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Production Of Wheat Flour In Nigeria, The Pre-Feasibility Report

Production Of Wheat Flour In Nigeria, The Pre-Feasibility Report


Nigerian agriculture is characterized by considerable regional and crop diversity.  Analysis of this sector, particularly the food sub-sector, is fraught with serious data problems.  However, the available statistics provide a broad overview of development in agriculture upon which we can make some broad generalizations about its role in economic development and structural change in Nigeria.


In the 1960s, the agricultural sector was the most important in terms of contributions to domestic production, employment and foreign exchange earnings.  The situation remained almost the same three decades later with the exception that it is no longer the principal foreign exchange earner, a role now being played by oil.

The sector remained stagnant during the oil boom decade of the 1970s, and this accounted largely for the declining share of its contributions.  The trend in the share of agriculture in the GDP shows a substantial variation and long-term decline from 60% in the early 1960s through 48.8% in the 1970s and 22.2% in the 1980s. Unstable and often inappropriate economic policies (of pricing, trade and exchange rate), the relative neglect of the sector and the negative impact of oil boom were also important factors responsible for the decline in its contributions.

On its diversity, Nigerian agriculture features tree and food crops, forestry, livestock and fisheries.  In 1993 at 1984 constant factor cost, crops (the major source of food) accounted for about 30% of the Gross Domestic Products (GDP), livestock about 5%, forestry and wildlife about 1.3% and fisheries accounted 1.2%.

Wheat is a cereal grain, originally from the Levant region of the Near East but now cultivated worldwide. In 2013, world production of wheat was 713 million tons, making it the third most-produced cereal after maize and rice.

Nigeria’s domestic wheat production is small and dropped 20 percent from 100,000 tons in MY2011/2012 to 80,000 tons in MY 2012/2013. Currently, Nigeria produces about 300,000 tons wheat annually. This low-level of production is due mainly to unfavorable local climatic conditions requiring expensive irrigation. Continued threats of “Boko Haram” terrorist activities in most states within the country’s wheat growing belt in the northern region has mostly been responsible for the dropping production.

The country’s consumption for wheat remained high reaching 4.1 million tons in 2012/2013. Demand is expected to reach 4.2 million tons in 2013/2014 as consumer demand for wheat based foods continues to climb in response to changing tastes as in domestic supplies of other substitute staple products within Nigeria and neighboring countries is not increasing to match population growth. The market gap is filled by wheat imports and wheat milling capacity was estimated at 6.2 million tons, with capacity utilization at 50 percent in 2012/13.

This report examines the financial viability of establishing a wheat processing plant in Nigeria that would produce wheat flour, wheat grit, wheat bran and wheat germ through the dry milling process. Wheat flour is a powder made from the grinding of wheat used for human consumption. More wheat flour is produced than any other flour. Wheat varieties are called clean white or brown if they have high gluten content and they are called soft or weak. Flour if gluten content is low.

While wheat bran used in animal feed production. The germ is the primary product for making wheat oil and one of the important ingredients of animal fodder and wheat grits as well as being used for food is used in beer production.

The production capacity of the proposed plant is one hundred (100) tons per 24 hours and would operate three (3) shifts of 8 hours each for 300 working day.

Table of Content


Business Overview

1.1 Description of the Business
1.2 Vision and Mission Statement
1.3 Business Objective
1.4 Value Proposition
1.5 Critical Success Factor of the Business
1.6 Current Status of Business
1.7 Description of the Business Industry
1.8 Contribution to Local and National Economy

Marketing Plan

2.1 Description of product
2.2 Product Packaging and delivery
2.3 The Opportunity
2.4 Pricing Strategy
2.5 Target Market
2.6 Distribution and Delivery Strategy
2.7 Promotional Strategy
2.8 Competition

Production Plan

3.1 Description of the Location
3.2 Raw Materials
3.3 Production Equipment
3.4 Production Process
3.5 Production Cost
3.6 Stock Control Process
3.7 Pre-Operating activities and expenses
3.7.1 Operating Activities and Expenses
3.8 Milestones

Organizational and Management Plan

4.1 Ownership of the business
4.2 Profile of the promoters
4.3 Key Management Staff
4.3.2 Management Support Units
4.4 Details of salary schedule

Financial Plan

5.1 Financial Assumption
5.2 Start up Capital Estimation
5.3 Source of Capital
5.4 Security of Loan
5.5 Loan Repayment Plan
5.6 Profit and Loss Analysis
5.7 Cashflow Analysis
5.8 Viability Analysis

Business Risk and mitigation factor

6.1 Business Risks
6.2 SWOT Analysis

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Report Details

Report Type: Pre- Feasibility Report
Formats of Delivery: EXCEL / MS WORD
No. of Pages: 37 Pages (Text Part) / 6 Pages ( Excel Part)
Product Code: FORA/054-807/2015/WHEATMILLINGINNGERIA/12345-09876
Publisher: Foraminifera Market Research
Release Date: 30/08/2015; Updated Every 3- Months
Language: English
Delivery time: 24– 48hours


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