Introduction to frozen foods business in Nigeria
Frozen food business isn’t a new name in Nigeria, matter of fact it is a household business name. Despite the fact this business has been around for a while, it is disappointing to note that many Nigerians have failed to see the amazing potentials in this business. The business isn’t common yet; so many young men and women overlook the million making profit potentials of this business.
“ I started this frozen food business with just 50,000 Naira, now I earn over 80,000 Naira monthly,” Mr David Arisa, CEO/MD Decent place frozen foods.
Frozen food business is the business of buying, storing and selling of frozen foods, most commonly chicken and fish. This business isn’t an all too expensive business to start up. The Frozen Food business is also a business that picks up quickly, really quickly.
Starting a Frozen Food Business
100 – 300 Thousand Naira.
The frozen food business process is a very simple one. Professional or special skills are not required. The business process involves buying frozen foods such as frozen chickens or fishes from whole sale frozen foods sellers who buy from the sea or sea distributors, you can also buy directly if you choose, but we will be focusing on the retail frozen food business. Store this frozen food in your own store, in deep freezers as well so it remains frozen. Next you sell to final consumers at a higher margin till your stock of frozen food is finished. Then repeat process until reasonable amounts of profits is being realized. Most people add ingredients for fried rice and other foods to their stock inventory to boost sales. Most people, who buy frozen foods, use it to cook fried rice, which is a celebration meal in most Nigerian households.
- Deep Freezer: It is advised you get at least 2 deep freezers for this business, though you can start with one or more than 2. A deep freezer costs between 60,000 to 80,000 Naira.
- Chairs and tables: Buy chairs and tables for your store, make sure it is a strong wooden table and some plastic chairs. These would cost you 6,000 for the table and 1200 per chair(s).
- Store/Office space: Rent a shop for your business, this can simultaneously double as your office. A shop in some major cities goes for 5,000 per month and 60,000 per year.
- Generator: In case of power outage which is common in Nigeria. Get a big generator to power the freezers. Remember you have to keep the foods frozen!
- Knives, Bowls and Buckets: These are hand tools or equipment used in handling the frozen foods, buy a bunch. It would cost 4000 at most.
- Fan/ air conditioner: Your shop or store has to be cool. There is no need storing frozen foods in a high temperature environment. A fan is affordable and costs 10,000 Naira. An air conditioner is optional, but you should go for it instead if you can afford it.
- Aprons, gloves: You need to wear aprons and gloves while handling the frozen foods. Getting an apron and some gloves would cost 6,000 Naira
- Wooden boards, Cabinets: The wooden boards are used for cutting the frozen meats and fish, cabinets for storage. These would cost 8,000 Naira.
Raw Materials Required for Frozen Foods Business in Nigeria
Frozen fishes or chickens: You can get a carton of frozen chicken for 6000-7000 Naira.
Income Projection In a year
Local chickens aren’t usually packaged so prices vary. For this analysis we would be using the imported frozen chickens usually imported in cartons and weigh 10kg. So if you buy a carton for 6000 Naira, a carton weighing 10kg, you re sell per kilogram. A kilo of frozen chicken is sold for 1000 Naira in most places. A CARTON OF FROZEN CHCIKEN when sold would earn a profit of 4000. If you sell 5 cartons in a week, that would be 20 cartons in one month and 80,000 Naira in one month. In a year, 80,000 * 12 = 960000. Nine hundred and sixty thousand Naira.
Challenges and Risks Involved
The challenges and risks in the frozen foods business in Nigeria are as follows:
- The biggest challenge here is the irregular power supply Power is a major need or tool for this business. Buying a generator as an alternative only increases operation cost and reduces net profit margin.
- Freezer burn may occur when the foods have been frozen for two long, which usually means the foods loose the ideal taste.
- The risk of not selling enough fast, like every other thing, frozen foods may not be good anymore after been stored frozen for too long a period of time. This can be curtailed however.
Getting patronage for your Frozen Foods business
Getting patronage for your frozen business involves using steps almost every other business uses successfully, below are some steps you may take to attract customers:
- Place a big signpost informing passer buys and residents of the area of your products and services.
- Innovation also attracts customers. You could start a home delivery service to encourage people to buy from you.
- Offer excellent customer service
- Print and distribute flyers around your locality
- Expand and sell online if you can, frozen foods can be ordered online and delivered, as they are not easily perishable.