sample business plan pdf agrovet shop

How to Start an Agrovet Business in Kenya

With the increase in agricultural farming in Kenya, an agrovet business in an excellent idea . The lack of white-collar jobs has made many people start to livestock farming , creating a demand for livestock products. Nevertheless, starting an agrovet business in Kenya is not a walk in the park. It requires hard work and uniqueness. 

Carry Out a Market Research

To succeed in the agrovet business , you need to understand the market. Market research will help you to know the risks in the market and get ready for them. You will also know your competitors and how you can beat them.

It will also help you to discover new opportunities , products and services you can provide in the market. Ultimately, you will know whether the venture is viable in the locality you wish to start one.

Design an Agrovet Business Plan

The first step for those wishing to start an agrovet business in Kenya is to design a business plan. A good business plan should capture startup costs, in demand agrovet products in Kenya, business location, competition, advertising, market share, strengths and weaknesses, risks and cash flow projections. Having an agrovet business plan is essential to keep track of business goals and ensure financial discipline. 

Locate an Excellent Agrovet Business Location

Business location is an essential factor to excel in the agrovet business. Agrovets thrive well near agricultural farms. You need to consider the competition in the area. It is not a wise decision to start an agrovet in an area with many other agrovets. An excellent business location for an agrovet should be:

• Accessible by on foot customers
• Secure with adequate storage space for agrovet products
• Near agricultural farms
• Well ventilated and with adequate water supply

Obtain the Necessary Agrovet Business Permits and Licences

To run a legal and successful agrovet business in Kenya, you need to ensure that your business complies with all the set standards. You need the following business licences to run any the venture in Kenya.

1. Kenya Plant Health Inspectorate Service (KEPHIS) Certificate

The KEPHIS certificate is essential to ensure that customers have confidence in your products. The certificate is issued only to businesses that sell approved products by KEPHIS.

The government is not keen on checking for the certificate, but it is essential since some of your customers may need assurance that you are selling approved products. Display the certificate in a place where customers can see it. For wholesalers, it costs Ksh 3,000 and Ksh 1,000 for agrovet retailers.

2. Pest Control and Products Board Certificate

Since you will be dealing with pest control products, you need to get a certificate from the pest control and products board. For retailers, it costs Ksh 1,000 and Ksh 4,000 for wholesalers and distributors. 

3. County Government Business Permit

You need to get a single business permit from the county government. It is mandatory for all businesses. The prices vary from one county to the other. However, the cost of a business permit is around Ksh 10,000 every year.  

Identify Agrovet Products to Sell in Your Agrovet Business

You might be wondering what to sell in your agrovet business. Agrovets sell a wide variety of products that can be used on livestock, farms and pests. Among the agrovet products to sell include: animal feeds , pests and sprays, pumps, supplements, fertilizers and agrochemicals.

Identify Reliable Agrovet Products Suppliers

Make sure to source agrovet products from reliable suppliers approved by KEPHIS. The following are some agrochemical suppliers in Kenya.

• Animal and crop-production suppliers . They supply crop and animal products.
• Animal production suppliers . They only supply animal products.
• Crop production suppliers . They only deal with crop production supplies.
• Animal, crop, equipment and industrial chemicals . They deal with a wide range of agricultural products.

Advertise Your Agrovet Business

It is essential to advertise and promote your business. You need to make potential customers know about the existence of your business and services and products you are providing. You can use posters, business cards for advertisement.

Furthermore, you also need social media presence and if you can, a website would be best for your agrovet business. Always indicate the contact details of your business and respond to customer questions immediately.

Read also: How we started animal feeds supplies store.  

Hire Professionals

You need to hire staffs that are knowledgeable about agricultural products. Also, they need to know how to handle chemicals. Sometimes customers without knowledge about agrochemicals will come asking for your help. You need to advise them appropriately. Therefore, being knowledgeable about agrochemicals will be a big plus for your business from most of your competitors.

How Much Do I Need to Start an Agrovet Business?

The cost of starting an agrovet in Kenya depends on the size of business you want to start and the location. For instance, starting an agrovet in town is expensive compared to rural areas. You need about Ksh 500,000 to start a small agrovet business in Kenya and grow it with time.

Is Agrovet Business Profitable in Kenya?

Yes. With an excellent business location and customer service, the business can generate revenue of about Ksh 200,000 every month. Make sure to source products from reputable suppliers and have proper storage of products to prevent losses. For instance, some fertilizers should not be kept in direct sunlight since they are volatile.

Identify the Best Agrovet Products in Kenya and their Suppliers

Getting the best suppliers and distributors is a great deal for your agrovet business. You will get high-quality agrovet products at lower prices. This will give you an opportunity to sell products to your customers at relatively lower prices in the market and keep them coming back.

You can source agrovet products from the following companies.

• Kenya seed company
• Simlaw seeds
• MEA fertilizers
• Regina seeds
• Orbit chemicals
• Nairobi veterinary center
• Organix Limited
• Ultraveties
• Pannar seeds

For business consultancy, strategic planning, organizational development, market research, financial management & accounting, risk management and business plan writing at an affordable fee, please reach out to us through a phone call 0728 621 138 or WhatsApp , or email: [email protected]

Tips to Succeed in the Agrovet Business

During the planting seasons, there is a higher demand for agrovet products. Make sure that during such peaks, you have enough stock like seeds and fertilizers. Understand the products that are in demand during peaks and stock them early before suppliers can inflate the prices.

Offering affordable prices is an excellent way to keep your customers coming back. Understand the prices at which your competitors are selling their products. If you can offer slightly lower prices than those of your competitors, you are sure to get more customers.

Starting an agrovet business requires a lot of hard work, skills and knowledge and  quality customer care. To succeed in this business, make sure to order supplies from suppliers in small quantities when you are starting. This will help you understand the market and reach more customers without incurring losses. With time and demand, you can scale up your stock.

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How to start Agrovet Business in Kenya – Licensing Requirements

• October 2, 2020
• Posted by: simba001
• Categories: Agrovet Business in Kenya, General

Running an Agrovet business in Kenya is one of the best opportunities that an entrepreneur can pursue. 

It can be argued that as more young people shift towards white collar jobs and move to urban centers, farming and animal keeping should be diminishing. On the contrary, we can now see more specialized farming and a skillful approach towards agriculture with an overall goal of maximizing yields.

This implies that an Agrovet business in Kenya is one of the best opportunities that an entrepreneur can pursue in Kenya. Farmers are starting to appreciate scientific approach to agriculture and thus providing a ready market for agro products.

Farm chemical companies are also doing a better job at marketing their manufactured products making it easier for retailers to resell even to areas where selling these products would otherwise be difficult.

In order to successfully start an agrovet business in Kenya, it’s important to consider the legal and licensing requirements.

To start and operate an agrovet business in Kenya you need the following licenses;

County business permit.

This is a mandatory permit that is needed of all types of businesses and is an average of 7,000 Kenyan shillings, varying from county to county.

Certifications from the Pest Control and Products Board.

This license is issued to agrovets that deal in pesticides and other related products.

The license fee is 1,000 for retailers and 4,000 for both wholesalers and distributors; payable annually.

Certification from Kenya Plant Health Inspectorate Service (KEPHIS).

KEPHIS issues certificates to agrovet businesses that indicates the agrovet is offering genuine and certified products like seeds, fertilizers etc..

For a retail business, it costs KES – 1,000; for a  wholesaler, KES. 5,000 and a distributor

Although many small agrovets ignore this license, it is nevertheless important to always stay on the right side of the law to avoid heavy penalties.

Check out the series on Running an Agrovet Business in Kenya and also learn more about how a POS System can help you run & grow your business

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Luvisia Digital

Business Plan: Agrovet Shop in Kenya 2024

Luvisia Digital offers guidance for aspiring agrovet shop owners in Kenya. With a focus on high-quality products and innovative digital solutions, the mission is to empower farmers and achieve sustainable growth. The business goals include establishing a prominent market presence and fostering long-term farmer relationships. A comprehensive financial breakdown and risk analysis are also provided.

Dreaming of starting your own agrovet shop in Kenya? Luvisia Digital will guide you through every step, from understanding the market to building a profitable venture. But remember, a plan is just a starting point. Before diving in, research existing businesses and connect with experienced farmers. Their insights will be invaluable for navigating the Kenyan agricultural landscape.

Business Plan

Executive summary.

The agrovet shop should empower Kenyan farmers with a one-stop shop for all their agricultural needs. It should offer high-quality products, expert advice, and innovative digital solutions to enhance their practices and achieve sustainable growth. The target market includes small and large-scale farmers, livestock keepers, and gardening enthusiasts. The agrovet shop should differentiate itself through a unique blend of personalized services, cutting-edge digital tools, and a commitment to quality.

Mission Statement

To empower Kenyan farmers with accessible, affordable, and innovative agrovet solutions, fostering a future of sustainable agricultural prosperity.

Business Goals

• Establish a prominent presence in the local agrovet market.
• Generate over Ksh 450k profit for the first one year.
• Provide personalized and digitized agricultural services.
• Foster long-term relationships with farmers and stakeholders.

Company Description

The agrovet shop can operate as a sole proprietorship or as a limited company. It is supposed to be more than just a store; it is also a knowledge hub dedicated to supporting Kenyan farmers. With experienced staff, we offer a holistic approach to agriculture, combining traditional products with cutting-edge digital solutions.

Market Analysis

Industry Overview: The Kenyan agrovet sector is experiencing significant growth, driven by rising demand for quality inputs and advisory services. This presents a fantastic opportunity for your agrovet shop.

Target Market: The shop should cater to a diverse clientele, including small and large-scale farmers, livestock keepers, and urban or peri-urban gardening enthusiasts.

Competitive Analysis: While competition exists, the shop should stand out through:

• Digital Integration: We provide innovative digital farm management solutions.
• Personalized Services: Our knowledgeable staff offers tailored advice for your specific needs.
• Quality Products: We stock only the best supplies to ensure optimal farm performance.
• Animal feed and nutrition consultations
• Veterinary medicines and health products
• Digital farm management solutions
• Essential farm equipment and tools

Marketing Strategy

• Online Presence: Establish a user-friendly website and engage with your audience on social media.
• Content Marketing: Share valuable agricultural insights through blog posts and social media content.
• Strategic Partnerships: Collaborate with local agricultural organizations and influencers to reach a wider audience.
• Promotional Offers: Attract customers with loyalty programs and special deals.

Sales Strategy

• Direct Sales: The knowledgeable staff will provide personalized service and expert advice in-store.
• Online Sales: Plan to establish an e-commerce platform for convenient online shopping.

Start-up Budget Allocation

• Marketing and Advertising: 20% (Kes 60,000)
• Permits and Legal Requirements: 15% (Kes 45,000)
• Operating Costs (3 Months): 40% (Kes 120,000)
• Contingency: 25% (Kes 75,000)

List of products you can sell in your agrovet shop in Kenya:

• Animal Feed: There is a high demand for quality animal feed in Kenya, as livestock keeping is a major agricultural activity. You can stock a variety of feeds for different animals, including poultry feed, cattle feed, goat feed, and sheep feed.
• Veterinary Medicines and Health Products: Farmers need to keep their animals healthy to ensure good productivity. You can sell a range of veterinary medicines, including dewormers, antibiotics, and vaccines. You can also stock animal health products such as shampoos, dips, and wound dressings.
• Farm Equipment and Tools: Farmers need a variety of equipment and tools to carry out their work. You can sell essential items such as hoes, machetes, forks, spades, rakes, and watering cans. You can also stock more specialized equipment such as milking machines, poultry feeders, and incubators.
• Seeds: A good selection of seeds is essential for any agrovet shop. You can stock seeds for a variety of crops, including maize, beans, wheat, vegetables, and fruits. Be sure to choose seeds that are suitable for the local climate and growing conditions.
• Fertilizers and Pesticides: Fertilizers can help improve crop yields, while pesticides can protect crops from pests and diseases. You can sell a variety of fertilizers and pesticides to suit the needs of local farmers. Be sure to advise farmers on how to use these products safely and effectively.
• Fishing Supplies: If your shop is located in an area near a lake or river, you can stock a selection of fishing supplies. This could include fishing hooks, lines, sinkers, rods, reels, and bait.
• Gardening Supplies: There is a growing interest in urban and peri-urban agriculture in Kenya. You can cater to this market by selling gardening supplies such as pots, potting mix, seeds, seedlings, fertilizers, and pesticides.

Capital Breakdown

• Veterinary Medicines (Kes 50,000)
• Animal Feed (Kes 70,000)
• Farm Equipment (Kes 30,000)
• Digital Solutions (Kes 20,000)
• Permits and Licenses (Kes 15,000)
• Contingency (Kes 65,000)

Financial Projections (First Year)

Revenue Projection

• Months 1-3: Kes 150,000
• Months 4-6: Kes 300,000
• Months 7-12: Kes 600,000

Expense Projections

• Equipment: Kes 30,000 (This includes essential items like shelves, storage containers, weighing scales, etc.)
• Marketing: Kes 50,000 (This covers initial website development, social media marketing campaigns, and promotional materials)
• Permits and Licenses: Kes 15,000 (This may vary depending on your location and specific permits required)
• Operating Costs (3 Months): Kes 100,000 (This includes rent, utilities, salaries, and other ongoing operational expenses)
• Contingency: Kes 55,000 (This buffer allows you to address unexpected costs)

Risk Analysis

• Market fluctuations: We will mitigate this by offering a diverse product range, staying informed about market trends, and adapting our inventory accordingly.
• Regulatory changes: We will ensure compliance with all relevant regulations by working with a qualified legal professional.
• Operational challenges: We will develop a strong business continuity plan to address unforeseen circumstances and maintain smooth operations.

Luvisia Digital envisions a future where Kenyan agriculture thrives with the support of innovative and accessible agrovet solutions. With a well-defined plan, a commitment to quality, and a dedication to serving the needs of Kenyan farmers, your agrovet shop has the potential to become a cornerstone of your community’s agricultural success story.

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agrovet business plan

Introduction:

Agrovet is a proposed agribusiness company that will focus on providing a comprehensive range of products and services to farmers, ranchers and other agriculture-related businesses. The company aims to become a one-stop-shop for all agricultural needs, by offering quality animal health products, feed additives, and other agro-allied services. The company will target small, medium and large-scale farmers and other agribusinesses in rural and urban areas, who need reliable and cost-effective solutions for their agricultural operations.

Market Analysis:

The global agribusiness market is projected to reach $5.98 trillion by 2022, driven by the increasing demand for food and animal-based products, coupled with the growing population and urbanization. In emerging economies, the market is expected to grow rapidly due to the increasing awareness of the benefits of modern agriculture, as well as government initiatives aimed at promoting the agriculture sector.

In the specific market segment that Agrovet will target, there is a growing demand for animal health products and feed additives, which are essential for the growth, production and overall health of livestock. In addition, there is a growing demand for other agro-allied services such as veterinary services, agronomy advice and technical support, which are critical for the success of agriculture-related businesses.

Target Market:

Agrovet will target small, medium and large-scale farmers, ranchers and other agribusinesses in rural and urban areas. The target market will consist of:

• Livestock farmers, who will be interested in buying animal health products and feed additives to improve the health and productivity of their livestock.
• Crop farmers, who will be interested in buying agro-inputs and other products to improve their crop yield and quality.
• Agribusinesses, such as feed mills, hatcheries and poultry processors, who will be interested in buying animal health products and feed additives in bulk for their operations.
• Individual consumers, who will be interested in buying animal health products and other agro-allied services for their personal use.

Product/Service Offerings:

Agrovet will offer a comprehensive range of products and services to its customers, including:

• Animal health products, such as vaccines, dewormers, antibiotics, and other pharmaceutical products to improve the health and productivity of livestock.
• Feed additives, such as amino acids, vitamins, minerals, and other nutritional supplements to improve the quality and composition of animal feed.
• Agro-inputs, such as seeds, fertilizers, and pesticides, to improve crop yield and quality.
• Agricultural equipment and machinery, such as tractors, plows, and harvesters, to improve the efficiency of agricultural operations.
• Veterinary services, such as veterinary consultations, diagnostics, and treatments, to support the health and well-being of livestock.
• Agronomy advice and technical support, such as soil analysis, crop management advice, and extension services, to support farmers in making informed decisions about their agricultural operations.

Marketing Strategy:

Agrovet will use a multi-channel marketing strategy to reach its target market, including:

• Direct marketing, such as face-to-face sales, trade shows, and exhibitions, to reach potential customers in rural and urban areas.
• Digital marketing, such as website development, email marketing, and social media marketing, to reach potential customers online.
• Public relations, such as media releases, customer

Free Agriculture Sample Business Plan PDF + How to Write

Elon Glucklich

6 min. read

Updated February 7, 2024

Free Download:  Agriculture Business Plan Template

As a farmer, you’re in the business of putting food on the table. Agriculture is one of the world’s oldest professions.

Today it accounts for over 5% of U.S. Gross Domestic Product, and 1 in 10 American workers are in agriculture, food, and related industries.

But starting a new agriculture business requires intensive planning and upfront preparation. If you’re looking for a free, downloadable agriculture sample business plan PDF to help you create a business plan of your own, look no further.

Keep in mind that you don’t need to find a sample business plan that exactly matches your farm. Whether you’re launching a larger agricultural business outside a bustling city or a smaller organic operation, the details will be different, but the foundation of the plan will be the same. 

Are you writing a business plan for your farm because you’re seeking a loan? Is your primary concern outlining a clear path for sales growth? Either way, you’re going to want to edit and customize it so it fits your particular farm. 

No two agriculture farming businesses are alike.

For example, your strategy will be very different if you’re a dairy operation instead of a soybean farm. So take the time to create your own financial forecasts and do enough market research for your specific type of agriculture so you have a solid plan for success. 

• What should you include in an agriculture farm business plan?

Your agriculture business plan doesn’t need to be hundreds of pages—keep it as short and focused as you can. You’ll probably want to include each of these sections: 

1. Executive summary

An overview of your agriculture business, with a brief description of your products or services, your legal structure, and a snapshot of your future plans. While it’s the first part of the plan, it’s often easier to write your executive summary last.

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2. Business summary and funding needs

Details about your farming operation, including how much capital you will need and the types of funding you’re considering. Include your business history, your current state, and your future projections. It should also cover your business location, the equipment and facilities needed, and the kinds of crops or livestock you plan to raise.

3. Products and services

Provide details on the types of crops, farming methods, and any value-added products you plan to offer, such as finished goods or even  agritourism offerings .

4. Marketing plan

Compile your market research findings, including the demand for your products or services, your target customers , and your competitors. It should also outline your marketing strategy—how you plan to attract and retain customers. 

5. Financial plan

Your revenue projections, cost estimates, and break-even analysis. Your financial plan and forecasts should demonstrate that your business has a path to profitability.

• Building on your farm business plan sample

With a free agriculture business plan template as your starting point, you can start chipping away at the unique elements of your business plan.

As the business owner, only you can speak to aspects of your agriculture operation like your mission and core values.

You’re putting in the long hours to start a thriving farm business, so aspects of your mission – like a commitment to sustainable farming practices – will be best explained in your own words. Authenticity will help you connect with a growing market of consumers who value transparency and environmental stewardship in their food sources.

As for more conventional aspects of business planning , you will want to take on things like your marketing and financial plans one at a time. Here are a few specific areas to focus on when writing your business plan.

Invest time in market research

Starting an agriculture operation requires significant startup costs. When you throw in the unique land use considerations involved, it’s crucial to conduct thorough market research before investing hundreds of thousands – or even millions – of dollars into a farm business.

Start by researching the types of farms operating in your locality and wider region, and the specific crops or livestock they specialize in. You will need to understand seasonal trends, including crop yields and livestock productivity.

Note the demographics of the local community to understand their buying habits and preference for local produce. Also, be aware of the competitive landscape and how your farm can differentiate itself from others. All of this information will inform your service, pricing, marketing, and partnership strategy.

From there, you can outline how you plan to reach your target market and promote your farm’s offerings.

Craft your agriculture go-to-market strategy

One of the things that makes an agriculture farm business plan different from some service-based business plans is that you might decide to work only with one or two businesses that purchase your goods.  

You may offer different tiers of products to different types of buyers, such as produce for an organic farmers market, and corn for another farm’s animal feed. If that’s the case, make sure you include ideas like setting aside land for organic growth and maintenance.

Discuss your advertising and promotional strategies, emphasizing channels relevant to your target market. Also, consider how partnerships with local businesses, farmers’ markets, and other industry stakeholders can enhance your visibility.

Include your pricing strategy and any special promotions or loyalty programs. Also, consider public relations and media outreach efforts that can raise awareness about your farm and its sustainable practices.

Prepare for unique farming challenges

Running an agricultural business comes with its own set of challenges, including weather-related disruptions and market volatility. Your business plan should identify these potential risks and present contingency plans to address them.

Include a plan to mitigate weather-related risks, such as crop diversification, employing weather-resistant farming practices, investing in appropriate infrastructure like greenhouses or drainage systems, or taking out insurance to cover weather-related losses.

Detail the operational aspects of your business , including land ownership, employee status, farm maintenance, and safety requirements. Also, illustrate your strategies for managing crop production, livestock care, land stewardship, and regulatory compliance.

Plan for the future

Contingency planning is important in all businesses.

But the unique challenges in agriculture of changing market dynamics, regulatory changes, and climate impacts make it especially necessary to plan for the future. Detail how you’ll measure success, and how you will be prepared to adapt your offerings if you need to change the focus of the business due to factors outside your control.

Also, be ready to discuss opportunities for scaling your business over time, such as introducing new crops, expanding farm operations, or opening additional locations.

• Get started with your farm business plan sample

There are obviously plenty of reasons farm owners can benefit from writing a business plan — for example, you’ll need one if you’re seeking a loan or investment. Even if you’re not seeking funding, the process of thinking through every aspect of your business will help you make sure you’re not overlooking anything critical as you grow.

Download this  agriculture farm sample business plan PDF  for free right now, or visit  Bplans’ gallery of more than 550 sample business plans  if you’re looking for more options.

Elon is a marketing specialist at Palo Alto Software, working with consultants, accountants, business instructors and others who use LivePlan at scale. He has a bachelor's degree in journalism and an MBA from the University of Oregon.

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