In this blog post, you are going to see the Top 5 Most Profitable AgriBusinesses in Nigeria that will boom after COVID-19. This also helps us see business opportunities in several Agriculture sub-sectors and money-making Agribusiness ideas.
In Nigeria, it is just so common that when a new farmer intends to go into any kind of farming, the first thought is to invest in any of cassava or maize production; as these are the most commonly grown crops in Nigeria due to its vast economic importance. Even though these crops may have a huge market already, there has been a gradual decrease in demand and eventual profitability as compared to other crops in recent times. Therefore, the consistent glut in the market in recent years has decreased the market value of those crops. As a farmer, it may take you a further process of value addition to your cassava or maize produce, to help make a reasonable return on investment (ROI).
However, the presence of CoVID-19 has changed the market dynamics and demand for agricultural products to a whole new level. During this period, many people are now with the realization of how some certain crops like vegetables, spices, citrus (Lime and Lemon) may help build the immune system against viruses like the coronavirus. This revelation will increase the market demand for the crops that fall under these categories, even after the pandemic.
Therefore, we have come up with a list of areas in agriculture to explore and consider for profitable investment in Nigeria, especially now and even after COVID-19.
Here are the top five (5) specific agribusinesses that will boom after COVID 19:
Carrot is a good agricultural crop to venture into, as it has a high commercial value and lots of health benefits. Apart from its health benefits building the immune system, the economic angle is also important. Carrots are widely consumed across Nigeria and amount to its high demand, which makes it very lucrative and financially rewarding. It is necessary to know that you do not need vast land before you can start. This is in addition to improved agricultural practices. In other words, improved seedlings coupled with improvements in the utilization of space has made it much more profitable. Carrots are consumed in a variety of ways by Nigerians. Hence, the farmer has an assurance of a continuous demand which is good for business.
It is also important to note when cultivating carrots, there are particular areas where carrots will do well. You should avoid rocky or stony areas. Therefore, it is necessary to have loose soil. To achieve this, it’s best to make ridges, a bit higher than those for planting a crop like maize, to enable the crop to attain the desired length, size, and shape.
When your carrots are mature, vegetable markets, restaurants, hotels, shopping malls, and so forth, are ideal places to sell them.
Cucumber production can be very profitable if done in the right way. Smart Nigerians can make millions of naira from cucumber farming within 3 months from a small size of land. Cucumber farming in Nigeria was before now done mainly in the northern region, but due to the rise in climate change in recent years, farmers in the southern region can now plant this type of vegetable conveniently.
For most hybrid varieties, harvest starts between 60-75 days after planting. The demand for fresh cucumbers is instantly quite huge in Nigeria today, as they are consumed more for medicinal purposes like building the immune systems and used in preparing salads and other types of food.
Cucumber plants grow in tropical conditions as we have in Nigeria and other African countries. It is also best grown under protected cultivation like Greenhouse and in open fields with proper management practices. After harvest, you can as well process it or sell directly to the open or more organized markets.
3. Ginger Production and Processing:
Though ginger is a common agricultural product found in almost every household in Nigeria, most people don’t know that it is a pot of gold. The ginger root is highly medicinal, which makes it a commodity enjoying significantly high demand, even at this COVID-19 period.
Although ginger is usually cultivated mostly in the northern part of Nigeria with Kaduna having 50% of the production, it is available throughout the season. After planting, the ginger plant will be fully-grown within 8 to 10 months, since it has no periderm and respires quickly. Also, ginger is mostly planted during the rainy season because it needs a lot of water.
It is important to note that ginger has three niches, which when packaged have different market values and potentials. These are; Fresh whole ginger root, Dried ginger, and Powdered ginger.
Ginger production, with its high level of oleoresins, has importers coming for it from different countries like Italy with its big fashion brand, Armani, using it as one of the ingredients for its perfume, Armani Sport Code and other processing and manufacturing companies in Nigeria. Prospects exist for newcomers who want to start ginger export business. With a little cost of production, an individual can start ginger farming, and because of the various uses of ginger, its demand in the international market will continue to rise.
Concentration on storage and how you intend to export whether dry or wet is paramount so as not to degrade the commodity’s quality. Ginger is usually stored for 4 to 6 weeks until it is suitable for export.
4. Garlic Production and Processing:
Garlic with its pungent smell could be very unpleasant when perceived fresh but when added to meals gives the meal a delightful fragrance. It is widely recognized today as a health-enhancing supplement especially during this pandemic, which affects its increase in its economic importance and demand.
Garlic is best grown commercially in FADAMA regions which includes Northern states like Kano, Kaduna, Kebbi, Sokoto, Jigawa, Bauchi, Katsina, and Zamfara State. Its production is mainly around the savannah ecological zone where all factors of production are favorable. Meanwhile, garlic is always best planted under irrigation systems during the dry season between November to March.
Apart from its flavor used in cooking and food additives, it is also used as a raw material in pharmaceutical industries. Garlic bulbs are safe to be harvested at an optimum maturity period when the plants are eighteen (18) weeks old that is, 4 to 5 weeks after planting.
The processing operations of Garlic particularly include; Garlic grading, bulb breaking, clove separation, size reduction, peeling, clove flaking, dehydration, blending, packaging, storage, grinding, etc. Its processing requires special skill and care because it’s essential volatile oil is concentrated in an epidermal cell, which is mainly responsible for its characteristic aroma. The following products may be prepared from the processing of Garlic: Garlic Flex, Garlic Powder, Garlic Tablet, Garlic Paste, Garlic Pickles, Garlic cloves, Garlic Digestive Churn, etc.
The market for garlic is widely spread and the bulk of households, restaurants, eateries, caterers, and clubs use it regularly. The demand for its processed product is increasing day by day due to its convenience to handle and use. There are good export prospects for garlic as well.
5. Tumeric Production and Processing:
Turmeric belongs to the same family as ginger. It is one root crop that receives less attention from Nigerian farmers, but experts say it has huge potentials for local industries and export. Turmeric is a tropical perennial plant and is cultivated throughout the tropics around the world. It is also known as the ‘golden spice of life” and is one of the most essential spices used as an important ingredient in culinary all over the world.
Turmeric is a spice crop having its application in a variety of ways. Turmeric contains bioactive compounds with powerful medicinal properties. It is used in the dyeing industry to dye clothes and fabrics. It is also used to impart the color of our food. and spices such as thyme, curry, and so on.
Also, Nigeria’s lack of awareness of the potentials and uses of turmeric is among the reasons why most people do not go into its production. Turmeric production is left in the hands of a few farmers in Nigeria, most of who use crude implements in their farm operations. Which therefore leaves a huge gap for opportunities to harness in the Tumeric production agribusiness. Any smart person going into this agribusiness can explore these opportunities.
The spread of COVID-19 across the globe has led to never-before-experienced lockdown situations, which in turn are having a significant impact across the agricultural sector, threatening ROI of agribusinesses, food security, and sustainability for the increasing numbers of people around the world.
Investing in the right kind of agribusiness could make the difference for an investor, especially when other important points of smart farming techniques and modern practices to meet the optimum need for more diversified, nutritious, resilient food systems and production are met.
In years to come, local and global food supply chains will falter if farmers cannot farm the right product that addresses current demand during this pandemic. That is why crops that can be grown in a short possible amount of time, such as vegetables, spices are better still considered now and after the pandemic to improve their sales turnover faster. That is why we have come up with the above list to help you decide on the best agribusinesses to venture in during and after COVID 19, to propel sales and make good business ROI.
Finally, don’t forget that before production and selling, it will be helpful to visit the market to keep up with current prices. This will place you in a better bargaining position to market your crops with potential off-takers and buyers.
All these shape our thinking about what the ‘new normal’ (post-COVID-19) will look like when the current pandemic is over, as we hope it surely will be.