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Domestic Rice Supply Chain Evaluation in Nigeria

Nigeria, 2016

Client: Windward Ltd.

What we did

Assessment of two large rice mills in Nigeria to determine their potential for producing quality rice at volume and pricing to warrant a branded supply chain into formal markets. The objectives from this project were the transformation of the perception of Nigerian rice, drive economic benefits through the value chain, and support and development of a branded supply chain.

Conclusions

Both mills have the capacity to produce high-quality rice that can substitute imports, but they require better housekeeping, including cleaning and maintenance. Their production volume is limited by the availability of stock, and they face issues with non-standard products, specifically regarding moisture content and extraneous matter. Currently, milling yields are around 60% due to rice not being grown under ideal conditions. To improve profitability, increasing the milling yield to 70% is recommended, which can be achieved through the development of extension services and growing paddy on a core estate with good management practices. Additionally, non-standard specifications are rejected by both mills at the mill gate, being a costly expense that can be addressed by establishing consolidation centers for pre-cleaning and providing paddy testing kits to buyers for assessing quality before transport to the mill.