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How to start a potatoes chips business
in Nigeria
Fried potato chips are a kind of leisure food which is popular
all over the world and deeply welcomed by consumers. It remains
the special delicious flavor of roasted potato on one respect
and has the characters of rich nutrition and delicious. Local
production of these snacks has not been commercially explored in
it totality, giving room for the need to develop them. The raw
materials are available locally and the production process is
simple requiring simple equipment and space to start small.
Sweet potato is one of the world’s important food crops and an
important staple food crop in Nigeria. It is very valuable in
the diet of rural poor in the tropics. It is a low-input crop
and it is used as a vegetable, a dessert, source of starch and
animal feed. In Nigeria, sweet potato is eaten as a substitute
for yam as a result of lower cost of production.
With the advent of globalization, Nigerian eating habits are
changing to emulate those of the West. This means that
consumption of Western style Fast Foods is on the rise. Due to
this reason the potential market size of Fast Food products is
increasing at an exponential growth rate. This is also evident
from the entry of world famous Fast Food Chains entering
Nigerian Market such as KFC.
Children, teenagers and young people are the target market of
the Potato Chips. Home, rather than school, is the most popular
destination for eating crisps and savory snacks, with seven in
ten children (70%) consuming them at home, against around half
(48%) who eat such snacks at school. After school, when children
tend to choose their own snacks, 70% select crisps and savoury
snacks compared to lunchboxes, which mothers generally pack,
where the most popular item is a savoury sandwich or roll.
Some 44% of consumers prefer to buy children’s snacks in
multipacks while nearly half of all consumers say they are price
motivated in their snack purchasing. The demand of the present
market is met by the mix of Branded and Unbranded Chips
available in the Market. There are 60% of the population which
is Brand Loyal. However remaining 40% of the Un-branded Market
can be attracted through heavy Advertisement Campaign.
Therefore, the potato chips market is also increasing at a high
speed , fast food and restaurants consumes large quantities of
potato chips ranging from 50 Kg to 1,000 Kg per day. More so,
the improvement of people’s life standard premium quality &
internationally recognized plantain chips is needed a new player
has a great chance to enter the market through heavy campaign &
promotion activities.
Equipment
Potato chips cutter or sharp table knife, big frying pan,
portable electrical nylon sealing machine, gas burner or
kerosene stove and weighing scale.
Material for production
Raw potatoes tubers, vegetable oil, table salt, sugar, plain
packaging nylon or customised nylon and printed label.
Peel off the skin of the raw potatoes with a knife, wash the
already peeled raw potatoes, cut or slice the already peeled
potatoes into small chips using your kitchen knife or a potato
cutter, add some quantity of table salt or sugar depending on
what your customers will like, light your stove or gas burner,
place your big frying pan and then pour in the vegetable oil to
get hot, start putting some quantity of the sliced potatoes into
the hot vegetable oil to fry till they become slightly golden
brown before you strain them out and allow to cool.
Packaging
Now, you can start weighing the already fried potato chips in
50gs sizes and then pack into your customised nylon or plain
nylon with printed labels and they are ready for the market.
Marketing
Publicity will increase your sales. You need to ensure potato
chips quality. Cleanness and attractive packaging are also
important. You can start making money instantly as you introduce
your potato chips to friends and neighbors. You can introduce
your products to the numerous markets, super stores and schools
in your area for people to know your product.
Branding
It is important that you give your product an identity and that
is why it is essential for you to register your product with the
Corporate Affairs Commission (CAC). On the label of your
packaged potato chips, don’t forget to print your product name,
email address and phone numbers for easy contact by those who
will love to become distributors of your product.
Qualification
There is no need for any educational qualification, but skilled
marketing and good quality machine are needed.
Starting on a small scale: According to experts, you can
actually start with less than N100,000. This amount covers the
cost of purchasing of raw potato tubers, vegetable oil,
equipment and packaging materials. To be on your way production,
Starting on a big scale
Start up cost for Potato Chip production line
Capital Expenses: 3,500,000
2 Electrical & Plumbing 200,000
3 furniture’s & Fittings 300,000
4 100KVA Generator 200,000
5 Nafdac registration 150,000
6 Weighing scale 150,000
7 Other Capex 500,000
Total
5,000,000.00
Starting a potato chips business in Nigeria requires careful
planning and execution. By focusing on quality, effective
marketing, and compliance with regulations, you can create a
successful business in the snack food industry.
Get our Practical Training Guide on Potato Chip Production.
Potato chips production in Nigeria is indeed a very lucrative
business. The only way you can realise this truth is when you
venture into it and start enjoying the cool cash thus generated.
One of the advantage here is the fact that the food sector is
always growing, so there must be a constant that is always
increasing, hence you can expect rapid growth.
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