List of Low and High Margin Agri-businesses|| Return/Margin/Profit|| And Risk Factors

TOPICS: Margin of Benefit in Different Agri-businesses. Which Agribusiness Gives Good Margin? Agri-businesses With Good Cost Benefit Ratio. Farming Business Ideas. List of Agribusiness.

Protected Cultivation in Net House

Here, we are addressing agricultural activities as agribusiness. Commercial farming is a form and part of agribusiness.

Core point: In this article we will know about the profitability of different agribusiness in brief. So you can choose a business with calculated risk.

Here, Return/Margin/Profit means: Amount of total money received after selling goods. For example~ (Input ) – (Total income) = Return/Margin/Profit.

List…….

  1. Animal husbandry
    • Dairy farming.
    • Goat farming.
    • Sheep farming.
    • Poultry farming.
    • Duck farming.
    • Pig farming.
    • Rabbit farming.
  2. Agronomy: Production of Field Crops
    • Rice.
    • Sugarcane.
    • Wheat.
    • Maize.
    • Chickpea and peas.
  3. Floriculture: Production of Flower and Ornamental Plant
    • Rose.
    • Marigold.
    • Gladiolus.
    • Tuberose.
    • Bonsai.
    • Thuja.
    • Junipers.
    • Lawn strips.
  4. Pomology: Fruit Farming
    • Banana.
    • Guava.
    • Mango.
    • Papaya.
    • Chashewnut.
    • Jackfruit.
    • Apple.
    • Grapes.
  5. Olericulture: Vegetable Farming
    • Tomato.
    • Potato.
    • Onion.
    • Cole crops.
    • Okra.
    • Leafy vegetables.
  6. Fisheries: Fish Farming
    • Fish rearing.
    • Fish seed production.
  7. Other
    • Production of farm manures.
    • Fertilizer production.
    • Pesticide production.

DISCLAIMER: Rearing of one or more above listed animals may be banned in a particular region or country. We are not encouraging any one to do so. Please try to know your country’s policy before rearing any species.

NOTE: Crop species should be selected according to local climate.


1. Animal Husbandry

Activities in animal husbandry are- 1. Rearing of farm animals for milk (milk production), wool (wool production), meat (rearing animals for meat which is restricted in many countries). 2. Rearing of different species of birds for eggs and chicken etc.

Dairy Farming

Dairy Farming

Dairy farming is a high profile model of agribusiness. It includes:

  • Milk production and,
  • Milk Processing.

Milk Production

Type: Medium to large scale agri-business.

Inputs: 1. Purchasing cow. 2. Cattle feed is major input. 3. Construction of cattle shed and other structure is one time investment.

Return/Margin/Profit: Margin of benefit is very good. If you manage well, you will get more than 50% return. For example- if input is 100 $ then the total return will be more than 150 $. Production of green fodder e. g., azolla and other fodders can reduce expenses.

Risk Factors: Cattle mortality due to various diseases.

Solution: Good management practice and timely vaccination.

Success: Success depends on your management practice and marketing strategy. Register with any cooperative society or make your own cooperative organization.

Processing

Type: Medium to very large scale agri-business. Example- Amul in India.

Inputs: 1. Processing unit. 2. Raw milk. 3. Labour.

Return/Margin/Profit: depends on various factors.

Initially go for milk production, then consider for milk processing as business expansion.

Risk Factors: failure of processing unit and deterioration of raw milk. Strict governmental policies can be a potential risk. So follow the policies made by the goverment.

Solution: hiring technical staff is best solution.

Success: Takes years of experience.

Goat Farming

Type: Medium scale agri-business.

Input: 1. Construction of shed. 2. Purchasing goat. 3. Goat feed.

Return/Margin/Profit: Goats are reared for milk and meat. Cost benefit ratio is more than 50. Benefit is higher than the cost. Although it depends on the selection of goat breed.

Risk Factors: High mortality due to various diseases. Economically important diseases are PPR, FMD and other parasitic diseases.

Solution: Timely vaccination.

Success: Good management practice and vaccination.

Sheep Farming

Type: Small to medium scale agri-business.

Mainly, sheep are reared for high quality wool rather than meat. Return is high if reared in countries/regions like Kashmir, New Zealand, Argentina etc. Rearing sheep in non-traditional are is less profitable.

Poultry Farming

Type: Small, medium and large scale agri-business.

Inputs: 1. Construction of shed. 2. Purchasing flocks. 3. Poultry feed.

Return/Margin/Profit: 20 – 40 % .

Risk Factors: Very high. New castle disease is the deadliest disease.

Solution: Timely vaccination.

Success: Requires very good management practice. Selection of breed is very important. For example- farming of kadaknath is very profitable.

Duck Farming

Type: Small scale agri-business.

Not a viable farming idea in developing countries.

Piggery

Type: Medium to large scale agri-business.

Not a very profitable business in countries like India.

In countries/territories like USA, UK and other African countries it can be a very profitable business.

Food conversion rate is very high in pig.

Rabbit

Type: Small scale agri-business.

Not very profitable. It can become a serious pest.

Disclaimer: we are not encouraging for rabbit farming. It is just an idea.

2. Agronomy

Rice production

Type: Medium scale agri-business.

Inputs: 1. Labour. 2. Pesticides. 3. Seed. 4. Farm machinery.

Return/Margin/Profit: 10 – 50 %. Market price is low.

Risk Factors: drought.

Sugarcane

Type: Medium scale agri-business.

Inputs: same as in rice.

Return/Margin/Profit: 20 – 60%. It is a cash crop. Very profitable if market is available.

Risk Factors: various pests.

Wheat Cultivation

Type: Medium scale agri-business.

Inputs: same as in rice.

Return/Margin/Profit: 15 – 50%

Risk Factors: Various pests.

Maize

Type: small to medium scale agri-business.

Input: same as in rice.

Return/Margin/Profit: 30 – 40 %.

Risk Factors: various diseases.

Chickpea and Pea

Type: small to medium to large scale agri-business.

Inputs: same as described for rice.

Return/Margin/Profit: 20 – 40%

Risk Factors: various diseases.

Floriculture

Rose Production

Type: small, medium and large scale agri-business.

Inputs: Polyhouse for protected cultivation.

Return/Margin/Profit: very high with good marketing strategy.

Risk Factors: rare in protected cultivation.

Cultivation of Marigold

Type: small, medium and large scale agri-business.

Inputs: Basic.

Return/Margin/Profit: 2 time more profit. Go for commercial cultivation. And search for market before cultivation.

Risk Factors: Bad weather during flowering.

Gladiolus:

Type: small to medium scale agri-business.

Inputs: purchasing corms.

Return/Margin/Profit: 2 time more profit. Go for commercial cultivation. And search for market before cultivation.

Risk Factors: Bad weather.

Remarks: Essential oil is extracted from the corms.

Tuberose

Type: small, medium scale agri-business.

Inputs: purchasing tubers.

Return/Margin/Profit: 2 time more profit. Go for commercial cultivation. And search for market before cultivation.

Bonsai

Type: small, medium scale agri-business.

Inputs: basic.

Return/Margin/Profit: High margin.

Thuja

Type: small, medium scale agri-business.

Inputs: purchasing mother plants.

Return/Margin/Profit: High margin.

Junipers

Type: small, medium scale agri-business.

Inputs: purchasing mother plants.

Return/Margin/Profit: high margin.

Lawn strips (in lawn making)

Type: medium to large scale agri-business.

Inputs: purchasing different species of lawn grass.

Return/Margin/Profit: very high.

Pomology

Type: medium scale agri-business.

Go for the commercial cultivation of short surati on fruit plants e. g., Papaya, Banana, strawberry, pineapple and litchi etc.

Olericulture

Type: medium scale agri-business.

Go for the commercial cultivation of tomato, potato, Cole crops etc.

Return/Margin/Profit: very low.

Fisheries

Fish pond

Type: medium to large scale agri-business.

Fish Farming

Inputs: fish seed, pond construction, artificial tanks etc.

Return/Margin/Profit: 40 – 60 %. Benefit is high in tarpaulin fish tank.

Risk Factors: various diseases.

Seed Production

Type: Medium to large scale agri-business.

Inputs: seed production unit.

Return/Margin/Profit: high.

Other

Mushroom Production

Complete procedure of cultivation of sister mushroom cost and benefits
Oyster Mushroom Production Unit

Type: medium scale agri-business.

Inputs: low.

Return/Margin/Profit: very high.

Example: oyster mushroom production, paddy straw mushroom production.

Farm Manures (Organic Manuresvermicompost)

Vermicompost in vermibeds

Type: Medium scale agri-business.

Inputs: very low.

Return/Margin/Profit: high margin.

Fertilizers

Type: large to very large scale agri-business.

Inputs: extremely high. Requires licence.

Risk: 50-50 chance of success and failure.

Pesticide Production

Type: large to very scale agri-business.

Inputs: same as in fertilizer production.


NOTE: Getting good margin always depends on good management practice and the best strategies.


-By Harish Manik



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1. Author and Content Writer. 2. Agriculture Consultant and Farmer's Trainer. 3. Agriculture Entrepreneur.
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