Online Agrovet Business In Kenya; 8 Q and A Before You Start!
Farmers Trend Online Agrovet
Farmers Trend Online Agrovet Business In Kenya focuses on the business of selling through an online retail agrovet farm inputs like seeds, fertilizers, animal feeds, pesticides, herbicides, acaricides, knapsacks and other farm inputs directly to farmers.
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 in Kenya.
Farm chemical companies have also become more aggressive in their marketing leading to the establishment of more distribution systems up to the grassroots level.
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.
1. What are the requirements on starting an agrovet in Kenya?
With rise in demand for farm inputs, many people are venturing into the agrovet business.
The shops are among the most popular in various towns enabling farmers to easily access animal feeds, drugs and pesticides.
However, experts note that while the impression is that it is easy to start and run an agrovet, the business has many demands that many people fail to meet.
The law requires that the shops be run by trained personnel.
To start an agrovet shop you need the following licenses;
a. County business permit.
This is the common permit that is needed of all businesses and is an average of 7,000 Kenyan shillings, varying from county to county.
b. Certifications from the Pest Control and Products Board.
The license fee is 1,000 for retailers and 4,000 for both wholesalers and distributors. It is issued to those dealing in pesticides and related products.
c. Certification from Kenya Plant Health Inspectorate Service (KEPHIS).
A certificate of KEPHIS is mandatory.
However, the government is not very good at following up and so many people have gotten away with having businesses run without the license.
It’s however important to be safe and get one anyway.
For a retail business, it costs KES – 1,000; for a wholesaler, KES. 5,000 and a distributor, KES. 30,000.
2. How do i set set my agrovet shop?
It is best to place your premises in areas with a need for an agrovet business so that you serve the market rather than flood the market.
The best areas are those with less or no agrovet businesses, or rather poorly managed agrovet businesses.
Apart from that, look for a premise where there is a high density of farmers. Most of the time, this is in rural towns and peri-urban areas.
As in every business, consider population, foot traffic, demography, business style, and your personal needs too like proximity to the business.
An agrovet business should not be near food premises or supermarkets simply for safety.
The products should also be protected from chemicals or pests to avoid contamination.
The movement of rodents and pests can also pose a safety risk but for rodents and their products
When setting up your agrovet business, it is important to ensure a neat and efficient display that provides a good image for the business.
Brand your shop appropriately, placing tempting products strategically in the consumer’s view.
3. How do i stock my agrovet?
When stocking an agrovet shop, strategy and research come to play.
The first part is on the identification of a wholesaler or retailer. You can save time by visiting online agrovet in Kenya via https://agrovet.farmerstrend.co.ke/
Some/so many dealers sell fake products, so it is important to find licensed dealers to avoid paying for counterfeit goods.
Compare prices too. Doing this may save you so much when it comes to the initial cost.
You do not want to get stuck with products on shelves past their expiration dates.
When choosing products for an agrovet shop, observe consumer behavior, and learn what brands are popular among them.
Also, observe the type of crops and animals kept to guide you on what to stock.
It is also smart to be stingy when stocking your shop for the first time. Buy a little of everything to give you time to slowly learn the agrovet business.
4. Who are the agrochemical suppliers in Kenya?
Animal and crop-production companies: They supply both animal and crop products.
Animal-production companies: These are companies that focus largely on animal products.
Crop production companies: Unlike animal-production companies such as Coopers, they specialize in crop products.
Animal, crop, equipment, industrial chemicals: These companies cater to all aspects of agriculture such as Brazafric.
The leading companies involved in the agrovet business are Syngenta, Coopers, Bazafric, Bayer, Osho, Twiga, Amiran, Orbit Chemicals, Farmchem, MEA fertilizers, Ultraveties, Kenya Seed companies, pannar seed, Simlaw seeds, and Regina Seeds etc…
5. How do i maximize profits running an agrovet in Kenya?
s we stated earlier, the success rate of an agrovet business is determined by how it is run.
The profits are seasonal.
They are highest during the rainy season when planters purchase products for planting and during harvesting.
Weather greatly influences the product.
Always ensure moisture and heat are in check.
Do not place some products, especially powdered products like animal feeds too close to the ground as they will cake. Also, avoid direct sunlight on your products.
6. What are the factors that might affect my agrovet business in Kenya?
Factors That Affect The Success of Agrovet Businesses in Kenya.
a. Pricing.
It is usually up to you as an owner to decide how to sell your products.
It is important, not to be too expensive to avoid scaring off customers, and not too low, to risk making losses or simply negligible profit.
Your pricing should be guided by;
Price of goods and the cost of running your business.
Competition’s prices.
Style of the business.
Location of the premises.
The average break-even point is 10 months and could even be less depending on your consumer traffic and pricing.
b. Consumer behavior.
Consumers in the agrovet business are generally very unadaptable to change.
They do not like new products so it is always important to stock products that are popular among them to avoid having items expire in your store.
c. Personnel.
Kenyan law requires that trained and registered ( by the Kenyan Veterinary board) run an aggrovet business.
The personnel should be trained in plant and animal health, not just because the law dictates that but because having licensed personnel is good for the business.
Trained personnel can understand and connect with the customers’ needs.
They don’t recommend false products at the risk of sounding ignorant to the customers.
They are also able to better advise the customers on working solutions, therefore getting better reviews, repeat customers, and a positive image.
For delicate processes such as the mixing of products and the storage of products, trained personnel will minimize any losses by simply performing these actions effectively on their first go.
7. What can influence the growth of an agrovet business in Kenya?
o survive, you need to make revenue that is enough to sustain your business.
Revenue is usually influenced by;
Economic farming and livestock activity.
Competition.
Variety.
Location.
Weather and Natural calamities.
There is always growth in agriculture.
New scientific discoveries are being made, which leads to new products and new methods.
As a business owner, you should follow these trends.
Stay in the loop to avoid being outdated and therefore stocking unmoving products or selling products that simply do not work.
There are several ways to get information on these products;
You can attend agricultural meetings, talk to farmers and other players in the agrovet business, read agricultural material and follow agricultural news.
8. What are the factors that might hinder growth of my agrovet business in Kenya?
Most aggro-vets close for these reasons;
Stocking unmoving products: – These products are usually very expensive so having idle-sitting products on your shelf can cause large losses.
Search for more profitable alternatives.
Losses.
Mismanagement of the shop.
Lack of consumers: – This could be for many reasons, for example, a bad image. In rural areas, especially, news travels fast so simply one wrong transaction could cost your entire business.