Agriculture is often touted as the backbone of the Kenyan economy. For a sector that contributes about 33% of Kenya’s GDP, there’s bound to be lots of profits to be made.
But you do not have to be a farmer to make money from agriculture. In fact, chances are that you will make more money from agribusiness than you can from being a farmer.
Here are some of the unique agribusiness ideas that are highly lucrative.
Avocados have gained popularity around the world owing to their rich nutrients at a time when the entire globe is concerned about wellness diets. Kenya is now Africa’s largest producer of avocados - exporting about 80,000 tonnes annually.
Thhe demand for Kenyan avocados has surged in international markets, driven by their superior taste, nutritional value, and organic cultivation practices. Key export destinations include Europe, the Middle East, and Asia, with countries like the United Kingdom, Netherlands, United Arab Emirates, and China being major buyers.
Russia recently encouraged more Kenyan exporters to supply its growing appetite for the green fruit.
The animal feed business in Kenya is an important sector of the country's agricultural industry. With a growing population and increasing demand for meat, milk, and other animal products, there is a great need for high-quality animal feed in the country.
The first step when starting out or expanding an animal feeds business is to do market research to determine where there is demand.
Part of marketing research is also getting feedback from feedback to understand their needs. Some products, such as those needed to nurture poultry, maybe markedly different from what a dairy farmer needs.
Once you understand the market needs, the next step is to understand how you can provide the products that farmers need at an affordable price and without compromising on quality.
Kenya stands at a unique point as it is the largest producer of camel milk in the world. The product is in high demand across Europe, the Middle East, Asia and North America.
For producers involved in value addition, the amounts become even greater. After purchasing the raw milk at Ksh80, the pasteurized package goes for Ksh300. This comes to about a Ksh220 margin to cater for transport, packaging and marketing costs.
Dairy products derived from camel milk are also becoming popular around the world and include baby milk, chocolate, pizzas, and even cappuccinos that have gained popularity in the US, across Asian and Middle Eastern countries, and Europe.
he dragon fruit is presently recognised as the most expensive fruit in Kenya, fetching as much as Ksh3,000 per kilo. Given its rich nutrients, it has a lot more value after value addition as it is used to make fruits, wines, syrups, and jams - for both local and export use.
It belongs to the cactus family and as such, it does well in a warm and tropical climate with temperatures of between 20°C and 35°C.
In Kenya, some of the areas where the fruit does well include the coast region including as Kilifi, Kwale, and Lamu, as well as some parts of Rift Valley such as Naivasha.
One factor that makes agribusinesses quite lucrative is the fact that the end product - whether it is avocadoes, fruits, milk or even meat - is almost attached to human existence. In other words, people will always eat, regardless of the season or the product that is in demand.
However, agribusinesses can be quite capital intensive which can hinder access to both the starting and the working capital.
If you are already in the agribusness sector, expanding your business could be made easier by having the right partner to provide working capital on flexible terms.
Avenews is one partner to consider in such situations. It is a multinational financial technology company that is offering loans of agribusinesses short-term working capital loans of up to Ksh10 million on flexible terms.
Rather than charge the conventional standard fee against the capital extended to you, Avenews allows agribusinesses a win-win loan model where you agree to split the profits generated from the extended capital.
This means you get to borrow and utilise the cash in the short term. Once you have the cash back, say a payment from suppliers, you deduct your expenses and split with Avenews whatever remains as profit.
The arrangement is quite flexible and the lender informs Money254 that its pricing model is made in such away that the client taking the loan always takes the larger share of the profits. Click here to learn the full details about the Avenews working capital loan or make your application here.