Make Money through Starch Production

Creating wealth through starch production

Quality starch processing business has become a money spinner with its usage by both food and non-food industries.

Enterprises related to the transformation of food and agricultural commodities can provide employment and create business opportunities.

Experts said the industry is poised for huge growth and could emerge as a high-profit sector on the back of the scope it offers for value addition, particularly with the processing industry getting recognised as a high-priority area.

One of the areas is the starch production,which some business owners see as a massive business opportunity. Already, few Nigerians know the business has such potential. The Chief  Executive/President, CassavaConsult Limited, Dele Ogunlade, is one of the early birds to discover this.

He said a lot of  entrepreneurs  are not exploring the full potential of  starch business  and  its  derivatives. This is because few  local  starch brands are finding prime shelf space in retail chains.

Ogundale, a former Chief Executive, Matna Foods Company Limited, in Akure, which has been in business for over a decade, said there are  business  opportunities  for Nigerians to make  money  through starch processing as it has become a major ingredient in the production of infant foods, confectionary, glucose and alcohol.

Starch  is also used in non food industries  such as glues, oil well drilling, adhesives, paper sizing and bonding, textile sizing and strengthening.

To  this end,  he  is determined  to help Nigerians explore  opportunities across  the value chain and  encourage  more entrepreneurs to take  to processing  starch  to  increase  their profits.

He  is  also   ready  to   lead the way in demonstrating how businesses can work side-by-side with governments to promote economic development and tech-based modernisation across the  rural areas.

Ogunlade said starch business can play a pivotal role in helping   the government tackle unemployment rate. This is  by teaching young people to  start their own starch businesses, improve their standard of living and employ others, he noted that  the  demand  for  starch has increased due to extensive usage across  industries  such as  food , beverages , medicine, cosmetics, pharmaceuticals and more.

For instance, starch and its derived products have become important components for paper and glue production, textile weaving and finishing and the fermentation industry, meaning  increasing  opportunities  to  create employment and income generating opportunities for youths and small farmers respectively .

As  large as the market is, he  maintained  that  it is impossible for small entrepreneurs  to play in mass markets because they do not have the resources or capabilities to compete successfully in such spaces.

For those, who cannot afford up to N1million, he advised them to begin with the  production of traditional starch, used for clothes or consumed at a local level.  He  said entrepreneurs at this level, can start cottage starch processing with N200,000.This notwithstanding, the business requires a lot of attendance, but  it is easy for a small family enterprise to earn its living from  producing native starch.

Beyond this, there is a market for modified starches and sweeteners. Buyers in this category include food processing , textile, paper and packaging, nutraceuticals and biopolymer industries.

The use of starch by the food industry is also  fueled by the increasing campaign for application of natural substances in food production. For  instance  with the increasing demand for low fat and low calorie food, many food companies are replacing fats with gums and carbohydrates, such as starches.

To start a starch production business, the major consideration is water, power, transportation facilities and raw materials. The factory is supposed to be supplied with modern equipment known to have the highest production