Wednesday, 11 April 2018

Top 7 Agriculture Business Ideas For 2018

The agriculture industry is an important industry because it addresses the three basic human needs; food, clothing, and shelter.

There are countless opportunities to invest in this industry and the demand for agricultural products is on the increase. As a matter of fact, as long as there is human population, there will always be an opportunity to practice agriculture.

Unlike other business ideas, there is a low barrier for entry to start an agriculture business idea. You won’t need

A BSc, MSc or PhDHuge amounts of money (this is relative)Years of experience (relative)

You would, however, need to

Do your market researchStart small and work your way up especially if you have little to no experience and capitalApproach agriculture as a long-term business venture

We have identified some uncommon agriculture business ideas that you can start in 2018 and we will be giving you a breakdown in this post.

It is important to note that whichever idea you pick, ensure you carry out your due diligence. Though reading our post is a great first step, due diligence exceeds reading a couple of posts and spending your life’s savings on a farm. It is carrying out a feasibility study, financial projections, and deciding how much time and money you are willing to spend on the business.

Agriculture in Nigeria: Best Agriculture Business Ideas

Some of the business ideas below are uncommon while some are common and mostly practiced.

Dairy production: dairy farming or dairy production is simply raising cows for the production of milk and other dairy products and the potential for dairy products in Nigeria is huge. Dairy products can be milk (sweetened and unsweetened), or in processed form as in baby food, powdered milk, condensed milk, butter, cheese, cream, curd, and yoghurt. Milk is also used on other products like beverages, soap, oat milk, soya milk, etc.

Let’s not forget Nigeria’s local dairy products, Wara (Cheese), Nono (sour yogurt) amongst others. It’s a huge market and you can start a business in any of these areas.

In dairy production, the cattle breed of choice is very important. Other factors you need to decide on are how to source for the cattle, where they would graze, water supply source, distribution mechanisms and how much capital you would need to get started.

2. Poultry Farming: poultry has by far the quickest turnover of any livestock production because birds mature in a 4 – 6 months period. There is a huge demand for poultry in Nigeria and this agriculture business idea is perhaps easiest to start. Because it’s easy to get started by constructing a chicken coop in your backyard, it also has high risk associated with it. To succeed in this business, know which part of the business you would be involved in upfront. Are you rearing birds for the meat (broilers) or eggs (layers)?

Also, start with a few birds and monitor their progress. This will provide you with the experience you need and greatly reduce your risks. You will be able to familiarize yourself with their growth phases, disease, treatment and prevention.

You should also consider the services of a veterinarian if you are starting especially on a large scale.

3. Production of Coconut Juice: have you noticed the new trend with coconut? There is so much talk about coconut water, milk, juice, chips, and oil. People are also using them for different things such as body oil, hair oil, and for cooking. Producing coconut juice requires low startup cost as compared to other Agric business ideas.

For this business to stand out, you need to produce quality coconut products and it starts with sourcing the right coconuts and the processing. You will also have to think of preservation, packaging, distribution, and sales.

Tip: Social media is a great way to promote this business since your target audience is already hanging there.

4. Flour Milling: a flour mill is a factory or machine that processes grain into flour. There is a huge demand for flour since it’s used in almost all the food we eat. Flour is used in cakes, bread, sausages, doughnuts, etc.

There are also different types of flour that you can mill. There is corn flour, maize flour, cassava flour, cocoyam flour, and yam flour.

One of the big benefits of flour milling business is the availability of the raw materials. You can source corn, wheat, cassava or most of the raw materials from local farmers.

Unless you are hiring extra hands, you would need to be trained on the different types of machinery used for the flour milling business. Machinery used in a flour mill include separators, sifters, and scouring rollers. If you are just getting started, you can use an open space or you can lease a warehouse for your factory.

Also, registering your flour milling business will help build your credibility with suppliers. More people would want to do buy your products because they know you are operating as a business and not just as an individual.

5. Rental of field machinery: what if you want to start a business in the agriculture industry but don’t necessarily want to be involved in planting and harvesting? You can be in the rental business instead. This business idea can be capital intensive because you will need an initial injection of cash to buy the machinery.

Asides that, you need to constantly build a relationship with farmers in your local areas and neighboring states so that you will be their first point of contact when the need for your service arises. 

6. Peanut production: peanut as earned a reputation for the best spread for bread and as high nutritional value. Many homes stock up on peanut butter because it is also economical.

When producing peanut butter, make sure you use the best ingredients and your finished product keeps for a long time.  You can also add a unique ingredient to make your peanut butter stand out and give your customers with a delicious experience.

Before producing large quantities of peanut butter, focus on earning your first sales. You can get new customers by word of mouth marketing, sending out a press release about your business, and pitching to stores in your locality.

7. Selling fruits: fruits are an important part of our diet. Fruits are rich in vitamins and help you keep a healthy lifestyle.

This business is attractive because it does not necessarily require a huge capital to start. The first and most important thing is to get an ideal location. This will depend on your target market. If you are trying to sell to individuals with a 9am resumption time, ideally, you should be set up at 8am.

Also, decide on the kinds of fruits you want to stock and how you would source them. Storage is very important to this business because no one will buy rotten fruits.

These agriculture business ideas require upfront cost (low – high) but they are profitable if you are willing to study the business and do a proper business plan before you get started.

Are you involved in any of these businesses? Please share your experience with us by sending us a tweet or reaching us on Facebook.

Do you know anyone who would like to start a business in the Agric industry? Please forward this post to them.

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