Do you want to know how to start an egg supply and distribution business in Nigeria and make money? No issues. This post will provide you with necessary information on how to begin and record profits running the business.
Before we dive in, please, permit me to tell you a short true-life story. As at the time Deborah experienced a great but unexpected change in her life, she was in her mid-thirties.
Gainfully employed. She worked on the Island. She is married and has two kids. She is the perfect definition of beauty plus a brain. A very hardworking fellow who always delivers results for the company. She has been working with the company for seven good years.
One Monday morning, at the meeting, Deborah and her coworkers were informed that a large organization has acquired the company and the new management will take charge of the company’s affairs soon.
Long story short, the new management couldn’t keep all the employees. They had to sack some of them. And Deborah was unlucky; she was among the employees who got booted out of the company. She didn’t expect it. It was like a nightmare to her. She has no other option than to accept her fate and move on.
She began hunting for jobs here and there in the city of Lagos. You would think that her experience will open the door to another job for her easily, but it wasn’t like that. Disappointedly, with her years of experience, she couldn’t secure one. But she wasn’t desperate.
Her husband worked on the Island. He used his connections to look for a good job for his wife. All the available opportunities weren’t worth it. While a few companies were saying that they cannot afford to pay her salary because of her experience.
On the other hand, she is now able to spend a good time with her kids at home and she loves it.
One morning, as she was thinking of the next step to take, the idea of having a home-based business flashed to her mind. As the smart person that she is, she started putting different ideas down on paper. Eventually, she settled on an egg supply and distribution business idea. This is how the business changed her life and she has always been grateful for treading the path.
Egg supply and distribution business has been a quiet goldmine. It’s one of the cool businesses you can run anywhere you are except if you are in a place where they don’t eat eggs at all. Though the volume is different, eggs are eaten everywhere in Nigeria. The consumption rate of eggs in cities is quite higher than that of rural areas due to population and purchasing power.
See, Nigerians love to eat eggs. If you know how many crates of eggs Nigerians consume daily, you’ll be shocked. Before the land border was closed, Nigerians used to import eggs from Cotonou, Benin Republic. This simply implies that the demand is higher than the supply, and even to date, we have not been able to produce enough eggs we consume in the country. This is among the reasons the price of eggs goes up.
According to Nairametrics, the expenditure pattern report shows that Nigerians spend 56% of their income on food. Is there any other market bigger than a good market in Nigeria? I think you know the answer.
According to the Food and Agriculture Organization (FAO) of the United Nations, Nigeria has the second-largest chicken population in Africa, after South Africa, producing 650, 000 tonnes of eggs per annum. The egg market in Nigeria generates about N1.7billion in sales daily. You can carry out your own research.
The egg is consumed for its benefit. The egg is the cheapest highest-quality source of protein for Nigerians. The egg is rich in vital healthy fats, vitamins, minerals, and antioxidants.
In this blog post, I will be revealing to you how anyone can start an egg supply and distribution business in Nigeria and turn it into a profitable venture.
Let’s dive in!
What is an egg distribution and supply business?
An egg distribution business is a kind of business where the business person buys crates of eggs directly from farms in large quantities and resells them to people in crates at wholesale price. The wholesalers, retailers, and individuals buy eggs from distributors.
Running a poultry farm is not easy and comes with many responsibilities. Many poultry farmers have no time to market, distribute their eggs by themselves. It saves them time and energy to sell to distributors in large quantities. The distributors take the responsibility of transporting the eggs they buy at poultry farms to their business locations.
With N100, 000, one can start the egg supply and distribution business and turn it into a money-making venture in Nigeria. Egg is a daily consumable in Nigeria. So long people eat eggs in this country and you’re able to have a good number of customers buying from you regularly, money won’t stop flowing in your direction.
The steps to take are simple and straightforward to some extent: you buy crates of eggs from the farm, transport them to your business place, distribute them to those who make orders, you get paid and repeat the process.
Step by step guide on how to start egg business in Nigeria
Get a good poultry farm to buy from:
Most of the poultry farms in Nigeria sell eggs but the majority are not reliable. Check around and choose a good one to do business with.
Poultry farms sell crates of eggs to distributors at different rates. You can always negotiate the price. You are in a good position to negotiate better if you are buying large quantities. The more you buy, the better the price.
If you are in Lagos, you are likely to be buying eggs from the farms in Oyo State, Ondo State, and Ogun State. Most of the poultry farms in Lagos have big-time distributors they sell to, more so, buying from them is expensive because you can never meet up with the volume of their distributors as a starter in the business.
Buying eggs from poultry farms outside Lagos is cheap but the headache is transporting them down to your place. But by the time you do your calculations, it is worth it.
Farms operate on different rules of engagement with distributors. Be prepared.
Get customers for your business:
Turning your egg distribution and supply business into a profitable venture in Nigeria relies on having a good number of customers who buy eggs regularly from you. You need to employ different kinds of marketing tactics to win people’s hearts.
Most of the buyers already have who sell eggs to them, but not all of them is satisfied, so this leaves room for you to come in. You may reduce your price to get them to buy from you. Maybe you will deliver on time. It depends.
Move around to meet with people and discuss your business with them. The more customers you have, the more the profits.
Get your capital ready:
You cannot start an egg supply and distribution business in Nigeria with no money. I don’t see a farm giving a person who is just starting out in the business crates of eggs on credit in Nigeria.
Get your capital ready. If you don’t have money to start, you can raise some money from friends and family members. What I know about this business is: your capital will never be enough if your customer base is large. You will definitely need other people’s money. One of the quickest ways to get people motivated to hand over their money to you is to assure them they will get their own share of profits when giving you the money.
N100, 000 is good enough to start a business in Nigeria. You buy crates of eggs with the money, sort the transport expenses, and reserve some money at hand for other business expenses.
Get means of transporting your crates of eggs from the farm:
Moving the eggs from the farm is your biggest business expense. Having your own car/bus makes things easy for you and at the same time you spend less. You can hire a car/bus if you don’t have your own ride.
Transporting crates of eggs from one location to another requires care, else you will have some cracked eggs. You packed the crates of eggs properly with pieces of cartons. The closer the farm to you, the better the condition of the road to the farm, the more the profits. Because if you are not careful, the transport expenses and losses on the cracked eggs can eat up all your profits.
More so, hiring an old man’s car/bus is better than hiring a young man’s. Old men don’t rush when driving and they carefully listen to you and they also charge less than young drivers. If you are able to hire a good one, it’s preferable.
Store and sell your eggs:
Be it a shop or warehouse or your house, store eggs and sell to buyers who make requests for them. When you store your eggs safely, you won’t incur any loss.
Bad book-keeping kills small businesses and egg supply and distribution is not left out. Keep good records of your customers’ details, sales, and expenses right from the beginning.
Egg marketing doesn’t end. As you’re making sales, you’ll be marketing to more buyers simultaneously so that you’ll always have egg orders and make more money.
The egg supply and distribution business are one of the easiest businesses to start in Nigeria with little capital. Business roads are not smooth but with good efforts, success is there. You make more money when you sell high volume.