How to Start a Rice Milling Business

Do you live in a country where rice cultivation is done in a large scale?
 Are you interested in starting a rice milling business? 
Do you need a rice milling business plan ?
 If you answered YES to any of the questions above, then I advice you read on.

Rice (Oryza sp.) is the staple food in many parts of Africa and Asia, since it is very abundant and relatively affordable in these countries. Though it may not lead the pack of choice foods in developed countries, rice enjoys decent demand in these areas as well.

If you are in one of the countries where rice is widely consumed, then you can benefit financially from the huge demand for rice by starting a rice milling business. Since this business falls within the food industry, there are huge chances of success.

Though a very profitable business, starting a rice mill requires startup capital that far exceeds what most entrepreneurs can afford, and this explains why there are few players in the business—even in countries where the demand for rice is very high.

Why are rice mills needed?

Rice cannot be consumed in its raw form (know as paddy), which is enclosed in the husk. So, it needs to be separated, sorted to remove the stones and suitably processed for obtaining edible rice. Since rice is widely consumed, there is huge demand for rice processing mills.

If you can afford or raise the required startup capital, and would like to start a rice milling business, read on to learn the guidelines for starting the business.

How to Start a Rice Milling Business – Sample Business Plan Template
1. Learn from the experts

Before taking a plunge into the rice milling business, it is important that you find any rice mill around you; look at the environment, have a feel of the processes involved in rice milling and meet with the owner or manager. Let them know that you are also planning to start the business and would need some mentoring.

You should also find out the costs of starting the business as well the costs of running the business after launch. Find out the equipment and manpower required. Find out about the pitfalls and challenges that new entrants into the business will most likely face. And find out how to avoid the pitfalls and overcome the challenges.

Taking this step will help you decide on whether to go ahead or leave the business (probably because you can’t afford the capital or cope with the challenges).

2. Create a business plan

Developing a business plan for your rice milling business is very important, as it will guide you through the process of starting the business successfully and running it effectively afterwards. Your business plan will also come in handy when you approach investors or lenders to fund your business.

Your business plan will detail your business’s goals and objectives, required startup and running costs, projected earnings over the first few years, required staff, your target market and a thorough analysis of that market, the competition, your marketing strategy and unique selling point, and your exit strategy.

3. Obtain the necessary licenses and permits

In virtually all parts of the world, obtaining licenses and business permits is a requirement for starting any business. However, the required licenses and permits vary between states and countries. So I advice that you visit the appropriate agency in your state or country to inquire about the licenses and permits you will need to obtain before you can start your rice milling business. Better yet, visit the agency’s website or contact a seasoned attorney to find out.

4. Find a good location

A good location is germane to the success of any business. The ideal location for your rice milling business is one that is easily assessable to trucks and other vehicles, since these will be used to transport rice to and from your mill.

In addition, when choosing a location for your rice milling business, you must factor in the availability of electricity and other utilities you will need for the day-to-day running of your business.

5. Buy equipment

The major equipment in a rice mill is the rice-milling machine. This machine neatly de-husks raw rice to produce rice in its edible form.

While there will most likely be distributors if the rice milling machine in your state or country, don’t buy until you are sure that buying it locally will be cheaper than importing from countries like China, where the machines are usually manufactured and sold at relatively reduced prices.

Alternatively, you should consider buying a used rice-milling machine from a mill that is going out of business—if you can find one. However, you must ensure to check the working condition of a used machine before paying for it.

6. Hire employees and start operations

You will need to hire other people to work with you. For example, you will need laborers who will offload raw rice and load processed rice. You will also need machine operators, depending on the number of machines in your mill.

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