Golden Lay Limited BoP Egg Marketing & Distribution

The African Agriculture Fund (AAF) has concluded a USD24 million investment in Golden Lay Limited (GLL). GoldenLay is a leading producer of table eggs in Zambia, supplying its products to the Copperbelt, as well as to the Democratic Republic of Congo. Some 50% of GLL table eggs find their way into the DRC via traders, with the remaining bulk of local Zambian sales taking place through bottom of the pyramid (BoP) micro-business and “Ntemba” (market stall) trader channels to lower-middle income consumers.

Marketing and distribution opportunities for areas of unserved demand were identified and evaluated in the context of the GoldenLay operations structure and Zambian operating environment. The study highlighted many of the constraints experienced by Ntembas’ in the sale and distribution of eggs and provided insight and understanding into the demand and supply forces at play in the Copperbelt BoP egg market.

A key recommendation was to test the use of small distribution centres (DC’s) to enhance the company’s sales through this channel and improve the Ntembas’ businesses as opposed to the system of small truck deliveries to local markets. These recommendations were tested as part of a pilot study. This included establishing 4 Distribution Centres (DCs), each with a number of branded bicycles delivering eggs to Ntembas according to set delivery routes. The project involved on-the-ground systems development and implementation, including the implementation of a point-of-sale system at various points in the results chain. Project progress was monitored and evaluated using a constructed Results Chain and associated Measurement and Tracking plan, with a roll-out of further DCs planned and subsequently implemented.