how to make millions with rice bussiness
Why start rice wholesale business or dealership?
1.Nigeria is Africa biggest economy: The population of Nigeria is 170million people and by the year 2020 it will be about 200million people.these ever growing population need food and rice is a major stable food in Nigeria loved by children and adult.statistics shows that about 22million bags of rice is consumed every month.so there is a big market for rice in Nigeria.
2.Rice is not a perishable food like vegetable,it takes 4 years for rice to gets spoiled,within thisperiod there is no way you cannot sell your stock of rice.
3.Of the total rice consumed in Nigeria,15 percent is grow here while the other 85% is imported from thailand,india and brazil.so rice at the moment is not something that is cheap and quick to be produce by everyone like water,so the urban cities and villlages can still buy from you.
4.Aliko Dangote has already invested $1billion into integrated rice farming,so if you are still thinking what kind of business is this,the world richest black man is already thinking how he can start selling rice.
How to start rice market
1.Look for a good shop close to or opposite to a normal conventional market.you can as well locate towns or if you are in such towns alreadygood,towns without rice importing companies.ie if you are in rivers state,there are many rice importing companies warehouse in portharcourt,but in major LGA headquaters and Bayeslsa state(previous part of rivers state) there is nor,so most buyers go to PH and buy and go to BY and sell.traders there can sell at a higher price than if in PH,if you are in a town without a rice importing company warehouse you are in money.because you serve as a key distributor.
2.buy different brands to make your shop colourful,most company like ours have various brands,we have royal stallion,caprice,tomatoes king,African princess etc both 50kg and 25kg bags,we are like a one stop point to get many brands,but you can still buy from more than one companies,to cater for any brand asked forby buyers.
Note:ALL thailand rice are long grains and are the same so mama gold,royal stallion,pjs are from different companies but the same rice inside the bags ,is just branding that differenciate them,but thailand rice is sharply different from india rice.india rice is a bit shorter while thailand rice is long grain .
The Profit Potential
Depending on your financial strength, youcan start this business with 5 million nairaor less. Rice distribution business offers you a very good return on investment. Forexample, 50kg bag of regular seed of rice in retail price is sold for 8,200 naira, while the smaller seed is about 8,100.Now, consider the following profit potential of the business.As a distributor or wholesaler, you can get a bag for N12,000, N12,100 or probably less from the importers. If you supply 50 bags of rice in a day at the rate of 13,200 naira, you will be making profit of 1000 x 50= N50,000.
Rice is the most consumed staple food in theworld and in Nigeria it is a must eat in most families. Rice business is a very lucrative business to engage in. Many wholesale rice distributors are now making millions and smiling to the bank.There are many reasons why you should go into this business, if you are looking for a new business to start.
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