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11 Top Flour Mills Production/Challenges in Nigeria

Flour Mills Production/Challenges: Due to changes in lifestyle and urbanization.

The consumption of bread has increased in Nigeria and other developing countries.

Since, wheat cannot perform well under tropical climate.

The country had over the years dependent on wheat imports mostly from the United States.

Wheat importation had had detrimental effects on the Nigerian economy.

Flour Mills Production/Challenges

Flour Mills Production/Challenges: http://www.colossusgists.com

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Flour Mills Production/Challenges

Whole wheat flour is increasingly popular.

As research continues to reveal the benefits of whole grains.

And the food industry offers more whole grain options for consumers.

The purpose of this review is to address milling and shelf-life issues.

That are unique to whole wheat flour.

Flour Mills Production/Challenges

No standard methods are available for whole wheat flour milling.

Resulting in very different bran particle sizes.

Literature suggests that moderate bran particle size is the best for bread production.

While small particle size is better for non-gluten applications.

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Flour Mills Production/Challenges

Shelf-life of whole wheat flour is shorter compared to white flour.

Due to the presence of lipids and lipid-degrading enzymes.

Lipolytic degradation leads to reduction in functionality.

Palatability and nutritional properties.

Strategies to stabilize whole wheat flour.

Have focused on controlling lipolytic enzyme activity and have marginally succeeded.

Flour Mills Production/Challenges

In order to reduce the impact on the economy.

Nigeria released policy mandating the flour mills to partially substitute.

Wheat flour with 40% cassava flour for bread making.

Substitution of wheat with other flour to the tone of 40% would require improvers.

Which have to be imported.

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Flour Mills Production/Challenges

Other potential challenges of the policy include poor quality of the bread.

Weak cassava flour supply chains.

Strong consumer preference for 100% wheat bread.

And the reluctance of millers to use composite flour.

Except the aforementioned challenges are adequately addressed.

The 40% wheat flour substitution may fail like previous attempts.

Flour Mills Production/Challenges

Manufacturing companies are faced with a lot of infrastructural challenges.

Aside from access to uninterrupted power supply.

Bad roads and use of alternative power.

Such as diesel generators can exorbitantly increase the cost of production by a magnitude.

This, inevitably, discourages manufacturers.

Flour Mills of Nigeria Plc provides food, agricultural products, and services.

Specifically, the company offers flour, noodles, pastas, oil & spreads, and sugar.

It also offers animal feeds, fertilisers, and logistics & support services.

Its share price is currently trading at N16.85 on the Nigerian Stock Exchange.

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Flour Mills Production/Challenges

Today, a lot of attention is paid to the development of entrepreneurship in Nigeria.

And many resources are spent on improving production in this country.

The production in Nigeria are facing a lot of challenges.

Let’s take a closer look at the major problems.

That have been affecting the production in this country.

1. Lack of capital

This challenge is one of the main reasons why production in Nigeria hasn’t improved over many years.

A lot of startups fail because of the lack of investment.

That’s why thousands of incredible ideas couldn’t be implemented.

The lack of capital can be caused by two reasons:

Insufficient potential or innovation or entrepreneur’s uncertainty and fear to promote the business.

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Flour Mills Production/Challenges

Here is the possible solution for those who do not wish to rely on the external sources of investment.

If you want to start your business with little or no capital.

You can choose the self-fueled growth model.

That implies funding your own business endeavors.

Flour Mills Production/Challenges

Start with marketing and advertising.

You might agree that business to a great extent.

Depends on how much the customers are familiar with it.

Especially in this hustling world.

You can cut your expenses on the labour force.

Rent, equipment, innovative solutions but the advertisement is a must.

2. Difficulties in getting loans

While the problem number one of most Nigerian people in business is the lack of capital.

The second challenge they face is related to securing loans from financial institutions.

Many potential Nigerian producers go through many difficulties.

When trying to get a loan for their business.

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 3. Poor state of infrastructure

Someone living in the developed countries of Europe or America might be surprised.

But the lack of good infrastructural facilities is a serious problem.

Affecting the development of businesses in Nigeria.

The state of infrastructure in Nigeria is just destitute.

Flour Mills Production/Challenges

The infrastructure challenge is faced by all the entrepreneurs.

Especially those who work in the agricultural or industrial sectors.

The unstable power supply and poor transportation system.

Have forced a lot of businesses to close down.

To run the business, most producers need to use generators.

And spend a lot of money on buying the fueling generators and on fuel to run them.

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4. Unstable Nigerian economy and politics

The state of the Nigerian economy and politics is another serious challenge for entrepreneurs.

The state of the country plays an essential role in any country’s development.

All the socio-economic problems and political instability.

Don’t help in the successful development of businesses.

Moreover, any economic or political instability kills businesses.

Flour Mills Production/Challenges

5. Inconsistent government policies

There is a problem with continuity in Nigerian government policies.

In general, the existing policies are not good enough.

To create the necessary conditions for the development of businesses in Nigeria.

The entrepreneurs need more freedom and flexibility for running their businesses.

The challenges start at the beginning.

Entrepreneurs usually need to wait 30 days.

To register a business with the Corporate Affairs Commission (CAC).

When it comes to registering with NAFDAC.

Or accessing funding from the Bank of Industry (BOI), it gets even more complicated.

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Flour Mills Production/Challenges

6. Multiple Taxations:

Another serious challenge faced by many Nigerian entrepreneurs is multiple taxations.

While businessmen are responsible for funding the government through paying taxes.

In Nigeria entrepreneurs are charged too many taxes.

Which negatively affects the businesses.

While Nigeria’s Companies Income Tax Act (CITA) has approved only 39 taxes.

Over 500 various taxes are imposed by local governments that are in most cases duplicated and not lawful.

7. Poor knowledge on how to run a business

Sometimes the success of the business depends not on the government politics.

Economic problems or insufficient capital.

But on the lack of the production’s experience and knowledge.

On how to be a successful businessman.

While some people have a chance to take production courses.

Many start a new business from scratch with no economic background.

8. Flour Mills Production/Challenges

Those who venture into any kind of business.

Do not always know how to manage and grow a business properly.

They need to learn to get relevant and adequate information.

About management and marketing.

What is needed is sufficient problem-solving skills in case problems arise.

Every business faces a challenge of getting familiar with high-tech trends.

That are especially hard to embrace in the modern business environment.

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9. Marketing strategy challenge

Many businessmen face this challenge.

Which consists of the knowledge on how to market products and services.

Print, online, mobile, advertising, etc.

Businessmen want to maximize their return on investment with efficient.

Targeted marketing that results in increased profits.

Flour Mills Production/Challenges

This challenge depends on the economic state of the country.

With no appropriate knowledge about the most effective marketing strategies.

Most Nigerian entrepreneurs are trying to save money.

And cut their spending on basic needs.

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Flour Mills Production/Challenges

The solution to this challenge is to investigate the market.

And produce only those products and services that are currently.

Or in demand or all time high-in-demand commodities.

Flour Mills Production/Challenges

Advertising is also helpful though if the quality of the product is not high enough.

People will not be interested in this product.

Businessmen should be adapted to creating marketing plans.

Another way to get a marketing plan is by outsourcing the marketing strategy to professional.

It is important to find out what marketing activities are effective in motivating purchases.

The business might need to know what is your budget to craft a good business plan.

If businessmen do not make a business plan, they usually get stuck.

That’s why the business fails.

It is advisable to imagine what you will achieve in 5, 10 years or more.

10. Lack of patience

A lot of businessmen who just started a business expect to make money quickly.

The statistics show that if the entrepreneur is more money oriented.

His efforts to gain a fortune quickly will not succeed.

It’s true that people mostly go into business for money.

But if they need to have enough patience to grow a business to fully realize its potential.

Flour Mills Production/Challenges

Investors who want to get the quick returns, lose their patience.

Sometimes they lack entrepreneurial mindset.

Which might be considered a result of the post-colonial mentality.

When many Nigerians were taught to be in the labour force and not to be entrepreneurs.

They forgot that being an entrepreneur in Nigeria means to face many problems and challenges.

11. Corruption & Bribery.

While Nigeria is among the world’s leading investment destinations.

And is formally a well-functioning business environment.

Corruption and bribery are still serious obstacles.

The federal structure of the political system means.

There is a wide range of regulatory agencies.

Which can lead to demands for bribes from public officials.

Conclusion

Businesspersons face a lot of challenges.

And many books have been written about the ways to overcome them.

While economic education doesn’t make a person businessmen.

It is important to get a relevant information about the mechanisms of running a business.

Many difficulties the small and medium-sized businesses struggle with can be solved.

But entrepreneurs need to be willing to face them.

And put the needed efforts to build the successful business.


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