Steps to Start a Small Scale Flour Milling Business

Flour is processed grain used as an ingredient in many culinary delights. It is used to make cakes, pasta, biscuits and pies. Other applications are in making noodles, bread and doughnuts.

The demand for the product is high and attracts good prices. To succeed purchase the right equipment, source funds, buy raw materials and market.

Why Start a Flour Milling Business

The flour mill operates in the agricultural sector which attracts lots of government support. They access liberal loan facilities to purchase equipment.

 Other benefits are moderately low capital investment and rent facilities. The main attraction is the huge demand for flour based products.

Write a Flour Milling Business Plan

Write a flour milling business plan and carry out a feasibility study. Develop the skill through practical experience and become an apprentice.

Other methods are technical training and read books. The learning curve should include type of machinery, maintenance and repair.

10 Profitable Flour Businesses

Funding the Business

Fund the business through target savings or loans. Approach a commercial or agricultural bank for loans. Provide collateral, guarantors and startup capital. Make sure the loan has a small fixed rate for easy repayment.

Legal Formalities

Legal formalities include registering the business as a sole proprietorship or limited liability company. Secure a NAFDAC registration number and tax identification number. Put in place health and safety protocols and equipment.

Infrastructure

Locate the enterprise in a commercial area or close to a produce market. Rent a stall complete with storage facility and good road network.

 Add a storefront to sell the products to wholesalers, retailers and direct customers. Locate the business according to zoning formula.

Raw Materials

The raw material stocked depends on the type of flour. Find credible suppliers such as farmers or wholesale grain dealers. The flour mill could invest in farming the product and cut out the middleman.

Types of Milling Business

There are basically two types of milling business. Invest in direct small scale milling for customers or a full production line.

Direct Milling

Direct milling involves buying a small milling machine and locating the business in a marketplace or stall. The customers bring their grains and are charged by the miller. The cost consideration for direct customer service includes cost of machinery, store and utilities.

Small Scale Production

The small scale producer purchases a milling plant, rent a stall and purchases raw grain. They process the grain, package, brand and sell to wholesalers and retailers.

Flour Milling Machinery

There are different machineries needed to mill flour. Purchase grain cleaning machine, filling, and sifters.

Others are grandmaster industrial stone mill, storage silo, grain cleaning and packaging machine. Whole meal flour is milled using a basic mill system or production line with stone mills and plane sifter.

Start Wheat Flour Production

Types of Grains Milled

The plant should have the capacity to mill different types of grain. Common grains are rye, rice flour and wholegrain. Others include wheat flour, grits and organic wholegrain flour. More grains are maize, corn, barley and emmer.

Marketing

The market for flour products is huge and sustaining. Popular consumers of the product are pharmaceutical companies, fast food outlets and restaurants. Others are bakeries, food processing companies and private homes.