INVESTING 101: INVESTING IN AGRIBUSINESS FARMING IN KENYA.
Agribusiness farming may seem easy. Truth is, like any other form of employment venturing into agribusiness needs a clear action plan.
One of our followers ventured into farming. He was told he would reap massively from rearing chicken and the growing demand for poultry products countrywide. After years of job searching, this seemed like a million-dollar idea.
Like most small-scale farmers, he set out with passive knowledge on chicken farming. 3 weeks after investing $1,000/KES 100,000 in buying chicks, their feeds, and building their housing; he lost all his investment.
All the chicks eventually died. So did his hope in farming.
Most Kenyan farmers acquire knowledge through apprenticeship. Inexperienced farmers take other farmers through what they ventured and succeeded in.
It’s the main reason why most farmers sell the same product.
All factors withstanding, selling the same goods affects the pricing and consumption of commodities.
Supply exceeds demand in agribusiness.
In Kenya, supply exceeds demand in agricultural produce. Farmers are forced to lower prices to meet the supply in the market.
If the market price is high, farmers who are producers increase the supply of their produce.
If the market price is low, the interest of consumers increases. The demand for the product increases.
This is the law of demand and supply.
When the price of milk goes up, consumers opt for affordable beverages to replace milk. The same applies to other agricultural produce.
How to know what to invest in agribusiness farming.
1. Research on the yield expected.
Investors who want to venture into crop farming should find out more about the cash crop.
Research on the number of harvests expected per year. The geographical location chosen should ensure multiple harvests annually.
2. Research on the risk factors.
Find out on;
- Production risks: Production risks project output levels.
- Marketing risks: Risks for finding a potential market for your product.
- Financial risks: Will the business guarantee consistent cash flow?
3. Land Attainability.
‘Do you intend to rent the land to grow your crops?’
‘Is buying the land going to cut on rent costs?’ These are some of the questions to ask before venturing into any kind of farming.
Farming Ideas to venture in.
- Tree farming.
Depending on the size of the land, tree farming can reap millions. Research on the most ideal type of tree to invest in.
2. Dairy farming.
Milk consumption among Kenyan households is high. To get more profits from dairy farming, research on the best ways to add value to milk for the marketplace.
3. Vegetable farming.
Most vegetables cost less and are easy to plant. Profitable greens to plant include Cabbages, kales, spinach, coriander, mushrooms, and cilantro.
4. Fruit farming.
As more and more Kenyans are conscious of what they eat, fruit farming is fast becoming a profitable venture. Some of the fruits that do well in the Kenyan market include oranges, pineapples, mangoes, passion, sugarcane, avocado, watermelon, and papaya.
The demand for chicken will never decrease. Poultry farming is popular as it offers both meat and eggs.
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