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Agriculture as an investment in Kenya.
Ceinz
#1 Posted : Saturday, February 12, 2011 11:24:00 PM
Rank: Member


Joined: 5/7/2009
Posts: 808
Location: Sea of Transquility
Agriculture has, for many years, formed the backbone of Kenya's economy: the agriculture sector contributes about 30 per cent of the GDP and accounts for 80 per cent of national employment. In addition, the sector contributes more than 60 per cent of the total export earnings and about 45 per cent of government revenue, while providing for most of the country's food requirements. The sector is estimated to have a further indirect contribution of nearly 27 per cent of GDP through linkages with manufacturing, distribution, and other service related sectors.(http://www.pwc.com/ke/en/industries/agriculture.jhtml)

The role that Agriculture plays in Kenya's economy cannot be overemphasized. However, it is more often than not overlooked as an investment choice for many reasons including ignorance. It is this challenge that I want the contrubutions to adress. Let me put it in the form of a question.

What small scale agricultural activities can one start with little capital on limited acreage of land, say o.5 to 5 Acres and what are the requirements (soil type, water, labour). What yield can one expect on say per acre and after how long(yield). What are the approx. returns per acre?

We can start with; onions, tomatoes, chilli etc.

“small step for man”
Ceinz
#2 Posted : Monday, February 14, 2011 9:26:46 AM
Rank: Member


Joined: 5/7/2009
Posts: 808
Location: Sea of Transquility
Guys contributions pse..
“small step for man”
Wororo
#3 Posted : Monday, February 14, 2011 10:29:53 AM
Rank: New-farer


Joined: 1/30/2011
Posts: 5
With a piece of land ranging from 0.5 to 5 acres, i would recommend you to start breeding rabbits and eventually slaughter them for their meat.

A few weeks ago, in the Business Daily it was announced that a group of farmers are setting up a KES 1.2 billion processing plant in the Kiambu county. Just google; Rabbit farmers line up Sh 1.2bn processing plant.

Currently I am breeding my stock so that I can get some nice cash towards the end of these year and early new year. When i say good cash, I imply around a million in a single month.

Rabbit keeping is very easy and one can run another venture at the same time without hustles. The rates at which the meat is being disposed are very lucrative.

People in Nairobi, Kiambu and Riftvalley have formed Saccos / associations so that they can pull their investments together and be able to meet the demands both locally and internationally.

Majority of times is when one is given a tender / contract to deliver at least 100kgs per week of rabbit meat which ideally translates to slaughtering 40 to 50 rabbits - depending of their weights - each and every week.

The upside is that rabbit breed pretty fast but still the demand is very high. If the establishment of the processing plant is successful as scheduled end of this year, then I see other forms meats conceding their market shares to the rabbit industry in the short term.

The statistics pertaining the demand that is building up rapidly include a 40million population that is likely not to be sustained by the current farmers since once the young peoples start their own families in the near futures the number of farmers to entire population will be thinly stretched. I believe rabbit meat is the future.

Rabbit meat is known to be very sweet, tender and very nutritious as compared to other meat.
Trump
#4 Posted : Monday, February 14, 2011 10:49:17 AM
Rank: Member


Joined: 10/19/2006
Posts: 62
I am intending to put up a greenhse. Iv seen pple making good cash
Just do it!
popat
#5 Posted : Monday, February 14, 2011 10:57:18 AM
Rank: Member


Joined: 12/2/2009
Posts: 113
Location: kenya
I always ask myself how many people eat rabbits?The restaurant i frequent have no menu featuring rabbit meat as a delicacy.Someone would argue this is a preserve of the five-star hotels,then the question begs how many patrons in these few hotels partake to this delicacy.Still numbers don't add up.May be the international markets.But that is maybe.Do i miss something! javascript:insertsmiley('d'oh!%20','/Images/Emoticons/eusa_doh.gif')
X13united
#6 Posted : Monday, February 14, 2011 11:03:17 AM
Rank: Member


Joined: 8/26/2010
Posts: 124
Green house it is. You just elaborated the idea. I too have the same sentiment. Hook a brother up when you get the way forward.
Ceinz
#7 Posted : Monday, February 14, 2011 12:59:40 PM
Rank: Member


Joined: 5/7/2009
Posts: 808
Location: Sea of Transquility
The other day in KBC biz show I saw some guys in Nyanza had replicated a commercial flower plant project from ideas borrowed in a Naivasha farm and it appears they are picking up well. Didn't get the details of species planted, acreage etc. Anyone with ideas?..
“small step for man”
story teller
#8 Posted : Monday, February 14, 2011 8:51:29 PM
Rank: Member


Joined: 6/25/2010
Posts: 399
Ceinz wrote:
The other day in KBC biz show I saw some guys in Nyanza had replicated a commercial flower plant project from ideas borrowed in a Naivasha farm and it appears they are picking up well. Didn't get the details of species planted, acreage etc. Anyone with ideas?..



It might be the same guy from the article below..

Great Opportunity in Nyanza -horticulture is blooming
It's not hard to make decisions when you know what your values are.
berbatov
#9 Posted : Monday, February 14, 2011 9:58:14 PM
Rank: Hello


Joined: 2/10/2011
Posts: 2
Location: berbatov
Hello I new member ^^"
The difference between people like to play. Holiday Palace play with Holiday Palace: he is not free and equal.
brayokasa4
#10 Posted : Monday, February 14, 2011 10:31:19 PM
Rank: New-farer


Joined: 10/13/2010
Posts: 95
Location: Nairobi
Being a greenhouse farmer , let me throw in my 2cents.
Having observed the market keenly, I have noticed that a lot of people plant tomatoes in greenhouses more than any other vegetable. I too made the same mistake and started with tomatoes. However the cost of production is high and when you go with your tomatoes to the market, its mostly flooded. I have been doing some research and got to know that things like coriander (dania) , okra, garlic, capsicum, green pepper (pilipili hoho) ,Red Bombay Onion, Rosemary, french beans,can do very well in greenhouses and fetch very good prices .I am using Amiran Farmers Kit Greenhouses as a model here. The crops mentioned above are mostly unexploited by farmers. Saying that greenhouse farming is profitable or not is relative. As we know marketing is not an art many have perfected. I have personally gone to many high end hotels and restaurants and asked them what they want me to plant for them and they told me , and thats what I plant. i have had the two greenhouses in Loitokitok (230km from Nairobi) and the returns so far have been good. If handled correctly , you will be smiling all the way to the bank.
If you think you can, and if you think you can't , either way, you are right!
Ceinz
#11 Posted : Monday, February 14, 2011 10:44:55 PM
Rank: Member


Joined: 5/7/2009
Posts: 808
Location: Sea of Transquility
story teller wrote:
Ceinz wrote:
The other day in KBC biz show I saw some guys in Nyanza had replicated a commercial flower plant project from ideas borrowed in a Naivasha farm and it appears they are picking up well. Didn't get the details of species planted, acreage etc. Anyone with ideas?..



It might be the same guy from the article below..

Great Opportunity in Nyanza -horticulture is blooming


Thanks Story teller, they are the guys. Thank you All for ur contributions, Wazuans we need more sharing, am sure we got many farmers amongst us.
“small step for man”
Wendz
#12 Posted : Tuesday, February 15, 2011 10:21:12 AM
Rank: Elder


Joined: 6/19/2008
Posts: 4,128
brayokasa4 wrote:
Being a greenhouse farmer , let me throw in my 2cents.
Having observed the market keenly, I have noticed that a lot of people plant tomatoes in greenhouses more than any other vegetable. I too made the same mistake and started with tomatoes. However the cost of production is high and when you go with your tomatoes to the market, its mostly flooded. I have been doing some research and got to know that things like coriander (dania) , okra, garlic, capsicum, green pepper (pilipili hoho) ,Red Bombay Onion, Rosemary, french beans,can do very well in greenhouses and fetch very good prices .I am using Amiran Farmers Kit Greenhouses as a model here. The crops mentioned above are mostly unexploited by farmers. Saying that greenhouse farming is profitable or not is relative. As we know marketing is not an art many have perfected. I have personally gone to many high end hotels and restaurants and asked them what they want me to plant for them and they told me , and thats what I plant. i have had the two greenhouses in Loitokitok (230km from Nairobi) and the returns so far have been good. If handled correctly , you will be smiling all the way to the bank.


Very informative and practical! Thanks for sharing.
Chaka
#13 Posted : Tuesday, February 15, 2011 10:50:30 AM
Rank: Veteran


Joined: 2/16/2007
Posts: 1,137
@brayokasa4,
What kind of soil is at loitokitok and where do you get water from?
bwenyenye
#14 Posted : Tuesday, February 15, 2011 4:30:37 PM
Rank: Elder


Joined: 5/24/2007
Posts: 1,750
popat wrote:
I always ask myself how many people eat rabbits?The restaurant i frequent have no menu featuring rabbit meat as a delicacy.Someone would argue this is a preserve of the five-star hotels,then the question begs how many patrons in these few hotels partake to this delicacy.Still numbers don't add up.May be the international markets.But that is maybe.Do i miss something! javascript:insertsmiley('d'oh!%20','/Images/Emoticons/eusa_doh.gif')



@ Popat,
I have seen a guy who made rabbit sales of over KShs 1M in a year. I think what we are lacking is proper market info as far as rabbit rearing goes. Lakini biashara ipo.
Do not think inside the box. Neither think outside the box. You should remove the box and think free!!!! Peter Kenneth
brayokasa4
#15 Posted : Tuesday, February 15, 2011 8:46:15 PM
Rank: New-farer


Joined: 10/13/2010
Posts: 95
Location: Nairobi
Chaka wrote:
@brayokasa4,
What kind of soil is at loitokitok and where do you get water from?


We have sandy loam soil. I have drilled a borehole on site which has a capacity of 30,000 liters of water a day, though I don't need all that water so I sell it to other farmers.
By the way, when doing greenhouse farming ,put a lot of dried cow dung, not that green dung , but the one which has dried until it looks powdery. That will save you a lot of $$$$ in fertilizers. It really works , trust me.
If you think you can, and if you think you can't , either way, you are right!
Mercie
#16 Posted : Wednesday, February 16, 2011 8:24:40 PM
Rank: Member


Joined: 2/4/2009
Posts: 42
brayokasa4 wrote:
Being a greenhouse farmer , let me throw in my 2cents.
Having observed the market keenly, I have noticed that a lot of people plant tomatoes in greenhouses more than any other vegetable. I too made the same mistake and started with tomatoes. However the cost of production is high and when you go with your tomatoes to the market, its mostly flooded. I have been doing some research and got to know that things like coriander (dania) , okra, garlic, capsicum, green pepper (pilipili hoho) ,Red Bombay Onion, Rosemary, french beans,can do very well in greenhouses and fetch very good prices .I am using Amiran Farmers Kit Greenhouses as a model here. The crops mentioned above are mostly unexploited by farmers. Saying that greenhouse farming is profitable or not is relative. As we know marketing is not an art many have perfected. I have personally gone to many high end hotels and restaurants and asked them what they want me to plant for them and they told me , and thats what I plant. i have had the two greenhouses in Loitokitok (230km from Nairobi) and the returns so far have been good. If handled correctly , you will be smiling all the way to the bank.

Thanks a lot for sharing! How much would one require as capital for a start?
Go borrow vessels!
brayokasa4
#17 Posted : Friday, February 18, 2011 5:31:24 PM
Rank: New-farer


Joined: 10/13/2010
Posts: 95
Location: Nairobi
Mercie wrote:
brayokasa4 wrote:
Being a greenhouse farmer , let me throw in my 2cents.
Having observed the market keenly, I have noticed that a lot of people plant tomatoes in greenhouses more than any other vegetable. I too made the same mistake and started with tomatoes. However the cost of production is high and when you go with your tomatoes to the market, its mostly flooded. I have been doing some research and got to know that things like coriander (dania) , okra, garlic, capsicum, green pepper (pilipili hoho) ,Red Bombay Onion, Rosemary, french beans,can do very well in greenhouses and fetch very good prices .I am using Amiran Farmers Kit Greenhouses as a model here. The crops mentioned above are mostly unexploited by farmers. Saying that greenhouse farming is profitable or not is relative. As we know marketing is not an art many have perfected. I have personally gone to many high end hotels and restaurants and asked them what they want me to plant for them and they told me , and thats what I plant. i have had the two greenhouses in Loitokitok (230km from Nairobi) and the returns so far have been good. If handled correctly , you will be smiling all the way to the bank.

Thanks a lot for sharing! How much would one require as capital for a start?

For one greenhouse, inclusive of fertilizers, seeds,chemicals ,drip system, protective clothing, around 130k .But you can opt to buy these things separately from different supliers. Like buy the net from Thika, drip system from Kari, etc. A bit tricky though if you dont know what exactly u r doing.
If you think you can, and if you think you can't , either way, you are right!
X13united
#18 Posted : Friday, February 18, 2011 6:28:28 PM
Rank: Member


Joined: 8/26/2010
Posts: 124
Questions.
1. What size of the green house would go for the 130k gross total.
2. Preempting that the soil test will be done-do you take samples to them or do they get to the site.- whats the cost?
kimiri
#19 Posted : Monday, February 21, 2011 5:58:25 PM
Rank: Member


Joined: 3/12/2008
Posts: 200
@ Ceinz. The most suitable investments depend on location due to variability of factors such as demand, climate, physical, organisational and institutional infrastructure etc. across regions. For instance, with 1-2 acres of land in areas near Nairobi, activities such as horticulture, commercial poultry (both layers and broilers production) and dairy can pay quite handsomely. A major challenge for many of our farmers is the seasonal variation in output prices as our agriculture is largely rain fed. Ways to deal with this include technologies such as irrigation (in case of horticulture) and feed preservation (hay, silage etc) in case of livestock activities such as dairy. For famers who are able to guarantee supply, they can enter into contracts with buyers so as to mitigate the adverse effects of poor prices during pick production seasons. Note that the buyer also befits because he is assured of supply when products get scarce.
Ceinz
#20 Posted : Monday, February 21, 2011 8:41:02 PM
Rank: Member


Joined: 5/7/2009
Posts: 808
Location: Sea of Transquility
Good observation, thanks Kimiri.
“small step for man”
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