The prospect of rice distribution business in Nigeria is very green for any investor who is currently searching for a business to invest in. Are you a business minded individual who is interested in distribution or supply business? Then consider taking Rice distribution or supply as the special business that will enable you smile to your bank.
You will agree with me that there is hardly a household within Nigeria that doesn’t eat rice. This means that there will be good returns on investment in this business. The importance of rice to an average Nigerian can never be overemphasized. This article will dwell on rice distribution or supply, and why you should consider it as a good investment opportunity.
Although the Minister of Agriculture and Rural Development Dr Akinwumi Adesina recently claimed that “Nigeria would become Africa’s largest exporter of rice in five years”, it is still a consuming economy with populace that eat tons of rice on a daily basis.
1. The Profit Potential
Depending on your financial strength, you can start this business with 5 million naira or less. Rice distribution business offers you a very good return on investment. For example, 50kg bag of regular seed of rice in retail price is sold for 8,200 naira, while the smaller seed is about 8,100.Now, consider the following profit potential of the business.
As a distributor or wholesaler, you can get a bag for N8,000, N8,100 or probably less from the importers. If you supply 50 bags of rice in a day at the rate of 8,200 naira, you will be making profit of 200 x 50= N10,000.
Here are some types of rice available in the country.
Ofada rice is a generic name used to describe locally produced rice considered by millions of Nigerians as one of the best. It is produced in the southwest and southeast Nigeria. Compared to others, the price is a bit on the high side, but the demand is high because nutritionists believe that it gives more nutrients.
Stallion/Aroso rice is one of the largest and widely distributed rice worldwide, with high qualities and special brands across the globe.
The following are some of the Stallion brands: Caprice, Tomatoes King, African Princess, Caprice Gold etc. These are very common in the Nigeria markets.
This is another kind of rice that is very good and of high quality because of the production process.The good news about this type is that it has a unique sensational taste, gluten free and contains eight essential nutrients such as amino acid, sodium, folic acid, etc. It has a very unique aroma that makes it stand out. It is mostly consumed in francophone African countries.
The brown rice is a whole grain with a mild, nutty flavor and chewier i.e it requires a lot of chewing before it can be swallowed.
Brown rice is more nutritious than the white rice and it is mainly found in supermarkets or mega supermarkets.
Where to buy from
Presently, there are different kinds of rice in the Nigerian market. Whichever you want to supply, you can get them from the market.
As far as Lagos is concerned, you can find this rice in the following markets: Daleko Market, Mile 12, Alaba Rago and some other places.
Irrespective of the Nigerian city you are, there are thousands of retailers scattered across the city who are willing to buy. So, if you invest in this business, you will definitely smile to the bank.Word of caution: Try as much as possible not to sell on credit.
2. The Level Of Consumption
The Nigeria population has triggered many investors. In addition to other natural endowments, Nigeria has great business opportunities which now includes rice as a great market. The Nigeria population is being estimated as over 170 million people, according to the United Nations (U.N).
3. The High Level Of Demand
The country’s increasing population, and the rate of food consumption (especially rice) are essential for any business minded individual to make real money. It is important that you take a close look at the Nigerian market. Even in your locality, you will agree with me that the high level of retailers in such places are much, and when you consider the distance where such goods are transported from to get to their destination,such people will be inclined to buy from you, if you open up a wholesales store in that locality.
You can inform retailers of your business for you to supply the required quantity to them; while you carefully consider the amount of credit that could be granted within a short time period.
Consider this piece of information and invest wisely. We therefore, wish you success, as you build your dreams!