Agriculture is a crucial part of the South African economy. Production from this sector is an estimated R 408 463 million. In 2022 alone, it contributed 2,7% of the local gross domestic product. Although this only marks it as the fifth largest contributor, the role it plays is unmistakable. Not only is this due to the products it produces, but also the fact that it employs approximately 920 000 people in primary agriculture alone. This raises the question: How can you become a part of the agriculture sector?
You don’t need to start crop or livestock farming to take advantage of the everpresent need for agriculture in South Africa. And joining the agriculture industry also doesn’t necessarily mean that you are farming at all. Many alternatives to traditional farming exist, but becoming a part of the agriculture sector can include participation in or starting a business in the secondary or tertiary sector.
What is the Secondary and Tertiary Agricultural Sector
The secondary agricultural sector extends beyond the tasks and production that happen on the farm to obtain a healthy yield or raise stock. It is focused on preparing and processing the products obtained from primary agricultural production.
Primary agriculture produces raw or semi-processed materials such as vegetables, fruits, timber or nuts. The secondary industry will transform this into a product that can be sold. Agro-processing, for instance, falls into this category. Furthermore, the tertiary sector is not directly included in the original definition of agriculture but relates to the sale and trade of manufactured or produced goods.
Where To Join the Agriculture Sector
Entrepreneurs can become a part of the agricultural sector by opening or buying a business in the following areas:
Examples of Secondary Agriculture
Manufacturing: Manufacturing can relate to the manufacturing of equipment for the agricultural sector or taking produce and turning it into another product. A good example here would be a cannery.
Milk or fibre production: Both milk and fibre production falls in the category of secondary production because the animals don’t need to be slaughtered to obtain these products. To get involved in this, you may offer packaging services, sheering services or sell equipment that enables producers to process these products.
Labour: The labour of seasonal workers, farmhands, permanent workers and farm managers are all in this category because they are not included in the primary definition. However, they form a vital part of primary agricultural production. You may start a recruiting business that helps place agricultural workers.
Food Processing: Food processing is a broad definition. This can be both animal feed as well as food for human consumption. Preparing jams, preserves, baked goods, packaging honey, drying and packing spice, and opening a slaughterhouse are all business opportunities that operate in the secondary sector.
Examples of Tertiary Agriculture
Transport: Transportation of livestock or produce from farms to markets, abattoirs or grain silos. Business ideas include a transport service as well as a truck or trailer rental service.
Training and Development: Whether it is upskilling a farmer’s workforce, offering agri-related training courses or presenting must-have personal development, this business idea has a wide range to choose from. As a facilitator and assessor, you can offer accredited training courses to individuals.
Services: Services in the tertiary sector are any service that helps primary and secondary producers accomplish their business objectives. This can include any service from helping agro-processors with their tax compliance, to helping them market their products and facilitating the import and export of their products.
Choose Your Idea For the Agriculture Sector That Works For You
Anytime you consider starting or buying a business, there are two vital things you need to remember:
- What am I passionate about?
- What knowledge and skills do I already have?1
These two questions will guide you to the correct choice. Firstly, you need to be passionate about your business because this helps motivate you on days that are tough. Secondly, having existing knowledge and skills that you can bring to a new business will help you succeed because you don’t need to start from scratch.
With this extensive list of sectors where you can venture into, you can direct your efforts to identify business opportunities to start or buy.
