Starting an Egg Supply Business in Nigeria

This is one business that is very easy and lucrative to do anywhere within Nigeria, starting an Egg supply business is a venture anyone can do as far as you have the passion, time and finances for it.

With the Federal Government Intervention in the agricultural sector, it has become easier to venture into this business as loans are pretty easy to get unlike before, you just need to be patience and have the right knowledge.

One reason why this business keep flourishing is because egg is an indispensable food product. From it, a lot of different dishes, sauces, and other things are made.

Egg contains a large number of useful substances and the demand for this product in Nigeria is constant (as people need to eat) so there are no problems with sale. Which makes it one of the fastest-paying business in Nigeria. Almost 85% of snacks have egg as one if it’s main ingredient. This is a product that most individuals and ventures can’t do without. Ventures like restaurants, hotels, canteens, bars etc.

How to start this eggs supply business in Nigeria?

In this business article, we are not interested in farming or rearing the chicken but rather in supplying the eggs gotten from this chickens to retail traders or the finial consumers.

Draw a Business Plan

How will your business operate? Who will be your source for this egg? What will be your 3 years achievement in this business? These are some of the questions you would need to ask yourself and will also be inclusive in the business plan.

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In your business plan, you also need to include; the strategy you will take to succeed in the business. Such as how to start; wholesale or retail kind of business, the number of crates to start with and when to increase the egg stock or reduce, getting buyers –as in how many people you would target down, area of coverage etc.

Having a business plan in this egg distribution business is essential and aid entrepreneurs not to go astray as well as help increasing profits and keep the business growing.

Who Are Your Customers?

This is a very crucial step in starting an eggs supply business, which one cannot afford to skip. The truth is sourcing for eggs is not really the problem. You may even see a poultry where you can buy eggs from. However, what is important is to identify your customers in the market.

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Who are you going to selling to? Do those people already have where they buy eggs from or a preferred supplier and who is buying from you? To be very successful in this business, it is very important to target densely populated areas, that is area with lots of consumers, so as to achieve reasonable sales daily or weekly.

It could be markets or anywhere that the population will help your business strive. Once you have your target market in place and your customers in checked, then you have solved a greater problem that you may encounter in this business.

Where to Source For Your Eggs?

Souring your eggs isn’t a big problem in this business but for some it’s a blockage, in order to get constant inflow of eggs, it is very important to source form poultry farms. Where you can be getting regular supply of eggs without fear.

Some of the things you need to put into consideration is the distance “to and fro” the poultry farm to your house or store house; when choosing a poutry farms, search for those within your district or those close by. The farm doesn’t necessarily have to be too far from your egg business location or store house –because of the egg fragility (getting the egg broken).

Short distance comes with a lesser risk, while long distance has a higher risk, especially when it comes to transporting these eggs. Fresh egg is what counts in egg business, if you keep supplying eggs that are almost about to spoil believe me, you will lose customers fast enough. But if you maintain the supply of fresh eggs customers will be waiting for you.

Means of Supplying Eggs

Having a vehicle can make supplying these eggs quite easy and stress-free, the purpose of having a vehicle is to make your business mobile. Several retailers (those who might buy from you) might consider it stressful going to buy these eggs from your storage house.

You on the other hand might even incur losses from cracked eggs which mostly happen if they go to a far poultry farms to buy these eggs.

If you don’t own a vehicle, you can make arrangement with a taxi driver and pay him to carry your eggs from the farm to your store house or even to your customers, depending on the quantity they are purchasing –that means you have to call the person to come pick you up .

You will mostly maximize your profit in these eggs supply business, if you have your own vehicle or means of distributing eggs.

Having a Storage Facility

When starting this business in its initial stage, you may use a space in your house to store the eggs but as the eggs increase in quantity you may consider renting a shop in a good location for your egg supply business so that people can rush in to buy when they exhaust their eggs.

The shop will also serve as a storage facility where you can store eggs bought from the poultry farm you can buy in large quantities and store them in the storage house rather than going to poultry farms every day.

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Eggs can be stored in a room with room temperature (32˚C) just like how crayfish are preserved. You can put them in their crate in a well ventilated room. Don’t keep them were there is heat from cooking or the likes.

NOTE: It is not advisable to store eggs in the refrigerator, because of the poor power supply in Nigeria. This is because if the freezer or fridge goes off for some period and the eggs absorb the water from the melted ice, it will get bad in a few days when not consumed. But if you have steady light to power your generator you can preserve eggs in the fridge.

Equipment’s needed in This Business

There are some basic tools that you would need in this business and they includes:

Empty crates of egg (paper or plastic crates)

The total number of crates you chose to buy to run your business depends on the quality of buy you will be buying. It is advisable to buy the paper crates because it is more protective and reduced the number of cracks from egg transportation. Paper crates are also cheaper than plastic crates and cost about ₦70 the down side is, it gets damaged quickly than plastic ones especially when wet.

Rack or Shelves

These are used to store the eggs especially from rodents and to neatly display the eggs. They can be used to sort the eggs to the period when they are bought as this can aid in FIFO formatting (First In First Out); the first eggs to be bought should be the first to be sold out.

 

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Marketing

In order to maximize your profit in this business, you need to supply eggs to a wide range of customers and to do that you need to market your eggs to potential customers.

You can do the traditional way of marketing, which includes printing flyers and banners and sharing to various people. Also you can sell to traders at a discounted price. Other places to sell your eggs are in super markets, hotels, restaurants, boarding schools, individuals etc.

Advertise your egg distribution business in social media, print complimentary cards and distribute to people in your location.

Some Challenges Faced in This Egg Supply Business

Below are some of the challenges of egg distribution in Nigeria faced by entrepreneurs, and they includes

Lack of experience in this field

Most people that venture into this agri-business do not know how these business are managed, which include where to source for eggs and other necessary information.

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Pests like rodents

Pests like rodent example rats and reptile like snakes destroy eggs by eating/swallowing them up, so when getting your store room ensure to put these things into consideration by getting a pesticide or getting a trap.

Not Conducting Proper Market Research

Conducting a market research is good as its open your eyes to how the business will operate and market research helps entrepreneur to write their business plan. Entrepreneur that do not conduct a good market research will have product sustaining there business.

Capital challenges

Though the required capital for this business is pretty low there are some people who wish to venture into this business but they lack the financial capacity to do such.

Marketing challenges.

Marketing the products and whom to market it too can be very difficult especially when there is a stiff competition in your location or local market.

Cost and Profitability of This Business

This is a good business to venture into because it doesn’t require lots of capital. The main cost in this business is the money you would pay to rent a shop and that you would pay to drivers to transport your eggs (assuming you don’t know a vehicle) apart from that, with a N100,000 for a start, your business will be up and running.

The price you buy your eggs will determine the profit you make from this business, for example most egg suppliers would add N150, in addition to the cost of the egg when selling it out and once the demand for egg is higher then they add more sometimes ranging to N500 additional cost, which serve as profit to egg supplier.

If for example, one is able to supply 20 crates of eggs every day to consumers or retailers. That will equate to 50 crate of eggs × N150 profit, which is equal to N7, 500. When you deduct expenses may be N3, 500 you will be left with N4, 000. In a month it will be about N120,000 , lets approximate it to N80,000 because it’s not every day you would sell your whole stock finish, but summary the golden rule in this business is that the more crate you supply the more profit you make. So widen your area of coverage for a better deal focus on marketing.

In Conclusion

The egg distribution business in Nigeria can be a Lucrative and profitable venture when a proper planning is taken into consideration, if you’re looking for an agribusiness to venture into in Nigeria, the egg supply business in Nigeria is another option to explore.

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