Is The Eggs Distribution Business Profitable In Kenya?

Eggs are largely consumed by a wide range of people and organizations 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*

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.260,000. 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 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, you 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.

Is Egg Business Profitable in Kenya?

Since agriculture is the backbone of Kenya’s economy, the egg supply business is a profitable venture. Eggs being a good source of proteins, they are preferred by many and their demand is usually high.

Assuming that you are buying a tray of eggs from a farmer at Ksh.250, Ksh.280, Ksh.300 or Ksh.320 depending on your location and the size of eggs and you sell it at Ksh,300, Ksh,330, Ksh,350 or Ksh,400 you will have made Ksh.50 profit per tray.

Assuming that every day you sell 50 trays of eggs, you will be making Ksh.2,500 profit daily.

I was with a friend of mine who is into poultry business and as we were talking he told me about some of his middlemen (or you call them middlewomen because they are women) who usually buy like 50 trays of eggs from him and other poultry farmers every day.

According to him, these women make as much as Ksh.5,000 every day just by being eggs distributors.

Ksh.5,000 in 25 working days (not to talk about some of them who work every day) means Ksh.125,000 a month.

My friend confessed to me, “Even we who are working tirelessly on the poultry farm are not making as much as they are making”.

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.

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.

Timothy Angwenyi

Business Consultant

Justine Nyachieo

Business Man & Mentor

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