How to make millions from food commodities trading in Kenya - YouTube

hello ladies and gentlemen welcome to my channel  my name is george kingori i'm your online finance  

guy who speaks about all things finance i can be  able to save invest and grow in your financial  

journey and today i'm going to speak about how  to make millions and i say again millions from  

commodities trading yes food commodities trading  in kenya and when i talk about food commodities i  

speak about maize i speak about things i speak  about cereals and grains i speak about flowers  

and all agricultural commodities that you  could make money from and when i think about  

making money from ethic i talk about trading these  commodities not the actual farming so how do you  

go about making money from this before i tell you  how to go about making money from this let me give  

you a glimpse of the commodities market status  in kenya the first thing is that food commodities  

are over produced in certain areas and are  produced in certain areas and they are poorly  

stored that means that sometimes there is a glut  in the market and a lot of food products and  

food commodities are actually produced and these  food commodities are produced and cannot be well  

stored and so are affected sometimes by weevils  that are affected by pests and affected by  

contamination of aflatoxins and things like  that so there's a challenge in the way these  

commodities are actually stored again because  these commodities are sometimes grown in specific  

regions there could be a glut in the market yes  there could be more than considerable production  

of these commodities in a specific area and there  could be lack of these commodities in another area  

then the other thing that compounds this  uh problem is the transportation problem  

sometimes is difficult in transporting food  commodities that are abandoned in certain areas  

but are more abundant in other areas it  could because of rain it will also be  

because of poor road network and things  like that and the other thing is that  

these food commodities prices can be significantly  different in specific areas within the country for  

example in nairobi a kilo of gram of beans could  be for example a hundred kenya shillings the same  

kg of beans could be 40 shillings somewhere  in kitui so one place is 40 shillings another  

place is 100 shillings and there's a lot of  differences in prizes i will share websites  

where you can be able to see the commodities  prices every single day every single month  

and the statistical data this data is can  be found in opendata.ke it can also be found  

in the kenya bureau of statistics website where  they publish this commodity prices so where do you  

make your money with these specific situations  the first thing is you need to identify specific  

locations these kind of locations where you could  be able to set up silos you could be able to set  

up good storage facilities you could be able to  buy so you could be able to say set up in every  

every savory province have like one where you're  able to store huge amounts of this grain and  

cereal products so when that specific place has an  overproduction and there's a glass in the market  

and there's so many people who are selling  the same product in the same area you could  

overbuy this product and store in your silo that  is located in that specific region again because  

you are doing it as a large scale and you are  good at it you are going to do a very good storage  

facilities that could be able to help you store  this grain for longer so you store well you have  

geographical locations that are scattered and you  have good facilities then you buy in bulk in the  

specific way that's where it is cheap then again  because you have access to this statistical data  

you will be able to identify where this specific  grain or this product specific produce is needed  

and it is fetching a higher price then because  you are in the process of trading you could be  

able to identify where the pack markets are and  who is going to buy in those markets and be able  

as you see it be able to identify people who are  going to of take this grain from your stores in a  

specific location to a specific location in which  case you could be able to identify for example if  

the price that you bought this product is  40 shillings for example the cost of storage  

and transportation to the silo is  say 5 shillings so the total cost  

at the silo is 45 shillings put another five  shillings for for security and other additional  

incidentals so 50 shillings is what is your cost  but the same grain is needed in a certain location  

that is going to be sold at 100 so if you're going  to transport uh this product and you have been  

able to square down the cost of transportation  down to the kilogram and identify say for example  

10 shillings for transportation from this location  to that location where you could be able to get  

this good market then your product to the market  will be 60 shillings and the 40 shillings will  

be the profit that you would make by selling  off your product to the market and remember  

because you're selling off in bulk you will sell  off and then you'll be able to get your money  

but this is not where it ends again the places  where you are selling your product could  

also have a market glad in another product  in that area there could be a lot in say a  

maze be sold beans there but there could be a  lot of maize there then again you do the same  

and you could be able to square down to a science  where you are your tracks and your silos always  

feeling green with the grain that is available  and transporting to the place where it is needed  

and buying back and your tracks will never be not  carrying anything and you'll be able to square it  

down to a point where you could be able to make  profit just sitting because all you need is a  

data which is available the other thing that you  need is a silo suite you can invest in the other  

thing you need is a transportation you which you  can be able to leverage to be able to get a good  

amount of money so one day you sell a thousand  kilograms at 40 shillings profit and you have made  

for example forty thousand shillings with one  lorry you have ten you make four hundred thousand  

again on the return trip you buy there and you  sell here and because you have sellers that  

have distributed elsewhere you just need a good  computer system or a good software package that  

will be able to help you identify where you can  be able to sell and be able to interlink this data  

with the operating system or your program to  be able to identify when to buy when to sell  

where to buy where to sell where your lorries  could take advantage of being located or having  

transported something and you could be able to  make a profit it is very simple it just needs a  

lot of thinking a lot of initial investments in  silos and a lot of calls and market research but  

you could be able to square it to a science  and be able to make a lot of money i will show  

you documents that will be able to show you the  differences in prices and some of them are quite  

staggering the prices of commodities could be  more than double in specific locations and a lot  

cheaper up to 40 percent less than others in other  locations this is the way you could be able to do  

profitably by trading commodities not farming  which could be riskier but trading these  

commodities again you could provide a ready  market to farmers again you could be able to  

sell a product to locations where this product  is lacking so you are not only creating supply  

chains but you are making a good profit  in return i hope that you are learning you  

are growing and on your way to making you  millions so thank you and enjoy your day