How to run a viable frozen foods business in Nigeria – Complete expert guide
Wondering about starting or investing into frozen foods business in Lagos, Abuja, Port Harcourt, Kano, Onitsha, or anywhere else in Nigeria? De Koolar offers you a complete expert guide to help you understand the nitty-gritty of the business, and make informed business decision.
What are frozen foods?
The term frozen food refers to food items that are exposed, or treated to freezing temperature, so as to preserve them from decadence. Most common list of frozen foods in Nigeria includes; Fish, Chicken, Turkey, Prawns, Beef, Meat (Pork), etc. Frozen food business therefore is a business of trading in the freezing, storage, and sales of frozen food items.
Why we decided to offer our insights on starting frozen foods business in Nigeria?
As an industry player since the past 25 years, we keenly observed that most of the information available on the internet about this topic is from novices, and those who have no experience, or practical knowledge about the business. Hence the misinformation, and half-baked blog posts which merely touched on the basics.
As a leading manufacturer of cold room and Industrial freezers in Nigeria, which are principal prerequisite to start any profitable frozen foods business, you’ll agree with us that our perspective is very important to help you understand the business. For instance, most guides provide little or no information on Cold storage room which principally is the engine to drive the business.
In lay terms, cold room is the insulated and refrigerated cabin, room, chamber, enclosure or warehouse into which you will stock, then freeze and store perishable poultry or seafood products under negative temperature.
The suitable cold room for frozen foods, especially for fish, meat, turkey, chicken and ice cream, is operated under a well-regulated temperature ranging from -18 o c to -20 o c.
However, if you will operate on a commercially large scale, you may need to also acquire a blast freezer, operating within -250 C to 400 C, which can help you to fast-freeze the foods within minutes, and then transfer for cold storage inside a cold room.
What are the risks involved in frozen foods business in Nigeria?
Knowing the attendant risks or challenges in 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 to frozen food business and their possible solutions.
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Unstable Power (Electricity) Supply
- Plan to use backup Generator (Gasoline or Solar)
- Or identify a business location with steady electricity supply.
Power supply is one of the most important factors you must get right if you must invest in frozen foods business in Lagos, Abuja, Port Harcourt, Kano, Onitsha, or anywhere in Nigeria. Obviously, you are aware power is not stable – hence you must prepare to acquire and run power generator.
Most cold rooms and Industrial freezers in Nigeria are powered with three phase engines. You will need to buy three phase stabilizers to complement whatever voltage the public power supply is providing you.
Also, you need to factor the cost of running alternative power into your business startup and running cost outlay, else you may run into troubles if not properly captured.
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Cold room break down
- Having robust maintenance service partnership/ responsive team
- Endeavor to have a backup unit
Technically speaking, cold room should not be installed close to any source of extreme heat. This is because 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.
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.
Hence the reason De Koolar models are the best-selling cold rooms for frozen foods business in Nigeria – because of the quality installation and rugged engines to withstand Nigerian operating climate.
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Food spoilage
- Use FIFO (first in, first out – products handling is a very good practice) Technique
- Proper stacking is very important, don’t block the air flow system in/out of your cold room.
- Keep operational log sheet for effective monitory and fault detection on your cold room
Useful Tips on frozen foods sourcing
At the point of product purchase/stocking from your suppliers, don’t be in a hurry, diligently confirm the state or quality of the product before buying or allowing into your cold room facility.
Always buy products from companies that maintain their cold room regularly. Buying directly from importers saves you a great deal of cost and stress. As a RULE, always buy and stock fresh foods.
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Contraband items
– Properly source for your goods. Ensure government policy is adhered to strictly if your business must succeed, avoid pitfall of contraband supply.
Useful Tips: Frozen foods are regulated under an arm of NAFDAC, and Standard Organisation of Nigeria (SON). However, there is no stringent rule or regulation that is capable of posing any form of treat for now. Ensure your business is registered with relevant municipal authorities to protect yourself from harassment.
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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 a perfectly frozen before transportation over long supply distance.
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Goods Theft
– Prioritize security, use CCTV for remote monitoring, and most importantly, have a good routine stock control/auditing system.
7. Improper staffing
– Irrespective of the size of your cold room storage business, employ competent or professionals to run and manage the investment with you.
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Waste management/Hygiene
– Cleanliness they say, is next to Godliness. Regular cleaning and proper waste disposal are essential. Keep your frozen foods business premises clean and fresh.
Basic Requirements for Running Frozen Foods Business
It is necessary to know the basic tools and amenities you will require to run a frozen foods business facility:
- Running water system: for regularly cleaning and washing
- Manual/electric cutting machine
- Wooden or stainless tables, buckets, and chairs
- Standard weighing scale for measuring products
- Panel truck or wheelbarrow for carrying heavy loads
- Hand gloves, Apron, Plastic or rubber shoe and (Personal Protective Equipment). Fire extinguisher and first aid box.
How to manage cold room for frozen foods
Understanding how to efficiently run and manage your cold storage room is essential to your business success. Here are some tips;
(A) Use of log sheet – Startup temperature and closing temperature must be logged every day for proper references and monitoring of cold room performance.
(B) Power supply to the Cold room is like a life-wire, thus you must ensure it’s uninterrupted at any time. Do routine checks and maintenance.
(C) Maintain a clean business environment at all times. Cleanliness is very important, as some potential customers may not even patronize you, on account of an untidy environment.
(D) Access control – Try as much as possible to reduce the rate at which your cold room is being opened and closed. Your cold room will lose operating energy if you leave it open too frequently often.
(E) Customer care – Create a unique marketing system that will draw potential customers to your business.
(F) Pricing strategy- Let your pricing be competitive, always prepare for peak periods, festive seasons, and off-peak periods with the right incentives for your customers to keep them coming to you year-round.
(G) Business Integrity- Last but not the least, let integrity be a core value with which you relate to your customers. Keep your business promises and let your customers’ interest or concern be satisfied.
Choosing an ideal location for your Frozen foods business
Deciding the location for your business is critical to your eventual success, the following tips are factors to help you make an informed decision:
- Ease of access to the cold room and the equipment
- Highly populated environment, or nearness to market
- Nearness to source of regular power supply is an advantage
- Ease of waste disposal – Frozen foods business, no doubt, generates quite a lot of wastes, your business location must be easily accessible to evacuate all solid waters like cartons, nylons, boxes, off-cuts, among others.
In conclusion
Good business management skill is a priceless prerequisite for your overall success in frozen foods business in Nigeria. Prudent management of customers, staff, business assets, and profit is very crucial to the survival of the business.
Don’t be too rich, too busy, too big, too educated for your customers, come down to their level, cherish their patronage and listen to their feedback as you grow the business. There’s no gainsaying that frozen foods business is profitable in in Lagos, Abuja, Port Harcourt, Kano, Onitsha, or anywhere else in Nigeria. Many are making millions of Naira in fortune, and we have no doubt you can succeed if you venture into it wisely.
For more tips, advise and free consultation on the business, do not hesitate to contact us – leverage on our industry experience over the past 25 years, you would be glad you did!
