1. The Idea
There seems to be a lot of Carrots in circulation this season, and I kept seeing the sellers from Northern Nigeria with their wheelbarrows loaded with carrots.
This led me to making the fourth (4th) business startup Idea in our series to be about Value Addition – Repackaged Carrots.
This idea is about getting your supply of Carrots from a Northern Nigeria farmer in wholesale price, then look for a way to get it sliced or diced. This could be done using a machine or by hand (more labour intensive and time consuming). After the carrot is sliced or cut into cubes or little chunks, the Carrot is repackaged into suitable waterproof bags (leather –as some Nigerians call it) then sealed. For better effect, attach your label, which should contain your contact details, ingredients used and other relevant information (e.g. NAFDAC number, best use date.)
The packaged sliced carrots will then be refrigerated and supplied to supermarkets, departmental stores, Malls (Spar, shoprite) etc. so that people can easily buy them and use in their food preparation. Some applications of sliced carrots are shown in the images below.
As seen above, it can be packed with other vegetables to get a fine blend of Mixed vegetables.
Here is a good thread on Nairaland where you can get more information on getting Agro products from the North for business. You could check it out later.
Your indomie noodles can come to life with the addition of some sliced carrots.
Fancy making Moroccan salad, follow this link
So a Summary of the Business Idea;
1) Understand the whole supply chain before jumping in.
2) Get you a Carrot Supplier, Negotiate cost and discounts
3) Process it (Wash, Dice, Package, Seal, Label)
4) Supply to Supermarkets and other departmental stores
N/B: Some people will prefer the very fresh carrot that they buy themselves and prepare by themselves. However, there are probably lots of others who do not mind, plus we have a sizeable population in Nigeria that could be served by your product. Think Big, look at the brighter side, but still consider other concerns.
1. The Market
It is important to do your research on the available market before committing resources into any Business venture. With this one, you should go check at the Supermarkets and other Stores with refrigerating capacities and sections (Shoprite, Spar) so you can have an idea of what it is they currently have and what it would entail for you to supplier your packaged sliced cook ready carrots.
The demand may vary from place to place so it is important one is equipped with the relevant research information.
2. The Business
Value Proposition: Well-prepared, ready to cook, sliced carrots, preserved and packaged in such a way that the nutrients are intact.
Distribution Channels: Phone sales, Sales force, Middle agents and Distributors, Online (social media, blogs etc.), TV, radio and other adverts.
Customer Relationship: Meet the big stores directly, understand their needs and requirements and do all to meet them.
Key Activities: Buying, Food processing and Packaging, Selling, Logistics, Quality control.
Key Resources: Production equipment and facility, Workforce (Marketers, Food processing support staffs, logistics team)
Key Partners: Wholesale Carrot sellers, Carrot Farmers, Stores, Supermarkets and other retail outlets, Government Food standards Agencies (NAFDAC)
Cost Structure: Production equipment (cutters, slicing machines), Logistics (Transportation), Registrations & Licensing, Health and safety certifications, Marketing and Sales promotion, Salary and commissions.
Revenue Stream: Sales made from selling the Product.
There seems to be no strong barriers to enter into this business, which makes the possibility of competition high as many others could start this and serve as competition. Whatever the case may be, you would need to seek for competitive advantages over others. This can come from, lower cost, more availability than others, good customer service (after sales support), consistent supply to big customer. Etc.
Be sure to understand the carrot season cycle in Nigeria and how the wholesale prices would be affected, so that you do not have a cash-flow problem or incidence of not meeting contractual agreement for customer supply.
The restive situation in the Northern part of Nigeria as regards to feuds between farmers and herdsmen could easily affect supply of the carrot at any moment in time.
5. Financial estimates
One would need to carry out research on the associated cost in the following areas:
· Cost of Truck-load of Carrots. Small scale startup would involve less cost.
· Processing equipment. (Slicing , Sealing machine, etc.)
· Staff (food processing assistants, sales, delivery)
· Registrations, licensing, health and safety certifications
Add value to that carrot and resell it. Join in this probably profitable food supply chain.
Remember it is important to seek professional advice before jumping into any Business venture.
There’s only so much that can be said in one article…
So until next week, Stay inspired…
For more information, comments or feedbacks, get in touch.