There’s no doubt that agribusiness is a profitable enterprise considering the fact that the world’s population is increasing at a faster rate. This means that demand for agricultural products is certainly guaranteed yet land remains fixed, giving an opportunity to those with it to make clean money.
In this article, Business Focus brings to you 22 agribusiness ideas that are profitable and with ready market. These ideas are highly recommended by Uganda Investment Authority (UIA) to potential investors. Read on!
This business idea is aimed at setting up a Chicken Hatchery. It is premised on hatching eggs for layers and broilers for both local and hybrid birds. The business will be hatching 38,000 chicks per month, which translates into 456,000 chicks per year.
The revenue potential is estimated at US$ 45,805 per month, which translates into US$ 549,657 per year. The business has a good market demand throughout the year and can provide employment to youth and women. The project initial total cost is US$ 19,500 with a net profit margin of 88% with a payback period of 3 years and 5 months.
BEE KEEPING (APICULTURE)
This business idea is for keeping bees for production of honey and bee wax. The Revenue potential is estimated at US$ 10,400 per year with the project cost of US$ 7,345 and a profit margin of 73%. The expected payback period is 7 month.
There is high demand for honey for home consumption, pharmaceutical use in making drugs and in most instances it has replaced the sugar intake among people with health complications.
This business idea is for rearing pigs aimed at production and sale of 360 pigs annually. The revenue potential is estimated at US $ 86,850 per year with a profit margin of 75%. The total capital investment for the project is US $ 11,900 and the payback period is almost 5 months. The business risk involved in this idea is the high rate of infection, which spreads quickly among the animals. However, this can be mitigated by increasing the animal’s resistance e.g. by improving the quality of feeds.
The structure of the pig market is wide throughout the year in butcheries as pork is popular among the public. There are several pork joints in the city and upcountry making demand for pork high.
Cornflakes are one of the most consumed breakfast cereals on account of their taste and nutritional value. They have a high market potential as they are consumed by adults, youth and children. This business idea aims at the production of 700 kilograms of cornflakes a day. The revenue potential is estimated at $ 436,800, annually, at a sales margin of 75% with an initial capital investment cost of $ 30,543. The payback period is about 7 months.
Grains are agricultural products that have a very high demand in the country. They usually include: Simsim, ground nuts, soy beans, maize, popcorns, beans and cow peas.
The project idea is based on adding value by packaging good quality grains and selling them at relatively low prices. The project expects to package 72,000 kgs of assorted grains per annum. Initial investment costs are estimated at US$20,370 generating revenue of US$92,695 at a net profit margin of 43% and payback period of approximately 2 years.
MAKING INSTANT COFFEE POWDER
Coffee is a household crop in Uganda and a major foreign exchange earner. It is widely produced and many Ugandans take it as a beverage, and world over it is a cherished drink. The demand for coffee as a beverage is on the rise locally and any venture in its production and distribution is viable as it involves adding value to the coffee beans.
This project involves milling coffee beans into desired powder and sold over the counter to a waiting customer. The project requires an estimated fixed capital of US$ 5,300, operating costs of US$ 64,841 generating revenue of US$ 116,064 in the first year of operation. The payback period is 5 months.
MAKING BANANA WAFERS
Banana Wafers are a popular snack eaten world over. They are made by cutting bananas into thin slices. This project uses the banana variety commonly known as Matooke in Uganda and is readily available. Wafers can simply be eaten directly or as desserts and puddings. It is a cross cutting venture as it can be undertaken in both rural and urban settings. The project initial cost is US$ 1,318 producing 46,800kgs of banana wafers per year giving an estimated revenue of US$ 35,100 annually with a profit margin of 475 and a payback period of about 4 month.
ICE CREAM MAKING
Ice cream is a frozen dessert usually made from dairy products such as milk and cream, which are often combined with other ingredients and flavours. Most varieties contain sugar although some are made with other sweeteners. Alternatively, it can be made from milk from soya, rice and goat for those who are lactose intolerant or allergic to dairy products and would like to avoid them. The production capacity is 38,376kg per year yielding revenue of US $107,453per annum from an investment with an initial cost of US $26,600. The project net profit margin is 45% with a payback period of 2 years and 5 months.
ANIMAL FEED PLANT
Animal feed plant is a place where their feeds are made. The need for balanced animal feeds forms an essential part of the intensive diary development programme.
What is proposed here, is the setting up of an animal feed manufacturing plant using local products like maize, millet and wheat. The business idea aims at the production of 93,600 kgs of animal feeds per year.
The revenue potential is estimated at US$ 121,680 annually, while the initial capital investment required is US$7,150. The payback pay period for this project is approximately 6 months with a net profit margin of 50%.
With agricultural modernization and diversification, there is a good future and solid potential for growth. Thus, market for animal feeds is guaranteed except the need for sensitization of the local population on the benefits of using animal feed visa vie natural grass and plants.
Dog breeding is the practice of mating selected specimens with the intent to maintain or produce specific qualities and characteristics. The German shepherd, from Germany was originally bred for herding and guarding sheep. Its origins date back to the 700’s. The German shepherd Dog is also known by the other names of Alsatian and Deutscher Schaferhund. The advent of the two World Wars influenced the history of this dog.
Production Capacity This farm will be capable of producing 50 dogs in a period of six months.
The Fixed Capital Investment required to start this project is US$ 43,048, the revenue potential is estimated at US$ 218,400 with the net profit margin of 28%. The payback period of this project is 2 years.
There is a high demand for German shepherd Dogs especially in schools, households, farms, and industries among others. However, they may also be exported.
COFFEE CAFFEINE PROCESSING PLANT
Caffeine is a drug that is naturally produced in the leaves and seeds of many plants. Coffee is quite popular as a leisure drink, and the ingredients of coffee include: caffeine, aroma, protein, tannic acid and fat etc.
The references show a small amount of caffeine can stimulate the brain and enhance memory while if caffeine is drunk too much, then it may trigger high blood pressure, kidney and coronary artery diseases, which are negative effects.
It is projected that this plant will produce 1 ton (1,000kgs) of Caffeine powder per day. The production cost is estimated at USD 300,886, generating revenue potential of USD 655,200 per annum and a net profit margin of 54%.
Dairy farming is a class of agricultural, or animal husbandry enterprise, for long-term production of milk, usually from dairy cows but also from goats and sheep, which may be either processed on-site or transported to a dairy factory for processing and eventual retail sale.
It is a lucrative business, which can fetch big profits due to the increasing and ready market for dairy products.
The production capacity is based on the quality and number of animals raised on the farm. However, for 5 Friesian Cows, 100ltrs of milk will be produced as each Dairy Animal is capable of producing 20 Litres of milk per day.
This project will be operated locally on small scale, i.e. 5 Friesian Cows operated on 5 acres of land. The Fixed Capital Investment required to start this project is approximately US$ 73,521, generating a revenue potential of USD 374,400 per annum. The net profit margin is 6% with a payback period of 2 years.
There is a high demand for dairy products in Urban Centers of Uganda especially in schools, hospitals, households, and Dairy processing industry. However, they may also be exported.
FRUIT JUICE CANNING
Fruit Juice Canning is a method of preserving fruit juice sealed in an airtight container, which prevents microorganisms from entering and proliferating inside. The products may include: Canned fruit cocktail consisting of a mixture of fruits, such as; mangoes, tangerine, lemons, apples, and passion fruits. There is an increasing demand for canned fruits as they can be sold in both local and foreign markets.
It is projected that at least 100 Dozens of 300m litres (1,400 ltrs) of canned juice can be produced a day.
The demand for canned juice is very high in super markets, hotels and for export. Foreign markets will constitute about 80% of the total market size.
The importance of Vermi-compost, which is eco-friendly, has increased in recent years, as it is chemical free manure. The increase in the demand for fertilizers has also inadvertently led to the increase in demand for vermi-compost. The business risk is that some worms can easily die and some organic waste can be harmful to the soil texture, however, this can mitigated by applying Vermicomposting technology. It costs US$ 3,680 with estimated revenue of US$ 11,482, with net profit margin of 8%. The payback period is 3 years.
MAKING POWDER MILK
This business idea is for the production and marketing of powder milk. The business idea is premised on the production of 52,000 kg of powder milk per month, which translates into 624,000 kg per year. The revenue potential is estimated at US$ 208,000 per month, which translates into US$ 2,496,000 per year. The project cost is US$ 82,373 and the payback period of this project is 2 months.
This business idea is for the production and marketing of biscuits. Biscuits are confectionary products and they refer to small thin products of varying shapes, tastes that are of soft brittle texture.
They are referred to by different names in different countries. The revenue is estimated at US$1,404,000 per year. The payback period is really short i.e. 2 months and net profit for this investment is 92%.
ESSENTIAL OIL PRODUCTION
This project is for extraction of oil from various oil bearing plants and grasses such as: Eucalyptus, cinnamon ginger, lemons neto etc. Essential oil is highly volatile and is essentially carried away by steam without undergoing decomposition. Essential oils are produced for use in medicine and perfume manufacture, and for other industrial purposes.
The project requires an estimated fixed capital of US$ 28,700 and operating costs of US$ 288,803 generating TR of US$ 505,440 in the first year of operation.
LOCAL HENS FOR EGGS
This business idea is for rearing of local hens for production of eggs. A hen is a domestic fowl bred for eggs or meat. This business idea is viable because you can get eggs, meat, hatch more chicks, which can also be sold at your wish. The business risk involved is diseases like coccidiosis; the solution is proper management and control of the business.
This business idea aims at production of 30,000 trays of eggs annually and 3,000 off layers per year. The revenue potential is estimated at US $ 135,000 annually. The initial capital investment cost for the project is US $ 995. The first three months demand a lot of investment yet returns are not realized. This idea needs a lot of patience.
SIMSIM AND GROUND NUT PASTE
Groundnuts paste is made from grounding fried groundnuts into a paste. The paste is used as a sauce stew to accompany food. It is many times mixed with other sauce or mixed directly into food. It makes soup heavy, and tastes nice. It may also be used or pasted on bread and be used instead of butter. This proposal will produce a safe product using stainless steel machinery unlike the present products produced using cast-iron equipment, which end up laced with materials likely to cause cancer to those eating it. About 250 to 350 kgs of groundnuts can be processed daily. An investment capital of US$2,768 would sufficiently start up this project. The project is estimated to generate annual revenue of US$327,600 with a net profit of 28%.
GROWING WATER MELONS
This business idea is aimed at growing and marketing of watermelons. The idea is premised on harvesting 12,000 watermelons per quarter which translates into 48,000 watermelons per year. The revenue potential is estimated at USD 7,200 per quarter, which translates into US$ 28,800 per year. The business has a good market demand throughout the year and can provide employment to the youths and women. The Project cost is about US$ 135, with a net profit margin of 84%.
MAKING TOMATO SAUCE & PASTE
Tomatoes are used for various culinary preparations and are known to improve taste in sauce or salads. They are widely grown in almost all the areas of Uganda. Therefore, they have a high demand throughout the year.
This business idea is premised on production of 30,004 tons per month which translates into 360,048 packed tins per year. The revenue potential is estimated US$342,048 per year with a net profit margin of 64% and a payback period of 4 months.
DRIED OYSTER MUSHROOMS
Mushrooms are a delicacy among members of society, therefore have a high demand. Areas of focus include restaurants, hotels, and supermarket chains.
Oyster mushrooms are a popular exotic mushroom. They have a delicate texture and just a hint of seafood in their flavor. Originally wild harvested, growing from the side of tree trunks, Oyster mushrooms are now widely cultivated.
The total investment requirement is US $9,272per year, with revenue estimates of US$104,832 per year, with a net profit of 7% and a payback period of 9 months.