Agrovet Business Plan

Agrovet Business Plan

This Agrovet Business Plan focuses the business of selling through a retail shop farm inputs like seeds, fertilizers, animal feeds, pesticides, herbicides, acaricides, knapsacks and other farm inputs directly to farmers.
The Agrovet Business has expanded since the late 90s as more people get into farming. Lately there has been an upsurge of people doing farming as a business. Such farmers whether big or small are more professional thus use as much as of the necessary inputs throughout all stages of production. This has increased the demand for farm inputs and has attracted entrepreneurs to
the Agrovet business.
Farm chemical companies have also become more aggressive in their marketing leading to the establishment of more distribution systems up to the grassroots level.

Wholesaler and Distributors
Other than being a manufacturer or retailer you can also get into the agrovet business as a wholesaler or distributor.

Companies use various distribution methods to get their products to the retailer.
In the first instance a company sells produce to a distributor, who is more of a super wholesaler. In some instances the distributor can only sell to wholesalers, while in others he can sell; to both wholesalers and retailers.
There are companies which don’t use exclusive distributors rather they sell to wholesalers who then sell to retailers.

In some instance manufactures sell directly to retailers. This is more so for the smaller companies or when introducing new products. Although farm input companies sometimes seek distributors by advertising in the public media,
often distributors are appointed by virtue of volumes and cash at hand.

The exact requirements needed to become a wholesaler or distributor will vary from company to company. There are those who ask for a security deposit of say Ksh. 1m to 5m, set minimum purchases at Kshs.500, 000 and so forth. Others will zone regions so that there are only a limited number of distributors within a certain area. There are also those who require distributors
not to touch products from rival companies.

Download Agrovet Business Plan / guide here