How to start yam flour production
Today, I will be talking on how to start yam flour production business. But then, how lucrative is Yam Flour Production Business in Nigeria?
Yam is a noble food found in numerous locations all over Nigeria and sub-Saharan Africa. Yam has been grown and processed profitably in Nigeria.
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The production of yam as appeared from research is more than 70 million metric tons for each year. In spite of this figure, we are still hard to come by meaning that demand is more than supply.
Yam flour can either be utilized for local consumption or as raw material by other processing producers.
For instance, yam can be processed into chips or flour and sold locally or far abroad. Yam flour on account of its esteem has now turned into a mainstream food today. It is demanded in both neighborhood and remote market.
In Nigeria, the likely national annual demand for yam flour has been estimated at 200,000 Tons/Annum.
The present supply level is most likely under 20% of the estimated demand. just a couple of organizations produce on mechanized and commercial scale.
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The offices required for a little/medium scale yam flour process include; drying machine, slicing/
- drying machine, slicing/
- slicing/chipping machine,
- milling machine and
- packaging machine.
The normal production cost per Kg of yam flour is N236. the normal retail cost per Kg of good quality yam flour is N330 per Kg.
Yam is the undoubted main raw material for production of yam flour, and of course, yam is accessible al the year round in amounts for commercial use in many parts of Nigeria, for example, Imo, Enugu, Oyo, Osun, Ogun, Anambra, Bayelsa etc.
Nigeria is said to be the biggest producer of yam in West Africa.
THE BUSINESS PROSPECTS IN THE YAM FLOUR BUSINESS IN NIGERIA
Yam is a crop which may be cultivated and processed profitably in Nigeria. Study demonstrates that the production of yam is more than 80 million metric tons for every year.
Regardless of this figure, demand still exceeds supply. That is the reason I need to put you through on what it takes to begin a yam flour process with the goal that you can tap from this open door.
Yam can either be utilized for household consumption or utilized as input by different producers. For instance, yam can be processed into chips or flour and sold locally or far abroad.
Yam flour has now turned into a well-known food today in both neighborhood and international market. In Nigeria, the potential national demand for yam flour has been estimated to be in abundance of 300,000 Tons/Annul.
The present supply level is likely under 20% of the estimated demand with just couple of organizations producing on mechanized and commercial scale.
The office spaces needed for a little/medium scale yam flour production mill include but not limited to spaces to accommodate the following machines: slicing/chipping machine, milling machine and packaging machine drying machine etc.
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The normal production cost per Kg of yam flour is N236, while the normal retail cost per Kg of good quality yam flour is N330 per Kg.
Yam is the significant raw material for yam flour production, and it is accessible lasting through the year in commercial amounts in many parts of Nigeria. Nigeria is said to be the biggest producer of yam in West Africa.
The processing line for yam flour production Business is as per the following:
- Sorting: This involves inspection of yam fingers to recognize and evacuate unsatisfactory ones i.e. spoilt, youthful pulps etc.
- Weighing: The sorted yams are appropriately weighed to measure input of the raw yam.
- Blanching: The green yam fruits are absorbed boiling point water for a few minutes to soften the skin for simple peeling.
- Peeling: The yam peels are evacuated physically using sharp blades to obtain the mash.
- Slicing/Chipping: The mash is cut or chipped with the guide of a mechanical slicer.
- Drying: The cut yam is dried in a brief span with the guide of an industrial drying machine.
- Milling: The dried yam cuts/chips are processed in a sledge process.
- Sieving: The flour is sieved to obtain the craving molecule estimate.
- Packaging: The flour is packaged in dampness proof packaging material prepared available to be purchased.
Presently, if you work a yam flour production business process that has the ability to handle 1tone of yam flour for every day, and you actualize a decent and effective marketing technique, the following normal month to month figures are valid:
Production volume every month = 29tones (29000Kg)
- Deals = N9, 570,000
- Coordinate cost of offers = N6, 844,000
- Random = N500,000
- Profit every month = N2,226,000.
Yam flour production business factory can function profitably anyplace in Nigeria. The start-up cost at a little scale is around N6,000,000.
This will take care of the expense of obtainment of land, processing plant construction, furniture, vehicle and acquisition/installation of machinery.
PROFIT MARGIN IN YAM FLOUR PRODUCTION BUSINESS
Yam flour has now turned into a prevalent food today in both nearby and international market. In Nigeria, the potential national demand for yam flour has been estimated to be in overabundance of 300,000 Tons/Annum.
The present supply level is most likely under 20% of the estimated demand with just couple of organizations producing on mechanized and commercial scale
With the recently introduced credit loan by the Central Bank of Nigeria (CBN) for the productive area, investors can always access credit to execute this project. Point by point feasibility study and an elegantly composed business plan is very pre-essential to get to such reserve.
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The normal production cost per Kg of yam flour is N236, while the normal retail cost per Kg of good quality yam flour is N330 per Kg.
With the milling limit of the machinery referenced in this article, a month to month profit of N2, 226,000 is feasible, which means a yearly profit of N26, 712, 000.
My Last Thoughts
Another secret cash machine that people tend to ignore is yam farming in Nigeria and we need to take a look about how it functions. Yam is very easy to cultivate and maintain unlike other cash crops that requires so much time and money to maintain.
This is a low capital agribusiness and practically every Nigerian soil is useful for yam plantation as experience has appeared. Therefore, in the event that you have any land with loamy soil, you can begin yam farming on it and begin harvesting cash now.
Yam is a staple food that is very famous in the tropical regions. It is the tenth most important foot staple that feed people of all race the world over. Yam is treated just like potatoes and of course, it comes with comparable common flavor as well as texture when the unripe fruit is cooked by either steaming, boiling or frying.
Yam fruits throughout the entire year, which makes the crop a more reliable all-season staple food, especially in developing countries like Nigeria with inadequate food storage, preservation technology and transportation.
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