Going into yam flour production is a great way for Nigerian entrepeneurs to make millions through agriculture. In this post we run through why the business is so profitable, and how you can start yours.

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.

The production of yam in the country is more than 70 million metric tonnes 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 tonnes per year.

The present supply level is most likely under 20% of the estimated demand – just a couple of organizations produce on mechanized and commercial scale.

For little/medium scale yam flour, the following tools are needed:

1. drying machine
2. slicing/chipping machine
3. milling machine and
4. packaging machine

Yam is the undoubted main raw material for production of yam flour, and of course, yam is accessible all year round in amounts for commercial use in many parts of Nigeria, for example, Imo, Enugu, Oyo, Osun, Ogun, Anambra, Bayelsa etc.

The business prospects of yam flour production 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 tonnes every year.

Regardless of this figure, demand still exceeds supply. That is the reason I need to walk you through 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 tonnes per year.

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.

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 the biggest producer of yams in the world.

The processing line for a yam flour production business:

1. Sorting: This involves inspection of yam fingers to recognize and evacuate unsatisfactory ones i.e. spoilt, youthful pulps etc.
2. Weighing: The sorted yams are appropriately weighed to measure input of the raw yam.
3. Blanching: The green yam fruits are absorbed boiling point water for a few minutes to soften the skin for simple peeling.
4. Peeling: The yam peels are removed using sharp blades in order to obtain the mash.
5. Slicing/chipping: The mash is cut or chipped with the guide of a mechanical slicer.
6. Drying: The cut yam is dried in a brief span with the guide of an industrial drying machine.
7. Milling: The dried yam cuts/chips are processed in a sledge process.
8. Sieving: The flour is sieved to obtain the craving molecule estimate.
9. Packaging: The flour is packaged in dampness-proof packaging material.

At present, if you work a yam flour production business process that has the ability to handle 1 tonne of yam flour every day, and you actualize a decent and effective marketing technique, the following normal month to month figures are valid:

Production volume every month = 29 tonnes (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 in any place 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 ingredient 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 tonnes per annum.

The present supply level is most likely under 20% of the estimated demand with just a 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 essential towards getting such an opportunity.

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.

Source: entrepreneurn.com