Post by Trade Coach on Dec 27, 2021 16:01:25 GMT 1
How You Can Invest In Nigerian Local Rice Branding & Packaging Business Without Being A Farmer – Part 1
In this article we are going to digress a little in our agro-export discussions. If you have been following us for the past one year, you will notice that we have been consistent in bringing to you articles that deal mostly with direct agro business.
But I just discovered that we actually need to look at some areas that have been left untouched in the agricultural value chain in Nigeria by Nigerian businessmen and women. One of those areas is branding and packaging, and we want to start with rice.
Rice is not strange to anybody in Nigeria anymore. It is increasingly becoming very important in the country. Rice is relatively easy to produce in Nigeria; the local people can easily produce it for sale and local consumption.
Rice has a long tradition of farming in some areas in Nigeria, but I can tell you that it has also been a luxury in many areas as it used to be consumed only during festive seasons like the ones we are in now.
There is no gainsaying the fact that rice has become a part of the daily cuisine of most Nigerians today. I don’t think that a day passes without majority of Nigerians in the major cities having contact with rice in one way or the other.
Rice is one of the most consumed staple foods in Nigeria; the country’s consumption rate per capita is estimated to be about 32kg. This simply means that on average a person in Nigeria consumes about 32kg of rice yearly. This is to put it in a lay man’s language. You can see the extent of demand of rice in the country.
Nigerians spend more than N1.0 billion daily on rice consumption; though spending has drastically reduced, consumption of the commodity is increasing daily. The local production is increasing as the government has embarked on several rice production activities through the country aimed at drastically increasing the quantity of local rice available to the citizens and the result is there to see by all and sundry.
You can imagine this, Nigeria’s rice consumption annually was 3.7 million metric tonnes in 2017, and the consumption rate now is about 7.9 million metric tonnes, while the production rate has also increased to about 5.8 million tonnes per annum in 2021. There may be some small variations in these figures but they are still very reliable from our research.
The progress made by the country in rice production is as a result of the beautiful CBN’s Anchor Borrower’s Programme (ABP) with a total of about 12 million rice producers and working with 4 million hectares of FADAMA rice land. A FADAMA rice land is a land that is capable of being irrigated. That is the simple definition of a Fadama rice land. Usually this type of land refers to low-level plains located by water-bearing rocks, also known as aquifers. They can also easily get flooded during the rainy seasons.
The CBN’s Anchor Borrower’s Programme (ABP) has since inception of the programme created enormous economic linkages between Small Holder Farmers (SHF) in the country and reputable Large-Scale Processors. This has in turn largely increased agricultural inputs and heavily improved the capacity utilization of the processors because they are now sure of regular supply of raw materials for their production.
This programme is the single most important reason why the cost of a bag of rice has remained at the rate it is now despite constant increase in the rate of foreign exchange. The rice Nigerians consume now is mostly locally produced rice. Though some still consume the foreign rice but it is not large enough to tilt the scale like before.
This is to bring to your notice that rice is not a minor commodity in the country that you should take lightly. Rice is a major commodity and that is the reason why we want you to go into its branding and packaging.
Many people are interested in going into rice business but they don’t want to be farmers but want to key in to one of the numerous value chains of rice business.
In our next article on this topic soon, we will bring to you all you need to know about branding and packaging of rice. Let me reveal to you what you don’t know today, most of the bags of rice you see in the market today were not branded and packaged by the farmers, far from the truth.
Follow us, we will soon open your eyes as your own branded rice – Johnson International De stoned Rice – will soon hit the markets without setting your foot in the farm or knowing how the rice was produced.
Stay with us.
In this article we are going to digress a little in our agro-export discussions. If you have been following us for the past one year, you will notice that we have been consistent in bringing to you articles that deal mostly with direct agro business.
But I just discovered that we actually need to look at some areas that have been left untouched in the agricultural value chain in Nigeria by Nigerian businessmen and women. One of those areas is branding and packaging, and we want to start with rice.
Rice is not strange to anybody in Nigeria anymore. It is increasingly becoming very important in the country. Rice is relatively easy to produce in Nigeria; the local people can easily produce it for sale and local consumption.
Rice has a long tradition of farming in some areas in Nigeria, but I can tell you that it has also been a luxury in many areas as it used to be consumed only during festive seasons like the ones we are in now.
There is no gainsaying the fact that rice has become a part of the daily cuisine of most Nigerians today. I don’t think that a day passes without majority of Nigerians in the major cities having contact with rice in one way or the other.
Rice is one of the most consumed staple foods in Nigeria; the country’s consumption rate per capita is estimated to be about 32kg. This simply means that on average a person in Nigeria consumes about 32kg of rice yearly. This is to put it in a lay man’s language. You can see the extent of demand of rice in the country.
Nigerians spend more than N1.0 billion daily on rice consumption; though spending has drastically reduced, consumption of the commodity is increasing daily. The local production is increasing as the government has embarked on several rice production activities through the country aimed at drastically increasing the quantity of local rice available to the citizens and the result is there to see by all and sundry.
You can imagine this, Nigeria’s rice consumption annually was 3.7 million metric tonnes in 2017, and the consumption rate now is about 7.9 million metric tonnes, while the production rate has also increased to about 5.8 million tonnes per annum in 2021. There may be some small variations in these figures but they are still very reliable from our research.
The progress made by the country in rice production is as a result of the beautiful CBN’s Anchor Borrower’s Programme (ABP) with a total of about 12 million rice producers and working with 4 million hectares of FADAMA rice land. A FADAMA rice land is a land that is capable of being irrigated. That is the simple definition of a Fadama rice land. Usually this type of land refers to low-level plains located by water-bearing rocks, also known as aquifers. They can also easily get flooded during the rainy seasons.
The CBN’s Anchor Borrower’s Programme (ABP) has since inception of the programme created enormous economic linkages between Small Holder Farmers (SHF) in the country and reputable Large-Scale Processors. This has in turn largely increased agricultural inputs and heavily improved the capacity utilization of the processors because they are now sure of regular supply of raw materials for their production.
This programme is the single most important reason why the cost of a bag of rice has remained at the rate it is now despite constant increase in the rate of foreign exchange. The rice Nigerians consume now is mostly locally produced rice. Though some still consume the foreign rice but it is not large enough to tilt the scale like before.
This is to bring to your notice that rice is not a minor commodity in the country that you should take lightly. Rice is a major commodity and that is the reason why we want you to go into its branding and packaging.
Many people are interested in going into rice business but they don’t want to be farmers but want to key in to one of the numerous value chains of rice business.
In our next article on this topic soon, we will bring to you all you need to know about branding and packaging of rice. Let me reveal to you what you don’t know today, most of the bags of rice you see in the market today were not branded and packaged by the farmers, far from the truth.
Follow us, we will soon open your eyes as your own branded rice – Johnson International De stoned Rice – will soon hit the markets without setting your foot in the farm or knowing how the rice was produced.
Stay with us.