How To Operate Egg Logistics Business In Nigeria
Egg supply business also known as egg distribution business involves the sourcing and supply of eggs to individuals, supermarkets, hotels, shops and companies. It is a very lucrative business that anyone can start to make massive profit. The business is not very capital intensive but very rewarding.
Without a doubt, poultry business is one of the most lucrative business to start anywhere in Nigeria and Africa. And raring of chickens is king of the kind. One thing that makes poultry business so lucrative is egg. Because of its nutritional value and demand, supplying and distributions of eggs is a lucrative business with manifold profits in Nigeria and beyond. Anywhere in the world.
Why egg supply business is very lucrative
The population of egg consumers is very large and wide in variety, ranging from everyday people to companies, hotels and many other establishments of which restaurants and events are part of it. Eggs are not just needed for eating alone. Eggs are also used in most baked snacks during manufacturing processes
Egg is seen as a source of protein for human. There have been many research where scientists have concluded that consumption of egg plays a big part in human health.
The egg supply market is worth billions of Naira in Nigeria. And everyone who ventures into it has a good opportunity to tap into these billions. As a result of this, we can say venturing into egg production and distribution business is a great move to make.
What is egg supply business all about?
It is about sharing of eggs produced from poultry to the buyers daily, sometimes weekly, monthly depending on the need of the buyers. The supply of eggs will depend on demand. In most cases, customers usually order for eggs in hundreds, some thousands but it majorly depends on the financial capacity of the customers. However, it is important we discuss on the opportunity available in egg distribution business.
The opportunities in the egg distribution business
1. Common Supplies
Eggs are known to be supplied to shops or supermarket, restaurants, bakeries and cosmetics industries on a daily basis, weekly or perhaps monthly in wholesale. With this, the business owner is given the opportunity to make immense income on a daily basis, weekly, and monthly. Almost everyone eats egg. In fact, scientists recommend eating at least one egg a day
2. Industrial supply
Eggs are utilized in some companies for the purpose of industrial productions such as glue and some other products. In lieu to this, these industries need a constant supply of eggs for them to sustain their legacy and activities. Therefore, they order for large egg supplies, of which you can write proposals to them after setting up your poultry for egg production.
Some cosmetics establishments also utilize the efficiency of egg to make their various skin products.
In the fitness center, they do encourage their clients to take in a lot of eggs so that it can help them to boost their protein intake and by doing that, they can get to build their bodies and gain considerable muscle mass. You could reach out to gym centers out there and by doing so, you will get more clients for your egg supply business.
The advantages of egg supply business
Easy to establish.
It does not cost a fortune to start.
You do not need any skills or qualification to enter the egg supply business.
It can bring daily and weekly non-stop income.
How to start egg supply business
Follow these steps to start egg supply business:
Locate a reliable poultry farm that produce eggs in large quantities
The first step is to locate a dependable poultry farm that can easily supply you large quantities of eggs anytime you need it. Make sure you locate a well-organized farm. You should be connected to more than one farm. Have at least two to avoid scarcity.
Speak with them and have agreement on prices and all details necessary.
Acquire a car
Transporting eggs from one place to another in large quantity require you have a car. It can be an old car but movable. You could also work out a rental agreement with someone with a car or bus whenever you have supply to make.
It is not advisable to use public transportation to move your eggs. Because eggs are very sensitive and could break when not handle with care.
Set up a storage facility
You may need to set up an adequate storage facility for the eggs. Once you move them from the farm, a place you keep them for distribution. Where customers can come and pick up or sight see.
Once you have a place ready. You will need to acquire tools that will help you run your egg supply business. The most important tool are crates where you keep the egg. It is very important and essential. Without it the eggs might break and you lose.
Identify and reach out to your target market
You will need to locate your target market where you are and each out to them. This is where your business will thrive. Depending on where you are, you should be looking at: Hotels, shops, schools, restaurants, industries that make use of egg, gyms and more. Get to meet them, introduce yourself and tell them about your business.
Challenges Of The Egg Distribution Business
Some of the challenges of egg distribution in Nigeria and many parts of Africa include:
Lack of experience.
Pests like rodents
Low and unstable investment in poultry research.
Poorly managed supply chain.
Things Needed for an Egg Distribution Business
Egg distribution is open to the poultry farmer as well as anyone interested in participating in this highly profitable area of business.
To begin with, there are lots of things you have to be on the lookout for. While there are lots of opportunities, there are challenges too! These challenges are not insurmountable with the right plan in place.
Always Have an Implementable Plan
Your business plan is invaluable. This document sets forth a direct and clear line of action at every stage of the business. This should be carefully written and should be stripped of all complexities to allow for its easy implementation. Every part of the plan is important. Contents should include a 3-year profit projection, marketing strategies, organizational structure, an executive summary and business description.
Like any business, certain things must be in place for it to be successful. The same applies to an egg distribution business. In planning your business, these should not be overlooked. They include;
Supply and Demand
As an egg distributor, there should be a healthy dose of supply and demand. In other words, you should have a good source of egg supply. Not every poultry business produces quality eggs.
Quality eggs are essential to how quick they are disposed of or sold. As such certain poultry farms are reputed for producing quality eggs. These should be on top of your preference list for suppliers.
On the other hand, demand is as important as supply in the egg distribution business. There has to be a ready market for your products (eggs). It is therefore important to know or learn everything you can about your buyers. You may choose to serve or supply to end-users (consumers) or you may prefer to work with retailers. Understanding the dynamics between the two is necessary and important.
Having multiple distribution chains will impact positively on your business. But why is this necessary? It is important because these are channels through which your egg supply business grows. The more demand for eggs, the bigger your profits, and capacity. The same applies to supply.
Only Seek Out the Best Deal
This is important, especially when looking for possible suppliers (poultry farms). As an egg distribution business, you will have a close working relationship with poultry farm owners. It is necessary to strike a balance between the best poultry product (eggs) and price. There are thousands of poultry farmers who are likely to offer you a better bargain.
You need to exhaust your options in choosing the most preferred poultry product supplier. This will significantly enhance your profit margins.
Having Sufficient Start-up Capital
Funding is a lifeline for an egg supply business. Start-up funding depends on the scale of egg distributorship. You may choose to save up for this or may prefer to apply for a loan. Whatever your preferences or needs are, your business needs to be adequately funded.
Sufficient funding is needed for purchasing your first consignment of products (eggs).
For an egg distribution business to be successful, a delivery van is essential. Getting one will cost you. However, instead of buying one, you can convert the one you have for business use.
The number of vans you need will depend on the size of your business. The larger the size of your egg distribution business, the more delivery vans will be needed.
Egg Packaging and Storage
Egg packaging and storage facilities are some of the most important requirements that help in delivering eggs safely. This reduces damages or cracks as well as spoilage of these products.
Let’s discuss each of these separately;
For the safe distribution of eggs, they need to be properly packaged. This enhances their delivery to end consumers.
Proper packaging of eggs will prevent them from tainting, natural predators, moisture loss and natural predators. Packaging involves a lot of things. These include labeling as well as protective packaging.
The packaging is not only important for protecting eggs but will also provide a form of identification.
As an egg distributor, you need to have storage or holding facility for your products. Eggs are fragile and storage facilities are needed to keep them from spoiling. While storing eggs in cold storage, they shouldn’t be washed.
However, these must be clean. Cold storage for eggs requires close monitoring if ideal storage conditions are to be met.
The good thing with egg storage is that it does not have to last for a long time. As long as there is a demand for eggs, minimal storage time is needed.
Egg distribution business plan involves a whole lot of procedures. It is necessary to have these at the back of your mind before venturing into this area of business.
Depending on the size of your business, staffing is required. The right type of workers should be hired. These will include drivers, packaging staff and more. It is necessary to strategize before venturing out.
Doing this will enhance the chance of success.