Table of Contents

 

See also the "Milling" and "Grain storage and handling" chapters.

 

1. Overview

  • This category of milling is defined as milling which has a capacity of up to 5 tons per hour (micro) and 1 ton per hour (small).
  • There are growth opportunities within the milling industry, both locally and in relation to exports to neighbouring SADC countries. Due to relatively low start up and running costs, along with high returns and a market opening for niche milled products, small and micro milling is a viable and sustainable investment for any group of investors.
  • Micro milling is highly suited to farmers because they already have industry specific advantages of product, storage and labour. Similarly, people in rural environments where finished product often incurs large price additions due to transport and trader mark ups could offer a superior product at a lower cost whilst still retaining large margins.

 

2. Local business environment

There are some 180 small mills operating in the country. Products are usually cheaper than what is on the market since the mills are closer to places where the crops are actually grown, thus reducing logistics costs.

The following opportunities exist for local small and micro milling business:

GRAIN MILLING

  • Localised Milling: Local production facilities throughout SADC
  • Breweries and Snack Food industries: Specialised maize grits production and/or other maize products
  • Baking Industry: Specialised biscuit wheat flours and biscuit/rusk production lines
  • Specialised Continental Bakery and Pizza Market: Value-added "00" cake flour production for this burgeoning sector
  • Infant Food and Breakfast Cereal Producers: Rice flour milling
  • Beverage and Cereal Products: Barley flour milling
  • Specialised Baking Market: Rye flour milling
  • Specialised ‘Al-Dente' Pasta Manufacture: Durum Wheat/Semolina for production of authentic, top-quality Italian-style pastas
  • Organic Market: Wheat and maize flour milling

BASIC FOODS

  • Bread: Micro-bakeries
  • Instant bread: Premixes
  • Famine relief and feeding programmes: Vitamin enriched basic foods
  • Prisons & mine workers: Extended shelf-life, non-refrigerated instant nutrition

The expected outcomes are the provision of local markets; competitive prices; job creation; poverty alleviation and enterprise development.

Source: Jane Higgins (African Micro Mills) 

 

3. For the newcomer

Micro milling has been identified as an ideal BEE venture. In particular, it should be of particular interest to a large processor who seeks to earn BEE points for Enterprise Development.

Small milling can provide multiple benefits from end to end as the industry encourages new skills development and lends itself towards empowering communities to become self sufficient. Relatively low start up costs with high returns facilitates a swift, upward incorporation into the economy.

The wider range of training options and backup available to the small/micro milling industry provides entrants with further investment security. Other factors such as minimal infrastructure requirements, low running costs, transport savings amidst increasing fuel prices and the ability to easily diversify product range make the small milling industry a profitable, viable and sustainable business option.

One 3 ton/hour milling plant has the potential to provide a rural community with 330 tons/month of animal feed and 1300 tons per month of quality maize meal – enough to feed 150,000 people! The same project can potentially generate 25-30 direct employment opportunities and up to 150 indirectly. Food costs in the vicinity of the small milling project can be reduced by up to 25%.