Frozen Food Business Plan in Nigeria | Cold Room Sample Feasibility Study - Business Plan (2022)

Our sample frozen food business plan in Nigeria is updated regularly and can be used for loan acquisition, grants and investment purposes.

Over the last few years, the frozen food business has gradually but steadily grown to become one of the largest and fastest growing industries in Nigeria. Like I always say, any business that is food related has a potential to become big, it will only depend on how serious the business owner is and how much capital is available to run the business. The frozen food business owes its top flight business status to the continually growing population, the increasing bustling nature of the average Nigerian family, especially those with a working class status.

Also Read: How to Start Frozen Food Business in NigeriaIn fact in the cities, it is quite difficult to gain access to fresh farm products of this class (by this I mean chicken and fish of different classes). This is quite different in the rural areas where you can readily gain access to these, but then again most rural towns are fast evolving into urban centers and the urban centers are growing into metropolitan cities, a major effect of urbanization.

The frozen food business has made it easy to gain access these foods in comfort and at affordable prices, this has made the business thrive in even the toughest of terrains. Depending on the time of the year and the product being sold, the profit raked in by these frozen food business owners can be between two hundred thousand and three hundred thousand naira monthly for an average store.

Presently, on the average you can buy a kilogram of chicken for about #1,200, same goes for a kilogram of turkey and for fish it ranges from #600 to about #1,500 per kilogram depending on what kind of fish you are buying. These prices were far lesser just about two years ago, with a kilogram of chicken going for #650, invariably this tells us that the price will most likely continue to rise. This shows that staying with this business can mean one will be grossing quite an amount of profit at the end of the year, it is a very profitable business.

Inasmuch as the business is very lucrative, there are a number of things that should be considered and set in place before starting up this business to avoid woeful failure. There are several hazards that could rise from running the business, these hazards need to be adequately prepared for to avoid unnecessary problems on the long run. If these can be sorted out efficiently, the business owner can be sure of raking in a good amount yearly from profits.

Things Needed to Start a Frozen Food Business in Nigeria

Below are a few suggested steps required to start a frozen food business in Nigeria, this is only a guide and the steps are written in no particular order. I will also not be stating particular amounts to avoid misleading you, as prices of most items depend on the location of the proposed business.

Take an Intent Study of the Business and Choose your Niche. Starting a business without making considerable deliberate efforts to study the terrain first is like a man who wants to build a house without a foundation. It is simply a disaster waiting to happen. Take time out to study the business both theoretically and practically. There are several materials online that will give you in depth knowledge on how best to run the business, the eventualities that may arise and how best to combat them. You should also visit other existing stores in your area that you deem successful to see how they run their business, learn from their errors and successes. Your study will also help you discover what niche you will be able to run effectively, if you want to run a specialized business or you want to sell a variety.

See also Hotel Business Plan in Nigeria - How to Start a Hotel Business
(Video) How to Start a Frozen Food Business | Including Free Frozen Food Business Plan Template

Write a Business Plan. Your business plan is a map which guides you throughout the lifespan of the business. It is therefore imperative that every business, no matter how little it may seem, should have a plan written down. A lot of effort is required in making a business plan and most of the information needed is the information gotten from the feasibility study. You will be required to take massive surveys relating to the business and also make intelligent projections. This business plan will help in raising interest from investors and also give you an opportunity to apply for a bank loan without stress.

If you cannot write a frozen food proposal for yourself, you can buy our Frozen Food business plan in Nigeria.

To place order, pay N10,000 to:

BANK NAME: FIRST BANK PLC
ACCOUNT NAME: CHIBUZOR TOCHI ONYEMENAM
ACCOUNT NUMBER: 3066880122

After payment, text your full name, email address and title (frozen food business plan pdf) to 07033378184. Your business plan will be sent to your email within 15 minutes.

Raise Business Capital. Having a business plan does not mean the business will automatically kick off. You will need to raise capital to start the business and as we all know, capital is the amount of money required to start up or run a business. The size of the business at start up is largely dependent on the amount of capital available at start up. There are several ways of raising capital, some of which include, personal savings, raising loans from banks, attracting investors, gifts and loans from family members and friends. It is important to put a proper structure on ground for raising capital because it will determine how long the business will last on the long run.

Get a Befitting Location. The location of a business will also contribute largely to how well the business will thrive, how many customers will patronize the business and how much profit the business owner will gross at the end of the day. For every kind of business there is a specific kind of area that is suitable, frozen food business is not an exception. For this business, depending how big you want to become, you might be looking at getting a place that will allow for future expansion. You should consider getting a place that is quite accessible to your prospective customers, the place should also have access to good electricity. This will reduce the amount of money spent on a generating plant. As you know it, a major requirement for a frozen food business is constant power supply.

Register with the Required Associations. There are several bodies in charge of regulating food related companies in Nigeria. Before starting up your frozen food business you should consider registering with them to avoid unnecessary embarrassment. Some of these bodies include, National Food and Drugs Control (NAFDAC), Standards Organization of Nigeria (SON), State or Federal Ministries of health, and of course the Corporate Affairs Commission. In your location there will also be associations that control the activities of frozen food marketers in that area, you should find out what it takes to be a part. These kind of associations have key roles to play to ensure the smooth running of your business. A note of warning however in joining market associations is to make proper inquiries to be sure the association will not be one that drains your business from levies.

See also Snacks Production Business Plan in Nigeria
(Video) How to Start a Frozen Food Business in 2022 | Free Frozen Food Business Plan Included

Plan Your Storage System. This will require a lot planning, but the plan should have been taken care of in your business plan. There are several measures to be set in place for proper storage of frozen food, your choice will largely depend on the scale at which you want to run. The storage measures could range from using regular freezers to larger freezers and cold rooms. It is advisable to start little and then grow except of course if you have a very large capital. Your storage system will determine to a large extent how well your business will thrive, you should be looking at a storage system that is durable and can retain coolness of the supplies for longer periods. Proper freezing ensures that your produce are kept crisp till they are purchased by customers. If they are not properly preserved, it will adversely affect your sales and profit levels, you might even lose loyal customers.

Challenges of Frozen Food Business

Power Issues. The rate of power supply in Nigeria is quite alarming, it is a major cause of concern for a frozen food business owner as the business is almost completely dependent on electricity. Without electricity you cannot power your storage devices, meaning that you will be heading for a major loss as these supplies are perishable. So before even getting any supplies at all, you should ensure that you have sorted out power supply issues. Your best bet in Nigeria presently is getting a standby generator, the sizes may vary depending on the size of your business. Ensure the generator is capable of powering your storage devices, it must also be versatile so that it can accommodate a change in devices, just in case you are planning to expand.

Freezer Burn: This happens when your products loose their original taste because they have been in your freezer for a long time. Therefore you will have to do everything that you can to sell off your products as soon as possible.

No Customers: You should make sure you do a proper feasibility study so that you do not go and open a frozen food business in an area where people will rather eat live chicken or fish then frozen.

Do What Others Don’t. One thing that will stand you out from the crowd of frozen food businesses in your area is doing something they normally do not do, bring something different to the table. This will be a major scheme to help grow your client base. An example of this is providing home delivery services, which could come at a little extra cost. Think outside the box and you will be sure to grow your client base within the shortest possible time.

Build Your Client Base. This is expedient because for any business at all to make profit, it must have a client base. It is your clients that will bring you the profit you desire, so you must invest in reaching out to them and attracting them to your business. Understand the kind of things they need, and invest in making those things available. Do as much publicity for your business as you possibly can, do not depend on just the usual techniques for frozen food businesses. If you want a different result then you must do something different. There are several methods of publicity asides just a signboard in front of your shop, design fliers and posters, utilize social media to inform people about what you do.

See also Educational Consulting Business Plan in Nigeria

Here is a list of likely materials and equipment you will need to purchase when starting up your frozen food business:

(Video) How to Start a Pizza Business in 2022 | Free Pizza Business Plan Included | Pizza Business Ideas

Coolers, seats, tables, generating sets, a store, fan or other cooling system, storage devices (fridges, freezers, cold rooms, etc.), knives, scales, squander receptacle, etc. You might also need a sales personnel depending on how big the business is at start up.

Challenges of Frozen Food Businesses in Nigeria

In Nigeria, a major challenge of frozen food businesses is that of power supply. The power supply is somewhat erratic, this means that for those without access to generating sets, they will lose a lot because their supplies will get spoilt when there is inadequate power supply. It also leads to additional costs as the purchase and maintenance costs of running the generator will lead to extra cost placed on the commodities so that there can be a balance in profit and expenditure.

Another major challenge is government policies. Should there be a change in policies with respect to this sector of the economy, there will be an adverse effect on the business. Some time ago, there was a policy banning the importation of frozen foods, it cost a lot of business owners a lot as most of their goods were seized.

In conclusion, the frozen food business option is a viable one which can bring in much profit. The growth of the business however depends largely on the zeal of the business owner, the management techniques and the measures taken to publicize the business. A major issue to be noted is where you get your supplies from. You should ensure that your supplier is someone who is trusted to provide top notch products which are free from diseases and are healthy for human consumption. With all these in place, you can be sure to make some good profit within the shortest possible period of time.

Get your own frozen food business plan in Nigeria ! To place order, Pay N10,000 to:

BANK NAME: GUARANTY TRUST BANK (GTB)

ACCOUNT NAME: CHIBUZOR TOCHI ONYEMENAM

ACCOUNT NUMBER: 0044056891

(Video) HOW to start COLD CHAIN Business?[LOGISTIC Industry Business]

OR

BANK NAME: FIRST BANK PLC

ACCOUNT NAME: CHIBUZOR TOCHI ONYEMENAM

ACCOUNT NUMBER: 3066880122

After payment, send your full name, email address and topic (i.e. Frozen Food Business Plan pdf) to 07033378184. Your business plan will be sent to your email within 15 minutes.

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FAQs

What is frozen in food industry? ›

Frozen food is defined as food products that are preserved under low temperature and used over a long period. The product market comprises various food products, including ready meals, vegetables & fruits, potatoes, meat & poultry, seafood, and soup.

What is needed for a cold room? ›

Cold rooms use a compressor, condenser, fans, and an evaporator to maintain temperature within the unit. After a gas refrigerant gets compressed in the compressor it expands, and the gas absorbs energy.

How much does it cost to start a frozen food business in Nigeria? ›

Capital Needed to Start Frozen Business

It can be well said that you will need not less than N300,000 – N500,000 to start a small scale frozen food business in Nigeria. And the majority of these expenses will go into buying a chest freezer, a generator, and renting a shop for at least a whole year.

Which foods are often frozen? ›

Most Popular Freezer Foods
  • Peas.
  • Chips.
  • Ice-cream.
  • Fish fillets.
  • Bread.
  • Pizza.
  • Sausages.
  • Plain chicken.
19 Sept 2018

How do you package frozen food? ›

Use a thin plastic liner for the inside of the package and enclose the food in a plastic bag. Thick insulated foam containers are suggested for keeping food as cold as possible. Packaging using dry ice is acceptable. Gel packs are a good solution, but frozen water is not recommended.

How do I expand my frozen food business? ›

News
  1. How to Market Frozen Food – 7 Marketing Ideas to Boost Your Business. ...
  2. Get Online. ...
  3. Start in your Local Area. ...
  4. Make Use of Existing eCommerce Platforms. ...
  5. Start Blogging. ...
  6. Setup Accounts on Social Media Platforms. ...
  7. Establish Links to a Popular Event in Your Local Community. ...
  8. Don't Just Get Involved in Online Marketing.

How long does frozen food last? ›

The short time limits for home-refrigerated foods will help keep them from spoiling or becoming dangerous to eat. The guidelines for freezer storage are for quality only—frozen foods stored continuously at 0 °F or below can be kept indefinitely.

What temperature does frozen food need to be stored at? ›

The freezer temperature should be 0° F (-18° C). Check temperatures periodically. Appliance thermometers are the best way of knowing these temperatures and are generally inexpensive. Check storage directions on labels.

How big should a cold room be? ›

A cold room can be nearly any size. For easy circulation, just make sure it's at least 6′ deep. Typically it will be about 8′ to 10′ long. Build custom walls to insulate the room from the rest of the basement… and obviously you'll need to include a door in your plan as well.

What is the difference between cold room and cold storage? ›

If I'm wrong pls clearify me-A cold room is a working room where frozen food is thawed upto safe working temperature and a cold storage as its name indicates is a store maintained at low temperature ususally at freezing point.

What temperature is a cold room? ›

Cold: Any temperature not exceeding 8°C (46 °F).

How much does it cost to start frozen food business? ›

Startup costs for a frozen food business range from $6,500 to $13,000. Costs include your initial inventory, a commercial-grade freezer, and shipping supplies.

How much does it cost to start foodstuff business in Nigeria? ›

There is no specific capital needed to start a foodstuff business or grain business in Nigeria. But with that been said it does not mean you can start with any amount you have. So on average, to start a foodstuff business in Nigeria you will need a capital of N400,000 (N400K) – N1,000,000 (N1M).

How much does it cost to start a business in Nigeria? ›

Incorporation fees are: ₦10,000 (US$67) for a company whose nominal share capital does not exceed ₦1,000,000 (US$6,711) and ₦10,000 (US$67) for every ₦1,000,000 (US$6,711) thereafter. ₦500 (US$3.3) incorporation forms. 1.5% stamp duty paid on capital.

What preservatives are used in frozen food? ›

Frozen products do not require any added preservatives because microorganisms do not grow when the temperature of the food is below −9.5 °C (15 °F), which is sufficient on its own in preventing food spoilage. Long-term preservation of food may call for food storage at even lower temperatures.

What should I buy for frozen section? ›

"Frozen fruit, such as berries, mango, pineapple, peaches, and bananas are great for making smoothies or adding as a topping to yogurt or oatmeal," says Syn. "Frozen veggies, such as broccoli, cauliflower, and carrots are great for adding to quick meals like stir-fries and breakfast egg scrambles. "

What are the benefits of frozen food? ›

Benefits of Frozen

Generally, frozen foods retain their vitamins and minerals and there is no change to the carbohydrate, protein or fat content. In some cases, frozen foods have more vitamins and minerals compared to fresh because fresh foods lose vitamins and minerals over time while freezing preserves nutrients.

Does frozen food need to be sealed? ›

Food items should be tightly packed in freezer bags or airtight containers. Squeeze air from bags before sealing and leave some space in containers in case foods expand. If moisture escapes, frozen food can become dry, tough and may develop "freezer burn."

How can refrigerated foods be cooled faster? ›

How can refrigerated foods be cooled faster? Use shallow containers. How can foods served buffet style be kept at safe temps? Put food in small serving dishes, or heated serving appliances, or on ice.

Can I sell frozen food from home? ›

If you're on a budget, you can start a frozen food business from home and sell your products online. As your business grows, you can expand your operations and partner with local venues.

How much is a carton of frozen chicken laps in Nigeria 2021? ›

₦20,500.00 per 1 carton.

Is the frozen food market growing? ›

In the recent years the convenient and ready to eat meals has contribute to the growth of the frozen food market due to the changing lifestyles and busy lifestyles of people across the world and an increase in the consumption of frozen foods as there is a high amount of disposable income.

What is the marketing plan? ›

A marketing plan is the advertising strategy that a business will implement to sell its product or service. The marketing plan will help determine who the target market is, how best to reach them, at what price point the product or service should be sold, and how the company will measure its efforts.

How Long Can chicken stay frozen? ›

If kept frozen continuously, chicken will be safe indefinitely, so after freezing, it's not important if any package dates expire. For best quality, taste and texture, keep whole raw chicken in the freezer up to one year; parts, 9 months; and giblets or ground chicken, 3 to 4 months.

Can I wash chicken before freezing? ›

It is never a good idea to wash meats and poultry. Regardless of whether it takes place before cooking, freezing, or marinating, washing can lead to cross-contamination. Cross-contamination is when bacteria spread from the meat to other areas, such as the hands and kitchen surfaces.

How long can cooked chicken be frozen? ›

If you're freezing cooked chicken, you can expect that to last for 2–6 months. Freezing cooked chicken is a great way to reduce food waste. When freezing cooked chicken, it's a good idea to mark the bag with the date it was cooked and frozen so you remember to use it while it's still good.

What food Cannot be frozen? ›

But even properly wrapped, the following foods can be problematic to freeze and thaw:
  • Leafy Greens. ...
  • Sauces or Gravies. ...
  • Pudding. ...
  • Cream-Based Soups. ...
  • Non-Fatty Fish. ...
  • Cooked Pasta or Rice. ...
  • Cooked Egg Whites. ...
  • Mayonnaise or Mayo-Based Dressings.
10 Feb 2022

How long does frozen meat last? ›

According to the FDA , you can keep cuts, like roasts, frozen for anywhere from 4 to 12 months and steaks for 6 to 12 months. Ground beef should be frozen for no more than three to four months. Once cooked, you can also safely freeze those beefy leftovers.

How long can frozen food last outside freezer? ›

Frozen Food and Power Outages: When to Save It and When to Throw It Out. A full freezer will hold a safe temperature for approximately 48 hours (24 hours if it is half full and the door remains closed).

What are the 3 types of freezers? ›

Freezers, whether chest or upright, come in three basic sizes: compact or small (5 to 9 cubic feet), medium (12 to 18 cubic feet), and large (more than 18 cubic feet). Upright freezers have a smaller footprint for the equivalent storage space.

How many types of freezes are there? ›

There are 9 main types of different freezers and most of them have more than one naming: The air blast freezers / cold storage freezers. The cartoon freezers / box freezers. The spiral belt freezers.

What are the four primary methods of freezing foods? ›

Various methods of freezing
  • Contact Freezing. Contact freezers are used for freezing products in bulk and in blocks. ...
  • Blast Freezing. In blast freezing it is air, which is cooled and blasted or circulated over the product. ...
  • Brine Freezing. ...
  • Cryogenic Freezing. ...
  • Loss of Nutrients Due to Slow Freezing.

Is 10 degrees cold enough for a freezer? ›

The Ideal Freezer Temperature

It's pretty easy to remember: Your freezer temperature should be set to a chilly 0° Fahrenheit or below (-18° Celsius or below). Food stored at 0° Fahrenheit or below is safe to eat indefinitely (although quality and taste may be compromised as time passes).

How can I invest 1 million naira? ›

7 Creative Ways to Invest 1 Million Naira for Fast ROI
  1. Tricycle Hire Purchase. I really love transportation business, and this one is pretty straightforward. ...
  2. FMCG Distribution. ...
  3. Cryptocurrency Trading. ...
  4. Security Dog Importation. ...
  5. Hangout Spot Lease. ...
  6. Bespoke Fashion Resale. ...
  7. Invest in a Shoemaking Contract.
3 Dec 2021

How do you manage a cold room? ›

Monthly Maintenance of Cold Rooms
  1. Calibrate the cold room temperature.
  2. Check the proper temperature remains when the modular cold storage has a full load.
  3. Clean the evaporator and fins – important for temperature maintenance.
  4. Clean the evaporator casing and all blowing fans.
  5. Check the control valves are fully functioning.
19 Feb 2020

What business can I start with #5000? ›

If you need a little more help brainstorming, here are six businesses you can start for under $5,000.
  • Tutoring or Online Courses. ...
  • Make a product and sell it online. ...
  • Open a consulting business. ...
  • Create an app or game. ...
  • Become a real estate mogul. ...
  • Virtual Assistant.
1 May 2022

Which business moves fast in Nigeria? ›

Restaurant and Food ordering business:

A restaurant business on our list is one of the fastest moving business in Nigeria. People of all age eat every day and there many people that will troop into a restaurant daily to order foods.

How do you clean cold room panels? ›

Using steam cleaners should be avoided, as it will damage the surface. High pressure washers can be used but not too closely. Clean using a soft bristle nylon broom to gently wipe down the walls from top to bottom. Avoid excessive scrubbing as this can damage the surface seal.

How do you clean a cool room in a commercial kitchen? ›

Here's how:
  1. Check and Remove All Items with Mould. ...
  2. Wipe It Down: Clean all surfaces, shelves, walls and ceiling with an appropriate chemical solution, or warm water and baking soda. ...
  3. Vacuum: Use a vacuum to clear the compressor of any dust build up that might be contributing to your cool room running inefficiently.
1 Jun 2020

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