HOW TO START A MAIZE FLOUR PRODUCTION BUSINESS

  1. Introduction

Maize flour is a flour obtained from milling dried maize. Maize flour is whitish in colour and it is the second most produced and consumed flour after wheat flour, competing with cassava and rice flour. It is used in industries such as for animal feed production, and also popularly used in the preparation of a popular dish called ‘Tuwon-Masara’ and other variety of staple local dishes and confectionary products in Nigeria. It is also consumed in Mali, Niger, Cameroun, and some other west African countries.

Image Credit: allafricandishesng

The by-product obtained from the production of maize flour is called maize bran. Maize bran is mostly used as an ingredient in the production of feeds for poultry, cattle and other livestock.

  1. Industry Analysis

There is high demand for maize flour in Nigeria and her neighbouring countries. With a population of over 200 million people and an estimated national population growth rate of 2.56% per annum, an average economic growth rate of 2.50% per annum in the past ten {10} years, Nigeria has a large and growing market for maize flour.

The growth of the middle class in Africa in general, and Nigeria to be specific, has led to a need for hygienically processed, easy to prepare and well packaged food products like, maize flour.

  1. Raw Materials Requirement

The basic raw material for the production of maize flour is Maize. Maize, Zea mays L. (corn), is the most abundantly produced cereal in the world. It is grown in every continent except Antarctica. About 50 species exist and consist of different colors, textures, and grain shapes and sizes. White, yellow, and red are the most common cultivated maize types.

Nigeria is the second largest producer of maize in Africa with an average annual production volume of about 11 million MT.

Maize is produced in large quantities in states such as Kaduna, Nassarawa, Kogi, Katsina, Niger, Benue, Taraba, Kwara, Ekiti, Edo, etc

Other raw materials that will be needed in a maize flour production business are water and packaging materials.

  1. Machinery & Equipment Requirements

The major equipment needed in a small-scale maize flour production plant are: Maize Flour Milling Machine, Weighing Scales and Sealing Machine.

EquipmentFunctionPicturePrice
Grain washing MachineFor washing the maizeN2,200,000
Drying MachineFor drying washed maizeN1,600,000
Maize Milling MachineFor grinding maize to flourN7,400,000
Automatic PAckaging Machine.(This machine is optional because manual packaging is possible)For PackagingN3,000,000
Weighing ScaleFor weighing productsN100,000
Sealing MachineFor sealing final products in bags.N50,000
Sealing MachineFor sealing final products in sachetsN70,000

Notes: The above prices are applicable as at the time of writing this report.

  1. Production Process

Typically, when maize comes into the mill, it is first washed and dried and then goes through the following steps:

A. Milling

The maize is milled using the maize flour production machine to produce flour and bran as a by-product.

B. Packaging

The flour is filled into desired packaging materials and sealed. The bran is also packaged into 100Kg bags.

  1. Profitability

The profitability of maize flour production largely depends on the cost of the primary raw material maize. The price fluctuates with season, demand and supply. As the price of maize changes, so also does the price of maize flour and bran.

  • As of the time of writing this report, the average cost of maize is N180,000 per ton. Depending on the quality of maize, an average of 700Kg of maize flour and 300Kg of maize bran is obtainable from processing 1 ton of maize.
  • The average factory price for maize flour is three hundred naira (N300) per kilogram while that of maize bran is sixty naira (N60) per kilogram.

This implies that a revenue of (N300 X 700) + (N60 X 300) = N228,000 is obtainable from processing 1 ton of Maize.

Gross Profit is calculated by subtracting the cost of production from the sales.

Gross Profit = N228,000 – N180,000 = N48,000

Assuming operating expenses (including cost of packaging) takes 20% of profits, profit realisable from processing 1 ton of maize will be thirty eight thousand, four hundred naira (N38,400).

If your factory has the capacity of processing 4 tons of maize per day. This will translate to a profit of N38,400 X 4 = N153,600 per day.

If the factory works for 25 days per month and at 50% of the installed capacity, this will translate to a profit of N1,920,000 per month.

  1. Capital Requirements

The estimated total required capital for setting up a small scale maize flour production plant is put at twenty one million, one hundred thousand naira (N21,100,000). This includes the cost of factory rent, machinery procurement and installation, staff training, and working capital.

Get The Maize Flour Sample Business Plan

We have prepared a sample business plan on maize flour prodution which you can easily edit and make your own.

The business plan is ideal for existing or aspiring entrepreneurs who want to maximize their chances at securing a loan or investment.

The plan will have:

✔️ 3 years production forecast

✔️ 3 years sales forecast

✔️ 3 years gross profit forecast

✔️ 3 years OPEX forecast

✔️ Net profit analysis

✔️ Customer segmentation

Etc

Visit the link below to get the sample business plan today at a discounted price of N2,000 only

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