How to start a rice milling business
Do you want to know the steps to setting up a rice milling business? Do you want to know how to get your own custom package rice product to sell? This article will show you all the steps involve.
In our earlier article, we have discussed in details how to start a rice farming business. The steps discuss will help you put your rice business idea into reality.
Today, I will be sharing the procedures to starting a rice milling business.
Rice is a staple food in most of the countries in the world. The rice farmers grow, sell the rice and use it as the major daily food source.
Rice milling business has been around for a long time. Especially in countries where rice farming is their major source of income.
According to reports, the middle east is the leading import and export region. This account for 35% of world’s rice imports and about 75% of total exports.
However, rice milling business is one of the business in the agriculture that grows fast and help in economic development.
What is rice milling?
This is the step in the post production of rice that involves the removal of husk and bran layers, which produce rice that can be edible free of impurities.
The rice comprises of about 20% of husk and 11% bran layers, which leaves you with about 69% edible rice free from impurities.
Want to start a rice milling business? Do you want to invest in rice milling business? If your answer is yes, read on. In this article, you’ll have a complete overview on how to start and run rice mill business.
Why start rice milling business
The business opportunities in the rice milling industry are enormous. If you’re going to join the business, here are some of the benefits.
The raw material is available
The major raw material is rice cultivated from the rice farmers. It’s going to be difficult to run out of it. Because more people are starting their rice farm.
You can find people who will need the services of your rice mill in removing their husk and padding.
Profit can come from the husk too
Apart from the services and the product you do, the rice husk can also make you profit. The husk is used to create poultry feed and sheep.
You’re reducing unemployment
Modern rice milling process requires the use of modern rice milling machines which will be handled by people you employed.
It simply means you’re reducing people redundancy by creating job opportunities.
Challenges of rice milling business
It can be capital intensive
Modern rice milling machines are what makes the milling process easier and get the desired finish product. But the machines can be capital intensive.
For many who are not financially buoyant, you’ll need to find investors who can invest in the business. And you can’t find someone to finance the business, it becomes really difficult to put the rice milling business idea to work.
Constant maintenance is required
Unlike traditional rice milling machines, the modern machine will require routine maintenance for it to give the required efficiency that produces the desired output. The cost of maintaining such machines can be expensive.
The business requires expertise
The business will require the hiring of an expert who will show the technical aspect of the business.
Starting a rice milling business
Now that you know the benefits and challenges, it’s time we move into the steps in setting up a rice milling business.
Decide on the rice milling type
There are three ways you can start the business. All the method works but the profit level defer from one another.
1. One pass
This is the method where husk and bran are removed at the same time.
2. The two step process
This process involves the removal of the husk and bran separately.
The top two method of the rice milling process employs the use of traditional rice milling machines that many communities do.
Most of the rice in the above are done locally for local consumption with communities.
3. Commercial milling
This is the method where rice undergoes several modern rice milling process using modern rice milling machines, before taking it to the market.
Every step is carefully taken to ensure the desired result is realized because it’s meant for the wider market.
The process involves the following:
- Paddy removal
- Polishing or whitening
- Grading and separation of white rice
- Mist polishing
- Weighing of rice
- Bagging of rice
The third method is what I will be discussing as we continue.
Acquire the required knowledge
Market size matters a lot. You can’t plan a strategy, start a rice milling business or make an investment without understanding key facts about the milling industry.
Do your research and know about the rice milling business. Get your hands on the available documents you can get that can help you in the business.
If you have a rice milling factory in your area, visit the place to know the mode of operation and some equipment.
The knowledge will give you a clear picture of what you need and expect from the business.
Write a rice milling business plan
By now, you should have known a lot about rice mill and the things you need to run the business. It’s now the stage where you need to put everything into a business plan.
The business plan should contain all the money required to buy and set up the business, a number of people you intend to hire, profit and loss analysis, cash flow analysis and the projected rice mill business.
The rice milling business plan is what will keep you on track when you want to deviate from the business goals.
It also is another document that you can use to attract investors.
Get the funds
Since you know the money you need to for capital and recurrent expenditure, then you can begin sourcing for the money that you can use to finance the rice farming business.
You can ask family and friends, look for investors or loan to finance the business. Using your business plan, it becomes easier to convince investors to build the business.
Acquire the land
Get the land you intend to build your rice mill factory. The location should be in a place that will be easily accessible to both young and old.
The land should have enough space for sun drying the rice, setting up the rice mill and storage place.
Work the land
Start working on the land. You’ll need to put a structure that should have a place for drying and storing, a place where the process of rice mill takes place.
Provide security by building a fence wall that reduces intruder. Create a section where you can receive customers and sell your item.
Buy the equipment
In the rice milling business, you’ll have to get some equipment in other to carry on the process of rice milling successfully.
Some of the modern rice milling machines are:
- Rice cleaning machine
- Rice de-stoner machine
- Paddy husker machine
- Rice color sorter
- Paddy separator machine
- Rice whitener machine
- Rice polishing machine
- Grading machine
- Grain dryer
- Measure and packing machine
- Rice milling detection machine
- Lighting equipment
Most of the equipment are durable and stands the test of time.
Some of the equipment can be fabricated. The fabricated one will be less expensive compared to the real one.
Note that you’ll need to be sure that the fabricated machine will do the work it was meant to be else, you’ll only waste your money.
Install the equipment
By now your rice milling machines have arrived. It’s time to start installing them. The services of an expert will be required in other for the installation to be successful.
Most often the company that sells the machines will always have an expert that will do the work for you. You’ll only need to ask them.
Register the business name
Get and register a business name to give you a unique identity. Once you build a reputation, it’s your name that will keep singing a good song. It also prevents other business from stealing your identity.
Get the license from the start and the federal government to ensure that you have the certification and permission to go on with the business.
Design the rice milling business mode of operation
For you to be in control of the business, it’s important to design the mode you want the rice milling business to operate. This should let you know whether it’s the way that can deliver the work faster.
You can design and redesign until you get to a point where you become convince that it’s the mode of operation that will work effectively.
Once these are done, the work of everyone you hire to work in the rice mill will have a defined role in the business.
It’s time to hire people who will help in running the business. In rice milling business one important factor to consider when hiring people is their experience. This will ease the stress going through the process of training before kicking the work.
It’s important to hire both technicians and administrators. The technicians are responsible for operating and maintenance of the machines. While the administrators do the paperwork on a daily basis.
Each person you hired can be given a defined role that will ensure the process of rice mill works in an effective way.
If your rice milling business will only thresh rice for customers alone, then you can begin your operations. If you intend to produce your own packaged rice and create chains of distributors, then you can continue reading.
Getting your raw material
The rice milling business success will be on how you maintain production all year round. Getting raw materials from guaranteed sources is really important.
There are two ways to go about the entire process.
a. Creating a rice farm
This is where you start a rice farming business where you grow and harvest your rice. Making sure that the land can produce enough rice required for the rice mill.
This method when done right increases rice mill business profit. You can read in details method on how to start a rice farming business.
b. Buying from suppliers
This method will be when you buy rice from farmers or using the farmers market. Using this method ensures that you get rice irrespective of the season. The method of buying rice from suppliers is hugely affected by the market price.
Start your production
By now, you must have everything in place. You can go ahead and begin production.
Package your product
Packaging is really important. In other to get people to notice your product in the marketplace, you’ll need to package your product in a customize sack.
Attractive designs help in marketing your product. However, you can hire a graphic design firm to do the designs for you.
Set your prices
Set your packaged rice prices. The price should be competitive to attract customers. You can do a market research to know the prices in the market before setting your own.
But you have to make sure it covers all expenses and brings profit. The prices for suppliers should be different from consumers.
Market your business
Begin to let people about your new business. Use social media, TV ads, and print media to pass the message. Do a road show, hold raffle draw to attract and further expose the business.
- Build your chain of distributors
You can build a chain of distributors who can help sell your products. Give them an incentive to attract the distributors.
Rice mill business profit
The rice milling business profit will come when you have put the effective management in place and then target both low and high-income earners by creating products that accommodate all.
Sometimes you’ll need some time to begin to see the result of your hard work.
Maybe you have a small business idea about starting your own package rice business, but the problem is, you can’t raise the money to set up a rice mill. Here is a way you can start.
Work to a rice mill and express your desire to become a distributor, but this time, the rice will be packaged in your own customize sacks.
Most of the rice mill you’ll approach will agree with you. Some will even produce and send it to your location, simply because the concept of companies willingness to create a custom product is becoming the in thing in the world of business today.
The company is also building a network of business partners which will increase their sales.
Of cause, you’ll need to sign some agreement before all things will go on.
Once you begin, you too can build a network of your distributors who can buy and distribute it to the final consumers.
But to be able to do it successfully, you’ll have to approach a company who have the capacity to execute that business model.
There you go, the complete steps to setting up a rice milling business irrespective of your location. One thing that will continue is people will continue to use rice as a staple food making the demand always high.
I love to hear from you. What do you think we have left steps to starting a rice milling business, feel free to make your contribution by making a comment below.