Here in the post, we are going to give you a detailed guide on the steps to produce sugar in Nigeria. We hope this is useful to you.
Sugar is an everyday household consumable today in Nigeria; also it is used in bakeries and eateries where pastries, snacks and bread are being produced.
Many people may not know that this sugar we use almost every day is gotten from sugarcane, Yes, Its sugarcane. The sugarcane we get from the mallams that bring it from the north to other regions of the country.
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The North is the major producer of sugarcane in Nigeria because they are able to produce this in commercial quantities.
Every day people use sugar for a lot of purposes in Nigeria which makes it a valuable product in the market. Do you know you can be a producer of sugar?
But it will cost you a lot of money to set up the factory with the necessary equipment, employ workers and also gets it running, so it will be a huge investment which will be worth the investment because you are sure to get a sale every day.
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Profitability of the Business
There are things to look at in this business as to ascertain its profitability. Sugar is produced every day and is also sold every day because there are people who have need of it.
You are sure to have customers in homes, bakeries, confectioneries and caterers. With very few producers of this commodity, you can venture into it and make a great name for yourself in good time. All it needs is for you to start up your business.
Just as I said there are few producers of Sugar in Nigeria, if I am allowed to say, there is only one producer of Sugar in Nigeria which is Dangote, as there is no other producer that is known for sugar apart from Dangote Sugar.
Although before there was this popular sugar named St. Louis, but as the years have gone by, there is only one producer named Dangote.
Opportunities in the Market
There abide good opportunities for this business to thrive in Nigeria, due to the fact that there is only one major producer of sugar in Nigeria with a lot of consumers of sugar, this provides a broad market for sales and entry into the market.
This would require a startup from a particular region, being a major name with good and effective distribution of products, which will help in boosting your sales and entry into the market.
The competition present is a small but strong competition; small because there is only one competitor in the market, strong because the producer is a household name for years now with a distribution network spanning over Africa and Nigeria itself, which will make it a fierce competition if you enter into the market.
But it is necessary to capture a particular region first before moving on to another region, and little by little you will be a household name.
You will want to know by now how to go about this huge task of producing sugar in Nigeria and what you need and what it takes to produce sugar in Nigeria, if you are ready, let’s get to the business details of how to start the business.
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How to Start the Business:
1. Knowledge or Experience needed
For any business which one wants to embark on, he has to have total and complete knowledge of the business and how it works; you have to know the equipment needed for production, where to get them, how they work and every other necessary factor which you may need to gather for the effective running of the business.
2. Get your factory location
You will need to acquire your location which will be your factory site to begin the production process of your business. This location will not only contain your factory but also an administrative building to carry out admin and managerial duties of the business. For this, you may need vast acres of land.
3. Business name Registration and Licensing
You will have to get all these necessary documents before you bring in those heavy equipment you will need for production.
Get your registration from the corporate affairs commission which will make your business legal and your business name secured so another will not use it for any other business venture.
For the fact that you are producing an eatable product, you have to meet the body in charge of food regulation in the country which is NAFDAC and inquire about what is needed as a document or license to start up your business and if there are any license which you any need from any other body which you any not be aware off.
4. Technology Needed
The production process of sugar requires a lot of technologies, as there is equipment which you may not just readily get in Nigeria for the process.
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5. Equipment/Tools needed
There are certain equipment which you will need to begin your production process which i will list out here:
Sugar Drying Equipment
Each of these equipment has their various specific duties to perform in the process and all equipment are seriously needed. All these equipment could be gotten online at alibaba or you will have to go to China or India to purchase these equipment and have them brought to Nigeria and installed in your factory.
6. Raw Materials needed
Now when you must have gotten all the equipment necessary, you now have to get the raw materials needed for production of sugar which is sugarcane. There are a lot of farmers in the north who produce sugar cane in commercial quantities especially in Kebbi and Sokoto states.
Let me give a breakdown of how sugar is being produced
The first step is the cane preparation where the stalks are being cut and shredded in heavy equipment to disintegrate the materials.
Second step is the extraction of the juice which is rich in sucrose and is extracted from the cane by washing it in diffusers. Then the residue which is called bagasse is left behind.
Third step is the juice clarification, the juice has to be purified and this is done by heating it and adding lime to it. Then it is allowed to settle in vessels called clarifiers
The fourth step is Evaporation, the juice which is the filtrate consists of water majorly is then allowed to evaporate in evaporators which then produces a thick syrup.
Then the fifth step is called Crystallisation of sucrose to sugar crystals, the syrup is further boiled in vessels called vacuum pans and then tiny seed crystals are added.
Here the centrifuges are used to separate the sugar crystals which is the sugar itself from all other things, it actually comes out brown, but is kept and dried for further processing into white sugar, there are still a few processes it undergoes which mean the removal of impurities to get the purified and refined sugar.
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Funding needed and tips on how to source for funds
A huge investment is needed for this business. So it is advised that only those who have quite more than enough resources to undertake this business.
One should have his/her own savings which will be above millions to be able to start and maybe secure loans from commercial banks or the Bank of Industry which is open to production and manufacturing business ideas to help them with funds to start up their business. You can apply for a loan from the Bank of Industry online or locate their office in your state.
Packaging/Distribution and Marketing tips
What makes a product attractive and wanted by people is the packaging of the product. What sustains it in the market is the distribution and marketing network.
So for your business to gain ground and much market appreciation, there has to be good and attractive packaging, with a good distribution network to put your product in every market and then couple it with a good marketing strategy to enable the market to accept it and be aware of your product.
Make use of social media and advertisement companies to help promote your product and effective distributors who will move your product to every available market in your region.
A large workforce will be needed for your business, both skilled and unskilled labour and also a team of administrative and managerial workers to help with the admin and managerial duties of your business.
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The business will be a huge investment with a great risk but in business it is said “The greater the risk, the greater the profits” So for you to thrive in this business, you have to be open to the fact that there will be competition based on the fact that you are entering a monopolised market, But bearing in mind that you are creating employment for those who are unemployed.
Sugar is needed all-round the country so you can be sure of making sales and before it is up to 3years you can see your great income coming in.
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