Everything You Need To Start A Cereal Business In Kenya

Cereal Business In Kenya

When it comes to business, one of the most profitable niches you can venture into is related to food.

Food-related businesses do not only have a ready market but their products are also in high demand even in difficult economic times. And one of the most popular food-related businesses you can start in Kenya today is the cereal business.

A cereal business is a type of business that simply involves the buying and selling of cereals (grains). These grains range from oats to green grains, barley, groundnuts, wheat, millet, rice, maize, and beans, to mention a few.

Also, the cereal business can either be operated by buying and selling one type of cereal or by buying and selling some selected types.

Whichever one it is, if you intend to start a cereal business in Kenya, then this article is for you.

In this article, we’ll provide a comprehensive guide on how you can start and successfully run a cereal business in Kenya.

What Cereals Are Popular In Kenya?

The cereals known to be very popular and cultivated in Kenya, and also available to the population are maize, wheat, and rice. Meanwhile, maize is the most popular among them all, this is because it constitutes the daily subsistence need of households in Kenya.

How Profitable Is Cereal Business In Kenya?

The cereal business is very profitable in Kenya due to its consistent demand in society. Thereby leading to a stable market for it. Even when the economy changes, it rarely affects the cereal business.

Also, if you are in a good location, the gross margin for your cereal business is around 40%. And as you are in a good location it means that you will be generating faster sales and higher profit.

What Are The Challenges Facing Cereal Business In Kenya?

Here are the challenges facing the cereal business in Kenya:

1. The Challenge Of Pest And Diseases: One of the major challenges facing the cereal business is the challenge of pests and diseases. As we all know cereal crops are too prone to pests and diseases. However, if care is not taken, it can result in a loss of business.

2. Finance: Access to finance can be a challenge to those who want to start a cereal business in Kenya.

3. High Competition: There are a lot of cereal businesses in the market, and this can be competitive for newbies in the business who are trying to establish themselves.

4. Climate Challenge: As cereals depend on weather conditions, too much rainfall can affect the productivity of the cereals. This however poses a challenge in the cereal business.

5. Inadequate Facilities: Lack of facilities can also pose a challenge in the cereal business. How can this happen? It can happen through the reduction of quality because there is no adequate storage facility to prevent them from too much exposure.

How Much Is Needed To Start A Cereal Business In Kenya?

The cost of starting a cereal business in Kenya depends on the business size, location, and the type of cereals you want to venture into. However, on average, to start a cereal business in Kenya you will need a capital of Ksh 35,000 to Ksh 100,000.

How Do One Start A Cereal Business In Kenya?

These are the steps on how to start a profitable cereal business In Kenya:

1. Do Your Market Survey: Doing a market survey helps you to gather the necessary information on how to run a cereal business successfully. You can achieve this by visiting other cereal shops within or outside your area. Even if it involves paying them to learn, there will be no problem with that, since you are going to get the knowledge you deserve.

2. Rent A Shop To Sell Cereals: First, you have to identify the best location to set up your cereal shop. You need a good location where you can be easily located.

However, you have to be careful when renting a shop because you cannot afford to expose your cereals to temperatures that will make them spoil on time or reduce in quality.

So when renting a shop ensure that it will be protected from rain or much sun, as well as rodents.

Also, you should create enough space which should make your cereals to be on a balanced temperature.

3. Purchase The Cereals In Large Quantities: Before you purchase the cereals in large quantities, you have to first choose the type of cereals you want to sell.

You can choose to sell maize, rice, wheat, millet, flour, or a combination.

Note that selling all the varieties of cereals may run down your business especially if you don’t have many resources to run the business. But you can proceed if you can handle the outcome.

Next is to identify the right supplier who can supply you with quality cereals. And when looking for a supplier make sure that the supplier has been in the business for years, and make sure you get reviews from those that have patronized them before you can proceed.

4. Stock Cereals In Your Shop: After you have bought your cereals in large quantities, it is now time to stock your shop.

At this point, you have to be careful with the way you pack your cereals to avoid spoilage.

You should not place the cereals on bare ground, instead, place them on planks. And make sure the floors are well dried up. You should know that proper placement of your cereals will keep them in good condition till you sell them.

5. Start Selling Your Cereals: First obtain a business license and permit to start running a cereal business. Then after that, you are set to start selling cereals.

You can inform your friends and neighborhood about your business. Also, you can sell at a discounted price to draw people’s attention.

Conclusion

That’s it. A significant profit can be made from the cereal business in Kenya. Therefore, you have to properly research and plan on how to run your business successfully, and don’t forget to take the storage aspect of this business very seriously.

Ambassador Victor Chidera
Ambassador Victor ChideraAmbassador Victor Chidera is a business consultant, writer and a blogger. He provides lots of professional and expert advice to small businesses, entrepreneurs and organizations. He has many years of experience in business, teaching field, and research work. And his aim is to provide business articles that matters to you both nationally and internationally.
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