In starting an egg supply or distribution business in Nigeria, you can start small and grow your capital slowly. Buying and selling eggs might look difficult to you but concentrate on how profitable it is.
Marketing eggs comes with lots of investment benefits because eggs are consumed on a daily basis. Many poultry farmers who produce eggs on their farms do not have the time to market in a bid to reach out to potential buyers because of the task of managing the farm.
This burden is taken off by egg distributors who come into poultry farms to buy crates of eggs at a reduced price and sell to market women, who retail to end consumers with a profit in mind.
Below are the steps to take:
1. Gather your capital
Although some farms may give you a certain amount of crates on credit after you have been tested over time, nevertheless you will need to have your capital with you when starting an egg distribution business.
You should decide on how many crates of egg you want to start supplying based on how much capital you have raised and how large how the market is. Also note that in most farms, you would get a better price when you buy more.
2. Source for reliable poultry farm
Your source of getting table eggs that you supply must be reliable. You should look for farms that can give you the eggs at competitive prices. The price of medium eggs may range from N700 to N750 per crate. Jumbo (Extra-large or Double Yolk) goes for N800 to N850 Naira per crate.
Some farms will not allow you to come to the farm with your own paper crates to avoid transmission of infection through crates used on other farms. Paper crates can be sold to you at the rate of N3035 depending on the poultry farm.
3. Look for egg buyers
One of the key successes of the egg business in Nigeria is to grow a list of reliable egg buyers. You can get market for your eggs through market women in foodstuff market like Oshodi in Lagos, Bodija in Ibadan, bakeries, and caterers, and their referrals. How much eggs you can sell should influence how much egg you buy from your source i.e. poultry farms.
4. Find a good means of transporting eggs
Most egg dealers move eggs from poultry farms to the market or their storehouses with the use of vans. If you do not have a personal van or truck, you can hire one for a start. Asides from careful driving, padding of the vehicle and compact arrangement of egg crates will minimize the number of cracks and save you from incurring too many losses.
5. Get a storage facility or warehouse
Demand for table eggs fluctuates depending on many factors. Sometimes you end up buying more eggs than is eventually sold. There comes the need for an egg storage facility. An understanding of the guidelines of egg storage is important in the construction of your warehouse. Site your egg supply outlet strategically as this will give your egg marketing business the needed exposure.