How To Start Biscuit Production Business In Nigeria

biscuit production business

Biscuit Production Business in Nigeria has been thriving for several decades. The Biscuit market in Nigeria right now is littered with so many kinds and brands of biscuits. At times it is difficult to make a choice as to which biscuit brand to buy or not to buy.

Presently, the Nigerian biscuit market is heterogeneous, comprising of both the locally produced and foreign made biscuits respectively. Given these foreign biscuit brands, notwithstanding, locally-made biscuits brand are still surviving and are becoming even more popular as the day goes by.

How To Produce Biscuit In Nigeria

To produce biscuit first, flour, sugar, fat, water and other ingredients are mixed in the right proportion to form a dough. This is then ejected from the mixer and immediately placed into either a trough or tub. From there, it is directly fed into a feed hopper to make biscuits.

Types of Biscuit Production Business Models In Nigeria

  1. Small Scale Production: Here, the biscuits are made at home. This home-based production is very popular in Europe but it doesn’t work here in Nigeria
  2. Large-Scale Production: This is factory-based biscuit production. The capacity of the factory determines the volumes of biscuit produced, in tons. The average biscuit production machine, on an 8-hour shift, produces about 1000kg of biscuit daily. With about 280-300 days per annum in biscuit production, it is possible for a factory can produce, in a year, about 290,000 tons of biscuit.

How Profitable is Biscuit Production in Nigeria

Biscuit has a daily consumption demand and favours all seasons and occasion. There is hardly a part of Nigeria that biscuit is not consumed, bought or sold. When it comes to biscuit business, the economic state of the pocket is not a factor; as both the poor and the rich can afford it. Given this high demand, therefore, one can safely say that biscuit production business is, indeed, a booming business in Nigeria.

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Market Demand & Competition  Overview

Biscuit is one of the commodities that sells fast in all regions of the country, due to its affordability, sweet taste, and ready availability. The market for biscuit business in Nigeria is national.

Well over 165 million people are resident in Nigeria today, with the population growing at 5.7% annually. Also, in the past five (5) years, 3.5% has been pinned as the nation’s average annual economic growth rate annum.

These indices suggest that indeed Nigeria has a large market for biscuit business with an estimated and interesting annual demand figure of about 600,000 Metric Tonnes.

Presently operating in Nigeria are about sixteen (16) biscuit manufacturers, of course, you can be the seventeenth.

How To Start Biscuit Production Business  in Nigeria

Follow the steps below to start a Biscuit Production business in Nigeria today:

(1) Register Your Business Company Name:

Before you launch your biscuit business, you have to first contact the relevant Government regulatory agencies in charge of this business. This includes the following:

  1. Standards Organization of Nigeria (SON)
  2. The National Health Insurance Scheme (NHIS)
  3. National Agency For Food, Drugs Administration and Control (NAFDAC)
  4. The Ministry Of Health, and
  5. Corporate Affairs Commission of Nigeria (CAC).

These bodies will provide you with the necessary registration and license you need to operate your biscuit business in Nigeria.

(2) Get Biscuit Production Equipment & Machinery:

This includes the followings: 

  1. Biscuit recipe
  2. Cooling conveyor
  3. Flour mixer machine
  4. Kitchen space and countertops
  5. Large baking pans
  6. Layout Turning Machine
  7. Oil Spray machine
  8. Ovens
  9. Packaging machine
  10. Rotary forming machine for hard Biscuit
  11. Rotary forming machine for soft Biscuit
  12. Sandwich machine
  13. Storage bins for ingredients
  14. Tunnel Gas Oven
  15. Etc.
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(3) Choose A Suitable Location:

Site your factory close to the source of raw materials and the market.

(4) Draw Up A Workable Business Plan:

This will give you an overview of your monthly expenditures as well as income ratios and other necessary details.

(5) Set An Effective Pricing Mechanism:

Keep your prices affordable to encourage continuous patronage and business partnerships. It should not be too high neither should it be too low.

Staffing & Advisers:

Standard Biscuit Production factory requires a staff strength of about 20-40 personnel. This comprises of the following:

  1. Marketers and chefs
  2. Managers
  3. Administrators
  4. Factory workers
  5. Engineers and Technicians
  6. Accountant
  7. Miscellaneous staffs.

Also, get good mentorship from veterans in the field and tap from their wealth of expert experiences. This is perhaps the best form of education you can get on how to run the business effectively and efficiently.

Advertisement Strategies

Below are some of the available options you might use:-

  1. Run TV adverts: A time-proven advertisement Strategy.
  2. Brand and Design attractive biscuits packets: Remember, your product will be addressed by how it is dressed. Always be conscious of this fact.
  3. Advertise on Large Billboards and Signpost: Do this in highly populated areas to create effective market awareness.

Profitability/Sustainability Tips

  1. Seek customer feedback. It is very important. They are the ones who will tell you where you have done well and where you need to improve upon.
  2. Keep learning, keep expanding, keep earning and lastly, never stop investing and re-investing.

Conclusion

I believe that with these few lines, you can now successfully run a Biscuit Production Business in Nigeria. Your feedback is highly appreciated.

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