Mastering Irregularities Associated With Egg Distribution

Mastering Irregularities Associated With Egg Distribution

The business of egg distribution has a lot of similarities with trading of stocks in the stock exchange, yet they differ a lot. They both thrive on the swing of the pendulum. If you follow some principles and ideas, in both left and right swing, you will do well.

Egg distribution is laced with a mammoth of irregularities all year round in Nigeria. These challenges emanates from the activities of egg distributors mainly in their bid to pile up profits for themselves while the actions of the poultry farm owners helps to stretch it further.

These irregularities are basically orchestrated in the following areas:-

·         Sourcing of eggs

·         Slash in prices during glut

·         Credit supplies

Sourcing of eggs: One of the mistakes egg distributors make is swinging sources of their egg supply. It is pronounced when one source is totally abandoned for another and trying to revert to the old one when there are issues. The change may be logistics, nearness or price induced. This act is pronounced when there is a glut in the system and many farms do take the extra cost of delivery. Once the glut ends they are nowhere to be found again thus creating irregularities in the supply chain. Distributors may make lots of money in the short run but lose in a large scale in the long run.

Pricing: From research, many farms in the hinterland with a standard pricing policy are the best to build your business with irrespective of their price. Most times their prices are a bit high but they compensate their client base with unlimited supply of eggs all year round. However, some farms and mega distributor may knock some of these kind of farms out of business temporarily and hinge a distributor on a dilemma later.

Credit offers: During glut periods, many distributors do opt to give away their supplies on credit. For the distributors it is always a welcome development. Unfortunately it does not last longer than few months before they reverse the trend once again. When the credit supply dries up, scarcity is eminent.

Above all these, it will always pay a distributor to pitch his tent with one or two major sources while augmenting it with others sources at intervals. For a real investor in egg distribution, regular access to eggs is non-negotiable. Slow and steady wins the race.