Is cold room business profitable in Nigeria?
In a lay man language, a cold-room is an enclosure or an empty space which is cooler (more chilled) than the surrounding environment. The idea of preserving food items and other perishables at low temperature is due to the fact that bacterial, fungi and other micro-organisms which destroy food become inactive at lower temperatures.
Also, consider the fact that the production volume of fish, meat, chicken, turkey, vegetables, drinks, and other perishable food items is practically much more than the demand hence the need for a means of storing and preserving them for just-in-time supplies to meet market demands. There are basically 2 models of cold room business in Nigeria.
- Fish, Meat and Poultry Investment (Backward integration)
If you prefer fish and poultry, you might want to go into fish farming and poultry, but it is always better and stress-free when you choose to buy frozen fish, chicken and turkey from importers, farms or producers. When you source from them, you can stock the products in your cold room and resell to retailers and wholesalers.
- Offering Cold Storage Service
Some cold room owners don’t even sell anything; they just focus on helping other people to preserve their products and get paid for their service. You can also choose this niche.
Now imagine the necessity to store and preserve these essential perishables for sale in a country of over 200 Million people. This is certainly a huge market to explore at any point in time. To learn more about the profitability of cold room or frozen food business in Nigeria, check out our comprehensive resources on this topic.
