There are lots of foodstuff business ideas that cannot be exhausted in a single article. As such, we’ll focus on a few of the most profitable ones.
Food security is highly essential for any society. Anything less than that leads to huge upheavals in the social system. Famines are ready examples that are caused primarily by droughts.
This article will not be discussing food security. However, we’ll be focusing more on a related subject. That is, foodstuff business ideas you can take part in to earn money in Africa.
Rice imports into Nigeria has witnessed a significant dip over the years. This trend witnessed a high point by the closure of the country’s borders by the government. While there have been arguments for, and against this action, one thing stands out clear. A thriving environment for rice farmers and growing local rice consumption.
This is a great business idea to consider investing in. There has been steady growth for locally produced rice by Nigerians. This creates a ready market for farmers to make significant gains. You should give it a thought if you think you’ve got what it takes to create a supply.
One of the problems of the agricultural sector in Nigeria is the lack of proper food processing facilities across the country. Why are we focusing more on problems? Because people are ever willing to exchange their resources (money) for solutions to problems. Food processing has enormous potentials, yet there are few (if any) investments in this sector.
The absence of such facilities leads to food spoilage and losses by farmers. You can think of agricultural products you can add value to. There are several! Some of these include tomatoes, rice, Irish potatoes, dairy products, animal hides, and so on. the list is endless! Food processing will benefit the entire agricultural value chain, thereby boosting the country’s economy.
Currently, Nigeria imports fish products worth billions of dollars. There is insufficient supply to meet local demand.
While there are fish farmers across the country, the supply leaves much to be desired. That means there’s room for more farmers to join existing farmers in supplying fish products.
Fruit Juice Spots
This type of business relies on the availability of fresh fruits. This is always available. While such spots are available in major cities, supply isn’t close to meeting demand. You can venture into this area by exploring the idea of setting up such spots in strategic locations. One thing is clear; you’ll never lack raw materials (fruits).
There is a steady shift from heavily processed foods to organic foods and the reason is simple! Organic foods are much healthier and contain no harmful substances as ultra-processed foods. This is an area to explore. You can start by supplying organic foods as there’s a ready market for them.
You can venture into this business by either getting involved directly in cultivation or supplying them to the market.
Either way, you stand to earn a significant amount of income. Targeting the elderly as your niche market will be a wise move as long as there’s money to be made.
Cold rooms are viable business opportunities to consider. These supply a steady and fresh supply of aquaculture products. To begin, you’ll need to factor in the cost of purchasing your cold rooms as well as find a reliable source of power. Cold rooms thrive on electricity so you’ll need to find a way to provide steady and reliable backup power.
Start A Dried Fish Business
Dried fish is popular with Nigerians across all regions. It’s one of the foodstuffs with steady demand. Now, you can either get involved by sourcing from riverine communities or rear fish yourself. The latter is most common. You can start a fish farm on a commercial scale and dry your products before selling. Although it will cost more to dry due to energy costs, you stand to make more profits.
this type of foodstuff business suffers less from food spoilage as all there is to do is to dry them to prolong your product’s shelf life.
Foodstuff stores (retailers) rely on wholesalers to source their foodstuffs. Such stores are found on almost every street. Foodstuff retailers supply to end-users or consumers while depending on supply from wholesalers. If you know about comparative advantages as regards food production and supply, you can start this business by supplying your clients (retailers with foodstuffs) on a wholesale basis.
Start Supplying Grains
Grains like maize millet and many others are most common in the northern part of the country. These are relatively cheap in such locations. You can target periods when the grains are cheapest to purchase in bulk and move them down to the southern part of the country. You’ll need to figure out how best to transport such goods. Transportation in itself can be expensive.
However, this won’t be a problem if you have a better understanding of the market. Some other entrepreneurs exchange foodstuff between regions with a comparative advantage in production.
For instance, a foodstuff dealer can purchase foodstuff common with the south such as plantains, cassava, fish & palm oil. These are transported to the north and sold and the proceeds are used to buy food products like grains from the north to sell in the south.
We will be unable to discuss this topic satisfactorily due to its almost inexhaustible nature. There are several foodstuff business ideas to be tapped. You only need to identify an idea you can move forward with to begin the process.
It is important to note that while these business ideas are lucrative, lots of attendant risks apply too. You must be strategic and cautious about the entire process.