HOW TO START A RICE FARMING BUSINESS IN NIGERIA
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This article comes with a free business plan for rice farming business.
Nigeria is the largest consumer of rice on the African continent, undeniably that is why it being the largest rice producer on the continent and one of the largest importers of rice in the world is really explainable! The supply doesn’t just match the demand, we eat this grain and it has become so common across the country despite its multi-ethnicity that it has attained the status of being addressed as the most staple food in Nigeria. Statistics have shown that Nigeria imports close to 2 million tons of rice yearly, making it the third-largest importer of rice in the whole world!
Now if you see where I’m headed with this import statistic, it already implies that the agricultural industry in Nigeria is lagging and that the rice industry is still untapped locally or domestically despite the large numbers of consumers that this country has, meaning there’s still so much more to go around for new farmers and plenty to be gained for existing rice farmers in the country, the market or the industry isn’t even near-saturated locally.
CAN RICE GROW IN NIGERIA?
Rice farming business is simply the commercial cultivation of the rice plant for consumption with the aim of making a profit, that’s what businesses are about is that not? Profit! It’s propagated from the seeds of the grass species; Oryza sativa (Asian rice) or Oryza glaberrima (African rice). Rice farming is possible in certain countries or regions because a lot of water is needed to grow rice, but it can practically be grown anywhere if a highly efficient water-control mechanism is in place, despite all these conditions it easily stands out as the most consumed staple food in Nigeria.
IS RICE FARMING PROFITABLE IN NIGERIA?
Rice is the world’s most popular source of food, you are bound to make a profit. The nutritional benefit is that it barely has fat, it is a complex carbohydrate that does not have sodium or cholesterol.
These facts show the amazing potential of rice farming in Nigeria,
Rice farming business could pose as a great source of employment. An average of 6 tons of rice can be yielded per 2.5 acres. But in some cases, you can yield up to 10 tons per 2.5 acres, and in some very rare cases, you should be looking out for a yield of about20 tons per hectare.
HOW RICE FARMING IS DONE?
1). Source of Food:
Definitely, this is a clear point, rice is a source of food and easily could be named the most consumed staple food in the world. The astronomical demand figures of this cash crop make this venture a sure bet for any investor, or farmer in Nigeria, Africa, or the world as a whole.
2). Production of Rice Flour:
Rice flour is made from grinding rice grains to a fine powder. It is often used as an alternative to wheat when seeking gluten-free flour. Products gotten from rice flour are rice flour cake, rice noodles, and edible rice paper.
How to Start a Rice Farming Business in Nigeria?
Choose healthy rice seeds
Healthy seed is equal to a healthy yield provided all other conditions are normal, it’s a GIGO system, you can’t sow bad seeds and expect bountiful yield and other conditions being the climate conditions, pests, and all other conditions that could adversely affect the growth of the crop. Source for an improved variety and the environment where the farm will be situated has to be put into consideration, go for only the best variety of seeds that would thrive well in the environment. You need to choose the seeds manually and painstakingly for good rice production and yield.
Get your seeds from a National Agricultural Seeds Council (NASC) licensed and registered company, NASC is responsible for regulating the Seed Industry within the borders of Nigeria. Selecting good quality seed has obvious advantages from improving germination to increasing the resistance of the crops to weed competition, pests and disease attacks to uniformity in the sizes of your plants and collectively ensuring improved yield.
Prepare your seedbed and plant seeds there to be raised in a nursery, cover the soil with a transparent polythene sheet so that the environment maintains its temperature whilst avoiding soil-borne diseases. Your yield can be decreased if transplanted rice is infected by nematodes and soil-borne pathogens.
Choice of Land
The land is the most essential capital asset for rice farming business as all operations depend on the fertility and the condition of the soil, and a few things have to be considered like drainage facilities, type of soil, and location. The least optimal land size is around 6 acres. You need a large space to set your project up and dry the paddy rice prior to harvesting.
Select a site in ecological zones where rice is grown traditionally and choose fertile land that is not too porous
In rice farming, you have the option of planting rice in lowlands and uplands, and also in irrigated or swampy conditions. You can significantly cut costs by going with swampy land for rice farming which will save you the troubles of irrigation. The most common technique is to get swampy land and have it fully cleared. Use tractors to till the soil in a proper manner until the soil is prepared and is optimal for the rice seedling to be transplanted
However, it has been found that rice production is most productive on irrigated soil of lowland swamps. But this type of environment comes at a higher cost.
Manage the Soil Nutrients and Weeds
Weeding will be done manually for the first few months after transplant of rice seedlings and employ careful herbicides application to rid the farm of sprouting weeds
Fertilizer application is advised as this will help the seedlings, but care must be taken as specified amounts of organic fertilizers has to be used and this depends on the edaphic factors and the type of rice, extensive soil tests are usually carried out to be sure of the fertilizer application processes.
Each growth stage of the rice plant has a different nutrient requirement. Farmers must make sure that the plant gets the proper nutrients promptly.
Harvest Your Crop
After 4 months, you will have your crop prepared for harvest. When the rice is matured, a color change from green to light brown is noticed.
If you have read the article up to this point it should occur to you that the capital needed for a rice farming business tends to vary based on the nature of the rice nature. You obviously need a sufficient portion of land for rice farming. Rice milling generally demands sufficient workforce, equipment, and machinery. Retailing and dealership of rice require the lowest amount of capital investment. For a rice business, the initial expenses consist of supplies, basic equipment, delivery, packaging, transportation, operating costs, and various other outlays.
It is equally important to factor in the storage costs to keep the harvested products in a healthy condition. You can raise capital for rice business in various ways. Due to the land and other equipment required, rice farming capital intensive. But costs can be reduced if you own a land, or if you have a partner who owns the land.
In rice farming, the projected profit depends on the capital invested. Bigger capital investment means robust profits. Efficient and effective machinery, storage, and processes that can help you take advantage of opportunities are already at your disposal if you start with big capital investment.
The big rice market in Nigeria, and the high costs and duties related to importing rice was the cause of the quick boom of local rice production asides from a high rate of consumption.
Investment in Rice Farming Business in Nigeria
The potential of this industry is high and even inexperienced people can tell with the influx of huge and renowned businessmen tapping into the industry.
Challenges of Rice Farming Business
Challenges rice farmers face in Nigeria and in many parts of Africa include:
2). Growing rice is largely region-specific
3). Financial problems
4). Proper and secure storage
5). Farm Inputs Constraints:
6). Infrastructural Constraints:
7). Marketing Constraints:
And that’s “how to start a rice farming business in Nigeria.”
Like several other agribusinesses that have great potentials for both scale and profitability, starting a rice farming business in Nigeria or across Africa is a great agribusiness to start up if executed at the right scale and due to the technical knowledge required to start and maintain a rice farm, detailed business planning, and research should be carried out before you start.
How To Download The Rice Production Business Plan Template
Above is a part of the rice production business plan template in Nigerian. In case you need the complete business plan, follow the procedures to download it.
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Thereafter, send us your email address through text message to +234 701 754 2853. The text must contain the title of the business plan you want and also your email address. Immediately after the confirmation of your payment, we will send the rice farming business plan in Nigeria to your email address where you can easily download it.