INVESTING IN AGRIBUSINESS

Agribusiness was earlier known as the business of farming but this has been expanded as is now currently the business related to the supply of farm inputs, such as farm machinery and seed supply as well as the business that is involved in the marketing of farm products, such as warehouses, wholesalers, processors and retailers.

Agribusiness is divided into the following sections;

1. POULTRY FARMING.

This is the farming practice that involves the activity of rearing which will serve as a source of income. This can be in the form of eggs (layer chicken) or meat (broiler chicken).

Below are different systems of Poultry farming carried out in Kenya;

1. Free range system. This is the traditional methods of rearing chicken. The farmer allows the chicken to roam freely in the farm in search of food and water. The chicken is kept for the farmer’s need of meat and eggs.
2. Deep litter system. This is a modern method of rearing chicken. They are kept indoors all the time. The structures are large and allow free movement of the chicken. Food and water are also provided for in the structure.
3. Battery system. This is also a modern method of rearing chicken. The chicken are kept each in its own cage, food and water are kept in front of each cage.
4. Use of folds. Chicken are kept in structures called folds. Feeding and water troughs are placed outside each fold. Birds feed through a wire mesh.

Here Are 9 Rules for Starting Your Own Poultry Farm

01. Choose Your Poultry Sector

Poultry farming is a wide industry. Basically, there are two types of the farming you can choose from – broilers and layers. Broilers are chicken that you raise for meat. Layers are chicken that you raise for eggs. Then, there is the business of incubating eggs and raising chicks.

Many chicken farms do business in multiple sectors. So, decide if you want to operate in all sectors or you want to restrict your business to just one or two sectors of your choice specially in the beginning.

02. Choose The Type Of Bird

Poultry farm owners rear many types of birds. Your small poultry farm may start by focusing on two to three birds and then include more birds later as the business grows. Mostly, poultry farms raise birds such as domestic fowl or chicken as broilers and layers, duck, goose, quail, guinea fowl, turkey, pigeon, and peacock.
You should also determine whether to rear broilers or layers. This is basically the choice to start farming for meat production or egg production.

03. Create Your Farm Logo

Another essential step you should take is to have a unique poultry farm logo for your business. Your logo will be everywhere on your farm products when you market them. The logo will also be on your marketing material such as visiting cards, websites and many other places. Therefore, make sure that your logo becomes a tool to show that you run a professional poultry farming business.

Crowd sourcing site Designhill can help you create a memorable poultry farm logo design at a very low price. Many talented logo designers will read your design brief to create your logo with new concepts. Designhill is an outstanding platform for bringing together business owners and graphic designers to create design products.

04. Set Farm Location

You should think of setting your poultry farm at the most appropriate location. It is important that the location has all the necessary facilities. Try to build your poultry farm a little away from the town so that you can have the land and labor at a cheaper cost.

However, setting up the farm too far away from the nearest town will be a mistake. Remember that you need to approach a town more often to target your consumers Moreover, a location too away from city may cost you more on transportation.

05. Get Financial Help

You may not be having much money at hand when starting your own farm. But setting up a poultry farm needs sufficient funding. You will be buying a lot of equipment such as feeders, drinkers, perches, lighting system, incubators, heaters or brooders, and many more. Most importantly, you need a huge amount of funds to purchase land. You will put facilities to enhance your productivity.

Moreover, you require funds also to pay salaries of your staff/laborers. So, analyze your financial requirements. Then, apply for a bank loan or try some other sources of financing your farming business.

06. Spread A Word For Your Farm

You meet many people on daily basis. Tell them about your plans to start your own poultry business. Start from talking to your friends and neighbors. Visit events related to poultry farming and try to make friends with as many people as you can. You may meet some of your potential clients. Make all of them aware of your farming plans and take their advice.

When you contact people and clients, present your business card to them. This is a professional way to introduce your business. The card gives them your contact details like your phone number, fax number, and website address. They will keep your card and many of them will contact you whenever they need your poultry products.

07. Hire Professionals

Many aspects of poultry farming are such that they should be handled only by experienced people who know the nuances very well. So, hire only professionals who have many years of experience in the farming. But farming is not labor intensive, if you can involve technology.

However, you will also need an administrative officer or manager to keep a close eye on your day to day affairs of the business. Hire a manager who can double as your account also to save cost on staffing.

08. Put Your Business On The Web

Most of your potential clients’ search and shop poultry products online. If your clients are looking for poultry farms around a town, they will first use search engines to locate such businesses. If your farm is not on the web, you are missing on a plethora of business opportunities. Therefore, make it a point to have a dedicated website for your poultry business.

09. Market Your Farm Products

When starting your poultry farm business, one of the significant things to keep in mind is the aspect of marketing. Without having a marketing plan, it is hard to achieve your business goals. To market your products, make sure that you have properly analyzed the demand and supply situation for your products in your niche market. Know your target consumer also to pinpoint consumer profile.

You should then adopt cheaper means of reaching to your consumers. For example, create and distribute flyers, which are one of the cheapest means of marketing your poultry products to masses. A creative flyer design will draw attention of the recipients immediately and many of them will think of buying your farm products..

Conclusion

Most importantly, get a unique logo for your farming business to create your identity in a market. Observe some of the top agriculture logo designs and take inspiration from them for creating your logo. Follow these tips and focus on promoting your business

Some of the main crops grown in Kenya are such as Flowers and Pyrethrum which are then exported out of the country and thus also considered as Cash crops as they bring revenue to the country’s economy. They are mostly done in green houses where the temperatures can be easily controlled.

There are certain conditions that a group should consider before venturing into the horticulture business as is seen below;

• Availability of capital.
• Accessibility of transport.
• Adequate supply of irrigation water.
• Availability of labor.

The above conditions should be always available as horticulture crops are highly perishable and require a lot of water as well as care for it to flourish and thus special attention should be put into it for a successful and bumper harvest.

 

3. DAIRY FARMING.

This is considered to be one of the most potentially lucrative agricultural businesses in the country. This agricultural sector is related to long term milk production.

Below are the proper steps of getting into the dairy farming business;

1. Develop a Business Plan and SWOT Analysis

It is important to remember that a dairy farm is a business. Development of detailed business plan and a SWOT analysis that is the Strengths, Weaknesses, Opportunities, and Threats of the group’s plan and the resources available will be critical to the success of the business. How many cows will be purchased? How many cows will be milked? Where will you market your milk? Will you hire employees? How much money does the group need to live on after the dairy bills are all paid? Are all questions that one should ask before going into the business. The business plan should include a cash flow plan that will help the group set reasonable expectations for their expenses as well as cost of production.

1. Consult the Experts

It is important to consult experts in the dairy industry as the develops their business plan and design their management system. Other practicing dairy producers are great resources. One should attend field days as well as open houses on dairy farms in your area and other parts of the state or country as one will be able to gain background information on the running of a successful business as to gain knowledge and learn from their past mistake practices that they could have avoided when getting into the business. It will also serve as a networking platform among members in the same field.  In addition to farmers, talk to veterinarians, nutritionists, agronomists, bankers, extension educators and others that can provide different perspectives on management of your dairy.

1. Create a Cropping and Feeding Program

Whether you are going to feed a TMR (total mixed ration), graze your cattle, or a combination of both; dairy cattle require a certain set of nutrients to support themselves, produce milk, and grow a calf. One should work with a nutritionist to develop rations for lactating cows, dry cows and heifers if these animals are to be raised on the farm. Many dairy farms in Kenya produce most if not all their own foliages. Raising all your own feed takes land and time as well as equipment for planting and harvesting the crops and labor involved. One can choose the option of hiring custom operators to plant and harvest crops or making arrangements with neighbors to share equipment and labor as this will reduce one once initial capital investment.

1. Create a Waste Management Plan

Dairy cattle produce a lot of manure. While this manure is often referred to as waste, if managed and used properly it can be a great resource on the farm. Manure management will be tied closely to your cropping and feeding program. If one is able to use a double cropping system on your farm it will not only allow you to produce more feed but will also allow you to apply more manure to your land. Alternatives to direct land application of manure include composting and anaerobic digestion of manure, while these options may provide additional revenue and other benefits to your dairy they will also increase the capital investment required to get your dairy started. Every farm will need a manure management plan, but depending on the size of your farm a nutrient management plan may also be required.

1. Build Your Equity Over Time

Dairy farming requires a large capital investment. Land, buildings, equipment, and cows are expensive and few new dairy farmers will have the capital required to purchase everything when they get started in business. Many beginning farmers begin by purchasing their cows first and renting the farm and land. These initial animals are your farms equity.

1. Dairy Farming is a Biological System

The dairy farm is dependent on the cow’s ability to live a healthy life, produce milk, and have calves that can become the next generation of the farm. Dairy farming requires detailed programs for herd health, reproduction and calf care in addition to the nutrition and financial aspects on the farm. Working with your veterinarian, genetics representatives and extension agents can help y

1. You are a Manager First

All these previous items are just pieces of the puzzle. In order to succeed one will need to combine each aspect of management into a whole farm plan. One should work with trusted consultants to help build a plan, and stick with the groups strengths. If you love milking cows but hate planting corn, find someone to work with an individual or group who does. Consider creating a farm management team or profit team that engages your consultants to be active participants in the farm’s progress.

4. CASH CROP FARMING.

Some of the main cash crops grown in Kenya are such as Tea, Coffee, Pineapples, Bananas, Sisal, Cotton, Cashew nuts and Wheat.