EGG DISTRIBUTION BUSINESS PLAN SAMPLE
Are you interested in the egg wholesale business?
Well, there are multiple ways of participating in the poultry industry. Our focus is on egg distribution. Whenever this business is mentioned, people only think of the poultry farmer.
How Can I Start An Egg Wholesale Business?
However, there are several other participants in the poultry business value chain. These offer an equally valuable service. We will discuss the egg distribution business plan.
Here is a sample business plan for starting an egg supply business.
Do you want to start an egg distribution business? A lot of people do not understand that there is a huge business opportunity in connecting egg buyers and egg sellers.
Marketing eggs come with lots of investment benefits because eggs are consumed daily.
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) at a profit.
Many industries such as baking and confectionery make use of eggs as an important part of their raw materials. The production of poultry eggs is a major source of income for farmers who are into layer bird 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 because eggs are consumed daily in most households.
You can also look for an egg distribution business for sale that you can buy at a good price.
Most farmers can’t advertise the eggs they have produced to potential customers because of the busy schedule of 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 is useful in the growth and development of young children.
Eggs are also rich in vitamin A for good eyesight and contain 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 increasing 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.
Some of these advantages of egg distribution are:
1. Affordability for customers.
2. Less stress in handling.
3. No need for a 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? It’s easy, all you need to do is follow nothing more than these five simple procedures. These are important in writing a 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 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.
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 to come to the farm will your 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 color, distance to market, and means of transporting the eggs.
Look For Egg Buyers (Retailers)
One of the key successes in the egg business is to grow a list of reliable egg buyers.
You can get market for your eggs through market women in the foodstuff markets like Bodija in Ibadan, bakeries, and caterers and their referrals.
How many eggs you can sell should influence how many eggs you buy from your source i.e. poultry farms.
Means Of Transporting Eggs
Most egg distribution business move eggs from poultry farms to the market or their storehouses with the use of vans. If you do not have a personal panel 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.
The 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.
GUIDE ON EGG TRADING BUSINESS
Necessary Things To Ensure Your Success in The Egg Retailing Business
1. CAPITAL: It is your capital that draws the attention of the farmer regardless of your abilities and it is your capital that determines the quantity and price of the crate of eggs sometimes.
Quantity is a major factor in the egg depot 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 it’s 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 eggs at reasonable costs when sourcing for farms.
A few farms will not permit you to bring your paper crates to avoid the risk of contamination and sell you their 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: You must 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 egg 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 supply 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 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 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 relative 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.
MEASURE THE PROFIT POTENTIAL FOR YOUR EGG SUPPLY BUSINESS
What is the price of a crate of eggs?
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 payment if 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 eggs 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 can 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 is.
In starting an 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 relationships and referrals to the success of the business.
Keep yourself busy and be productive.
Things Needed for an Egg Distribution Business
Egg distribution is open to the poultry farmer as well as anyone interested in participating in this highly profitable area of business.
To begin with, there are lots of things you have to be on the lookout for. While there are lots of opportunities, there are challenges too! These challenges are not insurmountable with the right plan in place.
Always Have an Implementable Plan
Your business plan is invaluable. This document sets forth a direct and clear line of action at every stage of the business. This should be carefully written and should be stripped of all complexities to allow for its easy implementation.
Every part of the plan is important. Contents should include a 3-year profit projection, marketing strategies, organizational structure, an executive summary, and business description.
Like any business, certain things must be in place for it to be successful. The same applies to an egg distribution business. In planning your business, these should not be overlooked. They include;
Supply and Demand
As an egg distributor, there should be a healthy dose of supply and demand. In other words, you should have a good source of egg supply. Not every poultry business produces quality eggs.
Quality eggs are essential to how quickly they are disposed of or sold. As such certain poultry farms are reputed for producing quality eggs. These should be on top of your preference list for suppliers.
On the other hand, demand is as important as supply in the egg distribution business. There has to be a ready market for your products (eggs).
It is therefore important to know or learn everything you can about your buyers. You may choose to serve or supply to end-users (consumers) or you may prefer to work with retailers.
Understanding the dynamics between the two is necessary and important.
Having multiple distribution chains will impact positively your business. But why is this necessary? It is important because these are channels through which your egg supply business grows.
The more demand for eggs, the bigger your profits, and capacity. The same applies to supply.
Only Seek Out the Best Deal
This is important, especially when looking for possible suppliers (poultry farms). As an egg distribution business, you will have a close working relationship with poultry farm owners.
It is necessary to strike a balance between the best poultry product (eggs) and price. There are thousands of poultry farmers who are likely to offer you a better bargain.
You need to exhaust your options in choosing the most preferred poultry product supplier. This will significantly enhance your profit margins.
Having Sufficient Start-up Capital
Funding is a lifeline for an egg supply business. Start-up funding depends on the scale of egg distributorship. You may choose to save up for this or may prefer to apply for a loan. Whatever your preferences or needs are, your business needs to be adequately funded.
Sufficient funding is needed for purchasing your first consignment of products (eggs).
For an egg distribution business to be successful, a delivery van is essential. Getting one will cost you. However, instead of buying one, you can convert the one you have for business use.
The number of vans you need will depend on the size of your business. The larger the size of your egg distribution business, the more delivery vans will be needed.
Egg Packaging and Storage
Egg packaging and storage facilities are some of the most important requirements that help in delivering eggs safely. This reduces damages or cracks as well as spoilage of these products.
Let’s discuss each of these separately;
For the safe distribution of eggs, they need to be properly packaged. This enhances their delivery to end consumers.
Proper packaging of eggs will prevent them from tainting, natural predators, moisture loss, and natural predators. Packaging involves a lot of things. These include labeling as well as protective packaging.
The packaging is not only important for protecting eggs but will also provide a form of identification.
As an egg distributor, you need to have a storage or holding facility for your products. Eggs are fragile and storage facilities are needed to keep them from spoiling. While storing eggs in cold storage, they shouldn’t be washed.
However, these must be clean. Cold storage for eggs requires close monitoring if ideal storage conditions are to be met.
The good thing with egg storage is that it does not have to last for a long time. As long as there is a demand for eggs, minimal storage time is needed.
The egg distribution business plan involves a whole lot of procedures. It is necessary to have these at the back of your mind before venturing into this area of business.
Depending on the size of your business, staffing is required. The right type of workers should be hired. These will include drivers, packaging staff, and more. It is necessary to strategize before venturing out.
Doing this will enhance the chance of success.