In many households rice is eaten at least twice a week. This makes the stable highly desirable for investors looking to make good profit. The stages of production are growing the crop, harvesting, processing then sales.
The final stage in rice farming is processing the produce. An entrepreneur interested in rice business can invest down the value chain into rice processing and bagging.
The industry is capital intensive moderately challenging and rewarding. The first step is to hire or build a warehouse for the machinery. Other considerations are operational license, incorporation, tax, staff and equipment.
Steps to start rice processing business
Steps include a plan, write a feasibility study, study competition and market forces. Then secure funding, acquire appropriate equipment, hire qualified staff. Other considerations are location, utilities, transportation, and operational license.
Focus on the factory capacity, maintenance then network with farmers in the immediate community. Finally develop effective marketing, branding, competitive pricing and distribution network.
- Formulate a plan
- Write a feasibility study
- Study competition
- Observe market forces
- Secure financing
- Purchase equipment
- Hire qualified staff
- Operational license
- Factory output
- Network with farmers
- Develop effective marketing
- Offer competitive pricing
- Good distribution network
Write a plan
Write a rice processing business plan then carry out a feasibility study. Before delving into production it is important to estimate local farmers output in the locality. The annual output should be enough to feed the mill close to optimum production.
The business requires huge funds so loans are in order. Approach a commercial bank or bank of industry for loans. Make sure the loan is long term low interest for easier repayment.
Typically short term loans attract less interest than long termed ones so make sure to understand the terms. There are also penalties on default to consider before taking the facility. Other loan sources are partnership, angel investors, venture capitalist or grants.
- commercial bank
- bank of industry for loans
- angel investors
- venture capitalist
Rice Processing Machines
Equipment choice depends on level of financing and functionality. You have manual equipment, semi-automated and automated machines. Equipment include graders, miller, cleaner, separator, whitener and packaging equipment.
Hire machine operators, sale representatives, receptionist, and accountant. You need truck drivers, maintenance crew and factory manager. Good corporate responsibilities dictates that the factory should include indigene workers in the labor force.
One of the most important aspects of the business is location. Typically rice milling plants are located close to rice farmers. This guarantees fast delivery of raw materials while reducing transportation costs. Major challenges include availability of raw materials, utilities like electricity, water, good road network.
Secure a License
Register the mill as a limited liability company get tax identification number. There are different insurance premiums like liability insurance, workers insurance or against workplace accidents.
How to Process Rice
Harvested rice is threshed, dried then parboiled for easy hulling. Other process include soaking, steam heating, draining then milling. Processing goes through husking, polishing or whitening, blending then packaging.
Mechanized milling process stat with pre-cleaning, de-husking. Others are husk aspiration then paddy separation, de-stoning. Next stage is polishing, whitening, sifting, length grading, blending, weighing and packaging.
- husk aspiration
- paddy separation
- length grading
List of Rice Processing Machines
The rice processing goes through various stages in the production. Machinery includes paddy separator, rice huller, destoner, length grader. Others are pre-cleaner, thickness grader, rice whitener.
More include the grain dryer, rice mill plant, elevator, rice polisher, mini rice mill plant. You need a rice laboratory equipment, biomass rice mill plant or combined rice mill equipment and packaging machine.
Types of Rice Processing Machines
Types of rice huller are automatic pneumatic rubber roll paddy husker and manual huller. Paddy cleaner include plane rotary separator, vibratory cleaning.
Destorner choice are basic destoner equipment or combined cleaning and de-stoner machinery. Other equipment are paddy separator, gravity paddy separator or gravity paddy separator with double body.
Rice milling Machinery
- automatic pneumatic rubber roll paddy husker
- manual huller
- plane rotary separator
- vibratory cleaning
- basic destoner equipment
- combined cleaningq
- gravity paddy separator
- gravity paddy separator with double body
Packaged rice is distributed through wholesalers and retailers. Invite wholesalers with evidence of adequate funding with network of distributors or at least 5 sales outlets. Invite wholesalers through newspaper publications, online advertisement. Invest in brand recognition campaigns through television advertisement, radio.