Professional Documents
Culture Documents
Haske Parboiled Rice
Haske Parboiled Rice
KABIR Page | 1
SMALL SCALE
RICE
MILLING
Business Plan
Address: Along Bodinga Road Sokoto, Sokoto State.
In spite of the oil, agriculture remains the base of the Nigerian economy,
Page | 3
providing the main source of livelihood for most Nigerians. Nigeria is the
Africa and simultaneously one of the largest rice importers in the world. Rice is
an important food security crop; it is an essential cash crop for its mainly small-
scale producers. Rice generates more income for Nigerian farmers than any
million metric tons of milled rice and imported roughly 3 million metric tons,
including the estimated 800,000 metric tons that is suspected to enter the
when the husk and bran layers are removed to then produce edible white rice
the preference of the customers, which would invariably affect how many
Rice milling businesses have grown over the years and this is due to the
fact that rice is the staple food of most countries of the world and is eaten
almost every day and especially during special occasions. Fortunately, since
Page | 4
Even though most of the rice consumed in Nigeria is imported, however,
there is large rice farms where rice is harvested locally, thereby ensuring that
The milling production is one that can help in employing several hands
that would help boost the economy and also help increase the per capita
are seeing the benefit this sort of business poses as a worthwhile investment.
o Destoner
o 1 Distribution vehicle
production of paddy rice and milling of paddy rice to produce pure rice grains.
Other products and services that are offered by us include the sale of the
rice hull, bran layers, rice germ as Ill as fine broken which are all by products
to their requirements and also passing along advices and tips that might best Page | 6
make them become better, while also listening for suggestions to improve My
of loyal customers and how they help grow the bottom line of a business. I
have several strategies in place for My loyal customers especially those who
Alh. Garba Kabiru Parboiled Rice is a business that aims to minimize cost
Page | 7
while maximizing profit and output.
The products and services that will be made available to customers include;
Production of Rice Bran as raw material for feed processing plant and
food supplements.
MY VISION STATEMENT
MY MISSION STATEMENT
MY BUSINESS STRUCTURE
second to none.
Page | 8
Rice Mill Production Manager
Accountant/Cashier
Quality Inspector
Machine Operators
Marketing/Store Manager
Security Guard
Page | 9
Managing
Director/Owner
Marketing /Store
Floor Supervisor manager
Security Guard
Page | 10
See to the day-to-day management of the business, which includes
Ensuring that the agreements and obligations of the duly monitored and
Responsible in ensuring that bills, payroll taxes and salaries are paid
accordingly
line
Investment of cash assets that are short-term in nature with low credit
loss risk
Page | 11
Draft strategies that would move the farm forward and also remove or
Oversees the staff and ensure that they follow farm guidelines and
policies
requirements
Page | 12
Accountant/Cashier:
Responsible for ensuring that invoices are booked into the right account
month end
Ensures that cash is kept in a safe place and know the minimum and
maximum level
Quality Inspector:
Corrects whatever faults are found during the milling process and
Page | 13
Machine Operators:
Responsible for cleaning the machines and ensuring that they are
during procedure
Marketing/Store Manager:
Security Guard:
and so require huge sums. My awareness of this fact has created in us a Page | 15
resolve to ensure that the business becomes profitable and breaks even in its
second or third year. This is where My experience comes to bear and separates
The SWOT analysis conducted with input from an external consultant for
Strength:
large rice farms in Sokoto State; the location is regarded as strength because of
town of Sokoto Metropolis at Arkilla Magaji Area which is also another strong
and suppliers.
Weakness:
Threat:
There are several threats that face every business and this is the
market.
Market Trends
Page | 17
The fact that more rice farms are springing up locally, mostly due to the
special interest that the Nigerian government has in local rice production; has
seen more rice mills spring up all over the country to be able to meet the
demands of the rice farm owners. This has made the business become more
My Target Market
Sokoto due to the various rice farms in the state. The location also brings us in
close proximity to other states within the region where there are several rice
farms.
My Competitive Advantage
Due to the profit viability of this business, several rice mill production
businesses have sprung up not only in Sokoto but in other regions that are
close to offer a stiff competition as well. Sokoto has various rice milling
production plants as Ill as several others in other states that are close to it.
located.
Page | 18
Another competitive advantage I have is my vast experience.
I intend to cultivate a loyal customer base where I will not only increase My
time to time give out tips and suggestions that will ensure that the
strategic locations.
Page | 20
Use attractive billboards and banners to ensure that potential customers
Create awareness by passing out handbills and fliers and pasting same in
strategic areas
Sources of Income
Like every other business, Alh. Garba Kabiru Parboiled Rice was
established with the intention of making profit, in the agro-allied industry. This
Rice Milling
Sale of milled rice by-products such as rice hull, bran layers, rice germ
other facilities especially that of storage is not only up to standard but also
sales forecast that I feel isn’t extravagant and will moderately serve as a model
Below are the Net Profit projections for Alh. Garba Kabiru Parboiled Rice
that is based on several factors that relates to small and medium scale
such as stable economic growth and lack of strong competitors offering same
services and products with same location. My sales forecast is averagely Page | 22
moderate with a 20% expansion rate per consecutive year and stakeholders
increase or decrease.
PARTICULARS 1st Year 2nd Year 3rd Year 4th Year 5th Year Total (N)
-
Packaging bags
9,600 9,600 9,600 9,600 9,600 48,000
REVENUE
Sale of each bag of rice @ ₦134,400,000.00 ₦134,400,000.00 ₦134,400,000.00 ₦134,400,000.00 ₦134,400,000.00 ₦672,000,000.00
N14,000
₦ ₦ ₦ ₦ ₦ ₦
- - - - - -
TOTAL REVENUE ₦134,400,000.00 ₦134,400,000.00 ₦134,400,000.00 ₦134,400,000.0 ₦134,400,000.00 ₦672,000,000.00
0
DIRECT PRODUCTION
EXPENSES
LOAN AMOUNT
The total amount required for the full implementation of this business plan is highlighted in green
in the table containing the financial model above and it amounts to a total of about N9,940,000.00
rice mill and then ensure it is the preferred go-to mill for their rice products.
realize that to be able to fully put in my best efforts into the business, I would
likely hire a consultant that would help us come up with and deploy the
Page | 27
Ensure that I place billboards in and around strategic points in Sokoto.
MY PRICING STRATEGY
around what is obtainable especially if the pricing is fair, this way I would not
Finally, my pricing will also take into account what my cost of production
as well as overhead is; this is so that I do not run the business at a loss. I
Payment Options
I intend to adopt a payment policy that will cater to all the classes of
Listed below are the payment options that Alh. Garba Kabiru Parboiled Rice
Cash payment
The banks with whom I have partnered with for My rice mill production
business is one that will ensure that customers have a smooth time during
request.
Costs of the machine and tools to be used are usually the same with few
cost difference in-betweens which would depend on where the machine would
This does not mean that I cannot get the machine for fairly used from
other rice mill production plants; however, ensure that the machine is in a
good condition so that I don’t end up spending more to fix it up. Regardless of
all the above listed factors, there are several basic requirements that I would
illustrated in the financial model section of this business plan with detailed
successfully set up a standard small scale rice mill production plant in Sokoto
State. The amount also includes the salaries of all employees for the first year
RICE MILLS
I have the sufficient experience to know how important finance is to any Page | 30
and every entrepreneur worth his salt knows that to make an idea become a
Alh. Garba Kabiru Parboiled Rice is a business that would rather intend
Some of the major areas where I intend to source for loans include;
that the right corporate structure and foundation are in place as this will
any business and so I will ensure that the welfare of my employees remain
management team.
know that my bottom line can only remain healthy if my loyal customers are
the business continually and moderate My expansion so that I do not grow and
Once the above factors are put in place, I am sure to be able to not only
sustain and grow My business effortlessly but also expand the business as at
when due.
The physical location, proximity to market, closeness and good relationship Page | 32
following:
equipment listed in the financial model for efficient full utilization of the
Mill.
judiciously utilize the proceedings from the rice processing section and
investment.