Maize is a cereal Crop and it is one of the most widely distributed food crops in the world.
Maize also known as corn is a crop which produces grains that can be used as food to human beings and also livestock.
The crop was first domesticated by the indigenous peoples in southern Mexico about 10,000 years ago. Maize can be used for other things asides being used for just food for human beings and livestock.
Have you thought about Agricultural Storage Business before? Know that some agricultural products usually appreciate with time because the ratio of supply to demand of such commodities always decreases exponentially with time.
This is a wonderful business strategy with almost 0% level of risk involved. Many business moguls who have discovered this particular process have reaped wonders from it.
Many businessmen don’t understand or even invest in this because they lack the right orientation about the strategy.
Now let us clarify the concept of this business strategy. Agricultural storage business is a process in which farm products are purchased by the businessman directly from the farmers or possibly wholesalers and are stored till a period four months or more when the commodities will be scares in the market. This is a business strategy which can yield over 100% profit if properly done.
The Business Strategy
The major strategy in this agribusiness is buying Maize when their supply is approximately equal or even higher than the demand for them, and reselling them when the demand for them is highly great when compared to the supply.
Supply is always higher during harvest periods and now is the time, and it always matches the demand for the commodities during this periods. But when almost 40% of the commodities have been consumed by the society, the rate of demand will rapidly increase as supply will become limited.
This simply means that if you can store those products for 4-6 months from the time of harvest you will be among those that will reap from the real wealth of the commodities. Then imagine when you store it up to the next planting season. That simply means that you have hit a goldmine.
If you must invest in the business strategy and you want to go into a particular farm product, there are things you should know about that particular product. The things to know are;
Best place to source it.
The farmers to buy from.
Best market to sell your product.
Best storage system.
Level of competition in the business.
Requirement For Farm Produce Storage Business
•Capital: The money you will use in buy maize in the market, you can start as small as possible but be focus
•Ware House/Storage Facility: This place you can store your produce for a period of time, you can leas it or build yours if you have the capacity.
You must make sure it is safe , waterproof, you can use PICS bag from IITA it is a chemical free bag you can use to store your maize for a long time without any problem of pest.
• Company registration: This is optional.
• Infor mation(Planting season, Harvest period, Best place to source it, The farmers to buy from, Best market to sell your product, Best storage system, Level of competition in the business) ETC
Return On Investment (RoI)
Maize storage is like every other grain storage, it must be stored dried in a dry place in bags for those going into it as a business.
The best way to store maize now is the use of PICS bag from IITA .
The return is high and sure depending on your buying and selling time. For instance maize is going for N7,500 per bag of 100kg in the next two months to four it will not be the same it can sell for N10,500 to N13,500.