Monday, 13 March 2017

COLD ROOM BUSINESS How to Get Started



Cold room business in Nigeria is one of the multi-billion naira, silent businesses. Right here from where I am sitting, I can count up to five multi-millionaires that I know made their money from cold room/ food preservation business. Starting a cold room business in Nigeria is usually for two investment purposes; for ice-block production and frozen food business. Ice-blocks are sold in solid bars to drink vendors as well as to caterers and event organizers for the cooling of drinks at events.

Frozen food business is all about the preservation of sea foods and poultry products, beef and fruits. A cold room is designed in the form of a large container in the like of a freezer. Cold rooms can be imported or locally manufactured here in Nigeria. Locally made cold rooms are popular because they are cheap and you have the power to dictate your specification in size and quality.

Starting a cold room business in Nigeria involves taking the following steps
Location and space
You have to look for a very good warehouse which you can use as your cold room. The place needs to be spacious and well ventilated in order to guarantee adequate preservation of your products.

Determine your scale of business
The type of brand and capacity cold room to be installed depends solely on your intended capital. It is good to get fabricated cold rooms if you are starting on a small scale, big companies have the financial strength to import. For people who want to engage in small-scale cold room business, all you need is a good shop, refrigerators or a min-cold room, constant power supply and of course, access to cheap supply of products.

Determine products to sell
You should look around you and do a proper research on the most lucrative items to sell. I could tell you that Frozen Fish and Chicken are some of the fastest selling products but what if it doesnt sell in your location due to stiff competition? The onus therefore rests on you to determine what products would sell faster and better in your location.

Construct a cold room
You need to hire someone to construct a cold room for you if you cannot afford already-made ones. 12 hours is the maximum time required for the first batch of ice-blocks to be produced. For subsequent batches, the machine will only need 9 to 10 hours for ice-block production. An imported ice-block from Germany with the capacity of producing 50 blocks at a time sells at 2.1 million naira. Cold room owners also make money from rental.

Constant electricity supply
PHCN is not your friend in this business; they would mess you up. So get yourself a good, strong stand-by generator to provide constant access to electricity. This is extremely important in order to avoid goods going bad due to absence of electricity. Where would you get your goods from? This is a very important decision to make. If you are venturing into frozen fish, meat or turkey business, it is possible for you to process and package your products yourself.

You could have a farm where you would raise live chickens or livestock and then have them slaughtered and processed for sale upon maturity. You can also process and package other products yourself. This would guarantee you more profit than when you import products. Other things you would need for this business include packaging supplies, measuring scales, tables, polythene bags or cartons, bowls, knives and support staff.

Prices and capacities of cold rooms in Nigeria
3 tons cold room
Capacity – 200 bags of fish or 3000kg of poultry products and meat
Price – N900,000
Power – 35kva generator, 2.2 million naira

5 tons cold room
Capacity – 500 bags of fish or 5000kg of poultry products
Price – 1.6 million
Power – 50kva generator, 3.4 million naira

10 tons cold room
Capacity – half a container of fish more than 10,000kg of poultry products
Price – 2.1 million naira
Power – 75kva generator, 4.1 million naira

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