Let’s assume you want to venture into egg production because you have discovered a hungry market ready to buy your eggs.
But setting up a layers farm is capital intensive and you cannot finance that with your savings and you cannot access a loan from financial houses to milk this money.
Here is my humble and professional advice to you,
Since you have a hungry crowd that consumes a lot of eggs daily, do your market survey, meet a few of these potential customers and propose your plan to them.
Let them know that you can supply fresh eggs to them consistently and at a better price, forgot hunger profit margin for now and seal the deal first.
If your proposal clicks, here is the next step. You might have done this before going out to source for consumers.
Meet those poultry farmers that have eggs but cannot sell and cannot access the market you already captured, strike this deal with them.
They should give you a wholesale price while you resell to final consumers.
The business is not easier but no business is easy either, study and have elementary knowledge before you invest your money in it. But for sure, base on my physical market survey, egg distribution is a profitable business because the consumption is eggs is high.
Photo credit: The Des Moines Register.
Maybe I should equally remind you that you’ll face a big challenge trying to survive in this egg business.
What’s the challenge? None availability of eggs and it make you lose plenty of deals due to inconsistent supply from your end.
You’ll make more order deals, huge demand for your eggs but sourcing eggs will be a big challenge that might push you out of business.
Maybe I should tell you that Nigeria imports over 5million raw eggs daily into our country from South Africa.
Yes; because we don’t have farms that can produce eggs to combat our immediate home demand.
So maybe, you should better venture into primary egg production than wholesaling, is left for you to decide.
I have people who call me daily demanding consistent supply of eggs and turn them down, not because I don’t like money but I am into broilers(meat) production.
The last time I checked, on average, a crate of eggs contains 30 eggs and its wholesale price range between
N750- N900 depending on the size of the eggs.
If you buy a full crate for
N750, it means 1 egg cost N25 only direct from a poultry farm. And on retail, in some markets, we pay N50 per egg. N50×30 eggs, that will be N1,500.
Minus your expense is possible to balance
N500 per crate.
Let’s assume you can trade 1500 crates of eggs in 30 days, balancing a profit of
N500 per crate, your profit will be huge for a starter without a farm.
N500×1,500= N750,000 cash
We have few persons that banked
N750,000 monthly in Nigeria and you can be one of them just by selling eggs.
Is not difficult to know if the egg business is profitable in your neighbourhood, you don’t need a PhD in poultry science to do the calculation.
We have hundreds of people running into bakery business these days and egg is useful to them.
We have a lot of noodles outlets out there in your neighbourhood and egg is their essential ingredient.
That lady that sells fried yam every evening in front of your house uses eggs.
Those Aboki guys that sell hot tea morning and evening close to your house use more than 2 crates of eggs daily.
Those restaurants you know uses a lot of eggs daily.
Almost all your close door neighbours use eggs daily.
Therefore, no excuse of “Who do I sell to”.
Your challenge will be ” which farm can supply to me consistently” and if you cannot find a single farm, then be the farmer.
Don’t be jobless in Nigeria and Africa at large because we have a lot of organic problems waiting for solution providers, you were born in the country and in this generation to be a solution provider, not just a consumer.
Do not allow the “What Ifs” of life to clogged on your way and build a huge barrage that will restrict you from taking business actions, the business might be risky but is doable.
How Much You Need To Start Egg Distribution Business
I cannot tell how much money you need to start your egg business because things might change right after reading this article but let us look at some essential things you MUST need to have in place.
so, get a pen and paper, do the money calculations and it gives you a clear picture of how much money you need as capital to finance your business.
Number One: Shop/Warehouse
People will definitely ask for your office address so they can buy even in smaller quantity, like 1 crate, 2 crates and even 3 eggs and in business, the small figures matter a lot so you must find a way to collect their money.
Therefore, you should make provision for a shop where you will stock your eggs and sell to consumers. Think about the security of your shop too.
Number Two: Delivery Van
As a farmer, I can tell you that “Logistics” is the number one constraints you will face in this business. You will have orders across the 36 states of the Federation and you will be unable to supply within the stipulated time of your clients.
so, my advice for you is “Make provision for a delivery van before you start selling eggs” or will run the business at a loss, the logistics guys will be making the highest profit. If you have the money, buy a delivery fan and if you cannot, strike a business deal with someone who has, use the vehicle and pay back some commission.
In all, know how you will be able to transport your eggs to all the 36 states of the Federation before you state a “Nationwide Delivery Service” announcement, as a starter with a limited financial resource, start delivery with your state or locality before your spread wide.
Number Three: Employees
You cannot operate a distribution business all by yourself, you won’t be effective and cannot meet up your client expectation, Therefore, you will need helping hands.
Do your money calculations and know how many people you might need to employ and how much would be their salary, write the figure down, sum it up.
conclusively, do not be carried away with my figures. Each and every business or industry have its unwritten codes that you will never find on the internet or best book, only those that in the business can tell you.
The sad reality is, some persons will see you as a threat/competitor and will never expose the business secrets to you. But that’s fine, start your business anyhow, invest a small amount of money, learn by practising and you will become an expert one-day.
In all you do, don’t be jobless in Nigeria. If eggs are wasting in your community, then this is a business opportunity for you, Nigeria has 36 states and not all produce eggs, start trading of eggs today.
Do your market research.
Do not be carried away with my figures, they were written base on my market survey in Benue State which might not be true in yours.
DON’T BE JOBLESS IN NIGERIA