How to Start a Frozen Food Business in Nigeria

Frozen food business involves refrigerating poultry, fish or meat products. The products are preserved and sold frozen for prospective customers.
The products are weighed and sold per kg at a predetermined price. The business is profitable and comes with its own set of challenges.
The main difficulty is the unstable power supply in Nigeria.  You tend to spend huge amounts on fuel/diesel to power your generator.
Write a Business Plan
Write a frozen food business plan and carry out a feasibility study. Study your competitor’s business format, pricing and customer service. Find your customer demography that requires such services.
frozen food
Funding
The amount of money you need depends on the size of your operation. You can start the business with moderate funds of about N400, 000.
This will go into renting a shop, buying a generating set, stocking and freezer. Try target saving or borrow from friends and family.
Frozen Food Business Equipment
To start your business you need to buy appropriate equipment. Common equipment’s are cutting boards, sturdy cutting tables, empty cartons for cutting.
Others are sharp cutting knives, cutlass, buckets and freezers. You need measuring weights, a standby generator, cutting plank, waste bins and aprons.
Equipment
  • Cutting boards
  • Sturdy cutting tables
  • Empty cartons
  • Sharp cutting knives
  • Cutlass
  • Buckets
  • Freezers
  • Measuring weights
  • Standby generator
  • Cutting plank
  • Waste bins
  • Aprons
Locating the Business
The best location is a commercial area or open market. Closeness to residential homes is also ideal for food related businesses. Make sure the shop  is visible, easily accessible and in a heavily populated area.
Stocking your Freezer
Frozen food shops generally stock the freezers with assorted products. Popular products are fish and poultry products.
Common fish are Titus, Kote, Croaker, Argentina and tilapia fish. Poultry products are usually chicken or turkey meat.
The poultry are sold as wings, laps, whole poultry and gizzards.  Some dealers diversify and offer cooking ingredients, rice/ beans grains.
Fish and Poultry Products
  • Titus
  • Kote
  • Croaker
  • Argentina
  • Tilapia fish
  • Chicken
  • Turkey meat
  • Gizzards
Hire Staff
You need only a few staff to run a small shop. You can run the business yourself or hire an apprentice.
Services include weighing the meat and cutting to customers specification. The products are priced according to weight per kilogram.
Marketing
Promote your business through flyers, posters and sign boards. Others techniques include discounts, promotions and home delivery services.


Start Frozen Food Business

Frozen food business is highly lucrative and competitive. The demand is huge because of the large population in urban areas.
The average Nigerian loves to eat fish, chicken, turkey and beef. Frozen food is easy to process, convenient and affordable.
The food are produced locally, smuggled or imported into the country. The amount of startup is low, however utility costs are high. To start the business you need equipment, a store and funding. Here are some ideas on how to establish the business.
Starting a Frozen Food Business
Types of Frozen Food
Most frozen food dealers stock specific products. Common products are chicken, turkey and fish. The type of fish are Titus, croaker, and tilapia.
The food are weighed and sold whole or in parts. You need to decide on your product line depending on your customer base. Conduct a survey to find out the preferred frozen food in your locality.
  • Poultry
  • Fish
  • Pork
  • beef
Find a Location
Locate the business in a commercial area. Other ideal locations are close to residential homes and markets.  The shop should be easily accessible and well ventilated.
Supplies
As a retailer you need a good supplier. Buy your stock from frozen food wholesalers, farmers or cold room operators. You can also start your own farm and stock.
Get Finance
You need about 1.5 million naira to start a frozen food business. The amount is just appropriate to but a freezer, rent a shop and buy your fist stock.
Write a Business Plan
Write a frozen food business plan and carry out a feasibility study.  The plan should focus on customer preferences. Study your competitor’s prices and products. The plan should cover equipment, funding, fixed and working capital.
Register the Business
You are not obligated to register the business. However registering the business would give it a corporate identity. Register the business as a sole proprietorship or limited liability company. There are some local or state associations to join.
Storage Facility
The only storage you need is your freezers and cooling system. The food would spoil without ice. Purchase three to four freezers to store your excess inventory.
Power Generation
The biggest challenge in Nigeria is electrical power. Nigeria is known for poor power generation and blackouts.  Without regular electricity your products will spoil. The only alternative is to buy a generating set with enough capacity to power the freezers.
Equipment
You need basic equipment to start the business. The primary equipment is freezers, generator set and weighing machine. You need a worktable, bowls, buckets, knives and nylon.
  • Freezers
  • generator set
  • weighing machine
  • worktable
  • bowls
  • buckets
  • knives
  • nylon
Added Service
Many frozen food dealers add food items or fruits. They sell tinned tomatoes, salt, rice, spice cubes and seasoning. This way you can increase income and offer your customers cooking essentials.
  • Tomatoes paste
  • Salt
  • Rice
  • spice cubes
  • seasoning
  • cooking essentials
Marketing
Place a sign board in front of the shop. You can print handbills, posters and banners to attract customers.


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