How To Set Up A Bread Bakery Business

Ever considered one of the bread baker business concern opportunities in Africa? You're about to learn several reasons why you lot should.

Everyone eats bread. Staff of life competes against rice and cassava (gari) as the most popular food and staple in Africa. Information technology has remained a widely-accepted food item because of its convenient and ready-to-eat nature.

Breadstuff is a mutual food item in many African households and up to 70 percentage of breakfast diets on the continent comprise bread.

The size of the African breadstuff market is worth billions of dollars every yr and nearly all the bread we eat is produced locally. A bread bakery business concern is easy to first up and can be run from a home kitchen or a staff of life mill.

Let's take a dive into this interesting idea and explore the business organization opportunities for African entrepreneurs in the bread bakery business…

Why is the demand and marketplace for bread growing very fast in Africa?

According to a recent study, the demand for breadstuff is expected to explode in the coming years. Due south Africa, Nigeria, Ethiopia, Sudan and Kenya are currently the largest and leading breadstuff markets in Africa.

The cardinal drivers of this demand are Africa'south rapidly growing population, an expanding middle course which has more money to spend, an enlarging labour force, and increasing rates of migration to African cities and towns. Bread bakery business 2

Africa now has more than than fifty cities inhabited past over ane million people. By 2022, more than 500 million Africans are projected to live in urban areas and cities.

Statistics reveal that urban dwellers and city people eat more than bread than people in the rural areas. Given the rapid growth of African urban center populations, bread is certain to remain a highly sought-after nutrient item past African households.

More than than 80 percent of all imported and locally produced wheat flour in Africa is used past bakeries to produce staff of life. The rest is used by food processors to brand biscuits, cakes, pasta and pasta.

Over the concluding decade, more bread has been consumed in Africa than maize and rice. Why? It'due south simply because breadstuff is more than affordable (costs much less than rice, yam and maize).

Bread likewise appeals to the convenience and lifestyle of most people – information technology'southward an instant repast that requires no further preparation, and makes a great fast snack (besides its popularity equally a breakfast particular).

Many of us may not know this: breadstuff provides more nutrients than any other single nutrient source and is specially important as a rich source of carbohydrates, proteins and vitamins B and E!

Market opportunities for entrepreneurs who want to start a bread bakery business in Africa…

There are dissimilar categories of staff of life that concenter different kinds of consumers in Africa. It'south very of import that entrepreneurs empathize these categories to help them decide on the type of bread they volition produce, the likely competition and the needs of the market.

Patently White Bread

Bread bakery business 3 At the bottom of the ladder is the basic, plain and inexpensive white bread. This multifariousness is very common with low income earners or people who just want to fill their abdomen and don't care about nutritional content.

This blazon of bread ordinarily comes without whatsoever labeling, branding or packaging and very little attention is paid to product gustatory modality, quality or hygiene. It'due south best described as 'bread for bread'due south sake.'

Popularly known every bit 'Agege staff of life' in many parts of Lagos (Nigeria), this basic white bread is usually less than the size of a standard loaf and tin exist consumed in 1 serving past one person.

Agege bread is normally unsliced and its nutritional content is the poorest in the market.

Some bakers take been found to include unhealthy additives and dough enhancers (like Potassium Bromate) to artificially increase the size of this bread in order to fetch higher profits. Nigh of these substances are banned in several African countries but their utilise remains widespread due to poor regulation and low consumer sensation. (photo credit: theparadigmshiftng.com)

More than l pct of breadstuff sold on the African market place are of this blazon and most consumers are drawn to it because of its very depression cost. As a result, nigh contained and small-scale bakeries producing this bread make coin by selling cheap at high volumes.

There are usually no leading producers in this segment of the bread market place and information technology's commonly dominated by many modest-scale and family-run bakeries.

Nourished White Bread

Bread bakery business 4 At the midsection of the bread marketplace are loaves which provide nutritional value to the consumer.

This type of bread commonly contains ingredients like eggs, milk, fruits, etc. and generally practice non contain unhealthy supplements or additives.

A lot of attention is usually paid to the product's sense of taste, branding, packaging and overall quality.

This bread appeals to, and is targeted at, African middle-class households and customers who are conscious about loftier nutrient standards, nutritional content, quality and taste. These customers are also willing and very happy to pay extra for this higher quality.

Most families also adopt nourished breadstuff for their growing children. As a result, nourished white bread costs much higher than the plain version on the marketplace. (photo credit: manufacturingtoday.com.ng)

This segment of the marketplace is dominated by franchise bakeries, industrial bakeries and pocket-size independent bakers.

Special bread

This category of bread refers to wheat (brownish) bread, whole meal bread and other forms of uncommon breadstuff in the marketplace.

Consumers who prefer these kinds of bread do so for lifestyle, health, sense of taste or cultural reasons.

Special bread is usually sold in specialty stores and supermarkets. They cost much more than the plain white and nourished versions and require specialized skills and experience to produce.

Bakeries that produce this bread target niche markets like upper class residential areas and parts of town with a large population of foreigners.

How to starting time a bread bakery business – An important checklist

1. Gear up a business plan

Bread bakery business 6 A business organisation plan is not as scary as it sounds. Even if you don't intend to source whatever upper-case letter from banks or investors, information technology is important that you lot organize your thoughts on paper.

A business plan doesn't take to exist complex or besides elaborate, merely something to go along your eyes on the big picture. The business plan will let y'all to hands identify the obstacles and anything you may not have considered.

Your business plan should consider the prevailing market place price for the type of bread you desire to produce and how much competition at that place is. You also need to judge the profit you're probable to make in the first, second and third years.

Is it sustainable? Is it worth the time, effort and capital?

It's commonly wise to continue viii-12 months working capital letter to adequately support a breadstuff baker business concern.

If you're looking for a sample bakery business concern plan template, I have found a good one y'all can adapt and use for your ain bread baker idea.

You can view it here.

ii. You should know enough about staff of life

Nobody says you lot must be a chief bakery to succeed in this business; yous really don't demand to. However, you lot need to know the basics and tricks of the trade if you want to survive in this business.

Sign upward for a bread baking grade and learn the basics about measurements, recipes, flavours, packaging, branding and marketing. You should not give in to the temptation of thinking it'due south enough to just hire a managing director and have the baker make y'all money.

Ignorance in the bread bakery business is likely to open you lot upward to financial losses and eventual failure.

3. Choose a location that'due south close to your target market

Bread bakery business 7 The types of staff of life in the African market appeal to different segments of consumers. Y'all must ensure that the type of breadstuff you intend to produce will find a sizeable market in your area.

What kind of people live around you?

Are they loftier, heart or depression-income earners?

Are they students, single people or households with families?

Are they predominantly young or old people?

If yous live in a closely knit community like a residential estate or a academy campus, it may be a great opportunity to run this business from your home kitchen. (photo credit: miraimages.photoshelter.com)

Wait for newly established or developing suburbs and loftier traffic locations that take little competition. It's also important to focus on areas that may not be well serviced, similar industrial estates or high density function blocks where you can draw eager customers.

4. Would you need a permit or license to operate?

Depending on your land and location, you may require a permit or license from a government establishment or Consumer Health function to operate a bakery.

What are the requirements and standards for approval?

Would you need to have specific equipment like burn safety tools?

Is there a standard qualification you must obtain to be eligible for a permit?

Y'all must know these requirements in advance and take the necessary steps to ensure yous go the approval yous demand to open your doors to the public.

5. You need to use the correct equipment

The size and quality of your equipment will depend on how much bread you intend to produce for the market place and the corporeality of startup capital you lot take.

Information technology's very of import that y'all don't spend too much on equipment at the showtime of this business. Look out for any good quality, pre-owned (2d hand) bakery equipment you lot tin notice at a deal price.

The basic equipment yous demand to outset a bakery business include: an oven, mixer, dough moulds, dough divider, fermentation sleeping room (proofer) and maybe a breadstuff slicer.

The breadstuff bakery business concern is an interesting opportunity in Africa…

Because most people WILL eat bread most of the time, the bread business can be a very rewarding venture if entrepreneurs can find a big market with few competitors.

With some creativity and college quality, a new bakery can easily win consumers over from an established bakery. When properly planned and operated, bakeries can become a rich source of lasting income.

If you believe this type of business organisation will work for y'all, start working on a business organisation plan and take action as soon as possible.

Y'all could too choose from many more astonishing business ideas in the Business ideas department of this website.

We would love to hear from y'all near your successes, challenges, advice and questions. Practise not forget to go out a annotate in the section below and share this opportunity with your friends.

To your success!

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