Full Guide to Egg Distribution Business with low Capital in 2020

Egg Distribution business is all about buying eggs directly from farms and reselling at wholesale prices to retailers, individuals, wholesalers, or even the final consumers.

Does it sound very funny or strange to you that egg distribution business is more profitable than poultry farming Itself? I am an Animal Scientist, I have managed farms and I can tell you that egg distribution is less stressful & more profitable than poultry business, I will give you reasons and why you should choose egg distribution to poultry business, if you are confused in choosing the best to invest your money

With N100k you can Make more than 180k in four weeks if you deliver up to 3 times in a week or 80k if you deliver eggs once in a week, this is among the businesses you can start with low capital 

How to Start Egg Distribution Business in your Area?

This venture may not require an office, (if you actually need and you can use your house) because the business is like a dropshipping business. Before you can start buying eggs, the first thing you must do is to contact 2-3 egg sellers who will always buy eggs in bulk.

Its simple to get new customers as far as you will not disappoint on your delivery, your cost is cheaper and your eggs are neat /fresh/sizable.

Wholesalers are ready to buy because most of them prefer distributors due to the fact you’re the one that will bear the risks of cracks, conveying and transport contingencies

There are times when there will be egg glut but then, you have many customer’s you can sell to

Ensure that a customer

Challenges you will likely face are:

Cost of transportation: (It's best if you have your own car but you can hire)

Distance to Market: (If the farm is located in another far state it will be very tasking but if the state is not far your expenses won’t be much, transportation account for 90% of your expenses)

Egg Scarcity in farms: you should ensure that you're not known to only one farm and as a pro tip, you can take turns on different farms, Let say this week you can go to this farm, next week another farm, etc. The benefit of this process will pay off when most farms are low on eggs you may not be able to get all the egg stock you need so you can sweep around different farms until you reach your target

Egg Cracks: During the long-distance delivery, it is likely some eggs will crack, in order to minimize this occurrence, its preferable you use paper crates and your driver ( if your not the one driving ) should not be reckless especially when approaching bumpy roads

Wholesaler Credits: If you have not been owed cash in business,

Why Egg Distribution Business is a Hot Money-making Venture Compared to Poultry Business

Be as it may be, an egg is something everyone eggs once in a while, while an egg can be used as a daily supplement to augment our protein needs, Egg itself is a commodity that is readily used for numerous purposes, because of its highly nutritious content, it's used in manufacturing industries for making of, drugs, Supplements, Cosmetics, Baking, Confectioneries, etc.,

Egg as a whole contains all the complete vitamins and minerals the body requires to functions properly and hence it's highly recommended especially for our kids for proper brain function and building of body muscle tissues.

Egg is a highly sort after product in the market, in one of my inquiries when I was managing a farm in Ogun state Nigeria, Egg retailers are always ready and eager to buy as much as possible eggs they can because the demand is always there, there is nothing like seasonal, eggs are consumed or used every day, it's estimated that an average Nigerian Consume 100 eggs on the early basis this and Nigeria spent 620 Billion Naira in 2018 on eggs alone

Unlike poultry Production where you have to take full responsibilities for managing the birds, Drug vaccinations, feeding and cleaning the pens in order to avoid spread of diseases or crisis Egg distribution business has nothing of such, all you need is to locate a good farm register with them and carry Eggs to your retailers,

In Poultry Production lets say broiler or meat production system a Broiler will stay at least a minimum of 4-6 weeks to reach market  table size (1.5 kg and above) before you can auction it out,  but within these periods you will not be an inflow of cash so to say, if you are relying on it as a source of livelihood you could run into many debts   and there are high chances of you losing some birds But in the egg Distribution business, you can choose the way you like, Daily supply or weekly supply, either way, you are sure of daily or weekly cash inflow

 Let’s do the math

You invested 100,000 in Poultry business (all things being equal) 100k can get you 50 birds while you use the rest for feeding and managing (all though you will spend more than that but let’s assume its 50k you will spend to raise each bird)

At the end of the training period with good management practices, only 5 Birds died and the cost of each attached to each bird should be 2k since all you invested was 100k/50

If you lose one bird = The cost of the bird = N2000- Naira

Therefore 5 Birds will be 5 X 2000 = N10,000

Selling the Birds

Selling price Is N4000 (for 6-8 weeks bird) = 45birds X N4000 = N180,000

Profit

Selling Price – Cost of Production

N180,000 – N100,000 = N80,000

All Things being Equal you made N80,000 in 6-8 weeks

EGG Distribution Business Investment with N100,000

Cost of Crates                                    N5000

Cost of eggs per crate                       N650

Cost of Transportation                        N15,000

Total Number of Eggs (in Crates)     123 creates (N80k/N650)

Frequency of distribution 3 times in a Week

Total Number of cracked eggs during each delivery = 5 crates x 3 = 15 crates

Average selling Price to Wholesalers = N750 Per crate

(All things being equal)

Total crate of Eggs delivered              110 x 750 = N92,250

Total Investment in egg distribution is 80k, therefore, you will earn N12,500 in each delivery

N10,250 X 3 Times in a week = N30,750 (Weekly)

In 6 weeks; 30750 X 6 = N184,500 + 80k Capital

(I decided to concentrate on 80k capital, even though we won’t be buying crates every day but the N5k I left out can be used to augment the lapses in transportation or any other occurrences)

At the end of the 6 weeks, Total Cash at our disposal will be N264,500

Comparing it to Broiler Business, Total Cash After 6 weeks N180,000

The Difference N264500 – N180,000 = N84,500

If you have your own car, Then am sure you won't spend so much on transportation because conveying the eggs is the only stress and capital project you will be embarking on,

This calculation is based on the understanding that your location is in the same state, but if its interstate E.G. buying Eggs in Ogun state and selling to Lagos you may spend more on transportation  but even at that, the calculation was based on you keeping the N10,250 Back but you can invest everything back till the 6^thweek  See below in case you wanted to be investing everything back ( which is actually what every business person will do)

(This is the Second System if we are going to invest everything back till week 6)

First Week

1^st Delivery N92,250

2^nd Delivery N 105750

3^rd Delivery N121500

Second Week

1^st Delivery N139500

2^nd Delivery N160961

3^rd Delivery 185250

Third Week

1^st Delivery N213750

2^nd Delivery N246000

3^rd Delivery N283500

4^TH Week

1^st Delivery N327000

2^nd Delivery N377250

3^rd Delivery N435000

Just in 4 Weeks, your cash has grown from 100k to N435000, So what more can you look for, Egg Distribution business is far lucrative, less stressful and more rewarding if you require any assistance such as locating a Farm, feel free to ask us anything, we will gladly assist.

Joshua Nwankwo

Hi, I am Joshua Nwankwo, The CEO of Startup Ng and the founder of Afripals Interactive, Well I am a Civil Servant in Day time, a farmer at noontime and a Blogger in the evening.
My passion for being free from Government paychecks and also helping my fellow young people to be self-empowered is why I run this blog
An Animal Scientist by Profession and a blogger by passion, you can always reach me on my contact page for help or support