Establishment of a modern bakery

The importance of food to the existence of human race cannot be overemphasised. Food must be available in the right quantity, right quality and at the right time for human beings to have meaningful existence. It is against this background that all efforts must be made to promote food and allied productions.

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. It’s establishment will create more jobs and employment opportunities. Other benefits include reduction of food crisis, stemming of hunger and reduction in social vices.

Establishment of bakery is profitable, our investigation has revealed that percentage return on sales to be about 40 percent, and percentage return on investment of above 200 percent.

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 about the use of potassium bromide (a raising element) as it has great side effect on humans.

Equipment needed for bakery establishment are milling machine, blender, 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 good product, good packing and credit sales must be avoided.

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 : N26m

Annual net profit : N10.5m

% return on sales: : 40.4%

% return on investment: above 200 percent

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