Start A Fertilizer Distribution Business - Business Ideas

Updated: September 15th, 2022
Start A Fertilizer Distribution Business

Please note that the data provided in this article are estimates and may vary depending on various factors, and should not be considered as perfect or definitive.

Fertilizer distribution is the process of distributing fertilizer to farmers. The goal of fertilizer distribution is to increase the productivity of agricultural crops.

The fertilizer market was worth $155.8 billion in 2019, according to Mordor Intelligence. The fertilizer distribution industry is expected to grow by 3.5 percent per year between 2020 and 2025 – that's good news for those looking to start a fertilizer business.

To start this type of farming business, All you need is an acre or two of land, some equipment, and a truck. And once your business is up and running, there's no limit on how much fertilizer and seed you can sell.

You should also make sure that you are selling high-quality products with great customer service so that people will continue buying from you. It is a profitable business for farmers because it allows them to sell their products at a higher rate and earn more money.

Starting a Fertilizer Distribution Business requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell fertilizer , or selling fertilizer online, you can use this page as a guide for everything you'll need to know.

Key Stats

market size
$6.3B
starting costs
$30.1K
gross margin
30%
time to build
720 days

Startup Costs

Min Startup Costs Max Startup Costs

Office Space Expenses

$0

$6,900

Employee & Freelancer Expenses

$151

$352

Business Formation Fees

$5,600

$20,400

Equipment & Supply Expenses

$63

$700

Inventory Expenses

$350

$14,750

Vehicle Expenses

$2

$10,004

Training & Education Expenses

$0

$2,000

Website Costs

$13

$215

Food Business Expenses

$25

$500

Retail Business Expenses

$0

$950

Advertising & Marketing Costs

$75

$2,486

Successful Businesses

Business URL Rank

TIMAC AGRO International

timacagro.com

1,129,305

Masterblend International

masterblend.com

1,867,067

Performance Nutrition

pnfertilizers.com

2,325,950

World Fertilizer

worldfertilizer.com

2,494,102

Drexel Chemical Company

drexchem.com

2,599,241

Providing Fertilizer Products and Solutions

kochfertilizer.com

2,944,116

Kynoch Fertilizer

kynoch.co.za

3,175,993

Graco Fertilizer Company

gracofertilizer.com

4,976,949

Howard Fertilizer

howardfertilizer.com

5,647,278

Professional Ag Distribution Inc

proagcanada.ca

6,599,502

Pros & Cons

Pros Description

Rewarding work

Starting a Fertilizer Distribution Business can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about.

Scalable

With businesses and processes changing daily, there will always be demand for new features, products and services for your business. Additionally, there are several different business models and pricing tiers you can implement that will allow you to reach all types of customers.

Meaningful business connections

You never know who you will meet as a Fertilizer Distribution Business. This could be the start of an incredible business opportunity!

High customer retention rates

Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your product or service becomes indispensable to your customer.

Pick & choose the clients you work with

Fertilizer Distribution Businesses have the ability to choose the clients they work with. You have the freedom to work with only a few loyal clients or with hundreds of clients!

Unlimited income potential

With starting a Fertilizer Distribution Business there is no cap as to how much income you can make. The stronger your business skills and the more energy/time you put into your career, the more you'll make.

Cons Description

Crowded Space

Competition is high when it comes to your Fertilizer Distribution Business, so it's important that you spend a good amount of time analyzing the market and understanding where the demand lies.

Motivation of employees

If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.

Longer Sales Process

A Fertilizer Distribution Business can be a big time and money investment for your customer, so it's important you plan and predict a longer conversion funnel and stay in communication with potential customers.

Low margins

The gross margins for your Fertilizer Distribution Business are typically around 30%, which can make it more challenging to incur new expenses and maintain profitability.

High employee turnover

In the Fertilizer Distribution Business, employee turnover is often high, which can be quite costly and time consuming for your business. It's important to try and avoid this as much as possible by offering competitive pay, benefits, and a positive work environment.

Work can be inconsistent

As a Fertilizer Distribution Business, the amount of work assigned to you and schedule tends to be more inconsistent, which may make your income less stable. It's important to set boundaries and budget accordingly based on the amount of work you plan to have.