As they say, farming is the backbone of an economy. Thinking about it makes more sense and gets you thinking maybe the farmer is under-appreciated. Or are they?
I mean, every day we see local products going for triple or even 5X the price when it reaches the international market. Well, I understand there are expenses in between, but it doesn’t make sense to pay the local farmer peanuts.
Either way, starting an agricultural business is still a viable business in 2021. In fact, we have learned the importance of having a fresh supply of foodstuff, thanks to the corona pandemic of 2020.
See, people couldn’t move out to go shopping as they use to. Those who had a supply of fresh food from farms were smiling while the rest of us wondered when Covid-19 would end so we can go back to our normal lives.
With all these, you can easily comprehend the impact of farming on our daily lives. Besides supplying fresh food, it is also a source of income.
This begs the question; how can you scale farming activities and turn them into a source of income?
I set out to research more about this vital question, and I have compiled a list of 15 best agricultural businesses to start in 2021.
Who doesn’t love avocadoes?
It is adored both locally and internationally, making it the most lucrative agribusiness in Kenya. See, Kenya produces approximately 15K metric tonnes of avocadoes annually.
Such is enough for both the local and international markets.
If you have idle land, say one acre, you can plant at most 200 avocado trees in there, considering seedlings go for at least KES 150 each.
Once down, the fruit takes from 3 to 4 years to mature, and that is when you can start reaping. With one avocado going between 10 and 30 shillings depending on supply, grading among other factors, you can immediately see how lucrative it is.
It is no surprise dairy farming will still be profitable in 2021. Kenyans are known as avid consumers of anything dairy. In fact, milk tea is like a welcoming gift to any home.
As a farmer, expect to sell a liter of milk between KES 60 and 100. This can be even higher in some parts of the country, thanks to limited supply.
To rake in even more profits, consider processed milk. With prices ranging from KES 35 and 60 per half a liter, you can easily mint millions as a dairy farmer in Kenya.
Not to forget that the market is readily available since you can sell your products to milk factories and dairies.
Fertilizers are the foundation of farming, without it, forget about high yields or even anything at all.
Truth is, it is an untapped market and often dominated by government agencies, which scares off most people.
You shouldn’t be scared though because it is easy to get into distribution and it doesn’t require intensive capital, unlike other sectors of farming.
All you have to do is get in touch with several producers, compare their quotations, and pick one with the best price and quality product.
To make it even sweeter, consider offering delivery services for rural farmers in Kenya.
There is no doubt vegetable farming is an income earner to most farmers in Kenya. While that’s so, the secret is to research to get an understanding of what type of vegetables does well in your area, the costs of production.
Mushroom farming is the best because they take up small space, require little effort, and fetch higher prices on the market.
When you hear chicken, what comes into your mind?
Chicken consumption isn’t going to slow anytime soon, thanks to fast-food joints sprouting up daily around us.
As a business, poultry farming is perfect because you have two ways to make money from one product (chicken). You have eggs and meat.
You can start with a few birds keeping them exclusively for egg production. Considering they multiply really fast, you can reduce the size by selling others to these fast-food joints for meat.
This explains why chicken farming is popular in Kenya.
Yes, consultation is one of the agricultural businesses you can start in 2021.
Who said you have to break your back and sweat to reap as a farmer? With your experience and knowledge, you can make money as a consultant.
Here, you will be helping fellow farmers to troubleshoot their agribusinesses, offering insights into how to increase yields, and best practices.
You wouldn’t just be dealing with farmers alone, institutions or companies are seeking to participate in this lucrative industry. And with your help, you can make it easier for them to hit the ground running.
Fresh fruits farming
Fresh fruits will always be in demand, especially in urban areas where everything is either canned or refrigerated.
And there are several ways to take advantage of this raving love for fresh fruits. One, you can deal with supply only. Here, you will be sourcing fresh fruits from farmers and selling wholesale to urban vendors.
Alternatively, you can take a step further and add ‘value.’
Instead of selling just a full watermelon, start blending and selling the juice. Doing so enables you to charge premium prices, making you even more money.
Connecting rural farmers with exporters using the internet
Earlier on we touched on some challenges farmers face as far as selling their produce is concerned.
Due to a lack of proper connections with the exporters, farmers are forced to dump their products at throwaway prices to avoid losses.
If you understand one or two about the internet, you can create a connection between these farmers and exporters online.
One thing I know, most exporters struggle to get the right quality and quantity of products. You can bridge this gap and earn commissions in the process.
You can create an ‘AliExpress’ of farming, where farmers come to meet exporters.
Flour milling is easy to start.
Doesn’t need a lot of space and can fetch high-profit margins.
See, wheat flour flies out of shelves, thanks to its usefulness in the baking industry.
The secret is sourcing the product directly from the farmer, adding value, grading it, packaging, and selling.
Also, you realize that some of these grains tend to go out of season really quickly, meaning its demand is cyclical.
As such, you can start buying grains when the supply is high, thus low prices. Process them, package, and store awaiting demand to rise. Don’t be surprised to sell double or even triple the buying price.
While this is so, remember it is unethical to engage in hoarding.
Agricultural equipment leasing.
While farming is profitable, it takes a lot of effort and investments to get the results you want.
In fact, you have two options when it comes to labor; spend money or time to get the results.
Spending time means you decided to do everything by yourself, on the flip side, spending money means you either hired extra hands or machines (tools) to help with the work.
The latter is where the money is.
See, farming equipment requires a lot of finances to acquire, not to mention operating and maintaining. And considering it is something you won’t be using all through, it doesn’t make financial sense to own one.
That is where leasing comes into the picture. The farmer gets to use the tool on a need-only basis, and the owner makes money.
To start such a business, you need capital. It shouldn’t be a problem if you can pool resources with a couple of other interested individuals. Later on, you can share the proceeds.
Also Read: – HOW TO START YOUR FISH FARMING BUSINESS IN KENYA
Flowers make it into almost every part of our lives, thanks to its ability to demonstrate emotions and accurately capture feelings.
No matter what the situations, be it funerals, weddings, birthdays, or graduations, you won’t miss a bouquet.
This shows you there is a demand for flowers and you can make a lot of money selling flowers.
Additionally, flowers can be exported, fetching even more profits. But there is one problem:
Flowers are highly perishable.
As such, you need measures in place to ensure that the flowers reach the market as fresh as they should be, otherwise, your efforts will be all for nothing.
Thus, flower farming requires intensive care and a lot of capital.
Animal feed production.
Animals got to eat, be it goats, poultry, and dairy, the farmer has to always have a constant supply of feeds. But there is a problem.
Most of the feeds from the manufacturers are expensive and sometimes, of low quality. If you can do the job well, you have one of the most profitable agribusinesses in Kenya.
All you have to do is source hay, maize stalks, Lucerne, silage, and maybe bean barns. With such materials, you can feed your animals, and sell the surplus to local farmers.
On average, a bag of layer marsh goes for between KES 2500 and 3,000. On the other hand, the marsh for dairy cows fetches between KES 1,000 and 1500.
Think about it, if you can manage at least 10 bags of such animal feeds per day, you could be smiling to the bank.
Over three-quarters of Kenyans enjoy beef, with 1 in every three families taking beef daily.
As we speak, 1 kg of meat goes for at least KES 400, and don’t be surprised to come and get it all gone before 5 PM.
Bull rearing isn’t all about beef production though, there is also the aspect of artificial insemination (AI).
If your bull breeds are of high quality, such as Red Cliff, Red Torpedo, and Montreux, you can make a lot of money selling their semen.
To get it all going well, you need to pay attention to their feeds, housing structures, and that they have enough water.
Livestock house construction.
Whether it is for storing farm produce or for the animals (dairy and poultry), there is a need for proper housing.
This is a necessity.
Livestock house construction is one of the underrated agribusinesses in Kenya, which means it is less competitive.
Often, farmers prefer hiring professionals to do the job of erecting animal structures. This way they are assured of quality and durability.
If you can make a name as the best livestock house builder in Kenya, you are set.
All you need is carpentry and an eye for design.
To get started, you will need personal tools, assess the needs of each farmer, and deliver adequately.
Raw material suppliers for agro manufacturing companies.
It is easy to assume that most of these agro manufacturers are all sorted in terms of sourcing raw materials from rural areas.
But what you miss to notice is that there is always something to be filled.
Think about it, them having a supplier or a source is a good sign of the available market. If you can convince them to use you instead, you are in business.
Maize millers need maize.
It is obvious they have sources but are they quality raw materials?
That’s for you to find out.
Once done, look at what you can do differently.
Maybe offering flexible rates, having a higher quantity and reliable source, etc.
Final thoughts on agribusinesses to start in 2021
Agricultural businesses will never change.
The only thing is a shift in processes; may be due to technological advancements.
As such, you can be sure that whatever you get into will be your breadwinner for a considerable amount of time.
Also, note that it is easy to get lost in the market noise and do what everybody else is doing. To avoid this trap, focus on quality and not quantity.
If you can, have direct links with consumers (factories or markets). Doing so helps you avoid these ruthless middlemen out to fleece you dry.