Rice Mill Uses USAID Expertise to Improve Production Efficiency and Expand Operations
Rice is an important regional and global food staple, eaten regularly by millions in Nigeria and around the world due to its affordability and availability. As national demand for rice rises, the Government of Nigeria is keen to increase local rice production, and reduce reliance on imports, by helping farmers access credit on appropriate terms to increase their scale of production and profitability.
AMMI Integrated Mill was established in 2018 in Argungu, Kebbi State, and has partnered with the USAID-funded Feed the Future Nigeria Agribusiness Investment Activity, implemented by Cultivating New Frontiers in Agriculture (CNFA), over the past year to conduct an Organizational Performance Improvement Needs Assessment of their business and identify and remedy gaps hindering their production.
The assessment highlighted inefficiencies in the mill’s output, which was operating at 60% of its full capacity, mainly due to ill-defined staff roles on AMMI’s rice processing and packaging line. Armed with this knowledge, the Activity supported AMMI to clarify job roles, move excess staff to the drying line, and install a performance system to reward workers for the number of rice bags produced. These adaptations improved output efficiency to 90% and overall worker satisfaction by supporting workers to carry out their duties with efficiency, clarity, and confidence.
“I have running costs under control and a clear understanding of the best business process for us. I am excited about the future.” said Rahmatu Gulma, CEO of AMMI Integrated Mill.
The streamlined system also enabled the mill to sustainably expand its commercial operations as it further diversified into producing parboiled white rice and other products.
“I have leveraged the savings made from the Activity’s cost cutting measures to expand on other business areas. Besides now producing parboiled rice, I also recently started a greenhouse and poultry rearing operation. These new ventures are flourishing thanks to the lessons learned from the interventions done at the Mill.” Gulma concluded.
The Feed the Future Nigeria Agribusiness Investment Activity aims to strengthen the enabling environment for agribusiness finance and investment in Nigeria, with a focus on four interrelated components: improving the enabling environment for agricultural sector growth; broadening access to finance by mitigating the credit risks of agribusinesses; promoting and facilitating investment opportunities for agribusinesses to expand and scale up operations; and sustainably enhancing the performance of agricultural micro, small and medium size enterprises (MSMEs). By 2023, the Activity aims to viably and sustainably link thousands of MSMEs and producer organizations like AMMI Integrated Mill with high-performing commercial actors in the rice, maize, soybean, aquaculture, and cowpea value chains.