Being an animal feed agent is one of the business models chosen by many people because the demand for supply for farms and livestock establishments across the country is extremely large. In this article, Sapo.vn will share with you about the experience of opening an animal feed agent and the important conditions and procedures required.
1. Conditions for opening an animal feed agent
Pursuant to Decree No. 39/2017/ND-CP on management of animal feed, agents trading in animal feed need to fully satisfy the following conditions:
- Business registration certificate or investment certificate or business household registration certificate issued by a competent state agency.
- Your agent needs to have sales contracts with manufacturers, suppliers
- Must have a clear, specific store, business address, sign and phone number
- There are places for sale and preservation of animal feed to ensure hygiene and quality according to the provisions of law.
- At the place of sale and in the warehouse, animal feed needs to be placed separately, away from fertilizers as well as pesticides and other toxic chemicals,…
- It is necessary to have adequate equipment to preserve animal feed in accordance with the instructions of the manufacturer and supplier.
- Animal feed products need to fully meet veterinary hygiene and safety standards as prescribed and be allowed to be circulated according to law.
2. Procedures for opening an animal feed agent
2.1 Application for registration of animal feed business
- Application for registration of household business or animal feed business
- For a 2-member limited liability company, a list of participating members is required. In addition, for joint stock companies, it is necessary to prepare a list of founding shareholders.
- Draft enterprise charter for the type of enterprise.
- A notarized copy of one of the company’s members’ papers: Identity card, valid passport, certificate of business registration or other equivalent documents.
- Application for registration of animal feed to be circulated in Vietnam
- The original or notarized copy of the contract of sale and purchase of animal feed products from the manufacturer
- Copy of one of the certificates: ISO, GMP, HACCP of the manufacturing establishment
- The test results of quality, hygiene and safety criteria according to the standards of the competent authority
- Sample label of the product certified by the supplier or importer
2.2 Registration Process
Step 1: Go to the business registration authority to submit the application
Step 2: After receiving, the competent authority will give a receipt on receipt of the application. Within 3 days, you will receive a notification of the validity and the missing documents, which need to be supplemented in the application.
Step 3: If the profile is lacking, you need to quickly add the necessary documents. If valid, after about 3 days from the date of application, you will receive a certificate of business household / business registration.
3. Factors to remember to open an animal feed agent
3.1 Market research and evaluation
Not only for feed agents, but for any business sector, it is necessary to closely research the market. Market research is not just an assessment of consumer needs but also a competitive advantage, studying what your competitors are doing and what you need to do to get customers.
During your market research, here are a few things to clarify:
- Who is your target audience? Are they small livestock households or large livestock farms?
- What brands are consumers using the most? What are their needs for these products?
- Does the location you intend to open an animal feed agent have any competitors and is there near any farms and livestock households?
Based on these questions, business owners can clearly identify the brands that they will be agents for as well as import products that suit the needs of the local people in which you will do business. In particular, this is the basis for product pricing and appropriate business plans to ensure competitiveness.
3.2 Selection of distributor
For agents, choosing the right brand and distributor to act as an agent is an extremely important factor to ensure product quality, sales ability as well as pricing policy.
There are many feed distributors on the market today. Therefore, what you need is to try to consult the market, choose a supplier that matches the criteria set out to ensure the best quality and reputation.
Choosing a reputable distributor to be an animal feed agent not only helps you ensure product quality, but also ensures your ability to support, provide knowledge and skills to support the selling process. as well as advising buyers.
However, you should also carefully consider aspects such as agency policy, sales policy and measurement and careful evaluation before accepting to be an agent for any distributor or brand.
3.3 Funding sources
Capital is an essential factor for all business activities to ensure the operation and business of the store. Please specify the amount of money you need to use for each part such as capital for goods import, capital for renting space, capital for store equipment such as shelves, management software, …
With the characteristics of relatively valuable products, business owners need to ensure enough capital to import goods in large quantities and ensure that goods are always available to maintain the store’s business.
Reserve capital is also considered as one of the important factors for the store to ensure the ability to rotate capital. Because in fact, animal feed agents are the business model with the most customers buying on credit.
Therefore, make sure you have enough spare capital to keep your store running. Normally, the amount of capital to be able to open an animal feed agent will be about VND 50-200 million.
3.4 Site search
For a specific type of business such as an animal feed dealer, a business location located near households and livestock farms with an open and spacious space is extremely important. .
Securing free space is a must for a feed dealer business. This is the basis to ensure the ability to move, find products as well as ensure safety and requirements for the store.
3.5 Selection of business products
Animal feed is divided into many types, depending on the orientation and market demand in your place of business, you can choose the right products:
- Standardized animal feed: Maize, paddy, rice, wheat, gluten of all kinds, soybean and soybean products, oil meal, dried cassava, raw materials of aquatic origin, raw materials of animal origin, mixed feed for each type of animal,…
- Animal feed without technical regulations:
- Animal feed regardless of origin: cereals, vitamins, hay,…
- Animal feed with distinction of origin: Dairy products, eggs, cereals, yeast, inorganic chemicals, organic chemicals,…
The above are important factors that business owners need to master to start working as an animal feed agent. Sapo hopes that our above sharing will help you understand the most effective animal feed business conditions, regulations and experience.