all that are not supposed to be present in your finished product.
Then comes the drying process — this is done with hot air which can come from an electric heating element, gas burner or a fire.
The hot air blows over the rice to remove more water from it, leaving it dry and suitable for milling.
Then comes the next step in rice processing
Milling; this is done by using mechanical bits to rub against each other until they break up your rice grains into smaller pieces. Then you are left with flour; however, you still need to sort out the powder.
Next comes the polishing process — this is done by using jet air to blow away chaff and other unwanted pieces from your rice grains.
After this step, you’re left with brown rice which has only been polished enough for consumption.
You can also get a white variant of the same product if you choose to polish it further.
Milling , polishing and final packaging of your rice.
Your rice is now ready for consumption or even can be marketed to other consumers who want a different texture, color or flavor; this usually depends on what type of paddy rice you have imported into Nigeria.
The packaging of your final products is also up to you; but the goal remains the same — you want to make it as easy and convenient for yourself possible.
The best way to do this is by using machines which can automate every step of your production process from start to finish. This will save you time and energy if done correctly.
If you’re not good at handling machines and electronics, hiring another person who is better than you are to handle this step will be a good idea as well.
You can also use other equipment to help your production process go more smoothly; for example: a vibrating screening machine which helps sift out debris from the paddy rice in order to produce a smoother and cleaner end product.
Just as with the rice, you can also use machines to handle all of the packaging or even just part
Answer your question!
After all of this is done, you will then need to decide what kind of marketing strategy you want to take; for example: paying someone (an advertising agency) to promote your products or giving samples to someone for free (usually a restaurant owner) in order to make them popular.
You will need to decide what’s best for your business because different strategies work better with different products, so you should choose the one which fits your product.
After all of this is done, you’re all set — you can now answer your own question about importing rice into Nigeria.
How to start Rice distribution business in Nigeria
Nigeria is a fertile country with rich agricultural lands. It is home to some of the world’s most beautiful natural places, and offers amazing opportunities for adventure seekers.
That said Nigeria has been struggling economically in recent years due to various factors such as high unemployment rates, an insufficient infrastructure that limits economic development, corruption within government positions and lack of proper education among other things.
One business opportunity which will flourish regardless if these problems are solved or not would be rice distribution since Nigerians consume 2 million tons annually but only produce 1 million tonnes themselves.
This leaves room for growth before demand outstrips supply so this could prove lucrative investment into Nigerian economy given its need at present time despite what may happen later on down the line .
There are various rice distributors in Nigeria who import from their source, the Asian market. Rice is a staple food source that is consumed daily by many Nigerians all over the country but especially in the Western part of the nation where it’s consumption is almost twice as much as other parts of the country due to its affordability and fairly high availability.
Close to 30% of Nigerian families own rice grinders and require the grain to be imported from abroad. Rice is a great business opportunity in Nigeria because it’s very stable and any change in price won’t affect its demand all that much.
You can import as little as 50 bags of rice at a time, you can also increase quantities as soon as your customer base expands and starts asking for more.
The cost of the bags imported from abroad is minimal and as such there’s a lot of profit to be made by importing rice into Nigeria.
You can easily find an import company in one of the major cities where you will offer your services, but these companies are limited and help may not always be offered to new businesses so you need to be careful.
Some of the import companies in Nigeria are also struggling financially and may take too long before delivering your packs to you then it is highly unlikely that they will have any form of customer service or back up plan for when things go wrong.
You can even consider importing from other countries in Asia since the price is fairly high and they usually have a surplus of rice to be exported. For example, China has been exporting rice for some time now due to overproduction.
Their quality of their product is excellent and they are also a reliable source so you know what you’re getting when importing from them. You can save even more money by purchasing larger quantities at a time so when you find try to buy as much as possible from them.
Get an import license before transporting rice into the country since it’s transport excess amounts of goods without one and customs checks are frequent even for businesses with this type of license.
You can apply for an import license from the Nigerian customs office which is relatively easy to obtain. When you arrive with your shipment at the customs, you will need to fill out an arrival form and notarize it immediately after producing your documents.
After that you can then go through a health inspection of each bag and get them marked before they’re transported into the country by customs agents.
You should work with the company which you are importing rice from to ensure that they have been tagged properly so that when it arrives in Nigeria, customs can identify them quickly and easily before clearing your products through customs without any issue’s or delays.
You will need business bank account in order to import into Nigeria since the importers usually pay for the goods in advance after selling them to the exporters and they then send money directly to your account.
They will also be able to settle all of the required tax’s for you since they know which documents need to be submitted at customs each time a shipment is being shipped from their country.
You can get more information on this by contacting companies that are part of a Rice Importers Association in Nigeria since they already have the experience and know how to deal with this process.
There are many rice distributors in Nigeria who import from their source, the Asian market. Rice is a staple food source that is consumed daily by many Nigerians all over the country but especially in the Western part of the region.
Rice is one of the most important and highly consumed foods in Nigeria so it’s a great business opportunity if you can become an importer on rice into Nigeria.
Frequently Ask Questions[FAQ] About Rice Distribution Business In Nigerian:
Question: Is rice business good in Nigeria?
Answer: Rice is a profitable business to go into since it’s consumed heavily throughout the country.
Rice distribution isn’t an easy task however, especially when you’re starting out and trying to manage everything on your own.
It can be risky if you’re not organized and prepared for anything that could prevent you from making a profit.
Question: Is it profitable to buy rice from the Asian market and transport it into Nigeria?
Answer: Yes, it can be very expensive since some of these importers have had to purchase larger quantities at one time but the price is great and when you are importing from somewhere like China for example, the quality is much better.
Question: Are there laws for importing rice into Nigeria?
Answer: Yes, you will need to have an import license for each shipment of rice that you bring into the country and customs must inspect each bag before it can be released.
You can find this license online at the Nigerian custom’s office website or at certain embassies from Asian countries.
Question: Is it legal to import rice into Nigeria?
Answer: Yes, you can easily get an import license in order to export rice into the country since it’s a very popular and important product that is consumed daily by many Nigerians.
You must follow all of the guidelines presented though each time you are shipping in order to make sure that your company is run properly.
Question: Is there a Rice Importers Association in Nigeria?
Answer: Yes, and the Rice Importers Association of Nigeria can provide important information on how to import rice into Nigeria without any issue’s or concerns.
They can also direct you on how to properly set up your distribution business and import rice into Nigeria.
Question: How much does rice cost in Nigeria?
Answer: You can find some really low prices when ordering from Asia but this could delay the delivery time since you will need to have funds transferred into your account before they ship out.
The price is best when you place an order for a larger quantity since the exporters will be able to reduce the cost per bag. You should contact several importers in your area before placing your order so you can get multiple quotes.
Question: Do I need a business bank account when importing rice into Nigeria?
Answer: Yes, the importer will usually handle everything on their own but they will need to have a business bank account to handle money transfers, fees and taxes.
Question: How do I get started with my rice distribution business in Nigeria?
Answer: You should contact the Rice Importers Association of Nigeria first in order to receive direction’s on how you can begin importing rice into the country.
They will help you to get your business started and provide in depth information on how you can conduct business properly.
Question: How do I find an importing company?
Answer: The Rice Importers Association of Nigeria will be able to recommend a few companies that they have worked with in the past who are ready to help new clients.
You can also get a list of importing companies in your city and email or contact them to learn more about their business policies.
Question: What are the risks involved with rice distribution?
Answer: If you are having trouble managing every aspect of your company, this could be dangerous since you are responsible for the quality of the rice, storage and shipping.
It’s much easier to work with an exporter who will handle all of this for you.
Question: How do I get started buying rice?
Answer: You can start ordering directly from China or India but you must be careful when you are dealing with a supplier since there have been cases where they have shipped contaminated rice.
You may find an exporter in your local area who will be able to get the product that you are looking for.
Question: What is QC inspection?
Answer: Quality Control (QC) is when a wholesale buyer inspects the quality of each bag of rice before they purchase it from the supplier.
They will check for cracks, mold and bad odors so that they can be sure it’s a safe product before they buy it.
Question: Where can I find brokers that are willing to give me recommendations?
Answer: The Rice Importers Association of Nigeria is a great place to start your search since each of the members should be able to provide you with the information that you are looking for.
You should email several members so you can find out what looking for in an exporter and how much they are willing to pay.
Question: Where can I get more information on rice suppliers?
Answer: There are many articles online about importing rice from Asia and you can find some great information on the Rice Importers Association website.
You should email several importers to get their quotes before you make a decision about which company to choose.
Question: Where is the best place to store my rice in Nigeria?
Answer: The best place to store your rice will depend on many different factors such as humidity, temperature and the volume of your business.
Each importer will have their own storage facilities that will depend on how they keep things organized and protected from moisture.
Question: What are some issues to be aware of when importing rice?
Answer: Every country has different rules when it comes to labeling requirements so you must use caution when you are shipping rice to Nigeria.
You should check with so that you can be sure that they will accept the product and it can be delivered properly.
Question: What are some issues to consider when buying rice in bulk?
Answer: Depending on how many other customers there are, you may have to wait in a long line in order to get your specific product.
Keep in mind that you will need a lot of storage space once you receive your shipment and it’s best to work with someone who can take care of the details for you.
Question: What kinds of things should I focus on when looking at quotes for rice distribution?
Answer: There are many details that you will need to look at when comparing quotes so you must choose a company that is providing a good value.
The transport cost and rice grading policies are important factors to consider since they all have an impact on the price.
Question: What kind of shipping method should I use?
Answer: The shipping method that you choose will depend on the distance between your location and the supplier.
If it’s a short trip, then you may want to consider shipping via sea or air but if the distance is greater than 3,000 miles then you should discuss this with an .
Question: What kinds of rice are worth importing?
Answer: Rice that is imported to Nigeria will normally be of the medium and long grain varieties.
If your business is in a major city, then you may find that short grain rice is also available but it can cost more than the other types.
Question: Where are there “trading partners” for rice in my area?
Answer: You should check with some of the local wholesalers since they may be able to provide you with names of rice suppliers and brokers who are located closer to your business.
They should have the connections that you need so that you can create a local supply chain for your market.
Question: What kind of rice do Nigerians like most?
Answer: The two most popular types of rice in Nigeria are long grain and parboiled rice.
You will also find that many people like to add their own spices so they can create a tasty dish for themselves and their family.
Question: How much does long grain white rice cost?
Answer: The price of imported white rice will vary depending on the quality of rice that you are looking for.
You will need to research and determine if it makes more sense to order parboiled or medium grade rice since the pricing can be significantly different between these two options.
Question: Do Nigerians prefer brown rice?
Answer: Many people do not like brown rice, and it is typically only used during specific religious ceremonies.
If you talk to the suppliers, they will be able to tell you more about how much of a demand there is for brown rice in Nigeria and other developing countries.
Question: How do I place an order?
Answer: When you have decided which company to use, head over to their website and place your order.
You will be asked to submit the quantity that you would like, shipping information, and other details so they can create an invoice for you.
Question: How do I pay for my order?
Answer: Once the supplier has received your payment, they will process your shipment and prepare it for delivery.
You will need to pick a delivery date and method, send them your address, and confirm the shipping costs.
Question: What are some issues that I should consider when importing rice?
Answer: Since you will get charged taxes on the imported food, it can add up over time so make sure you work with a reputable supplier who can keep you informed about the current rates.
The price of rice will also vary depending on the type that you are buying so make sure you research prices and order the product that makes the most business.
Question: What kind of storage facilities do I need in order to handle my stock?
Answer: If you are working with a local supplier, then they should be able to store your stock free of charge.
They can also provide you with packaging supplies and tips for the best way to store your food so you do not need to worry about this area if you choose to import rice in Nigeria.
Question: Where are some of the largest markets for imported rice?
Answer: The largest markets for rice in Nigeria and other countries around the world are in metropolitan areas.
If you are located in a city, then some of these businesses will be small enough to handle your order but if you are in a rural area, then larger orders may need to be split up or shipped via air or boat since it is not feasible to use trucks.
Question: What is a good strategy for starting out with my business?
Answer: If you are just getting started, then it may be more beneficial to find a local supplier who can help answer your questions and handle all of the details involved with importing rice.
If you have the time and money, then you can import rice and sell it to your customers yourself which will help you build up your brand and increase profits.
Question: How should I store my long grain white rice without spoiling?
Answer: If you are looking for a long-term storage solution, then consider using an airtight container or food grade bucket with the lid sealed tightly.
Make sure that the bucket is clean and dry before you add your rice, then place it in a dry area that will not get any water damage or exposure to the elements.
If you are planning on keeping your rice for less than 6 months, then a simple Ziploc bag with an oxygen absorbant packet should be adequate.
Make sure that you do not store your rice in the bag for an extended period of time as it can cause some problems.
Question: What is the best rice to use with takeout?
Answer: If you are looking for a nice blend of white and brown, then consider using Basmati or Jasmine which work well with just about any entree.
You can also experiment with wild rice and other mixes that are available at some grocery stores if you are feeling adventurous.
Question: What kinds of containers do I need to package my rice?
Answer: Before you start packaging your food items, make sure you have a solid understanding of proper sanitation guidelines so you do not end up contaminating your food with harmful bacteria.
Be sure to wash the individual containers in warm soapy water using a brush and then dry them completely to avoid any type of bacterial growth that can compromise your product.
Question: Is it possible to store rice in my home refrigerator?
Answer: Most home refrigerators will have a setting for preserving food items, but it is not ideal since the moisture in your fridge can cause the rice to mold or break down faster than you would like.
Question: What are some different types of long grain white rice?
Answer: Long grain white rice is white because it has no additives and it is generally healthier for your digestive system.
There are different varieties available, including the popular basmati rice which is not actually a type of rice but more of a variety that can be used in many different ways.
Other types include jasmine, sticky, and wild rice so you can choose one based on what dish you are hoping to prepare or what your customers prefer.
Question: How can I make a healthy rice pilaf?
Answer: To ensure that you are making the healthiest pilaf possible, then you will want to measure out all of your ingredients so they are perfectly portioned.
You should also combine them in specific order since some ingredients need to boil for longer than others.
If you are using dried spices, then be sure to add them in the end so they do not lose their flavor or potency.
You will also want to check the temperature of your rice once it has finished cooking since heating food to a high temperature can cause the loss of some nutrients.
Question: What is an easy way to make rice in the microwave?
Answer: To microwave your rice, you will need a glass or ceramic bowl that is larger than what you plan on cooking.
Add 1 cup of rice into the bowl and add 3 cups of water for each cup of dry rice. Cover with plastic wrap so it fits snugly over the bowl, then add your microwave for 20 minutes at a minimum.
You can also add seasoning to spice up the recipe if you are looking for a different flavor profile.
Make sure that you stir the rice well after cooking it in the microwave so it will cook evenly throughout.
Conclusion
There are a lot of steps you need to take in order to start your own rice business.
You have to set up the right infrastructure, obtain permits and licenses, and manage logistics for transportation or storage.
Once these things are taken care of, it’s time to think about what kind of product you want to sell – is this going to be rice wholesale or retail?
Do you plan on selling whole grains only (brown rice) or do you also want white grains like sushi-quality short grain Japanese rice?
How will customers find out about your products if they’re not being marketed online with SEO strategy?
The possibilities for success when starting a new business can seem very daunting at first glance because there’s just so much that needs doing before you are able to stand back and watch the money roll in.
But as I said before, ” if you don’t try you’ll never know.” Start small with a focus on what really matters and build upon it from there.
If you run into problems or need more information for certain aspects of rice business administration then look online because chances are that your question has already been answered by someone else.
Just make sure to use reputable sources, like the ones we’ve cited in this article, so that you don’t fall victim to fraud and misinformation.
