Agro-processing is an excellent way to add value to your crops if you are a farmer. But it is also a solid business idea for your start-up or a way to expand your small- to medium-scale enterprises. Further, it stimulates the economy through job creation and increasing the number and variety of local products.
The term agro-processing refers to the processing of agricultural products. It is classified as a division of the manufacturing industry as other products are ‘manufactured’ during this production process.
South Africa already has over 7 000 agro-processing businesses in operation. These range from micro businesses that create small-batch products, to giant corporations with facilities across the country. Yet, this sector has a lot of room for growth. With so many farmers generating agricultural products, there is a surplus of fresh products that go to waste daily. This leaves the door open for innovative minds that turn raw materials into products that sell at a higher price.
So, whether you are a small-scale farmer wanting to add value to your products, or an entrepreneur looking for an opportunity to delve into, here are five agro-processing business ideas.
1. Food Processing for Human Consumption
Processing agricultural products into foodstuffs might be the most obvious agro-processing opportunity. Whether it is turning fruits into jams or developing new recipes for snacks from grains, the list of ideas is endless.
Consider what farmers are in your area, or where you will get the raw materials from. This is important as you want to save yourself from struggling to obtain your materials. Once you know what ingredients are at your disposal, you can concentrate on product development. Try to develop a unique product that will make it stand out against its competitors.
Remember: You need to comply with all the business regulations of an enterprise that handles food.
2. Pet Food and Livestock Feed Manufacturing
Animal byproducts, cereals and minerals are just a few of the basic ingredients in some animal nutrition products. Although this is an industry where any individual can consider processing agricultural products, it requires some expertise in animal nutrition.
Reach out to animal nutritionists or experts in the feed industry to find out what the nutritional requirements for certain animals are. This will be your baseline for looking at what ingredients you need to source for manufacturing your products.
3. Agro-Processing Business Ideas for Health and Beauty Products
Various plants provide health benefits. Whether it is ground moringa powder that is used as a supplement, or essential oil extracted from herbs that promote healthy skin, are all ingredients that can be farmed.
Many successful small businesses that are currently in operation fall into this category. Some ideas include organic beauty products, artisanal soap or perfume blending. Since this entails products that will be used on skin, there is a different list of compliance regulations you need to adhere to. Make sure you understand exactly what these are before you begin.
4. Textiles and Apparel
Clothing and textiles are made from natural fibres such as wool or leather. In the category of wool, this includes wool from sheep and alpacas as well as mohair.
With some skill development to work with these fibres, you can potentially source wool from a mill and manufacture garments and textiles from it. Be it hats, scarves, blankets, socks, jerseys or sweaters, there is a variety of items that can be created from wool.
Leather can be turned into shoes, belts, hats, jackets and even accessories such as bags and wallets.
However, these materials are expensive and will require some training to work with them without wasting it.
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5. Packaging Facilities as An Agro-Processing Business Idea
Don’t have access to materials or the equipment to process agricultural products developed in your area? Start a packaging facility. You can source packaging materials from wholesalers or packaging manufacturers.
In the Eastern Cape, the East London Industrial Development Zone (ELIDZ) already has agro-processing opportunities available for packaging facilities. The facility will focus on packing and processing hydroponic vegetables grown in the area.
Small-, medium- or micro business owners as well as farmers can easily expand their business through agro-processing. Thanks to the rich variety of agricultural products that South Africa’s farmers produce, there are a variety of additional business opportunities for every innovative entrepreneur.
