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July 12, 2024
Entrepreneurship

How To Start Bread Supply Business In Nigeria & Africa: Full Guide

Bread is a staple food in Nigeria and Africa, making bread supply business a lucrative opportunity in the region. With a population of over 200 million people in Nigeria alone, the demand for bread is continuously increasing. The growth in urbanization and changes in lifestyle are also contributing to the increasing demand for bread. According to a report by the International Trade Centre, Nigeria is one of the largest importers of wheat in Africa, indicating the high consumption of bread in the country.

In Nigeria, the bread supply business is highly competitive, with many small and large-scale bakeries operating in the market. However, the market still has room for growth and innovation, with opportunities for new entrants to provide unique products or services to differentiate themselves. The bread supply business also presents an opportunity for exports to other African countries, where the demand for bread is also increasing.

According to a report by Research and Markets, the African bread market is expected to grow at a CAGR of 5.2% from 2020 to 2025. The report also highlights that the increasing population and urbanization are the primary drivers of the bread market’s growth in Africa. The bread market’s growth presents an opportunity for bread supply businesses in Nigeria to expand their operations and capture a share of the market.

In addition to the local market, the bread supply business in Nigeria also has an opportunity for export. According to the International Trade Centre, Nigeria exported bread and other baked goods worth $1.4 million in 2019. The report also indicates that there is a potential for increased exports of bread and baked goods from Nigeria to other African countries.

Overall, the bread supply business in Nigeria and Africa presents a promising opportunity for entrepreneurs and investors. With the increasing demand for bread and opportunities for exports, the market has the potential for growth and profitability.

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What Is Bread?

 

What Is The Bread Supply Business In Nigeria and Africa About?

Bread Supply Business involves the production and distribution of various types of bread to meet the demand of consumers in Nigeria and Africa. Bread is made from wheat flour, water, yeast, and other ingredients, and can be baked in different sizes and shapes. The scientific name for wheat is Triticum aestivum.

To start a bread supply business, a thorough market research is essential to determine the target market and preferred bread types. Production yield depends on the type of bread and the size of the bakery. The use of modern equipment and techniques can increase yield and improve product quality.

Research has shown that the demand for bread in Nigeria and Africa is high, with an estimated annual consumption of over 10 million metric tons. This presents a significant opportunity for entrepreneurs to tap into the bread supply business and create value for both consumers and the economy.

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Benefits of The Bread Supply Business In Nigeria and Africa

  1. Employment generation: The Bread Supply Business provides job opportunities for millions of people in Nigeria and Africa, thereby reducing unemployment rates and contributing to economic growth.
  2. Income generation: The business generates income for bread suppliers and their families, contributing to poverty reduction and wealth creation.
  3. Food security: The availability of bread provides food security to the population, ensuring that they have access to affordable and nutritious food.
  4. Foreign exchange earnings: Nigeria and Africa have the potential to export bread and its related products to other countries, generating foreign exchange earnings for the economy.
  5. Revenue generation: The Bread Supply Business generates revenue for the government through taxes and other levies, contributing to the development of the country.
  6. Market expansion: The business provides opportunities for market expansion for small and medium-scale enterprises, contributing to the growth of the economy.
  7. Technology transfer: The Bread Supply Business promotes technology transfer and innovation in the baking industry, leading to increased productivity and competitiveness.
  8. Improved infrastructure: The growth of the Bread Supply Business stimulates the development of infrastructure such as roads, transportation, and storage facilities, creating a conducive environment for economic activities.
  9. Increased trade: The Bread Supply Business promotes intra-regional trade and economic integration in Africa, leading to improved economic relations between countries.
  10. Economic diversification: The Bread Supply Business contributes to the diversification of the economy, reducing dependence on oil and other extractive industries.
  11. Increased investment: The growth of the Bread Supply Business attracts investment in the sector, leading to increased production and productivity.
  12. Value addition: The business promotes value addition to wheat, a major ingredient in bread, through the production of flour, thus increasing the value of the commodity.
  13. Improved standard of living: The Bread Supply Business provides access to affordable and nutritious food, improving the standard of living of the population.
  14. Poverty reduction: The business contributes to poverty reduction by providing job opportunities, income, and access to affordable food.
  15. Entrepreneurship development: The Bread Supply Business provides opportunities for entrepreneurship development, leading to the growth of small and medium-scale enterprises and the creation of wealth.

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Health Benefits of Bread

Here are 15 health benefits of bread:

  1. Provides energy: Bread is a rich source of carbohydrates, which are converted into energy by the body.
  2. Source of fiber: Whole grain breads are a good source of dietary fiber, which helps in promoting digestion and reducing the risk of chronic diseases like heart disease, diabetes, and obesity.
  3. Lowers cholesterol: Bread made from whole grains can help to lower bad cholesterol levels in the body, thus reducing the risk of heart disease.
  4. Boosts immunity: Bread is a good source of nutrients like vitamins and minerals that are essential for maintaining a healthy immune system.
  5. Reduces inflammation: Whole grain breads contain antioxidants and anti-inflammatory compounds that help to reduce inflammation in the body.
  6. Improves brain function: The carbohydrates in bread provide the brain with the energy it needs to function properly.
  7. Promotes bone health: Bread made from fortified flour can be a good source of calcium, which is essential for maintaining strong bones.
  8. Regulates blood sugar: The fiber in bread helps to regulate blood sugar levels, making it a good choice for people with diabetes.
  9. Helps in weight management: Bread made from whole grains can help in weight management by providing satiety and reducing hunger pangs.
  10. Lowers the risk of cancer: The antioxidants in bread, especially whole grain breads, help to reduce the risk of certain types of cancer.
  11. Reduces the risk of stroke: Eating bread, especially whole grain bread, is associated with a reduced risk of stroke.
  12. Promotes heart health: Whole grain breads can help to lower blood pressure and reduce the risk of heart disease.
  13. Improves digestion: The fiber in bread helps to promote digestion and prevent constipation.
  14. Provides essential vitamins and minerals: Bread made from fortified flour can be a good source of essential vitamins and minerals like iron, folic acid, and B vitamins.
  15. Helps in the growth and repair of body tissues: The protein in bread is essential for the growth and repair of body tissues.

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Business Opportunities In The Bread Supply Business In Nigeria and Africa

  1. Retail: Setting up small retail shops to sell bread to customers in local communities.
  2. Wholesale: Supplying bread to supermarkets, restaurants, hotels, and other large institutions in bulk.
  3. Distribution: Building a network of distributors to transport bread products to various locations within and outside the country.
  4. Bakery franchise: Establishing a chain of bakeries with a common brand and standardized production processes.
  5. Online bakery: Setting up an e-commerce platform to sell bread products to customers online.
  6. Export: Exporting bread products to other countries in Africa and beyond.
  7. Bread-making equipment sales: Selling bread-making equipment to individuals and businesses interested in producing bread.
  8. Bakery consultancy: Offering expert advice and support to bakeries and bread-related businesses.
  9. Bread delivery service: Offering doorstep delivery of bread products to customers.
  10. Bread catering service: Providing bread products for events and parties.
  11. Bread-making training: Offering bread-making training and courses to individuals and businesses.
  12. Bread-related merchandising: Selling branded bread-related merchandise such as aprons, caps, and mugs.
  13. Bread packaging and branding: Offering packaging and branding services to bakeries and bread-related businesses.
  14. Bread ingredient supply: Supplying raw materials such as flour, yeast, and sugar to bakeries and bread-related businesses.
  15. Bread waste recycling: Recycling bread waste into animal feed or compost.

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Facts About The Bread Supply Business In Nigeria and Africa

  1. Bread is a staple food in Nigeria and Africa.
  2. Nigeria is the largest bread consumer in Africa, with an estimated consumption rate of 5 million loaves per day.
  3. The bread supply business in Nigeria is a multi-billion naira industry that continues to grow.
  4. Bread production in Nigeria provides employment opportunities for thousands of people.
  5. The high demand for bread in Nigeria has led to the establishment of various bakeries and bread production companies.
  6. There are different types of bread produced in Nigeria, including white bread, wheat bread, and brown bread.
  7. The bread supply business in Nigeria is highly competitive, with many bakeries and bread production companies vying for customers.
  8. The price of bread in Nigeria varies depending on location and brand, with some loaves costing as low as ₦100 and others costing as high as ₦500 or more.
  9. The bread supply business in Nigeria is largely dominated by small and medium-scale enterprises.
  10. The government of Nigeria has put in place policies to support the growth of the bread supply business, such as providing loans and grants to small business owners.
  11. The bread supply business in Nigeria has a significant impact on the country’s economy, contributing to the GDP and providing tax revenue for the government.
  12. Bread is a convenient food that can be eaten on its own or used as a base for sandwiches and other dishes.
  13. Bread is a good source of carbohydrates, which provides the body with energy.
  14. Bread contains vitamins and minerals such as B vitamins, iron, and magnesium.
  15. Bread consumption has been linked to a reduced risk of heart disease and stroke.
  16. The bread supply business in Nigeria faces challenges such as high production costs and the need for consistent power supply.
  17. The use of locally sourced ingredients in bread production can help to reduce production costs and support local farmers.
  18. The bread supply business in Nigeria has the potential to export to neighboring African countries.
  19. The bread supply business in Nigeria can benefit from the use of modern technology such as automated baking equipment and online sales platforms.
  20. The bread supply business in Nigeria can also explore opportunities for innovative product development, such as gluten-free or organic bread.
  21. The COVID-19 pandemic had an impact on the bread supply business in Nigeria, with disruptions to supply chains and changes in consumer behavior.
  22. Bread supply businesses in Nigeria can leverage social media and other digital marketing strategies to reach a wider audience and increase sales.
  23. The bread supply business in Nigeria can benefit from partnerships with retailers and supermarkets to increase distribution channels.
  24. Bread supply businesses in Nigeria can also explore opportunities for export to non-African countries, such as the United States and Europe.
  25. The bread supply business in Nigeria has the potential to contribute to food security in the country by providing affordable and nutritious food options.

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Types Of Bread In Nigeria and Africa

There are several types of bread used for Bread Supply Business in Nigeria and Africa. Some of the most common types include:

  1. Sliced Bread: This is the most popular type of bread used for bread supply business in Nigeria and Africa. It is sliced and packaged in different sizes and is widely consumed.
  2. Whole Wheat Bread: This type of bread is made from whole wheat flour and is considered healthier than white bread due to its higher fiber content.
  3. Brown Bread: This type of bread is made from whole wheat flour, but it has a darker color due to the addition of molasses.
  4. Sweet Bread: This type of bread is made with added sugar and sometimes has raisins or other sweet ingredients.
  5. French Bread: This type of bread has a crusty exterior and a soft interior. It is usually served as a baguette and is popular for making sandwiches.
  6. Sourdough Bread: This type of bread is made with a sourdough starter, which gives it a tangy flavor and a chewy texture.
  7. Pita Bread: This type of bread is flat and round, and is commonly used for making sandwiches and as a wrap.
  8. Ciabatta Bread: This type of bread has a chewy texture and is often used for making panini sandwiches.
  9. Baguette Bread: This type of bread is long and thin, and has a crispy crust and soft interior. It is commonly used for making sandwiches.

The type of bread used for Bread Supply Business in Nigeria and Africa depends on the market demand and target customers.

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The Peak Season For The Bread Supply Business In Nigeria and Africa

Bread is a staple food in Nigeria and Africa, and the demand for it is high all year round. However, there are peak seasons for the production, supply, and demand of bread in Nigeria and Africa. The peak season for bread production in Nigeria is between the months of November and February when the weather is relatively cool and dry. This period coincides with the Christmas and New Year holidays when the demand for bread is usually high.

In Africa, the peak season for bread production varies depending on the region. In North Africa, the peak season is during the Muslim holy month of Ramadan when Muslims fast during the day and break their fast in the evening with bread. In East Africa, the peak season for bread production is during the harvest season, which is between the months of July and October.

The demand for bread in Nigeria and Africa is highest during the morning and evening rush hours when people are going to and returning from work. Additionally, the demand for bread usually increases during festivals, weddings, and other social gatherings.

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How To Start The Bread Supply Business In Nigeria and Africa: Step-By-Step Guide

Starting a bread supply business in Nigeria and Africa can be a profitable venture, but it requires careful planning and execution. Here is a step-by-step guide on how to start a bread supply business in Nigeria and Africa:

  1. Conduct Market Research: Conducting market research is crucial in understanding the demand for bread in the region, the competition, pricing, and customer preferences.
  2. Develop a Business Plan: Develop a comprehensive business plan that includes financial projections, market analysis, and operational strategies.
  3. Secure Funding: Secure funding to cover startup costs such as rent, equipment, and inventory.
  4. Register Your Business: Register your business with the Corporate Affairs Commission (CAC) in Nigeria and other relevant regulatory bodies.
  5. Obtain Necessary Permits and Licenses: Obtain necessary permits and licenses from regulatory agencies such as the National Agency for Food and Drug Administration and Control (NAFDAC) in Nigeria.
  6. Source Equipment and Supplies: Purchase or lease baking equipment and supplies such as flour, sugar, yeast, and other ingredients.
  7. Hire and Train Staff: Hire and train staff to operate the bakery and manage the business.
  8. Market Your Business: Develop a marketing plan to promote your bread supply business using social media, word-of-mouth, and other marketing strategies.
  9. Build Relationships with Suppliers: Establish strong relationships with suppliers to ensure a steady supply of ingredients and equipment.
  10. Monitor and Evaluate Your Business: Monitor and evaluate your business regularly to identify areas for improvement and ensure profitability.

Starting a bread supply business in Nigeria and Africa can be challenging, but with careful planning and execution, it can be a lucrative venture.

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How To Produce Bread In Nigeria or Africa

Producing and packaging bread in Nigeria and Africa involve several steps, as discussed below:

  1. Mixing and kneading: Mixing flour, yeast, sugar, salt, water, and other ingredients, kneading the dough to create gluten, and allowing it to rise.
  2. Shaping: Shaping the dough into loaves or other shapes and sizes, and allowing them to rise again.
  3. Baking: Placing the loaves in the oven, and baking them for the appropriate time and temperature.
  4. Cooling: Allowing the baked loaves to cool before packaging.
  5. Slicing: Slicing the loaves using a bread slicer or other cutting tools.
  6. Packaging: Packaging the sliced bread in plastic or paper bags, and sealing them properly.
  7. Labeling: Labeling the bags with the brand name, ingredients, nutritional information, and other necessary details.
  8. Storage: Storing the packaged bread in a cool and dry place.

Starting a bread supply business in Nigeria and Africa requires an understanding of the local market, sourcing for raw materials, and establishing a reliable distribution network. It is also essential to comply with the regulations and standards set by relevant authorities in the food industry.

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Types Of Equipment & Tools Used In The Bread Supply Business In Nigeria or Africa

Here are some of the equipment that can be used to process, package, and supply bread in Nigeria and Africa:

  1. Oven: An oven is the most important equipment for baking bread. It can be either gas or electric-powered, and comes in different sizes and capacities.
  2. Mixer: A mixer is used to mix the ingredients for the bread dough. It can be either a spiral or planetary mixer, and it also comes in different sizes and capacities.
  3. Proofer: A proofer is used to keep the dough at the right temperature and humidity for fermentation to occur. It can be either a hot or cold proofer.
  4. Slicer: A slicer is used to cut the bread into the desired size and shape. It can be either a manual or automatic slicer.
  5. Packaging machine: A packaging machine is used to wrap the bread in plastic or paper for transportation and sale. It can be either a manual or automatic machine.
  6. Bread racks: Bread racks are used to store and transport the bread to different locations.
  7. Dough divider: A dough divider is used to divide the dough into equal portions before baking.
  8. Bread scoring machine: A bread scoring machine is used to make cuts in the bread dough before baking to help it expand and rise properly.

These are just some of the equipment that can be used for a bread supply business in Nigeria and Africa. The specific equipment needed may depend on the scale of the operation and the type of bread being produced.

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Target Market For The Bread Supply Business In Nigeria or Africa

  1. Retail Stores: Retail stores like supermarkets, grocery stores, and convenience stores are major targets for bread supply businesses. They require a constant supply of bread to meet the needs of their customers.
  2. Hotels and Restaurants: Hotels and restaurants require bread for breakfast, lunch, and dinner menus. Bread supply businesses can target these establishments to provide fresh bread daily.
  3. Fast Food Outlets: Fast food outlets that serve burgers, sandwiches, and other quick meals need a constant supply of bread. These outlets are a great market for bread supply businesses.
  4. Schools and Universities: Schools and universities are large institutions that require bread to feed their students. Bread supply businesses can target these institutions to provide bread for school lunches.
  5. Hospitals and Health Centers: Hospitals and health centers need bread to feed their patients, staff, and visitors. Bread supply businesses can target these institutions to provide fresh bread for their daily needs.
  6. Cafes and Bakeries: Cafes and bakeries require a constant supply of bread to meet the needs of their customers. Bread supply businesses can target these establishments to provide fresh bread daily.
  7. Religious Organizations: Religious organizations like churches and mosques use bread for communion and other religious ceremonies. Bread supply businesses can target these organizations to provide bread for their needs.
  8. Street Vendors: Street vendors that sell snacks like bread and pastries are a great market for bread supply businesses. They need a constant supply of fresh bread to meet the needs of their customers.
  9. Event Centers: Event centers like wedding venues, conference centers, and party halls require bread for events like buffets, banquets, and parties. Bread supply businesses can target these centers to provide bread for their events.
  10. Military Bases: Military bases require bread to feed their soldiers. Bread supply businesses can target these bases to provide fresh bread for their daily needs.

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How To Sell or Market Bread In Nigeria or Africa

  1. Set up a physical store: Establish a physical store in high traffic areas such as malls, markets, and residential areas.
  2. Mobile sales: Use a food truck or van to sell bread to customers in various locations.
  3. Online sales: Create an e-commerce website or utilize social media platforms such as Facebook and Instagram to sell bread to customers.
  4. Offer free samples: Distribute free samples to customers in busy areas to generate interest in the product.
  5. Bundle deals: Offer bundle deals that include multiple loaves of bread at a discounted price.
  6. Loyalty programs: Implement a loyalty program that rewards customers for repeat purchases.
  7. Wholesale: Sell bread in bulk to other businesses such as supermarkets, hotels, and restaurants.
  8. Farmers’ markets: Sell bread at local farmers’ markets to attract health-conscious customers.
  9. Food festivals: Participate in food festivals and events to showcase bread and attract new customers.
  10. Corporate sales: Sell bread to corporate clients such as offices and companies for employee consumption.
  11. Door-to-door sales: Hire sales agents to distribute bread door-to-door in residential areas.
  12. Bakery tours: Organize bakery tours for customers to see the bread-making process and learn about the ingredients used.
  13. Health fairs: Participate in health fairs to promote the health benefits of bread and attract health-conscious customers.
  14. Radio and TV advertising: Advertise bread on radio and TV to reach a wider audience.
  15. Print advertising: Use billboards, flyers, and posters to advertise bread in high traffic areas.
  16. Charity events: Participate in charity events and donate bread to attract positive publicity.
  17. Branded packaging: Use branded packaging to attract customers and increase brand recognition.
  18. Product placement: Place bread in strategic locations such as checkout counters and end-caps to increase visibility.
  19. In-store promotions: Offer discounts or promotions for customers who purchase bread in-store.
  20. Sampling events: Host sampling events in-store or in public locations to encourage customers to try the bread.
  21. Online reviews: Encourage satisfied customers to leave positive reviews on websites and social media platforms.
  22. Referral program: Implement a referral program that rewards customers for referring new customers.
  23. Influencer marketing: Partner with social media influencers to promote bread to their followers.
  24. Email marketing: Use email marketing to send promotions and special offers to customers.
  25. Holiday specials: Offer special holiday-themed bread during festive seasons such as Christmas, Easter, and Ramadan to attract customers.

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Challenges Of The Bread Supply Business In Nigeria and Africa

  1. High competition: The bread supply business in Nigeria and Africa is highly competitive, with many established players in the market.
  2. Inadequate infrastructure: Poor transportation, power supply, and storage facilities can make it difficult to supply bread products to customers.
  3. Price volatility: The cost of raw materials such as wheat flour and sugar can be unpredictable and affect profit margins.
  4. Lack of access to credit: Small bread suppliers may face difficulty accessing finance to grow their businesses.
  5. Poor quality control: Maintaining consistent quality can be a challenge, especially for small-scale bread suppliers.
  6. High cost of production: The cost of production, such as rent, wages, and equipment, can be high and affect profit margins.
  7. Short shelf life: Bread products have a short shelf life, which can result in waste if not sold quickly.
  8. Changing consumer preferences: Consumers’ tastes and preferences can change, and suppliers may need to adapt to keep up with trends.
  9. Seasonal demand: Bread products may have higher demand during certain seasons, which can affect supply and logistics.
  10. Supply chain challenges: Challenges such as logistics, transportation, and storage can make it difficult to supply bread products to customers.
  11. Inefficient distribution channels: Inefficient distribution channels can make it difficult to reach customers and may result in stockouts or spoilage.
  12. High production costs: The cost of producing bread, including raw materials, labor, and overhead costs, can be high.
  13. Regulatory challenges: Bread suppliers may need to comply with various regulations, such as food safety standards and labeling requirements.
  14. Environmental factors: Climate change and natural disasters can affect the supply and price of raw materials, such as wheat flour.
  15. Lack of skilled labor: Finding skilled labor, such as bakers and quality control personnel, can be a challenge for bread suppliers.
  16. Health concerns: Consumers may be concerned about the health impact of consuming bread, such as its high carbohydrate content.
  17. Equipment breakdown: Equipment breakdown or malfunction can disrupt production and result in losses.
  18. Theft and pilferage: Theft and pilferage of bread products can result in losses for suppliers.
  19. Inadequate market research: Inadequate market research can lead to poor business decisions, such as offering products that do not appeal to customers.
  20. Inadequate marketing: Inadequate marketing can make it difficult to reach customers and grow the business.
  21. Lack of innovation: Lack of innovation can result in a lack of differentiation from competitors and a decline in sales.
  22. Dependence on a single product: Bread suppliers who focus solely on bread products may be vulnerable to changes in consumer preferences.
  23. Lack of government support: Bread suppliers may not receive adequate government support, such as subsidies or tax incentives.
  24. Language barriers: Language barriers can make it difficult to communicate with customers or suppliers in certain regions.
  25. Economic downturns: Economic downturns can result in reduced demand for bread products and affect suppliers’ revenue.

See Also: How To Start A Lucrative Bread Bakery Business In Nigeria and Africa: The Complete Guide

 

To Sum It Up

The bread supply business is a lucrative venture in Nigeria and Africa due to the high demand for bread as a staple food. However, the industry is highly competitive, and entrepreneurs need to carefully plan and execute their strategies to succeed. Adequate research, proper branding, marketing, and pricing are crucial to staying competitive in the market. The use of modern technology and equipment for processing and packaging bread can also increase efficiency and productivity.

Additionally, entrepreneurs should pay attention to the challenges facing the industry, such as inconsistent power supply, transportation issues, and high production costs. Developing innovative solutions to these challenges can set businesses apart and give them a competitive edge. Ultimately, the bread supply business requires dedication, hard work, and a keen eye for business opportunities to succeed.

See Also: How To Start A Business In Nigeria and Africa: The Complete Guide

 

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What are your thoughts on how to start a Bread Supply Business in Nigeria and Africa? Let me know by leaving a comment below.

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