1. ABOUT US
www.planbiz.com.ng is the consulting arm of TopFoods Processing Company, a startup company based in the city of Kaduna state, Nigeria.
We engage in market research and consultancy, with key focus on food production and processing in the Nigerian market. We guide and help clients tap into the booming Nigerian economy and help in setting up viable food processing businesses in the country.
2. INTRODUCTION
Over the past few decades, rice has become one of the leading food staples in Nigeria, surpassing cassava in food expenditure. Throughout this period, consumption has increased faster than production, resulting in a growing dependency on imports. By 2014, about half of the rice consumed in Nigeria was imported. As the most populous country in Africa south of the Sahara (SSA), Nigeria had quickly become the leading importer of rice on the continent and, more recently, in the world.
The ban on the importation of rice into Nigeria and the recent closure of the country’s borders by the Federal government has exposed the huge gap in rice production that exists in the country.
Prices of rice almost doubled as a result of high demand of the product plus the inability of the current producers to meet up with the growing demand.
Nigerians currently consume over five million metric tons, which is equivalent to over 100 million 50Kg bags of rice annually. Rice consumption in the country is estimated to reach 35 million metric tons (700 million 50Kg bags) by 2050, from the current figure, rising at the rate of seven percent annually.
As it stands, the current producers of good quality rice in the country cannot even meet up to 50% of the current demand. This is the reason why the market is flooded with poorly produced and low quality rice.
There is high demand for rice in Nigeria. With a population of over 180 million people and an estimated national population growth rate of 5.7% per annum ,an average economic growth rate of 3.5% per annum in the past five {5} years, Nigeria has a large and growing market for rice.
3. RICE MILLING
Milling is a crucial step in post-production of rice. The basic objective of a rice milling system is to remove the husk and the bran layers, and produce an edible, white rice kernel that is sufficiently milled and free of impurities like stones, sand, husks, etc.
Typically, when paddy rice comes into the mill, it is first per-boiled and dried, and then goes through the following steps:
A. Removing the husk (De-husking or De-hulling)
Brown rice is produced by removing the husk from rough paddy rice. The husk is removed by friction as the paddy grains pass between two abrasive surfaces that move at different speeds.
After de-husking, the husk is removed by suction and transported to a storage dump outside the mill. Husk accounts for about 20% of the paddy weight and an efficient husker should remove 90% of the husk in a single pass.
B. De-Stoning
The hulled/husked rice is passed through a destoning machine where it removes all stones, sands and other impurities from the rice.
C. Polishing
White rice is produced by removing the bran layer and the germ from the paddy. The bran layer is removed from the kernel through either abrasive or friction polishers. The amount of bran removed is normally between 8 and 10% of the total paddy weight.
D. Grading (Optional)
After polishing, white rice is separated into Head/full grain rice and broken rice, and “brewers” by an oscillating screen sifter. Head rice is normally classified as kernels that are 75−80% or more of a whole kernel.
E. Colour Sorting (Optional)
The last stage of milling rice is the colour sorting stage. Here, fully processed rice is passed through a colour sorter machine which removes dark to black colored rice from the stock. Quantity of this dark to black coloured rice is usually little to negligible depending on the quality of the paddy.
The final resulting rice is then packaged in desired packs after this stage.
4. COST OF ENTRY
To set up a rice milling plant that does all the milling stages listed in (3) above will cost several millions of naira, depending on the capacity one wants to set up. For example, a 20t/d rice milling plant that does the complete stages above will cost approximately ninety nine million naira to set up.
This cost is prohibitive and too high for many people that want to venture into the rice milling business.
However, the good news is that like most manufacturing businesses, one can startup on a small scale, at a lower cost, and work towards growing the business to a capacity or scale one dreams of.
NOTE: We can write a bankable business plan for you on rice milling for just N20,000. If interested, reach out to us via call or WhatsApp: 09022106607.
5. OUR OFFERING
We will set up a small scale rice milling plant for you that can produce 10 tons (200 bags) of polished and stone free rice per day.
The rice milling plant will be able to take care of the most important stages in rice milling, which are parboiling, drying, dehusking, polishing and destoning. What most consumers desire is rice that is free of stone/sand, and does not stick together when cooked and the setup we offer does just that.
Other stages of rice milling like grading and colour sorting simply improves the appearance of the final product. However, most small scale rice milling companies in Nigeria do not grade and color sort their rice. Despite that, they produce and sell, with customers rushing to buy their products.
6. COST IMPLICATION
The cost implication for the setup we offer is five million eight hundred and sixty thousand naira only (N5,660,000). This cost covers machinery, installation, test run and training for your staff.
The table below gives a detailed breakdown for machinery.
| SN | ITEM | FUNCTION | UNIT | COST |
| 1 | Parboiler | For parboiling paddy rice before milling | 1 | N1,800,000 |
| 2 | Dryer | For drying parboiled rice before milling | 1 | N1,650,000 |
| 3 | Blower Polisher | Dehusk, Polishes and whitens the rice | 1 | N900,000 |
| 4 | Destoner | Removes stones, sands, metals, etc from the milled rice | 1 | N600,000 |
| 5 | Digital Weighing Scale | For weighing finished products | 1 | N100,000 |
| 6 | Analog Weighing Scale | For weighing raw materials | 1 | N50,000 |
| 7 | Bag Sewing Machine | For sealing finished/packaged rice | 1 | N60,000 |
| 8 | Machine Mounts & Installations Materials | For Installations | 1 Set | N300,000 |
| 9 | TOTAL | N5,460,000 | ||
| 10 | Installation, Test-Run and Training | N400,000 | ||
| 11 | TOTAL | N5,860,000 |
Note: Blower Polisher and Parboiler are imported and available on ground, while parboiler and dryer are fabricated by our technicians and will take about ten (10) days to fabricate.
7. VIDEO
8. PHOTOS
- Blower Polisher and Destoner
- Parboiler
- Dryer
- Bag Sewing Machine
- Weighing Scales
9. TERMS AND CONDITIONS
- Payment: We accept 90% of the total cost, and the remaining 10% after delivery and installations.
- Delivery Period: Delivery of the machinery will be 14 days from date of payment and confirmation. The client will pay for the cost of delivery.
- Installation: Our technician(s) will install and test-run the setup. This shall take approximately 3 – 5 days. The client will take care of accommodation for the technician(s).
- Factory Space Requirement: Besides the store and office, the production space should be about 15ft by 25ft. You can rent a medium sized warehouse for a start. Electricity and water should be available at the factory.
- Electricity Requirement: The rice milling machine uses a 3 phase electric motor. Therefore power supply for the rice milling machine should be 3 phase. A 30 – 40Kva power generator can power the rice milling setup. The client is expected to take care of all electrical works before the machinery are delivered.
- Test Run And Training: A minimum of two (2) tons of paddy rice will be required for the test run and training. We can help source and supply the paddy rice for the client.
- Warranties: 12 months for any production problem excluding changeable parts affected by aging, misuse and accident.
If you are interested in our offer, contact us via the contacts below:
Call/WhatsApp: 09097085685
Email: business@planbiz.com.ng
NOTE: We can write a bankable business plan for you on rice milling for just N10,000. If interested, reach out to us via call or WhatsApp: 09097085685