Post by Trade facilitator on Oct 3, 2023 17:32:07 GMT 1
What are frozen foods?
Frozen food business is a business of trading in the freezing, storage, and sales of frozen food items
The term frozen food refers to food items that are exposed, or treated to freezing temperature, so as to preserve them from spoilage. Below are the most common type of frozen foods in Nigeria;
Type of Frozen Food in Nigeria
Poultry/Meat Products:- This is the most common type we have and see around, this business involves selling
Chicken (whole or chicken parts)
Turkey (whole or turkey parts)
Gizzards
Beef
Goat
Pork
Snails and
Sausages
You could either sell just poultry products or meat products or you could sell both in other to have varieties for consumers. People always eat meat so be sure you will always sell.
Sea Foods:- Here, you only sell sea foods like;
Fish (Titus/Mackerel, Kote, Panla, Tilapia, Crocker)
Prawn
Shrimps
Crabs etc.
Most sea foods, asides fish, are mostly found in supermarkets and malls. But having this as a business around residential areas, hotels, restaurants etc is a good idea because most times people have to go to the market or malls to get them.
Frozen yogurt and Ice-cream: Asides from the health benefits of yogurt, they taste fabulous and it is a wonderful business idea, plus the competition in Nigeria isn’t high yet. I personally will pick frozen yogurts over ice cream, I mean they are healthy and taste really good.
Mobile frozen food- With this type of business, you move around with your products inside a van, so you still have the opportunity of picking which one you want to venture into. You could have a frozen yogurt van or a sea food van, it could be a life saver, people won’t have to go to the mall or market to get these things to buy.
Frozen food business in Nigeria is becoming more lucrative by the day. The rising demand for it is further boosted by the increasingly busy lifestyle of most Nigerian families in urban, semi-urban and some rural areas. Unlike in most rural areas where fresh food is readily available, the story is not the same in urban areas and for this reason frozen food is preferred for convenience and ease of preservation.
Food business is one of the best businesses you could ever think of doing. It is not only profitable; it also has a high turnover because people would always eat no matter what their financial situation is like.
It doesn’t matter if there is an economic meltdown or global recession, there would always be a need for people to feed themselves. A lot of people can do without new clothes or luxuries like cars, holidays, or even education but as long as a human being keeps living and breathing, there would always be a need for him to feed himself.
Frozen food business can be classified into two categories, so if you want to go into this business, you have to select which category.
Categories of Frozen Food Business
Distribution:
Frozen food distribution business involves wholesale or retail of frozen food products made by other companies. For this business, all you need is a good cold room, storage facility and a good delivery van.
Production:
Frozen food production on the other hand involves manufacturing, processing and packaging your own frozen foods under your own brand label. To start this business, you would need more capital than a frozen distribution business; you would also need a business license from food and health regulatory authorities.
BUT THIS ARTICLE FOCUSES ON DISTRIBUTION OF FROZEN FOOD BUSINESS. SO LET'S DIVE RIGHT IN!
Frozen foods business is one of the most lucrative branches of the food business because a lot of people are too busy with work. Most people would rather walk into the nearest Supermarket, grab some pieces of frozen chicken and cook their meals other than going through the stressful and time consuming process of preparing fresh chicken. So a lot of people rely on ready-made frozen foods to help save time and energy.
Frozen food business is vast, and there are various aspects to consider in the frozen food business. You'll have to consider the following:
Type of frozen food(s)
Location
Where to buy frozen foods (Suppliers)
Tools and equipment
Stable source of power supply
Capital
Transportation/logistics
Staffing
Waste management/Hygiene
TYPE OF FROZEN FOOD(S)
Decide on what to sell or find out what moves the market in your location and purchase more of that.
There are a lot of food items that can be sold frozen, so, you choose the ones to start with. Seafood and poultry products appear to be in greater demand than fruits and veggies. It is better to start with the ones that are more in demand before expanding to various types. The essence is to know which products the customers in that particular locality prefer most.
For instance if you want to start with fish and chicken, what specie of fish do people in that area consume more? That will give you an idea of which one to start with. Also remember that if you are going to start with maybe fish and poultry food, that means you won't refrigerate them together. One for poultry and a separate one for fish.
LOCATION
Where do you want to open your store? You need a place close or around people, a residential area, around restaurants, hotels, events planners and fast food joints etc. Where people can just walk a short distance to get to you or call you to deliver the goods to them.
The environment- This involves cleanliness, making sure not only your environment but also your neighbors, people get attracted by how clean the environment is.
Your target customers – Those are people you would want to attract to your business, this will determine the kind of frozen food business you open and your choice in location.
Space- This involves the size of the store and storage space. The type of freezer you need based on the size of frozen foods you intend to invest in, and a work space or station where you cut and package goods.
WHERE TO BUY FROZEN FOODS
It is very important to know where you can buy wholesale frozen foods at cheap prices.
It's best to buy from suppliers close to you. You can ask any frozen food seller around you for the address of where they buy theirs or simply check online for suppliers near you if you do not know anywhere.
It is advisable to contact various suppliers around you and compare their prices and services.
TOOLS, EQUIPMENT AND FACILITIES
The necessary tools and amenities required to run a frozen food facility should be readily available upon commencement of business for smooth and easy business operations. Some of these tools include:
Freezer
Backup power source (generator, solar,...)
Fan/Air conditioner
Table top/Slab/Counter for cutting
Standard weighing scale for measuring products
Manual/electric cutting machine and or Knives for frozen food cutting and dressing
Packaging bags and Boxes
Panel truck or wheelbarrow for carrying heavy loads
Gloves, Apron, Appropriate footwear. (Personal Protective Equipment). Fire extinguisher and First aid box
Running water system, for cleaning and washing
POWER SUPPLY
You need to factor the cost of running alternative power into your business startup and running cost.
Power supply is one of the most important factors you must get right if you must invest in the frozen foods business in Nigeria. And due to power outages and all, it's very necessary to have a backup power source.
CAPITAL
This is very essential, especially if you want a one-man business. Before thinking of starting anything like a business venture, there must be money set aside for it. The scale you start from is determined by the amount of capital available to you. You can source for your start up capital through multiple means
Also remember that there are certain costs to be incurred as the business progresses. Apart from the fact that equipment needs to be purchased and the refrigerators need to be stocked with goods, you need money for maintenance and running costs.
You have to put all these into consideration while raising your startup capital. Make enough budget to cover your expenses after setup. It will take at least three months for you to build your customer base before you starts seeing appreciable profit
TRANSPORTATION/LOGISTICS
Another factor to consider for frozen food distribution is transportation. You have to provide a means of moving the products from one point to another. And it is necessary to have conditions set to avoid damaged goods because a lot of perishable items get damaged on transit as a result of poor cooling. Industrial freezers in Nigeria help ensure your products are perfectly frozen before transportation over long supply distances.
STAFFING
This type of business you can either work alone or employ few people to work with you except if you are looking at something really large, and in that case, you will need a larger team.
In any business at all, employees are one very important factor of the business which can make your business blossom or stunted. So, Irrespective of the size of your cold room storage business, employ competent and hardworking staff to run and manage the investment with you while providing a great working environment for everyone.
WASTE MANAGEMENT/HYGIENE
Regular cleaning and proper waste disposal management is required as these are essential for smooth running of the business, especially due to the fact that the frozen food business deals with strong smelling products like fish and blood. Keep your frozen foods business premises clean, conducive and inviting.
Risks Involved With Frozen Food Business
Let's not forget the risks involved in frozen foods business
Knowing the attendant risks or challenges in the frozen foods business, or any business whatsoever, and preparing to effectively mitigate them will make or mar your success in the venture. The following are major risks associated with the frozen food business and their possible solutions.
Cold room break down
It will pay to have a maintenance service partnership/ responsive team. And when you get one, also endeavor to have a backup unit
Technically speaking, a cold room should not be installed close to any source of extreme heat. This is because a cold room is designed to operate effectively around ambient temperature. Cold room is better built under a covered and secured environment, and adequately floored space, for optimum performance. Rather than under the sun or a space without adequate air and ventilation.
Also, if a cold room must be installed in a dust-prone environment, it must be serviced regularly as the dust will always hamper the cold room from functioning well. Importantly, a well-insulated cold room is idea in a tropical climate such as we have in Nigeria. This is why most imported cold rooms don’t last long in Nigeria before breaking down.
Freezer burn and Food spoilage
Freezer burn may occur when the foods have been frozen for too long, which usually means the foods lose the ideal taste.Use FIFO (first in, first out – products handling is a very good practice) Technique. Arrange/stock your freezer putting older stock on top and new ones under. So as to get rid of the older ones.
Make sure to purchase from trusted suppliers. And at the point of product purchase, don’t be in a hurry, diligently confirm the state or quality of the product before buying or allowing into your cold room facility.
Unstable Power (Electricity) Supply
Plan to use backup Generator (Gasoline or Solar)
Or identify a business location with steady electricity supply.
Improper transportation
– A lot of perishable items get damaged on transit as a result of poor cooling. Industrial freezers in Nigeria help ensure your products are perfectly frozen before transportation over long supply distances.
CONCLUSION
The most important thing to note about the frozen food distribution business is that you can start with very little capital. The bulk of the capital falls to rent, equipment and tools needed for the business and it is highly profitable whether you've chosen to do it small or large scale.
It is very important to note that record keeping is very important and a necessity for any business at all, and the frozen food business isn't left out.
Frozen food business is a business of trading in the freezing, storage, and sales of frozen food items
The term frozen food refers to food items that are exposed, or treated to freezing temperature, so as to preserve them from spoilage. Below are the most common type of frozen foods in Nigeria;
Type of Frozen Food in Nigeria
Poultry/Meat Products:- This is the most common type we have and see around, this business involves selling
Chicken (whole or chicken parts)
Turkey (whole or turkey parts)
Gizzards
Beef
Goat
Pork
Snails and
Sausages
You could either sell just poultry products or meat products or you could sell both in other to have varieties for consumers. People always eat meat so be sure you will always sell.
Sea Foods:- Here, you only sell sea foods like;
Fish (Titus/Mackerel, Kote, Panla, Tilapia, Crocker)
Prawn
Shrimps
Crabs etc.
Most sea foods, asides fish, are mostly found in supermarkets and malls. But having this as a business around residential areas, hotels, restaurants etc is a good idea because most times people have to go to the market or malls to get them.
Frozen yogurt and Ice-cream: Asides from the health benefits of yogurt, they taste fabulous and it is a wonderful business idea, plus the competition in Nigeria isn’t high yet. I personally will pick frozen yogurts over ice cream, I mean they are healthy and taste really good.
Mobile frozen food- With this type of business, you move around with your products inside a van, so you still have the opportunity of picking which one you want to venture into. You could have a frozen yogurt van or a sea food van, it could be a life saver, people won’t have to go to the mall or market to get these things to buy.
Frozen food business in Nigeria is becoming more lucrative by the day. The rising demand for it is further boosted by the increasingly busy lifestyle of most Nigerian families in urban, semi-urban and some rural areas. Unlike in most rural areas where fresh food is readily available, the story is not the same in urban areas and for this reason frozen food is preferred for convenience and ease of preservation.
Food business is one of the best businesses you could ever think of doing. It is not only profitable; it also has a high turnover because people would always eat no matter what their financial situation is like.
It doesn’t matter if there is an economic meltdown or global recession, there would always be a need for people to feed themselves. A lot of people can do without new clothes or luxuries like cars, holidays, or even education but as long as a human being keeps living and breathing, there would always be a need for him to feed himself.
Frozen food business can be classified into two categories, so if you want to go into this business, you have to select which category.
Categories of Frozen Food Business
Distribution:
Frozen food distribution business involves wholesale or retail of frozen food products made by other companies. For this business, all you need is a good cold room, storage facility and a good delivery van.
Production:
Frozen food production on the other hand involves manufacturing, processing and packaging your own frozen foods under your own brand label. To start this business, you would need more capital than a frozen distribution business; you would also need a business license from food and health regulatory authorities.
BUT THIS ARTICLE FOCUSES ON DISTRIBUTION OF FROZEN FOOD BUSINESS. SO LET'S DIVE RIGHT IN!
Frozen foods business is one of the most lucrative branches of the food business because a lot of people are too busy with work. Most people would rather walk into the nearest Supermarket, grab some pieces of frozen chicken and cook their meals other than going through the stressful and time consuming process of preparing fresh chicken. So a lot of people rely on ready-made frozen foods to help save time and energy.
Frozen food business is vast, and there are various aspects to consider in the frozen food business. You'll have to consider the following:
Type of frozen food(s)
Location
Where to buy frozen foods (Suppliers)
Tools and equipment
Stable source of power supply
Capital
Transportation/logistics
Staffing
Waste management/Hygiene
TYPE OF FROZEN FOOD(S)
Decide on what to sell or find out what moves the market in your location and purchase more of that.
There are a lot of food items that can be sold frozen, so, you choose the ones to start with. Seafood and poultry products appear to be in greater demand than fruits and veggies. It is better to start with the ones that are more in demand before expanding to various types. The essence is to know which products the customers in that particular locality prefer most.
For instance if you want to start with fish and chicken, what specie of fish do people in that area consume more? That will give you an idea of which one to start with. Also remember that if you are going to start with maybe fish and poultry food, that means you won't refrigerate them together. One for poultry and a separate one for fish.
LOCATION
Where do you want to open your store? You need a place close or around people, a residential area, around restaurants, hotels, events planners and fast food joints etc. Where people can just walk a short distance to get to you or call you to deliver the goods to them.
The environment- This involves cleanliness, making sure not only your environment but also your neighbors, people get attracted by how clean the environment is.
Your target customers – Those are people you would want to attract to your business, this will determine the kind of frozen food business you open and your choice in location.
Space- This involves the size of the store and storage space. The type of freezer you need based on the size of frozen foods you intend to invest in, and a work space or station where you cut and package goods.
WHERE TO BUY FROZEN FOODS
It is very important to know where you can buy wholesale frozen foods at cheap prices.
It's best to buy from suppliers close to you. You can ask any frozen food seller around you for the address of where they buy theirs or simply check online for suppliers near you if you do not know anywhere.
It is advisable to contact various suppliers around you and compare their prices and services.
TOOLS, EQUIPMENT AND FACILITIES
The necessary tools and amenities required to run a frozen food facility should be readily available upon commencement of business for smooth and easy business operations. Some of these tools include:
Freezer
Backup power source (generator, solar,...)
Fan/Air conditioner
Table top/Slab/Counter for cutting
Standard weighing scale for measuring products
Manual/electric cutting machine and or Knives for frozen food cutting and dressing
Packaging bags and Boxes
Panel truck or wheelbarrow for carrying heavy loads
Gloves, Apron, Appropriate footwear. (Personal Protective Equipment). Fire extinguisher and First aid box
Running water system, for cleaning and washing
POWER SUPPLY
You need to factor the cost of running alternative power into your business startup and running cost.
Power supply is one of the most important factors you must get right if you must invest in the frozen foods business in Nigeria. And due to power outages and all, it's very necessary to have a backup power source.
CAPITAL
This is very essential, especially if you want a one-man business. Before thinking of starting anything like a business venture, there must be money set aside for it. The scale you start from is determined by the amount of capital available to you. You can source for your start up capital through multiple means
Also remember that there are certain costs to be incurred as the business progresses. Apart from the fact that equipment needs to be purchased and the refrigerators need to be stocked with goods, you need money for maintenance and running costs.
You have to put all these into consideration while raising your startup capital. Make enough budget to cover your expenses after setup. It will take at least three months for you to build your customer base before you starts seeing appreciable profit
TRANSPORTATION/LOGISTICS
Another factor to consider for frozen food distribution is transportation. You have to provide a means of moving the products from one point to another. And it is necessary to have conditions set to avoid damaged goods because a lot of perishable items get damaged on transit as a result of poor cooling. Industrial freezers in Nigeria help ensure your products are perfectly frozen before transportation over long supply distances.
STAFFING
This type of business you can either work alone or employ few people to work with you except if you are looking at something really large, and in that case, you will need a larger team.
In any business at all, employees are one very important factor of the business which can make your business blossom or stunted. So, Irrespective of the size of your cold room storage business, employ competent and hardworking staff to run and manage the investment with you while providing a great working environment for everyone.
WASTE MANAGEMENT/HYGIENE
Regular cleaning and proper waste disposal management is required as these are essential for smooth running of the business, especially due to the fact that the frozen food business deals with strong smelling products like fish and blood. Keep your frozen foods business premises clean, conducive and inviting.
Risks Involved With Frozen Food Business
Let's not forget the risks involved in frozen foods business
Knowing the attendant risks or challenges in the frozen foods business, or any business whatsoever, and preparing to effectively mitigate them will make or mar your success in the venture. The following are major risks associated with the frozen food business and their possible solutions.
Cold room break down
It will pay to have a maintenance service partnership/ responsive team. And when you get one, also endeavor to have a backup unit
Technically speaking, a cold room should not be installed close to any source of extreme heat. This is because a cold room is designed to operate effectively around ambient temperature. Cold room is better built under a covered and secured environment, and adequately floored space, for optimum performance. Rather than under the sun or a space without adequate air and ventilation.
Also, if a cold room must be installed in a dust-prone environment, it must be serviced regularly as the dust will always hamper the cold room from functioning well. Importantly, a well-insulated cold room is idea in a tropical climate such as we have in Nigeria. This is why most imported cold rooms don’t last long in Nigeria before breaking down.
Freezer burn and Food spoilage
Freezer burn may occur when the foods have been frozen for too long, which usually means the foods lose the ideal taste.Use FIFO (first in, first out – products handling is a very good practice) Technique. Arrange/stock your freezer putting older stock on top and new ones under. So as to get rid of the older ones.
Make sure to purchase from trusted suppliers. And at the point of product purchase, don’t be in a hurry, diligently confirm the state or quality of the product before buying or allowing into your cold room facility.
Unstable Power (Electricity) Supply
Plan to use backup Generator (Gasoline or Solar)
Or identify a business location with steady electricity supply.
Improper transportation
– A lot of perishable items get damaged on transit as a result of poor cooling. Industrial freezers in Nigeria help ensure your products are perfectly frozen before transportation over long supply distances.
CONCLUSION
The most important thing to note about the frozen food distribution business is that you can start with very little capital. The bulk of the capital falls to rent, equipment and tools needed for the business and it is highly profitable whether you've chosen to do it small or large scale.
It is very important to note that record keeping is very important and a necessity for any business at all, and the frozen food business isn't left out.
