The eggs wholesale business is a booming venture in Kenya. However, not many people make it in this business due to high competition and other factors.
Eggs are largely consumed by a wide range of people and
organisations in Kenya ranging from hotels, restaurants, events, families, and
individuals. It is even more interesting to know that in the production of most
baked snacks, eggs are used in the manufacturing process, and as such, their
demand and usage in Kenya remains astronomical.
Eggs have a large market and all you need to do is proper
marketing. In this article, I will take you through the process of how you can
start a profitable eggs wholesale business in Kenya.
*Facts and Benefits of the Egg Distribution Business*
Easy to startup and operate
It can be a low-cost business idea
The egg supply business does not require advanced tooling or
special skills
Eggs are a great source of protein
Eggs have a wide variety
It can create a weekly recurring income stream
The colour of the shell depends on the breed of the hen that
laid it.
The colour of the yolk depends on the hen’s diet.
The age of a hen affects the size of an egg.
For the best hard-boiled eggs, use eggs that are at least 10
days old.
*How To Start Eggs Distribution Business: Step By Step
Guide*
*1). Identify A Reliable Farm That Produces Eggs in Large
Volumes:*
The first step to starting an egg distribution business in
Kenya or Africa is to locate a farm you can constantly get a large volume
supply of eggs from. While one farm may appear to be good enough, it’s key you
have two to three poultry farms you purchase eggs from at very affordable and
reasonable prices, so that you can never default on a supply to your end
clients.
*2). Raise Adequate Startup Capital:*
After taking care of your supply point, the next step is to
raise adequate startup capital to run your business so that once you reach out
to prospective clients to supply them eggs, you would be able to handle the
supplies on time every time.
The cost of starting the egg wholesale business depends on
the size of your business. You can start a small egg supply business with
around 200 trays of eggs and grow your stock with time.
Some of the requirements you need to start an egg supply
business include egg trays, a room to store the eggs and a means of transport.
You can start supplying eggs using a Tuk-tuk and with time, you can buy a
probox, pick up or canter.
You can start a small egg wholesale business with
Ksh.250,000. The amount will cater for:
Egg stock – Ksh.50,000
Tuk-tuk – Ksh.200,000 (optional if you have other means of
transport)
Business license – Ksh.5,000
Trays and miscellaneous – Ksh.5,000
*3). Reach Out To Several Prospective Customers:*
The next step is to build your supply chain by reaching out
to prospective clients who have a high chance of making a weekly recurrent
purchase from your business. These can be restaurants, hotels, boarding
schools, and much more.
When they buy from you on a recurring basis, you will have a
steady weekly income and would easily grow your business from there.
You can also market your business online on social media and
also make use of classified websites like jiji.co.ke, jumia e.t.c to market
your business.
You can do so by visiting potential customers and give them
your business cards and pamphlets. Print business cards which you can leave
with those you visit to contact you later.
Finally, offer your customers excellent customer service so
that they can tell their friends about your business.
*4). Setup A Storage Facility And Acquire The Required
Equipment:*
Once you have established a strong supply chain and may be
ready to start the egg distribution business, will need to set up the required
infrastructure you need to make your business a successful one by renting a
space to act as a storage facility and by either purchasing a delivery van or
finding one you can lease at a very affordable cost.
The amount of money you spend on equipment and
transportation can greatly affect your profit margins negatively or positively.
So paying extra attention to this is key to success.
*Challenges in the Egg Wholesale Business*
You need to prepare for eventualities that may arise. As
such, you need to familiarize yourself with challenges facing the egg whole
business.
These challenges include:
1. While in transit, some eggs may break and you need to
account for them.
2. If eggs stay for too long, they spoil. As such, always
sell the old stock first.
3. The egg supply keeps on fluctuating. During the cold
weather, chicken do not lay many eggs and in such times, the supply may go
down.
*Conclusion*
Egg distribution business in Kenya can be a Lucrative and
profitable venture, due partly to its vast market demands and largely on your
own ability to build a wide supply chain network.
If you can keep your own chicken, you can make even higher
profits. You can target institutions like boarding schools, hotels and
hospitals where you can sell eggs in large quantities. Finally, market your
business and work to maintain your existing customers.
If you are looking for a part time or full time agribusiness to venture into, the egg supply business in Kenya is an option to explore.
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