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Agriculture as an investment in Kenya.
Rank: Veteran Joined: 5/7/2009 Posts: 1,032 Location: Sea of Transquility
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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”
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Rank: Veteran Joined: 5/7/2009 Posts: 1,032 Location: Sea of Transquility
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Guys contributions pse.. “small step for man”
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Rank: Member Joined: 1/30/2011 Posts: 207
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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.
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Rank: Member Joined: 10/19/2006 Posts: 66
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I am intending to put up a greenhse. Iv seen pple making good cash Just do it!
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Rank: Member Joined: 12/2/2009 Posts: 299 Location: kenya
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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!](/Images/Emoticons/eusa_doh.gif) %20','/Images/Emoticons/eusa_doh.gif')
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Rank: Member Joined: 8/26/2010 Posts: 124
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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.
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Rank: Veteran Joined: 5/7/2009 Posts: 1,032 Location: Sea of Transquility
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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”
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Rank: Member Joined: 6/25/2010 Posts: 415
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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 bloomingIt's not hard to make decisions when you know what your values are.
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Rank: Hello Joined: 2/10/2011 Posts: 2 Location: berbatov
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Hello I new member ^^" The difference between people like to play. Holiday Palace play with Holiday Palace: he is not free and equal.
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Rank: New-farer Joined: 10/13/2010 Posts: 95 Location: Nairobi
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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!
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Rank: Veteran Joined: 5/7/2009 Posts: 1,032 Location: Sea of Transquility
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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”
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Rank: Elder Joined: 6/19/2008 Posts: 4,268
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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.
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Rank: Elder Joined: 2/16/2007 Posts: 2,114
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@brayokasa4, What kind of soil is at loitokitok and where do you get water from?
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Rank: Elder Joined: 5/24/2007 Posts: 1,805
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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!](/Images/Emoticons/eusa_doh.gif) %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. I Think Therefore I Am
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Rank: New-farer Joined: 10/13/2010 Posts: 95 Location: Nairobi
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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!
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Rank: Member Joined: 2/4/2009 Posts: 42
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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!
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Rank: New-farer Joined: 10/13/2010 Posts: 95 Location: Nairobi
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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!
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Rank: Member Joined: 8/26/2010 Posts: 124
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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?
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Rank: Member Joined: 3/12/2008 Posts: 215
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@ 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.
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Rank: Veteran Joined: 5/7/2009 Posts: 1,032 Location: Sea of Transquility
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Good observation, thanks Kimiri. “small step for man”
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