Starting a Food Processing Company

Interested in small food processing business ideas? If YES, here is how to start food processing business with no money and no experience. How much does it cost to start up?

Starting Food Processing Company – Business Ideas and Opportunities

Food processing is the subjecting of raw ingredients under physical and chemical procedures that leave edible items as products. Starting a food processing business comes easy if you align your passion with public needs.

Anyone familiar with Maslow’s hierarchy of needs would know the position held by Food; nothing happens without food. No wonder the food processing industry churned in over $53.9 billion in 2014 in Australia alone, and India expects to have realized $480 billion from the industry by 2020.

People seldom employ much effort into food preparation; they would rather pay for processed food. They often consider the volume of energy and time that would be consumed by culinary activities.

Since there is an alternative that is easily seen to be more effective in the sense that time and energy is vastly saved, it is very likely that the idea of patronizing processed food would never lie far from the minds of members of the society.

Busy schedules have made it imperative for individuals to patronize the market of processed foods. For this reason, the market of food processing is one that is undergoing constant expansion, raking in good returns for entrepreneurs trading in the niche.

Lucrative Niches in the Food Processing Industry

The list below highlights some great aspects to focus your small scale food processing business; you can also consider more than one area if you have the means to.

1) Baking of Bread and Biscuits

From the wealthy to the average homes across the globe, tea and bread is a common breakfast; perhaps because of the fiber and energy content. Being at the other end manufacturing bread or cookies would mean so much good for your entrepreneurial story.

2) Making of Custard Powder

Provided you have got sufficient supply of corn, then you are in a great position to go into this aspect of food processing. Being a great source of Carbohydrate, as well as a major diet given to babies, it’s a favorable market to venture.

3) Fruit Processing

This section can be considered in two directions;

i) Juice Making: The fruits can be squeezed using specialized machines and their content extracted in liquid form. Containing all the vital flavor and nutrients of the fruit, the juice can be packaged and sold.
ii) Fruit Wafers: Some of the fruits like banana can be sliced and dried after coating them in honey-like paste, then the resultant tasty product launched into the market; and you might want to ask which market has a phobia for a tasty diet.
iii) Making of fruit bars 

4) Processed Ginger, Garlic, and Onions

You can consider sealing dried onions; not much equipment needed. It is another business route to turn the garlic and ginger into paste and package them. The rush for spices has induced the boost in this market. Oil can also be extracted from ginger, and this oil has large medicinal values.

5) Processed Tomatoes

Tomato can be dried and put in packaged form that would serve the need of users for culinary activities when need arises. By soaking the tomato in hot water, the freshness of the ordinary tomato becomes roughly equivalent.

6) Making of Beverages and Confectioneries

Think of transforming cocoa into other useful products, think of sweeteners, and chocolates.

7) Processing Meat

There are ways of doing this. But one very popular method is to dry the meat with spices, then chopped into small pieces that fit a small can; its traditionally called ‘kilishi’ in Nigeria.

8) Processing of Milk

Some parts of the country and the world are blessed with livestock and cows that are rich in supply of milk. This is an indicator in the potentials of milk processing and manufacture. Only a few, easily affordable specialized equipment would suffice to start the technical part of the milk business.

9) Rice Processing

The eastern part of the country is rich in rice cultivation. A rice mill can therefore easily thrive if established. Once the necessary machinery are put in place, then what is left is great gains.

10) Popcorn Making

This business is a popular business that requires minimal startup funds. Just a good number of corn, and a heating device to pop the grains into the attractive white edibles.

11) Plantain and Potato Processing

It is common in markets to find plantain and potato chips. Well executed and modified processing and packaging can see you into the azure pastures of food processing.


Steps to Starting Your Food Processing Business

Factors that are Considered when one Goes into Food Processing Business

1) Decide on the Specific Product(s)

There is a wide spectrum of foods that are categorized under ‘processed’, this is obviously seen from the above list. You would have to decide which of the niche(s) you fall in terms with. This is the first step in starting a business of processed foods.

2) A Concrete Food Processing Business Plan based on Market Research

Feasibility studies must be conducted to find out which products entice the consumers more. A business plan should be made that would entail the dimensions in which you intend to run your business, what tactics you intend to employ in your manufacturing process. Then registration of the business, then its structure.

As regards the business structure, there are some basic configurations the business can assume:

a) Sole Proprietorship
b) Partnership
c) Corporation

You can also decide to go into franchise with established food processing firms. The business plan must be as detailed as possible; and it should sufficiently include information on staffing.

3) Incorporate Insurance Plans and Business Regulations

It is great policy to make adequate provisions for insurance in your business, this is so that in case any work-related injuries are sustained by any worker within your firm, there would be adequate aid.

4) Safety Measures to Protect your Products

It must be ensured that your products have nothing on them that can raise questions or cause any health issues to consumers. Good preservatives should be used, and the products should satisfy the conditions put by special health agencies.

5) Branding, Packing, and Labeling

Professional and registered businesses are recognized by their brands. Your products must be well packaged and clearly labeled before launched into the market. This is food market; it’s a market in which people are skeptical as to hygiene and professionalism, they are afraid of the conditions surrounding the processing of the food they are paying for.

6) Advertisement, Promotion, and Marketing

Without these business lags behind the time. Thanks to social media now that has made it a trivial affair to boost the awareness about a product; we have got Facebook, LinkedIn, etc.

7) Supply and Distribution

It must be ensured that there are well formed channels by which these products can reach the average retailers and final consumers; necessary for the growth of the food processing business.

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