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Distribution Channel: Livestock Farmers

Updated 2 yrs ago | 5 minutes

Applicable product ranges: Veterinary

Why don’t farmers buy directly from AdvaCare?

Livestock farmers are a major distribution channel for AdvaCare Pharma’s veterinary products. But what makes farmers unique amongst all distribution channels is that it is the only B2C channel. Yet like all of the other channels, livestock farmers are not the direct buyer of AdvaCare Pharma products, instead having to purchase our products from our distributors, for the following reasons:

● A single farmer does not have the demand to order large quantities of each product, meaning a farmer cannot meet our MOQ (Minimum Order Quantity) per product.

● Farmers almost certainly do not have the capacity or interest in dealing with product registration or importation, both of which are further up the supply chain, the role which our distributors fill.

● Farmers need to treat animals rapidly and therefore rely on on-demand fulfillment for the smaller quantities of a single farm/ranch.

Farmers as a B2C Channel

Livestock farmers are the only distribution channel that is B2C, yet buys directly from our distributors as well as the B2B secondary target audience of vet clinics and vet supply stores and sub-distributors.

It is important to understand this dynamic to know how to support our distributors, their customers and ultimately the farmer to grow our product market share and range.

See:

Veterinary: Livestock Farmers > Target Audience

Veterinary: Livestock Farmers > Supply Chain

Some common types of livestock farmers that our distributors supply our products to include:

TYPES OF LIVESTOCK FARMERS
BY LIVESTOCK
Mixed Livestock Farmer	This type of farming involves raising a combination of different livestock species, such as cattle, sheep, goats, poultry, or pigs, on the same farm. Mixed livestock farming allows for greater diversity in production and can provide various benefits. For example, it can help spread risk by reducing dependence on a single livestock species and offer flexibility in terms of market demand and resource utilization.
Cattle Farmers	These farmers raise cattle, such as beef cattle or dairy cows, for meat, milk, or both.
Sheep Farmers	These farmers raise sheep for meat, wool, or both. They may focus on breeds specifically bred for meat production or wool production.
Goat Farmers	These farmers raise goats for meat, milk, fiber, or as pets. Goat farming can involve various breeds and purposes, including meat goats, dairy goats, or Angora goats for mohair production.
Pig Farmers	These farmers raise pigs for meat production. They may specialize in specific pig breeds suitable for meat quality and growth rate.
Poultry Farmers	These farmers focus on raising poultry, such as chickens, turkeys, ducks, or geese, for meat or egg production. Poultry farmers can be broiler producers (meat production), egg producers (egg-laying hens), or both.
Fish Farmers (Aquaculture)	These farmers raise fish, crustaceans, or other aquatic animals in controlled environments such as ponds, tanks, or cages for commercial purposes.
Horse Breeders	These farmers breed and raise horses for various purposes, including racing, equestrian sports, recreational riding, or breeding.
BY PRACTICE
Commercial Farms	These are larger-scale farms that operate as businesses, often with significant land, infrastructure, and resources. Commercial livestock farmers focus on maximizing production and profitability. They may specialize in specific livestock sectors such as beef cattle, dairy, poultry, or pig production.
Feedlot Operators	Feedlots are facilities where cattle are concentrated and fed a high-energy diet to promote rapid weight gain before slaughter. Large-scale feedlot operators manage significant numbers of cattle in a controlled feeding environment.
Subsistence Farmers	These farmers raise livestock primarily to meet the needs of their own families or communities. Livestock provide food security, income, and agricultural diversification.
Nomadic Herders	Nomadic herders are pastoralists who move with their livestock to find grazing areas and water sources. They often keep herds of cattle, sheep, goats, or camels and rely on traditional herding practices.
Small-scale Farmers	Small-scale farmers operate relatively small farms and often have limited resources. They may raise livestock such as poultry, pigs, goats, or a few cattle for household consumption or local markets.
Agropastoralists	Agropastoralists combine both livestock rearing and crop cultivation. They integrate livestock production with crop farming to maximize productivity and sustainability.
Livestock Cooperatives	Livestock cooperatives are formed by groups of farmers who pool resources, knowledge, and market access to collectively engage in livestock production and marketing.
Contract Farmers	Large-scale livestock farmers may engage in contract farming arrangements with companies or organizations. These arrangements involve farmers contracting with larger entities for the production of livestock according to specific requirements. Contract farmers may provide land, facilities, and labor, while the contracting entity may provide inputs, technical support, and market access.

Challenges facing Livestock Farmers in Developing Countries

In estimated order of priority from most impactful challenge to least that our distributors face:

CHALLENGES OF LIVESTOCK FARMERS
Limited Veterinary Infrastructure	Developing countries may have limited veterinary infrastructure, including veterinary clinics, diagnostic facilities, and professional expertise. This can affect the availability of veterinary services and support for farmers, making it challenging for distributors to provide comprehensive solutions.
Financial Constraints	Livestock farmers often face financial constraints, which can affect their purchasing capacity and willingness to invest in veterinary products. Distributors may encounter challenges related to delayed or irregular payments, impacting cash flow and inventory management.
Limited Access to Remote Areas	Livestock farmers in developing countries are often located in remote and underserved areas. Distributors may face challenges in reaching these locations due to poor infrastructure, limited transportation options, and geographical barriers. This can result in delays and difficulties in supplying veterinary products to farmers.
Lack of Awareness and Education	Livestock farmers in developing countries may have limited awareness and understanding of proper veterinary care and products. Distributors may need to invest in education and awareness programs to help farmers understand the importance of veterinary products and their proper use.
Product Availability and Affordability	Livestock farmers require a range of veterinary products, including vaccines, dewormers, antibiotics, and nutritional supplements. Ensuring the availability and affordability of these products, particularly in remote areas, can be challenging for distributors.
Product Handling and Storage	Veterinary products require proper handling and storage to maintain their efficacy. Distributors may face challenges in ensuring that farmers handle and store the products correctly, especially in areas with limited infrastructure and knowledge on proper storage practices.
Fragmented Market	The livestock farming sector in developing countries can be fragmented, with numerous small-scale farmers operating independently. Managing relationships with a large number of farmers, each with specific needs and requirements, can be challenging for distributors.

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