How to Start cassava flour business in Nigeria

How to Start cassava flour business in Nigeria

Have you tried finding out the current position on agriculture, cassava flour business in Nigeria?

Cassava poses a potential threat in the rundown of the items which include rice, sorghum, cocoa and cotton. It in this way turns out to be auspicious to offer a business opportunity on how business driven individuals, as well as financial specialists, can put resources into cassava processing and make considerable profit in the long run.

The change movement of the present government has given the flour factories working in Nigeria three months’ final proposal to consent to the directive that all the wheat flour delivered and sold in Nigeria must contain 10 percent cassava flour. This has made the production of cassava flour business lucrative in the nation once more.

It has been tried and seen that wheat flour containing 10 percent cassava flour gives great bread and different desserts. In such manner, demand for cassava flour will be in several thousand metric tons yearly as flour plants are presently issuing Local Purchase Orders for supply of cassava flour.

Different motivations presented by the legislature are: Tax discounts for pastry specialists and flour plants using cassava flour and zero percent levy for cassava flour producing machines. What’s more, government has increased the tax on wheat flour to 40 percent. This is done to make cassava flour more cost effective, and of higher demand for local and international consumption.

The crude materials for the production of cassava flour are promptly accessible in Nigeria. Nigeria is the biggest maker of cassava on the planet with yearly production of 40 million metric tons. Cassava flour processing industrial facility will work all the year round as crude materials are promptly accessible.

Our yearly utilization of wheat flour in Nigeria is put at 6 million metric tons, 10 percent cassava flour incorporation will build cassava flour utilization to 600,000 metric tons every year. This can be meant 3,000,000 metric huge amounts of cassava tubers and 600,000 hectares of cassava being developed and additionally making at the very least 600,000 occupations for Nigerians.

The basis of this venture will prompt more production in the rural areas as farmers will be urged to deliver more cassava tubers, as there will be affirmation of getting their food stuffs being sold.

Cassava flour business is exceptionally profitable on the grounds that the rate of returns on investment of delivering a ton is more than 100 percent.

The basis of this business will help the profitable segment of the economy. Profitable segment improvement will affect the business sector, high profitability and increment in nation’s GDP. Other social and financial advantages resultant from the venture are demand mitigation, decrease in social indecencies, reduction in in rural-urban drift, increased farm and production cost and fair appropriation of wage.

Cassava Flour Business in Nigeria

Cassava is the most imperative root crop in Nigeria. Aside from being a staple product in both rural and urban family units, cassava is a noteworthy food item to cassava farmers and processors in the country ranges.

Cassava alone contributes around 45% of farming GDP in Nigeria for consumption or household purposes yet its mechanical processing and use has been extremely constrained.

At present, the nation produces around 40,000,000 tons of the good and because of the yearning of the government to decrease import reliance and monitor of unnecessary outside trade, there is a national program for expanding the production of cassava flour to be substituted with wheat flour.

An overview of Cassava Flour Business in Nigeria

Cassava Flour is made by cooking, drying and pounding cassava root to a fine powder. It varies from Tapioca flour, in that Tapioca flour is produced using the starch of the cassava plant where the cassava flour is the ground root.

Top notch Cassava Flour farm is utilized as substitute for wheat flour in pastry shop and confectionary items.

The demand for Cassava Flour business in Nigeria is high. The main thrust behind the demand is the Federal government arrangement on cassava flour incorporation in wheat flour for cassava-wheat-composite flour production particularly for bread and confectionery preparation.

The yearly national demand for Cassava Flour farm is evaluated at 750,000 tons while the national supply gauge is 50,000 tons. The Cassava Flour business in Nigeria is ruled by little scale with production limit of under 0.1 tons for every day. The production plants are generally discovered all parts of Nigeria where the main crude material, Cassava tubers, can be found.

The real difficulties confronting the business are access to control. Non-accessibility of energy hampers production and builds the cost of production.

Cassava Flour farm is likewise utilized as a part of the paper board and plywood enterprises.

Necessary Procedures For Starting Cassava Flour Business In Nigeria

Production of high-review cassava flour for human utilization involves the utilization of top notch gear for production that will meet the prerequisites of Standards Organization of Nigeria (SON). Production prepare includes chipping/scratching, dewatering, drying and processing.

To set up the venture, the methodology are:

  1. attainability – think about planning,
  2. site obtainment,
  3. machines acquisition,
  4. establishment and test running,
  5. enrollment, crude materials acquirement and business take-off.
  6. Real and genuine disapproved of financial specialists can assist the achievement of the venture.
  7. A bankable plausibility study is a pre-imperative to sourcing cash from banks and institutional financial specialists.
  8. Bona fide financial specialists can aide the profitability of this venture. Assets can likewise be raised through individual investment funds, help from relatives and companions.

    cassava flour business in Nigeria

Machines and Equipment For Starting Cassava Flour Business In Nigeria

The real machines and equipment for production of cassava flour are

  1. Granulator
  2. Flash Fryer
  3. Hydraulic Press
  4. Detoxifier
  5. Vibrio Sieve
  6. Hammer Mill Grater
  7. Hammer Mill with Cyclone
  8. Packaging Machine
  9. Weighing Machine

It is assessed that at 10% incorporation, the demand by flour mill operators is 550,000 tons.

From the above figures, obviously, there is a huge and manageable market for cassava flour in Nigeria.

cassava flour business in Nigeria

An Outlook of the Profitability of the Business

It will cost N70, 000 to produce a huge amount of cassava flour which can be sold at a local, standard rate of N120, 000. Delivering two tons for every day for 200 days a year will give a base net wage of N20 million every year. This is probably a dependable method for business in the cassava business in the nation.

If you need a complete business plan, please let us know. Or, you want us to help you set up this business, kindly contact us. You would also want to check out these other business ideas 


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Comments (4)

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  1. olowu oluwatosin joseph says:

    I’m a fresh graduate nursing the interest in cassava business for long. I have access to several acres of land. How can you help me fulfill this ambition in cassava business ?

  2. Moshood Lateef Adedeji says:

    Am into supply of cassava tuber ,but I want to divert to production of cassava flour in my area .

  3. ADETOYE EMMANUEL says:

    Hello Businnesshab,

    Am very much interested in this business and currently in the Northern part of Nigeria.

    I wish I can get someone to put me through this great business idea for a good start in 2019.

    Thanks.

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