Make Steady Income Repackaging And Selling Agricultural Food Items

... Starting With As Low As N25,000

And Increase your fortune exporting to Nigerians abroad ***From SuccessDigest Archives*** Do you know that a country like China has experienced tremendous growth in her economy simply because they embrace entrepreneurship? In fact, those operating at the cottage level are enjoying huge government support to the extent that their products are pushed beyond the borders of China. In Nigeria, the trend is gradually emerging. Everyone seems to be looking inwards as to where lies the next business opportunity. Well, you need not look far as SuccessDigest unveils another income opportunity that you, as a Nigerian, can do with ease. There's no doubt that the farmer is 'king' anywhere in the world. Where you have farmers then you're sure of foods. You will also agree with me that anyone who is in the food supply business is really in money. No wonder companies like Nestle Foods, Cadbury, Tantalizers eateries etc are thriving today doing food business. Repackaging of food items at a cottage level is one business you can do and ensure you swim in money as you wish. Why? People's daily need survival as far as food is concerned What is Repackaging? According to an expert, in this business Mr. Femi Oduntan, repackaging is the same as secondary packaging. It is simply taking an existing or manufactured (already known and accepted) product and re-bagging or putting it in a new container to give it a fresh appeal or look. This is with a view to adding value thus, skyrocketing the demand for that product. Take for example, water. Water can be easily gotten anywhere. But you and I pay for the same water simply repackaged in sachet or plastic bottle.

Another example is this we see lots of traders around, buy food items in bags and retail to you and I in smaller quantities packaged in nylons. The same goes for the road-side 'mallams' you observe that they buy huge bags of sugar, detergent, or salt and use spoons to repackage in smaller quantity for sale to customers. With this background, you'll agree therefore that repackaging of agricultural food items is very simple and makes selling easy. Popular brands like Lisabi Foods Nigeria Limited and Oluiyan are hot brands that thrive on repackaging agric food items. It has become a big business and done using heavy repackaging machines. Some Common Food Items You Can Repackage Several products can actually be repackaged but for this write-up, we shall limit ourselves to agro-allied food products that are commonly found in every home. Some food items you can easily repackage include: Garri, Rice, Rice flour, Ground rice, Beans, Wheat, Yam flour, Bean flour, Cassava flour, Plantain flour, Ground cray-fish, Sugar, Dry chili pepper, Egusi, Cashew nut, Ginger, Garlic etc. Sources Of Some Of These Food Products It's better to source your food items from the popular Sunday markets located strategically in Lagos. Many of them bring food items directly from different farms in Nigeria to cities like Lagos and are sold cheap. Some of the Sunday markets include: Ogba in Ikeja, Shomolu. Other markets where you can get food items cheap are Mile12, Oyingbo, Oto, Mushin etc. Also, if you have access to farmers in the villages, you can source your products cheaper. What To Put In Place To Start Your Repackaging Process Space: You need a room, shop or somewhere to operate from. It must be clean and well ventilated. Repackaging equipment: Actually, you can repackage with your hands but, sincerely speaking, it's unhygienic. So with a repackaging machine in place, you avoid body contact with the food item being repackaged. With your repackaging machine, you make your work faster by repackaging more of your products. The Repackaging Equipment Comprises; i. Dispenser, ii. Industrial sealing machine with table (customized), iii. Special nylon (branded) pack made strictly for this type of business iv. Weighing scale v. Chairs vi. Cartons or wooden boxes to store packaged products vii. Generator (2kva) needed to power sealing machines.

How The Repackaging Dispenser Machine Works (Production Process) Step 1. The food item, like Garri, is poured into the fabricated dispenser (made of mild steel). Step 2. There is a lever where you press and a mechanism will release the poured content into the nylon bag via the opening from the dispenser. Step 3. After bagging, you put the item on a weighing scale to ensure that the right measure meant is what is contained in the pack. Step. 4 Once this is done, then you go straight to sealing and you are set for the market. Where To Get Your Repackaging Machine You can get your repackaging machine fabricated for you by local fabricators. But for the purpose of this write-up, you can contact: Femodun Products Industries No. 22A, Adeojo St., Iseri-Isolo rd, Ijegun, Lagos. Market Potential This is a business whose market is unquantifiable. It is a must for everyone to eat. However, to thrive in this business, you need to define which strata of the masses you want to sell to. This will narrow your focus and determine your marketing strategy. Marketing Strategy Some marketing strategies you can deploy include; word-of-mouth, fliers, supply to kiosk/stores, visit churches/mosques, traffics, mobile marketing, neighbourhood marketing, appearance at trade fairs etc. With the advent of social network sites like Facebook, you are sure of a potential market those sites. Startup Capital Anyone who wishes to set up this business will need at least N250, 000 as start-up capital. The amount covers the following: Dispenser machine N60, 000 Hand sealer with table N36,000 3 Chairs N15,000 Branded Nylon N50, 000 Generator (2kva) N30, 000 Bag of rice N7,000 Bag of beans N9,000

Bag of garri

N5,000

How To Raise Money To Start Out Raising money to start out this business should not be an uphill task. Now every Bank in Nigeria has what we call an SME desk which in most cases is eager to give soft loans with no stringent collateral. All you need is to approach them with your proposal, stating how lucrative the business is and it is sure to bring in daily returns. Banks are also willing to go into equity relationship with you. The machine is bought in your bankers name and it remains theirs until you redeem payment. Secondly, you can go into a joint venture partnership with someone of like minds and run this good business together e.g. 10 people can contribute N25,000 each to acquire the machine. Do not forget to get a lawyer involved to ensure each partner plays to the rules. You can also leverage cooperatives to make it easy for you to start out. Thirdly, religious organizations can set this business up for their church members. Instead of giving them cash, the equipment can be bought directly from the machine maker. How To Make Money Supplying Exporters The export market is emerging strongly. You may wish to play big by being a supplier of repackaged food items to Africans in the Diaspora. All you need do is get in touch with the Ministry of Commerce or better still, get your export guide from Nigeria Export Promotion Council (NEPC). There are other established Nigerian individuals and organizations who act as brokers connecting suppliers with buyers. With a proper online search you can land a big deal. All you need is to inform people about the availability of your product offerings. You can place classified ads exposing your packaged products. Let the ads request for brokers who may wish to connect you to exporters. Making Contacts With Direct Foreign Buyers One of the ways of making contacts with foreign buyers of Nigerian commodities is by going online to establish instant contacts.

You can achieve this by signing up free with most of the international trade directories which are listed on the internet. You can also search for more directories with the Google search engine [www.google.com]. Other sources of foreign buyers are the foreign consulates (embassies) You can also establish contacts through the chamber of commerce of every city you are aiming for. Methods of Sourcing for Export Contract It must be noted that there are two methods for sourcing buyers of export products. They include: Offline Method: The offline method includes contacting companies listed in trade directories of such associations as Nigerian Chamber Of Commerce Industries, Mines &Agriculture (NACCIMA) Nigerian American Chamber Of Commerce (NACC) Lagos State Chamber Of Commerce (LSCC) Nigerian Export Promotion Council (NEPC) Nigerian Polish Chamber Of Commerce (NPCC) Japan External Trade Organisation (JETRO) Nigerian German Chamber Of Commerce (NGCC) & many more. These organizations, over the years, have proved very vital as exporters guides in offline sourcing for importers of Nigerian products. Hence, exporters are advised in the interest of operating a successful export venture, to become active members of at least any one of these associations. Establishing contact with buyers via this medium involves An offer to sell made by email, airmail, or courier to the importer by the exporter and accepted by the importer. A formal invoice/contract sent by airmail, courier or email by the exporter to the importer and confirmed by the importer. A formal typewritten contract setting out all the conditions of sales and signed by both buyer and seller. International Commodity Pricing It must be acknowledged that there is an approved international price for all exportable commodities. It is the responsibility of both the exporter and importer to agree on a price that will serve their interest. You can check the NEPC

international price catalogue for more information. The international price of commodities is dependent on the following factors: i. Quantity and quality ii. Local cost of procurement and logistics iii. Terms of payment and delivery iv. Prevailing local economic factors Methods And Tools Of Payment The process of exporting is incomplete without receipt of payment. Export income is considered earned only when payment has been received. Below is the most recognized method of payment in exporting: Letter of Credit (L/C) The most popular and a safer method of international payment is by a confirmed irrevocable letter of credit at sight. The documentary credit letter of credit, documentary letter of credit, or commercial letter of credit is an arrangement whereby the applicant (the importer) requests and instructs the issuing bank (the importers bank) or the issuing bank acting on its own behalf, to pay the beneficiary (the exporter) or accept and pay the draft (bill of exchange) drawn by the beneficiary, or authorizes the advising bank or the nominated bank to pay the beneficiary or accept and pay the draft drawn by the beneficiary. Export Contract Having understood the primary rudiments on how to embark on an export transaction, the next step would be to seek a genuine foreign buyer/consignee/importer of the product that you have selected to export. The prospective importer might place an order for your products upon receiving your proposal/letter of offer to supply the product in question. The demand/order for your goods by a foreign importer is called a firms EXPORT ORDER and you as an exporter must ensure that it is genuine. CASH IN ADVANCE (CID) The cash in advance is the safest term of payment. Most often is effected using the cheque or bank draft. In some cases, the CID term is paid using the telegraphic transfer (T/T). Exporters Nigeria Export Promotion Council (LAGOS ZONE)

Headquarters Annex 13/15 Ladipo Oluwole Street Apapa, Lagos. Tel: 01-5803320, 01-8948670. Femodun Products Industries 07033920999, 08023556699