WHAT YOU NEED TO KNOW BEFORE SETTING UP A GARRI FACTORY
Good day peeps, it’s me again, the only garri consultant- garriguy.
Today, we will be discussing in brief, what you need to do, before you set up a garri business.
I get a lot of this question, WHAT DO I NEED TO DO BEFORE SETTING UP A GARRI BUSINESS, almost every day, and I see the need to do this, in order to solve this, once and for all.
First, is garri business lucrative?
Of course, it is. What’s the point of flooding the market with a product that is giving the sellers nothing but loses? Nobody does that. Garri business, like any other production business, is lucrative, but only when done right. Your cost of production must be well monitored to ensure a profit. This is not peculiar to garri processing, it is 100% true for any production business.
Before you even consider this business, you must be ready to run it as a real business, with records, plan and administration, or you might as well just forget it. The problem we have in Nigeria as a start-up is majorly lack of plan and feasibility studies. People want to start a business because others are successful in it. They have no plan whatsoever or idea of what they are getting into.
So, now, to the question, “what do I need to know, before starting a garri business?”
I will do this in a very simple, straight forward and concise way.
A LITTE RESEARCH ABOUT AVAILABILITY OF RAW MATERIALS- CASSAVA
I have seen a lot of clients who called to say they already bought a land and are ready to start their business. That is a very wrong move. You do not assume you will see cassava because what you need is a constant supply and not just a small supply. Dangotte wouldn’t set up his cement factory where limestone is scanty but in abundance because this is a lifetime supply and not a short-time thing. So, the first things is to understand that the supply is available to a long-time supply.
AVAILABILITY OF LABOUR
After the constant supply of cassava is confirmed, you must also be sure that labour is available and competitive. The reason for competitive labour is to get a fair cost of production. In a competitive labour environment, workers roll over themselves to get the job. Where labour is not competitive, workers dictate what they want because they will see it as a favour to you. It is difficult to get workers in this kind of environment and the ones who would consider working for you will make you pay through the nose.
ROAD ACCESS
Before you consider land, you must be sure that the third party workforce wouldn’t avoid your factory because of bad roads. Third party workforce includes cassava suppliers, workers, and buyers of your product and so on.
TYPE OF MACHINERY TO EMPLOY
The type of machinery to employ (manual or automatic) will determine the volume of land to buy. And while automatic is expensive, it is ideal where labour is not competitive. Manual processing is to be considered in a labour-competitive environment. And thus, it is worthy of note that an automatic machinery setting would require less volume of land than manual machinery processing.
LAND
This is the item many would have placed first- but it would be a wrong move. Land should be considered after all previous four items had been considered. I believe the reason is quite explained. It is advisable to land to be well accessed, not waterlogged and with a close-to-the-surface water level. This term is used for lands where it would be easy to get water if a well or borehole is to be dug or sank respectively.
MACHINERY
The choice of machinery should be determined by the factor discussed under availability of labour. Where labours are competitive, I would go for a manual machinery. They are cheaper to install or get. Low maintenance compared to automatic. But where automatic is considered, then labour should be scarce.
MARKET
The market is the least of your problems. Believe me, sales are assured.
THANKS
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