How do I do food distribution, supply and storage business?
Food distribution, supply and storage is one of the most profitable businesses in agriculture and agro-allied sector because the profit it brings is enumerable. It is highly profitable. Thus, your major concern, if you’re reading this, shouldn’t be whether it’s profitable or not, it should be how do I do food distribution, supply and storage business?
This business is profitable in most locations and country. Perhaps, it is more profitable in Nigeria, and the profitability has increased overtime and in the recent time because of the insecurity and food scarcity occasionally troubling the country. It is also an non-complicated business to do and begins yielding profit immediately.
The most important requirements is your interest in it, the money to execute the business and your desire to learn the business. Once you have the money, the interest and the knowledge of how the business runs, you should be doing well and making profits in no long time. It’s not really too hard to break even or break through.
In the section of the post below, we would be tackling commonly asked questions about this business and how best you can go about it:
What is food distribution, supply and storage business?
Food distribution, supply and storage business is the kind of business that involves already processed food items like palm oil, sorghum, maize, beans, bambara nuts, peanuts and others. These food items are distributed from where they are in excess to where they are scarce. They’re supplied from the places they are harvested to where the buyers are. They can also be stored where and when they are excess until they are scarce and the prices increased for sale and making of profits.
How profitable is food distribution, supply and storage business?
This question is important in this our how do I do food distribution, supply and storage business? The business is very profitable. It is so profitable that you can make back your capital and total investment in the business in one year or less than that in profits. Only few businesses can help you do this.
For instance, you invest 2 million naira ($3500) in the business, you cab earn back the money in profits in a year or so, or even before a year. That’s just how the business is a goldmine.
How risky is the business?
The business is averagely risky when compared to other businesses. However, since we suggest you learn the business; once the process of the business is learned thoroughly, the riskiness of the business is greatly reduced. You have to learn it, it’s important. You also need to learn it in terms of the storage part as not perfectly stored commodities can easily get damaged, leading to the loss of your money.
You want to learn this business and make good profits and change your life. Then Contact Us, and receive immediate reply.
Where can I do this business?
You can do this business almost anywhere. However, you have to note that you have to know what food items to buy and supply or store and sell later. These food items have seasons, and there are years they are very profitable. This is why it is important you learn the process.
For instance, in Nigeria, you buy surplus food items from places like beans (Adamawa State), honey (Taraba and Enugu States), palm oil (Ondo, Enugu, Edo and Imo States), cashew (Enugu, Oyo, Benue and Kogi States), beniseed (Niger, Plateau and Nasarrawa States) and many other commodities in their surplus seasons and in different locations. You either store the commodities to sell when the prices are high or supply to where they are scarce and make your money immediately without waiting.
How does food distribution, supply and storage business work fully?
This is a very important question in satisfying your desire to have how do I do food distribution, supply and storage business question. Read below and get how it works:
Food distributors and suppliers buy foodstuff from a place where it is in surplus and send to where it is scarce. They make a lot of money through this and the business in Nigeria or anywhere else in the world is not saturated. These people make almost 10% of their capital in every trip, and so, imagine if they make three trips in a week or three supplies.
This business is good, but it is technical and somewhat risky, and this is the reason we encourage you to learn about the processes and procedures before getting into it. If you have to pay to learn, please do, learn from the experts until you can certify you are an expert at it as well.
Another fact about this business is that it is capital intensive. The larger your capital, the higher your chances of making meaningful progress. You will need a mini truck or bus at least even if it is fairly used or money to loan some people’s own, you would need access to village markets to buy the foodstuff, you would also need a guide to direct market. The business has even been made easier that in some states, you pay to join their organization of food distributors and as such you are automatically connected to ready markets and buyers.
Thus, you would need good capital and other requirements to start this.
What are the Requirements for this Business
- Capital of at least 3 million naira ($4500), and more. There’s no maximum amount for this business as it’s capital intensive.
- Additional money set aside for the learning and registration to join their union and organization (in case of locations where such exists). (500,000 naira ($950) at least, for this).
- Your will and drive.
- Your patience to learn and deal with the stress.
- Then a feasibility study of your chosen routes and hazards associated with the roads.
In this business, starting with 3.5 million naira, you can make another 3 million naira in sales and profits in a year. This business has 100% or more yearly money-making increase.
How do I store food items for sale? How does storage business work?
This is another goldmine in agriculture sector like food distribution. The good thing about it is that it is not a long term investment. You simply purchase foodstuff when they are in season and excess in the location that have them in their cheapest prices, store them and sell when they are scarce. The profit in this business depends on the scarcity of products that season. You can make between 40% – 150% gain after a storage season depending on the scarcity of the products that season.
2021 was a great year for people into storage. For people who stored beans, they made more than 200% gain. You buy a bag of beans around 30K naira and sell it at 100K naira. Assuming you used like 3 million naira to buy these that means your gain is 7 million naira. Imagine that!
Even products such as palm oil move as well. In March – May, palm oil was selling for 9,000 naira a gallon and by August it had climbed to 18,000 naira. That’s 100% gain. So someone who invested 1.5 million in it would get 3 million naira in return in a space of not up to 6 months.
This is the reason why I called it a goldmine. However, this business is equally risky and if some products are not properly stored, they can spoil and even if you are not an expert at it, you might invest in products that would make you waste your time and energy as prices won’t pump or add. It is not all year that the business favors people, so this is the reason we would always advocate you learn any of these businesses we explored here before going into them.
To learn these business effectively, do not forget to Contact Us, and receive immediate reply.
We do hope that how do I do food distribution, supply and storage business has been answered fully. It doesn’t take much to be successful in this business. You only have to put your mind on learning it and having the required capital to make it successful as it’s a life-changing business if it is done correctly and in the right way.