The egg 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 people in institutions like schools, hotels and events like weddings. 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 egg wholesale business in Kenya.
Do a Market Research
Before you can start planning your business, you need to do market research. Proper research will help you write a business plan. Some of the things to identify during the market research include the demand for eggs, competition and egg supply in the market.
You also need to identify challenges in the market that your business can help address. By addressing these challenges, your business is going to be different from the rest. It will also help you get a market share.
When doing market research, you can visit institutions you think need eggs and ask them if you can be their supplier.
Write an Egg Wholesale Business Plan
The first step before starting any business is writing a business plan. It helps you put ideas down and implement them one by one. Among the things to include in your business plan include:
- Startup costs
- Sources of startup capital
- Market and competition
- Egg suppliers
- Marketing strategies
Read more: How to write a business plan.
Identify Reliable Egg Suppliers
You need a large supply of eggs and as such, you need reliable suppliers. For convenience and affordability, it is best that you work directly with chicken farmers. It will eliminate the costs instituted by brokers.
Make sure you have several farmers who can be supplying you with eggs. In case one farmer fails you, you will have others you can rely on as you look for another egg supplier.
Look for Market for Your Egg Wholesale Business
The next thing you need to do is to find buyers for your eggs. Don’t start the egg wholesale business until you have at least 3 large-scale egg buyers. It is because eggs spoil when kept for long. Some of the buyers to target include boarding schools and hotels.
Cost of starting Egg Wholesale Business
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 car. 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
- Business license – Ksh 5,000
- Trays and miscellaneous – Ksh 5,000
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 and you sell it at Ksh 300, you will have made Ksh 50 profit. Assuming that every day you sell 50 trays of eggs, you will be making Ksh 2,500 profit daily.
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 may eggs and in such times, the supply may go down.
Market Your Egg Wholesale Business
You need to market your business to inform people that you supply eggs. You can do so by visiting potential customers and though the use of 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 it.
Read more: Sales and marketing strategies.
Summary of Egg Supply Business in Kenya
The egg wholesale business is a profitable venture. If you can rear 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.