By Smart Emmanuel
As the country continues to walk in the murky waters of recession, consumers are daily shunning luxury items. They now look for alternatives that are cheaper or at best source them locally within Nigeria. In 2017, I can bet with you that luxury items will take a back seat for the majority of the population while the principle of NEED overtaking WANTS will be applied by Nigerians. Here is the drift, if you want to go into any business that will give you high turnover in 2017; I think you should consider investing in the food value chain. Production, processing, distribution or any aspect of the chain you think you can add value to. Hunger does not know recession, therefore, before a man who is in short of cash will think of patronising that your beautiful dress, luxury car, he or she will first think of what to eat. This is the time to go into grocery business; it is a sector that will strive real well in 2017 in Nigeria.
Garri for example is consumed by 99% of Nigerians, the demand for this item is constantly on the increase no matter the state of the economy, it is an essential food for both the rich and the poor, hence, if you are into production, processing and distribution or retailing of garri, whether in highbrow area, city centers, villages or anywhere, you will make your money. I am not saying that other sectors will not be profitable, far from it, what I am simply saying is that, the food sector is a priority based on the importance of food on the scale of preference of the individual homes.
Eggs for example is a regular feature on the menu of many homes daily no matter how tough the times are. One egg is now sold in the country between N40 naira to N50 Naira contrary to the hitherto price of N25 naira and N30 naira respectively depending on the size. The increase in the price of this item has never dissuade consumers in anyway, demand for it is always upwards.
People into production, distribution and even sellers of farm feeds will always have demands for their products. You can play big in any of the value chain.
Also companies and individual who are into food logistics are going to have a fantastic business year- hauling foods, agricultural produce from the villages to the city or across the city. For example, the partnership between the Lagos State Government and Kebbi State on Lake Rice presents an opportunity for haulage business. Lagos to Kebbi is quite s stretch of distance therefore; there will be need to transport the rice from where it is farmed in Kebbi to Lagos where it is packaged for warehousing.
It is no doubt that there are other profitable SMEs that will make a big mark in 2017, but if you want a business with high turnover, food business generally is the real deal.