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ADEA Agrovet

AGRICULTURAL DEVELOPMENT EAST AFRICA

  • ADEA Agrovet Logo.gif

    ADEA Agrovet Logo.gif - 

    ADEA Agrovet- The Franchisee and Product

ADEA Agrovet is an agribusiness providing high-quality environmentally friendly and organic farming products in Western Kenya. We have a vetting process that ensures that we only promote agricultural products that are of good quality and are not harmful to the environment. We are operating one shop in Kakamega district in western Kenya and plan to recruit 100 small community shops to retail our products as ADEA Retails throughout the district.

Facts

Legal status business
Formally registered
Year of establishment

2007

Sales (US$)
Two years ago:
Last year: 6,000
This year (forecast): 10,000
Year 2 (forecast): 15,000
Year 3 (forecast): 20,000
Net profit after tax (US$)
Two years ago:
Last year: 1,000
This year (forecast): 2,000
Year 2 (forecast): 3,000
Year 3 (forecast): 4,000
Total number of Employees
Two years ago:
Last year: 1
This year (forecast): 2
Year 2 (forecast): 4
Year 3 (forecast): 4

Finance needed

Finance needed for fixed assets (buying of machines, buildings, ...) 30,000
Finance needed for working capital (salaries, stock, rental, leasing, transport, ...) 20,000
Total finance needed (US$) 50,000

How do you expect this to be financed?

Own Contribution in cash 10,000
Loans (debt) 40,000
Shares in your company that you offer to investors (equity)
Other sources
Total finance needed (US$) 50,000

The Business

What is your product/service?

At ADEA Agrovet, we offer farmers environmentally friendly agricultural inputs as our products. We have two product lines:
First is the Crop production products which includes seeds, fertilizers and agrochemicals, tools and implements.
Second are the Animal production products which includes Feeds and minerals, dewormers, acaricides and handling tools.

What customer need/problem do your products/services satisfy?

Our products are used as inputs in both crop and animal farming. Since most of our customers are mixed farmers, they need our products to enhance their farming activities. This is the need that we satisfy.

How will you make the product/service?

ADEA Agrovet is a retail business for agricultural inputs manufacturers. We selectively choose environmentally friendly products that we got supplied by the manufacturers. These manufacturers produce the products both locally and internationally.

Explain how you will sell your product/service (marketing strategy) and how you will reach your customers (distribution strategy)?

ADEA will sell their products through a well laid down distribution network comprising of 100 small community shops spanning accross kakamega district. For shops that sell other products, we will introduce our products as ADEA product line and for shops exclusively selling agricultural inputs, we will brand them as ADEA Retails. These shops will be learn by local community entrepreneurs.

To whom are you selling, what is your market?

ADEA is targeting both small and large scale farmers in kakamega district in western Kenya. These farmers own small pieces of land that they use to farm. In average, the farming land per farmer is about one acre where they farm both crops and rear animals. Most of my customers undertake farming for subsistence use and the little surplus they get they sell it locally to get money to finance other household activities.

Describe your competitors?

ADEA's competitors are other agrovets in the community. These are shops that sell agricultural inputs to farmers in the district. These shops mostly sell products that are on demand or popular without necessary minding about their effects on the farmers. The shops are owned by community entrepreneurs and are run by households. Most of them are informal and semi-professionally run.

What makes your business different/better than your competitors (competitive advantage)?

ADEA's competitive advantage lies in our environmentally consciousness. We a product vetting process to select the products that are harmless to the environment and even improve the soil fertility.

What makes your business, your product or service innovative?

ADEA's innovation lies in our believe. We believe that if our farmers improve their soils' fertility, they will be able to get more yield and eventually we will be able to get more business from them.
Therefore we assist farmers to improve their soil fertility through provision of environmentally friendly inputs. We believe that inputs can solve more than 75% of the soil infertility problem in Kenya.

How will you ensure the growth of your business?

ADEA is going to grow in leaps and bounds. Over one year, we have been polishing our model and now we are ready to expand. We are going to establish a distribution network of 100 community shops (ADEA Retails) that will sell our products to farmers and further our vision of sustaining agriculture in Kenya.

The Entrepreneur & Management

Describe the entrepreneur & management

AMOS KAMAU and SIMON NDUNG’U have Bachelors in Agribusiness Management from Egerton University. AMOS has both local and international experience in entrepreneurship, sales, marketing, project management, financial services and agriculture while SIMON has experience in research, farm management and extension services. Both Directors bring ten years of experience in ADEA.

What specifically makes you and (if relevant) your management team most qualified to build this business?

Our experiences makes us the best team in building ADEA. We both have experience in the Agricultural sector. Amos deals with farm inputs marketing and distribution whereas Simon is an extension officers. Both of us have extensive experience with farmers at the grassroot level as well as management experience to assist us manage the business.

How much time do/will you expect to spend per week in the business?

We have hired staff to run the day to day operations in the shop. Depending on our roles, Simon spends about 30 hours a week and Amos about 15 hours in a week.

Development

How does your business improve the local living standards (social and environmental)?

ADEA Agrovet's main objective is to improve the farmer's soils' fertility in Kenya. We believe that with soil infertility problem solved, farmers will be able to improve their farming productivity and eventually increase their incomes. This income will improve their living standards and quality of life and eventually get them out of poverty.

1 comment

ADEA

Thanks for giving us this opportunity.

Amos C Kamau, 31 May 07, 08:38
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