Who would have thought that garri processing will become one of the lucrative business in Nigeria before, it was just a food business left in the hand of old men and women in the village, until recently when some entrepreneur saw the profitability of garri processing, though many people are now into it the increase in demand of garri still dwarf the supply perhaps because of increase in the price of other staple food.
Garri business will always be profitable because it is a food common to both rich and poor, mention garri in any home and they will tell you deferent way of preparing it.
To start the business is not a herculean task though it require 7 figures capital nonetheless it is not hard to start once you get the basics, which is the main purpose of this article.
Before we go into the steps of creating garri business, I will like you to take note of the following
Types of Garri
There are no agreed garri types, but the most common varieties are
If you reside in south west of Nigeria you will know much about this garri as it is mainly produce in that region. As the name imply, white garri is white in color and made up of small particle. Depending on the state where it is been produce it might taste sour, sweet and normal.
This garri is reserve for drinking outside in other region of Nigeria , but can be drink and swallow as Eba in south west of Nigeria.
Some of the common varieties of white Garri are
It has a yellow color and it is native to South South and South East region of Nigeria. The yellow color is formed when palm oil is added to it and it is added so that it can look appetizing. It is majorly used for making Eba common swallow food in southern region and also in the middle belt.
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Operation of garri processing
To turn cassava into garri, it require four process which are:
1) Peel, wash, grate and ferment cassava by adding large amount of water to it for five to seven days.
2) Using hydraulic press, dewater the soft cassava and grate it again to form slur.
3) Filter the slur to remove undissolved part
4) Then fry it into garri using fryer.
Equipment needed to start garri processing business
Below are the equipment you will need to start garri processing buisness
A hydraulic press
Niches in Garri processing business
Cassava is the second most lucrative of all the niches of garri business, if you chose this niche your job is to plant cassava, harvest it and sell to processor. This niche require low capital but large expanse of land.
This is the most capital intensive of all the niches and the most profitable, if you chose this niche your job is to process raw cassava into garri.
This also requires low capital but its profitability depend on how many kg of garri you could sell per day.
The job here is to act as middle between garri processor and consumer; you will buy processed garri from processor and sell to wholesaler or final consumer.
If you have enough money, you can take all the niches at the same time but if not grow from one niche to another, it does not matter where you start from just make sure you grow to have more profit.
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Steps to starting Garri processing business in Nigeria
The first thing you need to do to have a profitable garri business is to conduct a feasibility study, to see if the business will be profitable and how profitable it will be in your proposed location.
Answer the following question in your feasibility study:
How easy to get your raw material (cassava)?
How are you going to sell the garri?
What is the purchasing power of your consumer?
Does your proposed location have access to road?
Bad plan is better than no plan, write down your vision for the business and how you will get there from year to year at least your projection should not be less down two years and maximum of three year for the sake of clarity.
Though there is high chance that you will sway from your business plan before you reach your second year.
Then why should I write it?
You never can tell you might want to expand your business in the future which certainly will require capital from bank or investor, the first thing they will ask for is your business plan.
Register your business
If you are operating small scale garri business you might not border yourself about business registration but if it is medium or large scale please do well to register your business with Corporate Affairs Commission (CAC), it will save you from future confrontation with the authority.
Building your processing plant
Depend on your scale of production 1 plot to 3 acres should be enough for your plant and it should be situated in well drain land, please avoid water log area. Your garri pant should be partition into the following section.
As the name imply, this is where you will carry out cassava peeling, washing, grating, pressing and fermenting.
This where you will fry and sieve your garri. It compose of two room one for the operation and the other for packaging and storing.
Source for your raw material
There are two way to get cassava which is your raw material; either you plant cassava yourself or buy from farm the major difference between the two is that, your cassava farm can be attacked by disease or pest which might affect your processing.
When sourcing from farmer note the following
To buy at low price buy by acre not bag of cassava, what I mean is that buy yet-to-be uprooted cassava.
Avoid middle men
Take random sample of the cassava and check the inside and outside.
Wherever you buy from make sure it is accessible by road.
When sourcing from your farm note the following
Make sure you plant the stem well; usually it should be 45 degree to the ground.
To have bountiful harvest, use fertilizer.
Packaging your garri
Common way of packaging garri is to pack it inside 50kg sack containing 20 to 22 paint rubber. Then it will be sealed. To avoid dampness put the garri in an open place and it should be put out of reach of pest.
I’ve heard about people lamenting that they could not sell their garri, the problem of this people is that they refuse to do their feasibility study, if they do it they will know their target customer and how to reach them.
To avoid this make sure you do your feasibility study and before processing garri get a buying promise form wholesaler or consumer and write down the quantity they promise to buy, please do not exceed this quantity, in fact produce lower than the quantity.
Profit and cost analysis of garri business
Note: the price might have go up or reduce
Cost of heavy equipment
Grater – #300,000
Presser – # 150,000
Fryer – # 150,000
Sieving machine – #100,000
Weigh machine – # 50,000
Total = #750,000
Profitability of garri processing business
Let say you will be producing 30 bags of cassava, you will need:
6 tons of cassava = #150,000
Peeling (machine + hand) = # 10,000
Pressing + Frying (labour) = 15,000
Firewood for frying = #10,000
Miscellaneous = #10,000
Total cost = #195,000
1 bag of garri = #15,000
30 bags of garri = #450,000
Profit = #450,000 – #195,000
Challenges of garri processing business
Up and down of garri price
Garri price is not regulated it can go up and down at any moment which can affect your business.
Note the season garri price normally go down and when it normarly comes up so as to prepare for such season.
Pest especially rodent are enemy of garri, they can finish 50kg bag in a night.
Store your garri well and deal with the rodents by using rat catcher, you can use anything apart from poising.
If garri stay long in storage it can get spoil.
Process gari you can sell at least in a week.
Question and answer
Is garri business profitable?
Very profitable, though it require large capital.
How do I process garri locally
It is the same process used in mechanical processing just that instead of using machine you use hand.
The processing steps are:
Peel, wash and soak cassava inside water
Packed the soaked cassava inside thick bag
Tie the bag mouth and place a stone on it to press out the water
Leave it for three to seven days to ferment
After the water is out, separate the undissolved cassava
Grate the dissolved ones (slur) inside large pot.
How profitable is garri processing in Nigeria
Garri is very profitable; you can make as much as #1,000,000 profits with operating cost of #450,000