Are you looking to make money selling agricultural products?
Whether you’re trying to find the most profitable business model with minimal risks, or the most in-demand products that move fast and give higher profit margins, you’re at the right place.
In this post, I will show you how to start a profitable business selling agricultural products.
Key Insights
- Understand the Agricultural Market: The agricultural industry is evergreen due to the constant demand for food. However, to succeed, entrepreneurs need to understand the market dynamics, including product types (agrochemicals, plants, and livestock), each with its pros and cons like perishability and market size.
- Choose the Right Business Model: Profitable business models in this sector include being a middleman, processing and packaging, or farming and supplying. Each has its advantages, with the middleman model being the safest. Farming and supply are more labor-intensive but profitable with proper management.
- Target the Right People: Your target customers could be farmers (for agrochemicals), bulk buyers like hotels and restaurants, or general consumers. Each group has different purchasing habits and needs, and knowing how to approach them is key to driving sales.
- Product Selection and Market Research Are Crucial: Market research is essential to determine in-demand products. Additionally, focusing on a few key products like fertilizers, poultry, or rice, and forming strong networks with farmers or suppliers can lead to success.
Understanding the Market for Agricultural Products
Agriculture is an evergreen industry because it meets one of our most vital daily needs, food. As long as people keep eating, agricultural products will always be in demand.
For a business-minded person like you, this is exciting and scary at the same time. It’s exciting because there’s a lot of opportunity to make money. It is scary because there are also many ways to lose money if you don’t equip yourself with the right knowledge.
Here are 3 vital things you need to know about the market for agricultural products.
1. Product Types
There are 3 main categories of products you can sell.
a) Agro Chemicals
This includes herbicides to kill weeds, pesticides to chase away insects and rodents that eat up crops, and fertilizers to replenish farmlands and yield abundant harvests consistently.
b) Plants
Most of the food we eat falls into this category. From rice, yam, and beans, to vegetables and spices like onion, ginger, and garlic.
c) Livestock
Birds, cows, and goats fall here. Others include snails, fish, crayfish, and a variety of seafood.
Every product type has advantages and disadvantages.
| Product Type | Advantages | Disadvantages | |
| 1 | Agro Chemicals | Easy to preserve.
Less stress Fewer risks Easier to transport |
Smaller market size |
| 2 | Plants | Large market size
High demand |
Storage and Preservation
Riskier as goods perish faster |
| 3 | Livestock | Medium to large market size
High profit margin |
Transportation
Stressful |
2. Target Audience
Depending on what you decide to sell, there are 3 main classes of people you can sell to.
a) Farmers
If you sell agrochemicals and fertilizers, farmers will be your main target audience. This set presents a smaller population, but sourcing and storing what you want to sell to them presents minimal risk.
b) Bulk Buyers
Hotels, restaurants, and independent caterers can buy large quantities of your plant and livestock. This set of customers can clear out your products leading to a fast turnover. But they don’t buy too frequently, and getting a deal with them may be a bit of a headache.
c) General consumers
This is the largest target audience by market size. The key to success with this set of buyers is reaching out to as many as possible and treating them to a fair deal.
3. Business Models
At the surface, this industry can be very enticing when you picture the sheer number of farmers and families who need your products. But without a profitable business model, you’ll lose money faster than you can imagine.
Here are profitable business models to consider for agricultural products.
a) Middleman
Being a middleman is one of the easiest and safest business models in this industry. You simply buy products at a cheaper rate from farmers and sell them to consumers at a higher price. Do well to consider profitability on your part, and affordability on the customers’ part before setting prices.
Why this model is so successful is that you help the producers clear their stock fast, and save consumers the stress of sourcing and transportation. The consumer may not have the resources to buy large quantities, so you make products more accessible for them. The hard part is sourcing products and fulfilling orders on time. The risk you bear is transportation and storage of the products. If you don’t sell them off on time, you may end up with spoiled products.
This business model is suited for agrochemicals that have a long shelf life. Two keys to success in this business model are forming great relationships with farmers/manufacturers who supply you products, and building trust with the customers who buy from you. One way to reduce your risk is to take pre-orders before sourcing and delivering products.
b) Processing and Packaging
This is similar to the middleman model. The addition is that you process and package the products first, before selling to consumers. For example, you buy harvested cassava, and process it to Garri, before selling it to consumers. You can do the same for rice, package it with your own branding, and sell it to consumers.
This model is suited for crops that are not typically consumed in their directly harvested form. Like Cassava, Rice, Oil Palm Tree. You can also do this for fowls (chicken).
In this model, you don’t bear the risk of low yields, death of livestock, and losses from pests or bad weather conditions like flooding. The key to profitability is finding fair deals with farmers that will sell the raw harvested products at a price that can enable you to make a profit after expenses from the processing, packaging, and delivery.
c) Farming and Supply
Another business model is farming crops or livestock, then supplying to big businesses or consumers as the case may be. This is more labour intensive. But you don’t get a headache finding buyers.
The key to profitability here is choosing plants that require minimal tending to cut down labour costs, reducing your losses with adequate pest and weed control, and aligning with buyers well ahead of time.
10 Best Agricultural Products to Consider Selling
First off, note that the best product to sell is what is in demand in your target market. Good market research is essential. Don’t ever go into any business without adequate market research.
Nevertheless, here are 10 products you should consider.
1. Fertilizers
As more people go into the agricultural sector in Nigeria, they’re beginning to see the need for fertilizers to hasten the growth of their crops, increase yield during harvest, and drive the overall profitability of their farming business. One key thing to note is that farmers will be your target customers, so you need to form a strong network with farmers across different locations.
If you manage to secure your first few sales and gather positive reviews of how your fertilizer helped other farmers get more yield faster, your business can blow up.
2. Herbicides
Herbicides control weeds with minimal effort. Instead of going through the stress of clearing farmlands manually, farmers can just spray herbicides to kill off weeds.
By selling herbicides, you help farmers spend less time and less energy. Additionally, homeowners who stay in semiurban areas buy herbicides to control grasses in their environment. Herbicides have a long shelf life, so the business risk is minimal. The key to success here is buying in bulk and selling at competitive prices.
3. Poultry
Poultry farmers are the ones who meet the chicken, egg, and turkey needs of society. To get higher profit margins, it’s better to own a poultry farm and raise your chicks.
There are people who deal specifically with selling young chicks to reduce the cost of feeding chicks and keeping them alive till they’re mature for consumption.
4. Plantain
Plantain farming is one of the most lucrative. It requires little work to tend to the plants, and they can thrive even in the presence of weeds, provided the soil is rich in nutrients. Also, plantain is consumed frequently, therefore it’s always in demand.
5. Cassava
Cassava is one of the most important crops in Nigeria. Almost every Nigerian eats Garri, which is made from Cassava. Cassava farming is profitable, although it requires quite a lot of work. Instead of farming Cassava, you may want to buy farmlands at harvest periods, process it to Garri, and sell the finished product.
6. Fish
Quite a lot of people eat fish. Catfish farming is very lucrative with profit margins as high as 50 to 150 percent when done right.
If you have the time to run a fish farm, or the resources to hire a few workers, you should consider this.
7. Rice
There has been a rise in local production of quality rice in Nigeria. You too can benefit from this industry by selling rice. Buying from farmers, processing, and packaging it to be sold to consumers is less risky than actual rice farming.
8. Tomato
Tomato is another profitable product that is in demand all year round. You can be a middleman, or start your own tomato farm. The price of tomatoes changes throughout the year to reflect production, supply, and demand.
Farming increases during dry seasons, as sunlight and dry ground favour its growth. So there’s usually increased supply and a price drop. But during the rainy seasons, the price of tomatoes goes up because fewer farmers can cultivate tomatoes under such weather. You need to understand market dynamics to profit from selling tomatoes, else you could stock up more than is needed and end up with rotten tomatoes that go to waste.
9. Yam
Yam is one of our primary foods in Nigeria. It’s also in demand year-round. Having a good storage system is essential if you want to keep them longer. One of the best ways to profit from selling yam is to take multiple orders and buy in bulk from farmers.
10. Onion
There’s barely anyone who cooks without onion. It’s always in demand, and less perishable, so you can store them for 3 to 6 months. Buying onion when it’s cheap and selling when supply reduces is a good strategy.
How to Source for Your Agricultural Products
There are 3 ways to source for the products you want to sell.
1. Buy from Farmers
One of the best ways to get agricultural products for sale is to buy them in bulk from farmers or producers (fertilizers and herbicides). Farmers are often willing to sell off their harvest at lower prices for bulk orders so they won’t bear the headache of storage, transportation, and marketing to the end consumers.
2. Buy from Middlemen
There are some urban areas where farm produce is sold at luxurious prices. Buying from middlemen who sell at standard market prices, with discounts for large orders is a way to source products if you have buyers who are willing to pay a premium price.
For example, some people staying in the riverine areas of Bayelsa buy rare fish from seaside sellers and transport them up country to metropolitan areas like Lagos and Abuja.
3. Start a Farm
This is the hardest way to get the agricultural products you want to sell. It is capital-intensive and requires labour, and ongoing maintenance costs. But if you can run a farm well and reduce losses, this will also be more rewarding when you manage the supply chain from the farm to the final consumers.
Marketing Strategies to Sell Your Agricultural Products
How fast you sell depends on how good your marketing is. You may have the best products at the best prices, but if the right people don’t see them, you’ll never make a sale.
Here are 5 marketing strategies to sell your products.
1. Leverage Social Media
Social media is a powerful tool for connecting with potential customers. Platforms like Facebook, Instagram, and WhatsApp allow you to showcase your products and engage directly with buyers.
By posting regularly, sharing customer reviews, and providing updates on new stock, you can build trust and drive sales. Joining Facebook marketplaces and local online communities helps you target buyers interested in your specific products.
2. Build Relationships with Hotels and Restaurants
Bulk buyers like hotels, restaurants, and catering companies are always in need of fresh produce, livestock, and other agricultural products.
Establishing partnerships with these businesses ensures consistent sales and large orders. While securing deals with bulk buyers can take time, the fast turnover they provide makes it worth the effort.
3. Develop Your Own Website
Having a professional website is crucial for building your brand and expanding your reach. Through your website, customers can view your product catalog, place orders, and even learn more about your farming or sourcing process.
Offering online ordering and delivery options will set you apart from competitors and make it easy for customers to purchase from you.
4. Join Agricultural Trade Fairs
Participating in trade fairs and local markets can help you showcase your products to a wider audience. These events are also a great way to meet potential buyers, network with industry professionals, and learn about new trends in the agricultural business. Bringing samples and offering promotions can give you a competitive edge.
5. Use Word of Mouth
Word of mouth remains one of the most effective marketing strategies. Delivering high-quality products and ensuring timely deliveries can lead to customer referrals. Encourage satisfied customers to recommend your business to others, and consider offering discounts or incentives for referrals.
You can also spread the word to coworkers and religious connections. By combining these marketing strategies, you can create a strong presence in the agricultural market and ensure that your products reach the right buyers.
Tips for Success In Your Agricultural Products Business
Most of the expert insights in this post originated from a conversation with Noel Cheerful, a Serial Entrepreneur, Business Consultant, and Agro-Industry Expert who has started and managed profitable Agricultural businesses.
Here are her top 3 tips for success.
1. Market Research
Markets change with time. Events like flooding, a hike in transportation, and the season of the year affect what is profitable. Don’t jump into selling a particular agricultural product because someone told you how much profit the person made. Without doing adequate research to confirm supply, demand, transportation, and storage logistics, you run the risk of wasting time, energy, and money on a failing product.
Also, you may not have certain leverage the person has, such as good relationships with loyal farmers and premium buyers. Always calculate your costs from sourcing to delivery of products based on the current state of things and ensure you can get good profit margins before taking the plunge.
2. Pick a Few Agricultural Products
While some agro gurus advise people to sell a wide range of products so they can be profitable all year round, Cheerful, based on practical knowledge, says it’s better to deal with as few products as possible. It’s better to pause when the chances of profiting are slim.
3. Strong Networking
Having a good relationship with farmers or manufacturers is essential. Sometimes you may need to help them cover their production cost to build long-term loyalty. You also need to know how to market your products to the right people who are willing to buy.
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Conclusion
A business dealing in the selling of agricultural produce is very lucrative in Nigeria because the entire nation depends on the agricultural sector. The high and increasing demand for food means that starting such a business holds great potential for good profits. This requires proper planning and execution in identifying the right crops or products, sourcing them properly, understanding market trends, and building strong ties with farmers by applying smart pricing, thus giving your business an advantage.
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