How to Be a Kent Feed Distributor
Food is the essential needs of life for humans, so feeding is an essential part for animal life.
Feed is a significant part of the costs of animal production and that's why farmers must feed their animals superior feed from better brand. This issue has been resolved as there are now more efficient feed producers in Nigeria such as Top Feed Chikun feed, Top feed and Vital feed. The main issue is getting the feeds to farmers' farms This is where you can help as a distributor of animal feed.
Animal feed distributors are an incredibly lucrative business that could yield a substantial ROI, if you're willing to put in the work it is true that you must do the work, from sourcing the feed from the producers to selling it is an overwhelming job.
Fee distributors' niches in Nigeria
There are a variety of angles you can choose to take when starting an animal distributor business based on your resources and capabilities They are
1.) Wholesale distributor of animal feed
This takes an investment of money and effort, your task is to purchase feed from the manufacturer or the brand which will be mentioned in this section. You will then sell it to the retailer who then sell it to farmers.
If you choose to pursue this business, you'll need to have an extensive warehouse as well as vehicles to move feeds, and you will need to make a deposit at the factory, which will be used as collateral should you do go missing and they'll usually give you feed with credit (not all of the manufacturers).
2) Mini distributor
As a mini-distributor, you could purchase feed from a wholesaler or directly from the manufacturer. However, I would advise you to buy it from a wholesaler. This will help you save cash (deposit) and also time although you may not be able to purchase with credit. Your role is to provide food to farmers and retailers.
3) Retailer
The only purpose you have is to purchase wholesalers or mini distributors and then sell directly to farmers. There is less capital required here however the profit margin isn't great.
Equipment is required in the feed distributor business
- Scale
- Wheel barrow
- Calculator
- Pallet
- Cups for measuring (for retail)
Major Feed Manufacturers' Brands from Nigeria and their addresses
The top feed
"Top feed" is the name as far as animal feed is in the picture. They've been in business for a long time, so we could call them the expert in their field.
Their food is popular, however, not as often as it was in the past since there are competitors now that are superior to them.
Contacts from the top feed
The top feed address
Ikeja block D plot 4A Wempco road Ogba Lagos Nigeria
Top feed. Phone no
+23417739403
Chikun feed
Chikun feeds are the 2nd most well-known feed brand in Nigeria Chikun feed is an affiliate to Olam an international business that deals in food processing.
They are popular as a because of their high-quality feed is believed to increase the rate of growth of chickens.
They have both Chikun and ultima (newly launched brand)
Chikun feeds Contacts
Essential feed
Vital feed has recently gained popularity, in fact they almost beat Chikun because of their recent introduction of Ultima.
As with other companies, they also make food items for animals of different species and also have the potential to boost growth rates.
Important feed Contacts
Important feed address
Km 17 Zawan circular, P.O. Box 13462 Jos, Plateau Jos
Lagos office
32, Kudirat Abiola way Oregun Lagos
Vital feed No. Phone
07000000999
Essential feed email address
Animal care feed
Animal care began as a consultancy, but then moved to the production of food They also supply food and feed for the deferent animals like chickens goat, sheep and goat.
Animal care contacts
Animal care Address
Iperu-Ogere road, off Lagos Ibadan expressway Ogere Remo Ogun State
Animal care Phone no
+2348055064171
+2348055064098
How do you start a the business of a feed distributor in Nigeria
1) Study on feasibility
Feed distributors can be lucrative, however not every place is suitable You must study and locate the right place for your company.
Anywhere you go, make sure to make sure you check for
- Potential customers
- Competitors and how can you deal with them?
- Roads that can be used by motors
- Are you more convenient for your customers?
To find out how to conduct a feasibility study, follow this link
2.) The business plan
Make a business strategy that will include your objectives for the company and what you would like the company to be the coming five years, and then write it down and outline how you'll reach that goal.
If you are using the plan to get a loans, it is essential include cost analysis as well as a summary of profitability, executive summary, etc. and ensure it's easy and succinct.
To find out how to write a business plans, follow this link
3) Register your company
If you're beginning as a retailer, you can delay this for a few months however if you are a distributor , you must sign up your business at CAC (Corporate Affairs Commission) and any other government agency to avoid a problem with the authorities.
4) Establish a shop, or warehouses
The next step is to establish your shop or warehouse. If you are a distributor, you'll need the largest warahousing to store a variety of feeds, while retailers could use shop.
Whatever you decide to use, ensure that the feeds be kept away from windows and walls to prevent dampness. You can also place a pallets on the floor prior to you set the feed on it.
5) Source of feed
This process is not difficult for retailers and mini distributors However, for distributors, it may be a little difficult to locate a manufacturers.
To find a manufacturer fast Make sure that your location is not a competitor, and you are prepared to depositmoney, which serves as collateral.
6) Staffing
It isn't easy to do this on your own, you'll need help. Conduct a thorough interview with the candidate before hiring them, take your time and be patient, do not rush the process It is best to be patient and choose a reliable person instead of hiring someone else.
Below are the personnel you'll require
- Cashier
- Recorder
- Carrier
- Manager
- Securities
7) Marketing
Marketing feed isn't difficult as a distributor. Most all marketing will have been handled in the hands of the vendor.
However, you have to inform the public of your business. To achieve this, you need to follow the steps below.
Flyers
Flyers are great for when you want to start your business. Make a professional flyer, and then distribute it to family and friends
Price reduced
This is the best method to let people know that your company is there. Lower the cost and observe how many people line into your warehouse, even if it's only 20 dollars.
The sign post
Signposts work in two ways. It can direct people to your website and will also act as an alert for people to see it. When they see it they will be aware that you are selling feed, and are likely to return whenever they require it.
Social media
Create an account on the most popular social networks and keep your followers updated with new photos and prices of feeds each day.
Website
You can build an e-commerce site for selling your feed content that can drive customers to it. We can help you with the service.
Cost of starting an animal Feed Distributor business
It depends on the scale you want to use for wholesalers you'll need as much as #5,000,000 for the deposits you'll have to deposit, and for other businesses you could start with #500,000 and up to #2,000,000.
What is the profit margin of the animal feed distributors business?
Profits from feed distributors are slowly but surely about 50 to $150 for one package of food.
Wholesalers must be able to sell at minimum 300 bags of feed every day. Mini distributors must sell at minimum 100 bags of feed per day Retailers should be capable of selling at least 50 bag of food each day if they are located in a the right place.
To sum it up
Wholesalers should make 30,000 in profits per day.
Mini distributors should earn 10,000 profit per day
Retailer should make 5,000-$5,000 per day.
Problems in starting a the business of a feed distributor
1.) Bad place
Feed distributor is a place base business, so don't expect customers from Lagos to purchase from you, if you're located in Delta. If you choose a bad location, there are marketing strategies to help you.
2) Feed setting that is not correct
If you stack your feed incorrectly, it is likely to be damaged and if you decide to sell it to the public, you ruin your reputation.
Be sure that your feeds are away from windows and wall. You have a stock feed that are able to sell in two weeks.
3) Credit
Selling credit could cripple your business but it's impossible to not sell your products credit to your loyal customers, who you are familiar with their business or farm to keep away from stories that can hurt.
4) Extortion
When you transport your food, make sure you have some cash for the police, otherwise they'll hold you up for noting. Also, don't forget to bring the correct documents to give to someone. If you're someone who hustles and hates making payments to police officers, then the best method to do it is to move your food in the evening.
5) Stealing
It's not difficult for your employees to take your money and it's going to be in #5 that will then accumulate. Therefore, you must create an organization that stops the theft of your money. Let someone steal the money , while the other delivers the items.
Conclusion
Feed distributors can be profitable businesses If you take the steps above with care, you'll surely be laughing to the bank.
If you are looking at the fence that you must get involved and stop being a wannabe entrepreneur.
Do you have a thought we've missed Tell us about it in the comments box.
Source: https://lendingnaija.com/how-to-become-a-chikun-feed-distributor-in-nigeria%EF%BF%BC/
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