Interested in small wholesale egg supply business ideas? If YES, here is how to open an egg distribution business with no money and no experience. How much does it cost to open one?
Egg Wholesale Business: Poultry Egg Marketing, Distribution and Sales
Supplying Crates Of Table Eggs – Buy n Sell Egg
Do you want to start egg distribution business? A lot of people do not understand that there is huge business opportunity in connecting egg buyers and egg sellers. Marketing eggs comes with lots of investment benefits because egg is 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 reduced price and sell to market women (who retails to end consumers) at a profit.
Many industries such as baking and confectionery make use of egg as an important part of their raw materials. Production of poultry eggs is a major source of income for farmers who are into layer birds production. Producers of layers feed and poultry cages, drinkers and feeders also make money from this industry.
Egg Supplier Business is a highly profitable business idea but most people have not realized the immense investment benefits it brings due to the fact that eggs are consumed on a daily basis in most households. There are also egg distribution business for sale that you can buy at good price.
Most farmers can’t advertise the eggs they have produced to potential costumers because of the busy schedule from managing their farms but this weight is taken off by egg merchants who serve as wholesalers by purchasing the eggs in large quantities from the farmers at a decreased cost,selling them to the retail marketers and making good profit in the process.
Egg production generates huge income for farmers and producers of related products such as poultry cages, feeders, drinkers and layer feeders because eggs are important raw materials in the Baking, Confectionery and Cosmetics industries.
Eggs are known as the healthiest food in the world as they are one of the best sources of protein,rich in cholesterol which reduces many health risks and are useful in the growth and development of young children.
Eggs are also rich in vitamin A for good eyesight and contains chlorine which is important in the production of molecules in the brain.The demand for eggs in the African market is currently very high and steadily increases due to its wide variety of uses in products such as; confectioneries like bread, cakes and meat-pie, cosmetics like shampoo, conditioners, soaps, cholesterol, face masks and is also used in the textile industry for glue and a cleaning agent for leather surfaces.
The egg supply business provides good profits due to its advantages over other protein-rich foods like Fish, Turkey, Chicken and Meat.
HOW TO START EGG DEALER BUSINESS – EGG BUSINESS PLAN
Some of these advantages of egg dealership are:
1. Affordability for customers.
2. Less stress in handling.
3. No need for power supply.
4. No need for specialized tools.
5. Variety of uses e.g baking, cosmetics and consumption and much more.
How do you run this profitable egg delivery business? Its easy, all you need to do is follow nothing more than these five simple procedures. These are important in writing an egg business plan.
1. Locate a farm that sells eggs
2. Acquire the eggs at a lower rate
3. Locate a retailer that is ready to purchase the eggs
4. Sell at a higher rate to the retailer
5. Enjoy your profits.
Gather Your Capital
Although some farms may give you 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 egg distribution business. You should decide on how much crates of egg you want to start supplying based on how much capital you have raised and how large how market is. Also note that in most farms, you would get better price when you buy more.
Source For Reliable Poultry Farms
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 ranges from #500-#550 per crate in major towns such as Lagos, Ibadan, Kano, Calabar, Portharcourt, Enugu and Abuja. Jumbo (Extra large or Double Yolk) goes for #630 – #680 Naira per crate.
Some farms will not allow you come to the farm will 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 N30-35 depending on the poultry farm.
When choosing farms to stay buying eggs from, it is important to consider the selling price, quality of eggs in terms of size and colour, distance to market and means of transporting the eggs.
Look For Egg Buyers (Retailers)
One of the key success in egg business is to grow a list of reliable egg buyers. You can get market for your eggs through market women in foodstuff market like 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.
Means Of Transporting Eggs
Most egg dealer business move eggs from poultry farms to the market or their store houses with the use of vans. If you do not have a personal panel van or truck, you can hire one for a start. Asides careful driving, padding of the vehicle and compact arrangement of egg crates will minimize the amount of cracks.
Get A Warehouse/Outlet
Demand for table eggs fluctuates. 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.
Necessary Things To Ensure Your Success in The Egg Wholesale Company
1. CAPITAL: It is your capital that draws the attention of the farmer regardless of your own abilities and it is your capital that determines the quantity and price of the crate of eggs sometimes. Quantity is a major factor in this business and the more you purchase the better the prices. Supply from the farmers may even prove difficult at times, not because you lack the funds but its simply due to the lack of eggs. Farmers tend to give tests based on consistency and sales limit over a particular timeframe and passing this test ensures that you will always have a reliable supply from that farm.
2. GET A LARGE AND DEPENDABLE FARM: Getting a large and dependable farm comes next after securing your capital. Notice that the word LARGE and DEPENDABLE farm is used. This is because larger farms tend to give you lower prices and you will need a dependable farm that already has a good foundation in this business. You should look out for farms that offer the eggs at reasonable costs when sourcing for farms.
A few farms will not permit you to bring your own paper crates to avoid the risk of contamination and sell you their own paper crates at the average rate of N35 to N45 depending on the farms. Other factors to be aware of are the quality of eggs based on size and color, the selling price, distance to the market and also the method of transporting the eggs.
3. DETECT YOUR TARGETS: It is important that you find shops in a range that has a decent population and human movement as well as markets where you can have a genuine supply of eggs and as long as you have a decent client connection in addition to a good area that is readily available, you will have an endless list of opportunities to choose from.
You could likewise supply to shops more distant than yours if you are mobile and have targets ranging from Bakers who come in to buy large quantities as well as retailers and sub-distributors.
4. GET DEPENDABLE RETAILERS: The next step is to get a reliable retailer since this is an important factor that determines the success of the egg suppy business. To ensure smooth business operations, you have to get your clients first before getting a shop for yourself and this is important because your retailers must be nearer to your own shop and not the farm where you get the eggs.
5. GET A STORAGE FACILITY/OUTLET: At times when supply may exceed demand,you may wind up purchasing a larger number of eggs that can be sold at that time period and this would ultimately require the need for an egg storage facility/warehouse. To ensure the success of your egg supply business, an understanding of the principles of egg storage is needed in the construction of the warehouse as well as the location of the warehouse in relation to the other shops and egg supply farm.
6. TRANSPORTATION: Transportation is another important factor to be considered and depending on the size of capital, it is advised to start on a small scale. Hired commercial vehicles can be used to transport the eggs from the farms in the absence of a personal business vehicle and it is also very important to drive carefully as eggs are fragile. To limit the measure of egg breakage, cushioning should be provided for the vehicle as well as a good arrangement.
HOW TO MEASURE THE PROFIT POTENTIAL FOR YOUR EGG SUPPLY BUSINESS
Wholesalers in Nigeria make about N100 per crate so you may earn an average of N200,000 profit a month by selling 500 crates a week depending on your area, investment and population. As your business grows,your profits will continue to soar higher and one of the techniques to maximize your profit is to set up smaller retail outlets where you make up to N230 from each crate of egg and this is an additional pay in the event that you have somebody selling at that outlet for you.
In beginning the egg supply business, it is advised to start small and develop your capital gradually while gaining a foothold in the business by marketing and building connections which is even more challenging than getting the money or products.
The demand for egg is huge and it may prove difficult at first as each merchant and retailer has a provider but your success would be determined when you are able to replace their current provider. Remember not to undermine the effectiveness of personal relationships and referrals.It is good to keep yourself productive and to always focus on how profitable this business actually is.
In starting egg supply business, you can start small and grow your capital slowly. Buying and selling eggs might look strange to you but concentrate on how profitable it is. Don’t underestimate the place of personal relationship and referrals to the success of the business. Keep yourself busy and be productive.