AI agents for business finance: what they can and can't do
What AI agents can do in bookkeeping, close, collections and compliance today, where a person must stay in charge, and how to judge a product.
The short answer
An egg distributor buys crates from layer farms at the farm gate and resells to shops, bakers, food sellers and retailers, earning the gap between the two prices minus transport and breakages. In March 2026 Nairametrics reported farm-gate prices of about ₦5,500 a crate against ₦6,000 to ₦6,500 at retailers, so the margin per crate is small and the business is won on volume, low breakage and reliable supply.
How the egg supply chain works
Most eggs eaten in Nigeria come from layer farms that sell in crates of 30. Between the farm and the person frying an egg there are usually one or two middle steps: a distributor who collects from farms in bulk, and the shops, supermarkets, bakeries, hotels and roadside food sellers who buy from that distributor. The distributor's value is simple: farms want to sell large volumes quickly and get paid, and shops want small, regular deliveries without travelling to a farm.
Eggs also cannot be legally imported as a commercial trade: the US International Trade Administration's summary of Nigeria's import prohibition list includes eggs alongside poultry. That means the local farm is the only source, and when local supply tightens, everyone along the chain feels it.
Why supply is tight in 2026
Nairametrics reported on 29 March 2026 that a shortage of day-old chicks was the main driver of rising egg prices, citing the Poultry Association of Nigeria. Day-old chick costs had nearly doubled, from about ₦1,800 to about ₦3,300, hatcheries were booked months ahead, and some farmers could not restock until late 2026. For a distributor, this matters more than the headline price: when farms have fewer birds laying, they favour buyers who pay promptly and collect on schedule.
What the margin per crate looks like
The same Nairametrics report gave three price points for March 2026: about ₦5,500 a crate at the farm gate, ₦6,000 to ₦6,500 at retailers depending on egg size, and ₦7,000 to ₦8,500 in supermarkets and large grocers. These are national snapshots, not your local prices, and they move month to month. Ask at least three farms near you for this week's price before you plan anything.
| Price point (Mar 2026, reported) | Per crate | Who gets it |
|---|---|---|
| Farm gate | about ₦5,500 | Layer farm |
| Retail shop | ₦6,000 to ₦6,500 | Shop, kiosk, market stall |
| Supermarket | ₦7,000 to ₦8,500 | Supermarket or large grocer |
The distributor usually sells to shops somewhere between farm gate and retail, because the shop needs its own margin. That leaves a few hundred naira a crate before costs. Transport, loading, breakages and unpaid credit all come out of that gap.
Worked example: one week, 200 crates
This is an example with assumed figures. Replace every number with your own quotes.
| Item | Assumption | Amount |
|---|---|---|
| Buy 200 crates | ₦5,500 each | ₦1,100,000 |
| Breakages | 2% of crates lost (4 crates) | nil revenue on 4 crates |
| Sell 120 crates to shops | ₦5,900 each | ₦708,000 |
| Sell 76 crates to food sellers and walk-in buyers | ₦6,300 each | ₦478,800 |
| Total sales | 196 crates | ₦1,186,800 |
| Transport (one hired van round trip) | assumed | ₦35,000 |
| Loading and offloading labour | assumed | ₦8,000 |
| Profit for the week | ₦1,186,800 − ₦1,100,000 − ₦35,000 − ₦8,000 | ₦43,800 |
Two things stand out. First, ₦43,800 on ₦1.1 million of stock is about 4% for the week, so the business only works if money turns over every week or faster. Second, if breakages had been 5% instead of 2%, you would have lost six more crates, roughly ₦35,000 to ₦38,000 of revenue, and most of the week's profit with it.
Transport and breakages: where profit is lost
- Pack crates no more than the height the farm recommends, strapped so they cannot slide when the vehicle brakes.
- Avoid open pickups in midday sun; heat shortens shelf life and buyers notice dirty or sweating eggs.
- Agree with the farm what counts as a broken or cracked egg at collection, and count before you sign or pay.
- Sell cracked but intact eggs the same day to bakers or food sellers at a discount rather than letting them spoil.
- Plan routes so one trip serves several shops; a half-empty van eats the margin.
Fuel is the cost that has moved most. The NBS put the average retail petrol price at ₦1,596.25 a litre in May 2026, reported by Legit.ng, and the March egg report named fuel as one reason distribution costs had risen. Price your delivery charge or your shop price with that in mind, and check today's pump price before each quote.
Who buys, and how they pay
- Neighbourhood provision shops and kiosks: small, frequent orders, sensitive to price.
- Bakeries and confectioners: steady volume, will take cracked eggs if fresh.
- Food sellers, canteens and breakfast spots: daily need, often want delivery before 7am.
- Hotels and supermarkets: larger orders, stricter on size and cleanliness, sometimes slower to pay.
Credit is the quiet risk. Many shops expect to pay at the next delivery. Set a limit per customer, record every crate delivered and every payment, and stop supply when a balance passes your limit. A simple daily sheet is enough; our guide to bookkeeping for small businesses shows one way to set it up. If you also keep birds, see layers farming income per month for the farm side of the same chain.
What to check first
- Visit at least three farms and ask their crate price, minimum order, collection times and how they handle breakages.
- Line up five to ten buyers before your first purchase, with agreed prices and payment terms.
- Price transport for your actual route, using today's fuel price.
- Decide how much credit you can carry without running out of money to buy next week's stock.
- Register a business name if you will invoice hotels or supermarkets; the CAC's May 2025 fee schedule lists business name registration at ₦20,000.
Where Pryme fits
A Pryme Business Account lets shops pay you by bank transfer, and verifiable receipts and statements made with VerifyDoc.ai give a hotel or supermarket buyer a record they can check is unaltered. If you later open a retail shop in a supported sector, Spaces is open to Pryme Business Account holders in Lagos, Abuja and Port Harcourt.
Questions people ask
How much profit is in one crate of eggs?
It depends on your buying and selling price. With March 2026 reported prices of about ₦5,500 at the farm gate and ₦6,000 to ₦6,500 retail, a distributor selling to shops may keep a few hundred naira a crate before transport and breakages. Check local prices before planning.
How much do I need to start egg distribution in Nigeria?
Enough for one or two full weeks of stock plus transport. In our example, 200 crates at ₦5,500 each cost ₦1.1 million. You can start smaller, but transport cost per crate rises as the load falls.
Where can I buy eggs in bulk directly from farms?
From layer farms near you; ask local poultry farmer associations or visit farms directly and compare price, minimum order and collection times.
How do I reduce egg breakage during delivery?
Strap crates so they cannot slide, avoid stacking too high, drive slowly on bad roads, keep eggs out of direct sun and count breakages with the farm before you pay.
Sources
- Egg prices rise to N8,500 as chick shortage tightens supply nationwide (Nairametrics, 29 Mar 2026) · accessed Oct 2026
- Nigeria: prohibited and restricted imports (US International Trade Administration) · accessed Oct 2026
- NBS reports petrol price climbs 55.31% to N1,596/litre (Legit.ng, 24 Jun 2026) · accessed Oct 2026
- CAC New Schedule of Fees (29 May 2025) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.