How To Start Rice Distribution Business

How To Start Rice Distribution Business

InfoGuide presents to you a concise and detailed plan on how to start rice distribution business in Nigeria.
It is a common knowledge that Nigerians and generally Africans consume large quantities of rice on a daily basis.

Rice is a staple food and the most popular cereal commonly found in ninety nine out of hundred Nigerian homes. The percentage of rice we consume is so high that local rice farmers cannot meet the demand. Hence, we resort to export.

This article will be helpful to those who may not be interested in rice farming as a result of certain limitations like financing, geographical limitations and availability of suitable farmlands.
Profitability of Rice distribution Business.

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One guarantee in the business of distributing rice is constant and steady demand level. The more and faster you sell your stock, the more you generate or circulate income with room for expansion.

There is no stagnancy in the business. Let us assume that you able to distribute 10 bags of rice daily at 20,000 per bag = 200,000 as against the cost price of 17,000 per bag x 10 bags = 170,000. You are likely to make 30,000 everyday.

Market Opportunities

As i mentioned earlier, there is a high and constant demand for rice in Nigeria. During festive seasons like Christmas, Easter and Ramadan, the demand triples and millions of bags are consumed. As a distributor you can supply rice to the following:

Hotels: Every hotel needs a food stuff supplier because bulk purchasing is cheaper and reduces costs of operations.

There are quite a good number of hotels in Nigeria and new ones keep springing up. The idea here is to locate the ones around you and make a deal with them.

Remember quality, pricing and cultivating good customer relationship gives you an edge over competitors.

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Charitable Organisations

Charitable organisations distribute thousands of bags of rice to widows, the sick and the less privileged. For instance, DemiCare foundation in Egbeda Lagos, feeds street kids with rice every Tuesday.

Others like kokun foundantion distribute not less than a hundred bags of rice to widows periodically. Locate an NGO that does this strike a good deal with them.

Restaurants and Eateries

You will be surprised at the amount of rice consumed daily at fast foods, road side bukas, eateries and restaurants. Supplying rice to anyone these is a boost to your business.

Foodstuff Retailers

These are commonly found in markets and streets. The are very many of them who still sell, don’t wait for them to approach you, meet with them and strike up fair deals.

Types of Rice Consumed in Nigeria

This paragraph will assist you in identifying the most marketable types of rice as a distributor.

Local Brown Rice

This is commonly grown in the Niger Delta region, Ebonyi state, Niger Benue region through Sokoto and Chad basin and in the south west region.

There are different species if the brown rice, in the south west the most cultivated specie is known as Ofada rice; in the east, a different specie commonly called Abakiliki rice is cultivated and the north we call it native rice.

The different species however have same features: they are short grained and brown in colour; the grains break easily, they come with chaff and stones.

They have low resistance to pests like weevils and some of them like ofada rice have a faint displeasing odour. The rice is unpolished and unrefined with parts of its bran intact.

Many people avoid it because of the stress of cleaning before cooking. The local brown rice is very rich in magnesium and calcium which are both necessities for healthy bones; it is an ideal for weight watchers as it is high in fibre.

Research has shown that brown rice reduces the risk of breast cancer in women and heart disease because of his high fibre contents and a phytonutrient called lignin.

It also lower cholesterol because of its oil contents, maintains the health of the nervous system as a result of its magnesium contents; the soluble fibre of brown rice helps in controlling blood sugar level.

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Polished Rice

This is brown rice that has gone through several changes in the milling process. It is polished, pre cooked or parboiled with its bran removed the coated with nutrients to enrich it.

The quality of most polished rice harvested and processed in Nigeria is mostly poor; this is because rice farmers lack basic equipment for thorough processing.

Polished rice also known as white rice has the husk, bran layer and germ removed. It has the highest demand in Nigeria because it is clean, not susceptible to weevils and last longer.

In public places, brown rice is only available on demand. Other than these two, we also have basmati rice, jasmine and doongara rice which are imported.

They are long grained and very rich in protein and glycaemia. These are more expensive than the ordinary polished rice and native brown rice.

Nigerian Rice Dishes

Rice is carby, nutritious and delicious when prepared in every form. It is economical, easy to cook and versatile. A must have in every food outlet and at events. Rice feeds the world but most importantly it feeds Nigerians. The following a few rice dishes in Nigeria:

Jollof Rice: A favourite in Nigerian parties, it is fondly called party rice. made with polished rice and rich tomato paste and seasonings, it is served with fried plantain, salads, meat, fish and moimoi. Nigeria has the best jollof rice recipe in the entire continent.

Fried Rice: Fried rice is polished rice made with vegetables like carrots, sweet corn, green beans etc it is a direct rival to the jollof rice but jollof still wins.

Coconut Rice: A combination of rice and coconut milk, garnished with crayfish, dried fish, king prawns or shrimps to give a delicious taste. It is also found in parties especially in the south south regions.

White Rice: this is rice boiled plained with a pinch of salt. Polished, ofada or basmati rice can be used. It can be served with stew, vegetable sauce, soup and any other broth of choice. There are still sevrl other rice dishes like palm oil rice, rice and stew and banga rice.

Read Also: How to Start Drinks Supply, Distribution and Marketing Business in Nigeria

How to Start Rice Distribution:

Training and Experienced: the basic necessity for this business is money and contacts. You don’t need any certification or qualification. It is simply ‘transactional’. Buy, find customers and sell. Repeat process to sustain business.

Funds Required: With about three hundred thousand naira, you can get enough stock of rice to start as a distributor. It is possible to start with even lesser amounts. You can raise funds by saving or getting a loan. Rice sells fast, repaying your loan will not be too cumbersome.

Management Strategy: You do not need too many hands. You need a vehicle for delivery and one or two sales assistants to help in cases of double orders and deliveries, taking of stock upon arrival and disbursement of orders.
Location: you can start this business from your house as far as there is space for storage.

Having a shop is however not a bad idea; make sure your shop is accessible and properly structured to wade of rodents and other harmful pests.

Marketing Strategy: Make your services available to homes, boarding schools, churches and others mentioned earlier by contacting them personally., advertising on social media and perhaps traditional media if you can afford the cost.

Read Also: How To Package Agricultural Produce In Nigeria

Conclusion:

With this article and a reasonable sum of money, you can delve into the business of rice distribution. Take note that the probability of breaking even in this business is higher than the probability of failing.

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