How to start a cassava processing company in Nigeria — Cassava is a major staple food in Nigeria. The food item provides food for millions of Nigerians and beyond. It contributes significantly to the growth of the country’s economy. Cassava processing involves the transformation of the root crop into varying forms of products including cassava flour, garri, ethanol, starch, and more.
Starting a cassava processing company in Nigeria can be lucrative, especially with the increasing demand for cassava products here in Nigeria and beyond. The high demand for cassava has made a lot of entrepreneurs consider venturing into the cassava processing business. In this article, we will discuss the steps involved in starting a cassava processing company in Nigeria.
How To Start A Cassava Processing Company In Nigeria
Starting a Cassava processing company can be profitable, below is a step-by-step guide on how to get started;
1. Conducting market research
The first step in establishing a cassava processing company is conducting market research. This helps you understand the market demand for cassava products, define the target market for cassava products, analyze your competitors, identify trends in the industry, etc. You should also identify the different types of Cassava products such as garri, cassava flour, etc, and determine the ones with the most demand in the target market.
2. Secure funding
Starting a cassava processing company requires sufficient funding. You can either use your personal money or secure other sources of funding. Potential funding sources include bank loans, government grants, loans from family and friends, investors or partners, and more. Or better still, apply for government loans. The Nigerian government supports and encourages the cassava processing business, therefore, you can easily get government loans for the business. When obtaining your funding, ensure to consider all the expenses you might incur and estimate the right amount of money you need.
3. Register and obtain all necessary permits and licenses
After completing the market research and securing funding for your cassava processing business, the next step is to register the business. In Nigeria, it is mandatory to register your business with the Corporate Affairs Commission (CAC). You should also obtain all the necessary permits and licenses required for starting a cassava processing business in Nigeria. You should ensure to get the permits and licenses before starting the business.
4. Set up an area for your cassava processing business
You need a physical location to process cassava. You can decide to rent or build a place for establishing the cassava processing factory. Ensure to choose a strategic and suitable location for the factory. Below are a few conditions to consider when choosing a location:
- Is there a convenient means of transportation in the location? Are the means of transportation ideal for the transportation of raw materials and other finished products?
- Is there a steady electricity supply? And is there a sufficient source of water?
- You should also consider the distance of the factory to the market and raw materials. It is economical to choose a location close to the market and cassava plantation. This will help cut down the cost of transportation.
5. Acquire a good source of raw materials for your business
The major raw material for a cassava processing business is the cassava itself. You need to obtain sufficient cassava raw material supply. This can be sourced from cassava farmers all around the country. Therefore, it is important to establish and maintain good relationships with cassava farmers. This will enable you to have a steady supply of quality raw materials.
6. Obtain all the machines and equipment necessary for your cassava processing business.
After fully setting up your cassava processing factory and getting reliable sources for your raw materials, the next step is to acquire all the necessary machines for cassava processing. Some of the machines you will need to purchase include;
- Cutting machine
- Airflow dryer
- dry sieve
- Cassava washing machine
- Vibration sieve
- Frame filter press
- Auto fryer
- Cabinet dryer
- Cassava Chipper
- Manual fryer
- Scales and sealing machines
- 25 KVA generators
- Grater, etc.
When selecting the machines, it is important to check them properly and ensure they meet the required standards necessary for carrying out cassava processing effectively. Furthermore, you should seek the assistance of a professional or expert to help you with the installation of the machines after acquiring them.
7. Hire and train employees
After purchasing all the required equipment, it is time to hire employees. Processing cassava entails a lot of activities and you need to hire competent workers for them. You need quality control officers, machine operators, administrative staff, etc. To hire employees, we advise that you develop a recruitment plan to hire the best candidates. You could also train your staff to ensure they have all the necessary knowledge and skills to execute their duties effectively. Also, regularly update your employees with new trends in the cassava processing industry, to enable them to give you the best results and enhance their performance.
8. Create effective processing and distribution channels
You should design a processing plan and establish effective production processes that align with the market demand. This will help you obtain high-quality cassava products and increase your efficiency. Additionally, you should develop a plan on how to effectively distribute your products and ensure that they reach the target markets. This includes wholesalers, retailers, and consumers.
For better work performance, you should establish good relationships with wholesalers, distributors, and retailers. This will ensure that the cassava products reach consumers promptly.
9. Ensure proper quality control and maintenance of standards
Quality control is important in cassava processing. It helps ensure that the raw materials and end products meet the required standards. For starters, you should set up quality control policies for the raw materials you will use and the final products. You should also ensure that the processing facility is kept clean always and hygiene standards are maintained. You should regularly review and make changes to enable the production of high-quality cassava products.
Benefits of Starting A Cassava Processing Company In Nigeria
Below are the benefits of starting a cassava business in Nigeria;
1. High demand
Cassava is a major food item in Nigeria with a rapidly growing market. The country’s vast population is an enormous market for cassava products such as garri, cassava flour, fufu, etc.
2. Economic contribution
Starting a cassava processing company can make huge contributions to the growth of the Nigerian economy. This is mainly done by creating job opportunities for the youth and generating good income for rural societies.
3. It serves as another form of income for the country
Nigeria’s economy depends largely on oil. And to reduce the country’s dependence on oil, it is important to diversify. Therefore by starting a cassava business, you are contributing to the diversification of the country’s economy.
4. Health benefits
Cassava is an extremely nutritious food that has a high amount of Faber, carbohydrates, minerals, and vitamins. Therefore by starting a cassava processing business, you contribute to the improvement of healthy eating habits among people.
5. It is lucrative
Cassava processing is quite profitable, especially when done on a large scale. A Cassava processing business can generate a lot of income when properly done. You should adopt effective marketing strategies, proper planning, a good source of raw materials, etc.
6. You can export your cassava products
Cassava is among the products exported from Nigeria, the country can export cassava products on large scale to other countries. Beginning a cassava business will help You contribute to the growth of the country’s export market.
Starting a cassava company in Nigeria requires proper planning, sufficient funding, and good knowledge of the industry. By following the steps laid down in this article, you can create a successful cassava processing company in Nigeria. Good luck with your cassava processing company!
Frequently Asked Questions
What are the main cassava products in Nigeria?
The major cassava products in Nigeria include fufu, garri, starch, and cassava flour.
Is the cassava business profitable?
Yes, the cassava business is profitable. It can generate a lot of income and the raw materials needed are not much. With effective marketing strategies and proper planning, your cassava business can be lucrative.
Do I need any special skills to start a cassava business?
Even though having previous knowledge about the cassava processing business can be helpful, it isn’t a prerequisite. You can employ a professional in the cassava processing business to train you or take training to acquire the necessary skills.
What are the funding options available for starting a cassava business?
There are different funding options for starting a cassava business in Nigeria. These include grants, bank loans, loans from family or friends, etc. You can also explore different government funding opportunities and find the best fit for your cassava business.
How can I market my cassava products?
To market your cassava products, you can develop an effective marketing plan to promote your cassava products to your target audience. You could also leverage social media platforms (Facebook, Twitter, Instagram, etc), partner with influencers to market your cassava products, participate in exhibitions and trade fairs, etc.
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