Nigerian rice branding, packaging business, by Agbaji Chinedu

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Nigerian rice branding, packaging business, by Agbaji Chinedu

Today’s Agribusiness

Rice is an increasingly important crop in Nigeria. It is relatively easy to produce and is grown for sale and for home consumption.

In some areas, there is a long tradition of rice growing, but for many, rice has been considered a luxury food for special occasions only. With the increased availability of rice, it has become part of the everyday diet of many in Nigeria.

Nigerians spend not less than N1 billion daily on rice consumption, while spending has drastically reduced, consumption has increased because of increased local production of the commodity.

“The consumption rate now is 7.9 million tonnes and the production rate has increased to 5.8 tons per annum,’’ this is as a result of CBN’s Anchor Borrowers Programme (ABP) with a total of 12 million rice producers and 4 million hectares of FADAMA rice land. Since the inception of the programme, it has created an economic linkage between Small Holder Farmers (SHF) and reputable large-scale processors, thereby increasing agricultural outputs and significantly improving capacity utilization of processors.

The season has come, the first phase of rice harvest has started, this, as a result, has forced local rice prices to come down from 26,000 to 22,500 and will still come down because many rice farmers will soon start harvesting.

Rice packaging and branding business

With the above, you will be sure of getting enough quantity of local rice to process, package and brand into your own name. The local rice is available in different states in Nigeria such as Kano, Kaduna, Enugu, Gombe, Niger, Kebbi, Ebonyi, Anambra, Cross River states etc.

All you need to do is to buy the 100kg bag local rice de-stone and colure sort it, colour sorting is optional, brand and bag into different kg such as 2kg, 5kg, 10kg, 25kg with your brand name and supply to shops. Branding in rice is key as your brand will sell your rice as far as it is good. Nigerians are after Nigerian rice without stones and chaff.

You can as well buy paddy from farmer’s process it yourself to the standard you want, package and brand to your name. you don’t need to own a rice mill before venturing into this business, there are rice mills that are there to provide the needed services for you.

Things you need to consider before going into rice branding and packaging

Capital: The capital you need depends on the scale you want to operate such as small, medium-large scale. But any amount from #250,000 will go a long way.

Rice variety: You really need to investigate all kinds of rice varieties in Nigeria. At least the popular ones in your area or areas they are cheap.

Market: Decide your market or better still, look for one. Your market is your business and not the product. Yes, the product is the value you offer for the money. But the people in your market are the ones that will pay. No pay no business.

Miller: This is where your work really starts. You need to go to the rural areas where there are local rice millers. Look for a miller with “modern” equipment and excellent parboiling and drying techniques. Also, lookout for a high level of hygiene. Alternatively, you can as well buy semi-processed rice in the open market and do the finishing yourself.

Mini Rice Mill: You can own a mini rice mill if you are buying semi-processed rice from the open market. The equipment you need is De-stoner, colour sorting (optional), bag locking machine and scale. This will make the business a little easier for you.

Your Brand and Packaging: After all the work has been done. You must present yourself, your product in the right package to attract the best buyers. A good name that will sell. There are bags in the open market you can buy and bag your rice if you don’t have the capacity to brand your own bag, these bags are called Nigerian rice bags such as Royal Nija Rice, Royal Crown, Jemila etc.

Finally, the return on investment is sure as a result of the ban on rice importation and Nigerians are now aware of the nutritional value of local rice to foreign rice which has little or no nutritional value. As far as you have good rice to your brand name you will sell and be patronised by Nigerians.

Agbaji Chinedu writes from Kaduna and can be reached on 08035004617.

Nigerian rice branding, packaging business, by Agbaji Chinedu

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