The information you are going to read FREE on my blog today cost as much as N150,000 and funny enough some experts charge more than that. But I love you and sharing of valuable information is the reason while this platform was created.
Normally, I charged a minimum of N50,000 for this exercise and most clients pay me above that because I always give value above expectation. I do not joke with any assignment that concerns my culture (Agriculture).
But I won’t charge you a penny, but please, promise me that you will learn and practice this secrete and further monetize your knowledge. After acquiring this knowledge, do not sell it cheap to anyone, if you charge below N50,000 know you just betray me.
Ready for the boom? Great, let’s move forward to the promised land so we can enjoy HONEY and MILK.
Trust me, I am the best teacher in the world. Just give me your undiluted attention, turn-off the television, drop that book, lock your door properly and sit comfortably in that chair and download this information.
You won’t pay money to any expert again but people will start paying thousands of Naira into your bank account for this service. Let go deep now.
Let us assume you want to invest in agriculture but the challenge is, you do not know the exact area to invest your precious time and money it.
Part of you is telling you to start a poultry farm because everyone eats egg/meat each means selling won’t be a challenge, or start selling foodstuffs, or venture into commercial tomato production.
Another side of you is telling you that, plantains are expansive so is better to invest in plantain plantation right away since you already have plenty of money to finance the project.
You thought rice is expansive so investing in rice distribution business is the best thing to do. The confusion is much and I understand with you, I choose to clear the door for you today.
Please read the statement below and let it sink,
“Forget the idea you currently have and let the demands of a market influence the kind of business you do.
The point is you should not create a product and look for customers. No. You should find a market and their desires, create a business around it” -Akin Alabi.
Now, here is the big deal. How To Identify The Demand Of A Market. I will break this down for you in a few lines and your eyes will open.
To bring this point home, let me share a story of how I was able to bank over N85,000 last year (2019) selling other people birds. It was the month of December when birds, rice, and other consumable are usually expansive in Nigeria due to Christmas and New year celebration
I started my rice processing/distribution business that same period so, selling birds wasn’t on my agenda. As a wise businessman, early September, I knew birds will flood our markets so I did not breed many birds.
By November, all my birds were sold off the pen was empty. Remember I have a large customer base already? But something was certain, if other new birds rearers are selling big birds cheaper, I will lose or be forced to sell cheap too.
To avoid trading at a loss, I skillfully, left birds business and was processing/distributing rice across the 36 states of the federation and cashing out big money. But December, every household in Makurdi had birds for sell but patronage was poor.
So, my customers who knew I had birds would call for supply and initially, I would tell them “I don’t have birds” but after some more calls and I changed the topic. I went out, bought matured birds from other desperate farmers and I was reselling to my customers who already appreciate my price tag.
Guys… I would buy big birds from some farms at N1500 and resell for as much as N2,500 per bird and making a pure profit of about N85,000 cash in less than 2 weeks without stress and without rearing birds for weeks.
Here is the idea, they venture into a profitable business at the wrong time because of this popular assumptions “Is Christmas period some everybody eats chicken meat” and they failed after overfeeding their birds to meet up the target.
They couldn’t read and understand the current market trends.
In My book “Poultry Farming Without Tears” detailed steps by steps of conducting a market survey before investing in commercial breeding of birds was analysis there, I will try and duplicate those steps here for you.
We might be using POULTRY as a benchmark but the same steps are applicable to any agricultural business and if your planning to venture into commercial breeding of birds, you should read with your two eyes wide open.
Remember you are investing in poultry for commercial purpose and not family consumption, therefore, do not produce your favourite meal but what customers are willing to pay money for.
I always give this advice to beginners, “Forget the ideas you currently have and let the demands of a market influence the kind of business you do” –Akin Alabi.
First thing you should do before deciding on which aspect of poultry to invest your money should be a proper MARKET SURVEY within your reach. For example, DENKOL FARMS is located in Makurdi, Benue State but the farm is located in an outskirt of the town.
Because we have an expansion plan of building a big meat processing factory in future and we need a steady power supply to run some sophisticated machines, the host community is the right location for our farm settlement because they have 24 hours power.
But the locals don’t patronize our birds nor pigs, we have to transport our pigs down to our state headquarters to sell at a good price and it is cost-effective for us at DENKOL FARMS.
Understand this; our customers are not the populace, we only set up our farm there due to availability of large/cheap farmland and steady power supply. We know our target market and how to reach out to them when our products (Birds and Pigs) are ready for consumptions.
We don’t even spend money on transporting our products to them; they usually come over to our farm and buy once we placed a phone call across. Because we have identified what they are ready to pay plenty of money for any time, any-day.
Follow me closely, the word “Market Survey” get a lot of beginners confused and I personally charged five-figures (in Naira) to conduct this simple research for clients.
It is a simple research because I have done it for more than 4 years now that if I visit a community in less than 2 hours I could instantly identify high demand agro-products with-out talking to anybody.
Thank your God, for reading this article because I will pour-forth my 6 years working experience into you so you can start as an expert and farm right with little to zero mistakes.
Conducting a proper Market Survey is not and shouldn’t be seen as rocket science, it is a simple task and I besiege you from paying anyone after reading this article. But if you a busy with other businesses, go ahead and pay for the service.
This is how it works,
- You need a pen, book, and a smartphone with a high-quality camera.
- Position yourself as an avid consumer or buyer of eggs and chicken meat.
- Go to a market where eggs and chicken meat are sold in commercial quantities and pretend to be a big buyer, ask for prices, and take careful notes into your journal.
- Visit all the frozen/dried chicken meat shops within your reach and bargain prices of different sizes. Again pretend to be a big buyer, pen down your observations.
- Visit all egg distribution outlets within your reach; ask for prices of different egg sizes and crates. Write down your findings.
- Go to big/small poultry farms within your reach and ask those farmers intelligent questions. I know this will be hard because most farmers would not expose their business secretes to you, therefore, pretend to be a buyer here too.
Let them know you are not venturing into the rearing of birds per se, you only need to know their selling price because you intend venturing into frozen/dried meat business and you want them to be your suppliers. Guys… all the information you need will be made available to you.
Record plenty of audio version of your question and answer sessions so you can remember all key points. Snap pictures too.
- Guy… Open your eyes and mind to see beyond what your eyes can look, and hear more than words spoken.
- Write plenty of notes as possible, then come back home with your journal and smartphone full of pictures. It is time to edit and restructure your findings so that anyone can pick, read, and comprehend easily.
Why did I ask you to act as a CONSUMER and also a COMMERCIAL BUYER of eggs or chicken meat?
Here is the logic,
Acting as an avid CONSUMER of eggs/chicken meat during your market survey will give you an idea of how these two commodities trade in the market. So, you will decide either to operate a B2C (Business 2 Customer) or B2B (Business 2 Business) model or both.
“B2B simply means, you will breed your birds and when it gets to maturity stage; you will sell to food restaurants, five-star hotels, and to frozen meat outlets. You are not interested in selling to individual consumers, you prefer business people that would come and buy your products in bulk and pay big money so you can restock.
B2C simply means, you prefer selling to final consumers. You hate middlemen down pricing your products so they can resell and make higher profits for themselves”.
You will have a better understanding of how much money consumers are willing and can pay per bird so you can accurately estimate their purchasing power, because it is unwise and also an error to breed a N3,500 bird in a N1,500 consumer market and vi-visa.
So, if you conduct a market survey from a consumer point of view, you will understand how to sell your birds, where to sell, when to sell, and at what price. Also, you will make an informed decision on either to operate a B2B or B2C model.
Acting as a COMMERCIAL BUYER during a market survey will open your eyes to spot the money-making opportunities that exist within the poultry value chain, it gives a clear picture of how to price your products.
And you will decide either to buyout middlemen and sell directly to final consumers or focus on primary production while middlemen do their business of buying to resell.
Figures do not lie, so your research findings should be your beacon on any decision you must take not necessary what you read on the internet.
Now you have a clear picture of consumption pattern between eggs and chicken meat in a few markets within your reach, it will be easier to tell which aspect to invest your money into.
Now you will invest in the aspect that pays bigger money, which could layers or broilers and most cases both are investable ventures.
Let us assume you read a blog post on the internet and you were told that poultry farming is profitable in Nigeria, and the blogger went further to expose huge figures into your mind like “invest N500,000 poultry business and earn N1.3million within 3-6 weeks”.
Boom… We all want to become millionaires. The blogger is CEO of DENKOL FARMS by name Tsekohol Denison, base in Benue State where there huge market demand for both eggs and chicken meat.
So, the article was written base on his market survey conducted in Benue State. But you are based in Jos where almost all household owns a poultry farm either for commercial or family consumption, then you invested into commercial egg production, after massive production of over 10,000 crates of eggs, you begging to sell 30 jumbo size eggs for N400 and nobody is interested in patronizing you.
The eggs get rotten every-day, the cost of feeding increase daily because your layers are growing daily, producing eggs daily but, the income from sales cannot care for running cost.
But you don’t want your business to die; you injected more of your personal savings till you ran out of money and business of rearing birds. You took another market research like yours, that a fatal error.
Remember I asked you to visit some poultry farms within your reach and secretly enquire information from there? Here was the reason, the production cost of layers(eggs) is 100% different from broilers(meat).
So, during your market survey, you discover that there is a higher demand for eggs in your target market all year round but the cost of building a simple or modern layers farm is above the capital(money) you have to commit to this project.
If you now know the fact that you don’t have money to invest, you will either source to raise more money or settle for broilers production.
Also, you might discover that broilers production pays fast money, consumers are ready to buy and is cost-effective to start with your bank account balance and feed your birds for 6-8 weeks without begging for external financial support, you will gently respect yourself and start with small broilers farm.
Lastly, you can start with both broilers and layers production, but don’t allow the figures in your head to guide your investment decision, invest base on what your market survey said about demand and cost of production.
For example, in DENKOL FARMS, we currently have broilers and pigs because we have a huge demand both and the costs of production align with our bank account balance.
We are interested in commercial breeding of Layers, Goats, and Fishes because we have conducted a proper market survey and our figures said it is a profitable business to do. But sadly, we do not have the financial capacity to integrate yet, so we have a focus on what we can produce.
Conduct a proper MARKET SURVEY, know the DEMAND/SUPPLY in that market, know the COST of PRODUCTION, then invest your money in the right aspect of poultry production.
Do not just jumped into selling rice and yam because everybody eat yam. Let us assume you read on my blog or somewhere else that Nigeria import over 5 million eggs daily from South Africa or frozen chicken meat worth N600 billion yearly.
Then, your mind is telling you to build a 35,000 layers farm so you can produce eggs for Nigerians, hold first. Conduct a market survey and know how you can market those eggs and how to preserve them if nobody buys from you.
“Don’t pick a business because its cool or because you feel you can do it or because you have seen others doing it” -Akin Alabi.
Because I sold a pig for N150,000 doesn’t mean pig production is a profitable business for everyone in Nigeria. As I type this, we have some farms begging people to buy their pigs, broilers, and eggs because they went into the right business but had a wrong market.
Our market and season differ, so the selling price of our commodities.
Your analysis should be better than what you read on my blog. I remember when wrote an article on the profitability of trading eggs in Nigeria and the attack that came from social media friends because I said a crate of egg is sold N800-N1000 in my market.
They thought I was lying because of a crate of egg trade as low as N500-N650 in their communities. And that was true in a community where everybody rear layers.
Conclusively, do not start a fish farm because everybody in Nigeria eats fish. Do not make mediocre assumptions like most people do, make your investment decisions on hard facts and not what you feel is cool.
I know you love birds, so you want to invest in poultry, go-ahead if you want to rear those birds as a pet but if it is for business, look at the selling figures first.
Know the cost of production…
Know the purchasing power of your target market…
Know the exact type of fish they prefer…
Know how you are going to sell your fish when matured…
Know when to sell…
Know your competitors…
And you will know the accurate, valid, and current business information needed by conducting a proper market survey or feasibility study. The work might be stressful, it the success of your farm start by identifying a hungry market first, before deciding on which animal or crop to produce and at what quantity.
“You can’t afford to waste your life energies fishing in a dry ditch trying to prove that your original choice was correct” -Joan Baker.
Maybe you already have a farm but marketing your product is always a challenge, stop fishing in a dry ditch, let the demand of people around you influence the crop you should grow.
Wish You Good Luck…