Establishing a Modern Bakery

Bread is a major product of bakery and about the most demanded all over the world.  The implication of this is that demand for bread is automatic.  Consumption of bread cuts across all ages, gender and races.  Bread is taken virtually every minute. It can be taken as breakfast, or lunch or even as a dinner.  It is a ready-made food that does not demand further preparation, except for those who want to toast it.

Raw materials for bread production are readily available.  The major raw material is wheat flour, which is heavily imported into the country.

Bakery can be managed by middle or low level manpower.  The ease of set-up needs not be over- flogged.

Bakery belongs to the small-scale group.  Its establishment will create more jobs and wealth.

Other benefits include reduction of food crisis and social vices as well as stemming of hunger.

Establishment of bakery is profitable. Our investigation has revealed that percentage return on sales is about 40, while that of return on investment is above 200.

In view of the above, bakery establishment is recommended for serious-minded and forward-looking investors.

Technical information

The major raw material for bread production is wheat flour.  Other ingredients are sweeteners, yeast, butter flavour, printed nylon and the raising material.  Food regulatory authorities frown at the use of potassium bromade   (a raising element) as it has great side effects on people’s health.

Equipment needed for bakery are milling machine, blending, moulds and roller. The production process involves milling, dough mixing, rolling, cutting, dough filling and baking.  Slicing can also be done if the desire is to produce sliced bread.  To be successful in bakery project, there must be a good product and packing, but the investor must be cautious about credit sales.

Note:   The scope can be lower or higher depending on the financial strength of the investor.

The first step in project implication is preparation of feasibility study/business plan showing the technical, financial and market details of the project.

This can be provided for serious-minded investors.

Annual Turnover N26 million

Annual Net Profit  N10.5 million

% return on sales: 40.4%

%return on Investment Above 200%

This is no doubt a good project. Serious- minded investors can be assisted in realising this project.