Do you want to start a business in the agriculture/agro-allied value addition sector? If YES, here are 50 best lucrative agro processing business ideas for 2016.
Do you know that Agricultural businesses are the most lucrative businesses in the World? Apart from the low-cost of start up and running the business, agricultural businesses turn out a huge profit of up to 100%. With the increase in unemployment, young people are now embracing agriculture which was erstwhile considered a dirty business reserved only for the poor. The trending challenge and impact of rural-urban migration have continued to generate great debates since the last three decades.
Urban employment problems are a result of the phenomenal growth in urbanization and the inability of these urban centres to be able to utilize or absorb the urban labour that was created through the process of urbanization. At present agriculture business in the world revolves around productive resources like feed, seed, fertilizer, equipment, energy, pesticides, machinery, etc. and agriculture commodities like raw and processed commodities of food and fibre.
The agriculture-based business opportunities in the world are on the verge of revolution. The process of modernizing the entire food chain in the World has already started. The total food production in the World is likely to get doubled in the next ten years. At present, agro-based business has excellent export prospects. Here are some agro business ideas you can start with;
50 Lucrative Agro Processing Business ideas for 2016
Bakery is one of the most profitable foods processing business opportunity one can initiate by having owned or rented space. Selecting the right product and designing proper marketing strategy are the major deciding factor in getting success in the bakery business.
According to the demand and financial aspect you will need to choose the specific products for your bakery business. Bakery business in The World is the largest industry in food processing sector. Bakery products have become very popular throughout the country.
Bakery is one of the most profitable foods processing business opportunity one can initiate by having owned or rented space. Selecting the right product and proper marketing strategy are the major deciding factor in getting success in the bakery business.
- Banana Wafer Making
Banana wafers are under-ripe bananas that are cut into slice dipped in syrup solution, dried in the sun or in an oven, fried and eaten as snack food or dessert. These can be sold both in the local and export markets. You can initiate this business as small scale basis.
Banana is considered as a rich source of energy producing food. It is consumed in several varieties of preparations and forms. The major share of banana production in the country is consumed in the fresh form. Banana is highly perishable in nature. It can be preserved by processing to produce banana pulp, banana chips, banana powder etc.
- Basket Production-: Basket weaving is a profitable and popular business in the rural sector of The World. Currently, with modern equipment basket, weaving has become more profitable and it is a popular item in the urban market also.
- Cane Chair Manufacturing
Cane chairs are considered as a luxury furniture item. The manufacturing operation is very much profitable, provided required raw material can be procured easily. If you start this business on the right footing, then you can be sure to make good returns on your investment in no time at all.
- Cashew Processing
The manufacturing activities that are involved in cashew processing are cell cooking, cutting, cashew kernel drying, peeling, grading and packing. Cashew nut processing can be initiated as small scale and also as an export-oriented plant. Simple machinery is required.
Raw cashew is not a ready to eat product. Processing is a must. Raw cashews are processed to cashew nuts, which is one the famous dry fruits. These are consumed directly or converted to a variety of products like salted cashew nuts, cashew curries etc. In the World, processing of cashew is manual and highly labour intensive process. Mechanization in cashew processing is picking up gradually.
- Chips Production
Potato chips in various forms are one of the most popular ready-to-eat snacks now among the young crowd. It has also an export potential. The production unit can be initiated as small scale basis also. If you are looking to start a business that has huge growth and profit potential and that requires minimal start up capital and no formal qualifications, then you will find more than enough opportunities in the foods and snacks industry. One of such opportunities is potato chips production.
- Coconut Oil Production
Coconut oil is used as an important cooking medium. Apart from this coconut oil have various industry applications. It is used in the manufacture of toilet soaps, laundry soaps, surface active agents and detergents, hair tonics, hair oils, cosmetics, etc.
Choosing right location is one of the most important factors in starting coconut oil manufacturing. It should be nearby the area where from raw materials can be procured easily. Coconut oil is an important cooking medium in Southern parts of the country, especially in Kerala and Karnataka State. Besides, the oil has varied industrial applications.
- Cold Chain for Fruits & Vegetables
Providing cold chain solution is a profitable business in The World now. A cold chain is a temperature-controlled supply chain. An unbroken cold chain is an uninterrupted series of storage and distribution activities which maintain a given temperature range. It is used to help extend and ensure the shelf life of products such as fresh agricultural produce, seafood, frozen food, photographic film, chemicals, and pharmaceutical drugs.
- Dal Milling
Dal milling is actually processing of different pulses. Subject to the availability of raw material you can select different various products. Commonly two types of conventional processing methods are used Such as wet milling and dry milling. Dal milling is capital intensive and energy sapping in nature.
- Dried Flower Business
If you are looking for an agro based business to start, you can look at starting a dried flower business. Growing flower and selling those flower after drying is one of the most profitable agriculture business ideas. You can start dried flower business by sourcing the flowers from flower grower also.
- Dry Fruit Production
Dried fruits are very popular around the globe. Thus, these products have an immense export opportunity. Dry fruit production can be initiated as small scale basis also. The internet is a very good place to read up a whole lot about the dry fruit production business.
- Fish Hatchery
A fish hatchery is a place for artificial breeding, hatching, and rearing through the early life stages of animals, finfish and shellfish in particular. Hatcheries produce larval and juvenile fish (and shellfish and crustaceans) primarily to support the aquaculture industry where they are transferred to on-growing systems i.e. fish farms to reach harvest size.
From techno-commercial aspect, fish hatchery is profitable venture to start. Hatching and raising fish in various capacities, and for various reasons, is rapidly growing in popularity. One reason for the rising number of hatcheries is increased demand for finned foodstuffs, as more and more people recognize the benefits of a diet with lots of fish.
- Flour Milling
Flour is produced by milling food grains. Different varieties types of flour are used to prepare different foods. These are Wheat flour, brown flour, whole wheat flour, wholemeal flour etc. The Production process is simple. This business can be initiated as small scale basis with simple machinery.
Almost all the junk foods we eat these days are made from flour; Cake, Burger, Pizza, Doughnut, name them, are all made from flour. There are different types of flours and each of type of flour is dependent on the raw material used to produce the flour.
For instance, wheat flour is made from wheat, corn flour is made from corn/maize; then there are others like rice flour, cocoyam flour and yam flour and my guess is that you know the raw materials each of these types of flour are made from.
- Frozen Chicken Production
Frozen chicken is a hot product now. The demand for this product is increasing globally. An entrepreneur living in a metro or suburban city can start this business with proper planning. Frozen foods business is one of the most lucrative branches of food business because a lot of people are too busy with work that they find it difficult to spend a lot of time cooking or searching for fresh ingredients to cook with. Cooking with fresh ingredients takes a lot of time than using frozen ingredients.
- Fruit Bar Production
Fruit bars are very popular food item in the World from the early age. A small scale manufacturing unit can be installed with small start up capital and the business is financially feasible. One of the good things about this type of business is the fact that there are a lot of people that can be attracted to this business with the right advertisement.
- Fruit Juice Production
Fruit juice is one of the ready to serve item. Another popular product is squash. These are very popular throughout the year, especially in summer. Fruit juice production business can be initiated as small scale basis. Products should be selected according to the availability of raw materials.
Fruit juice production and packaging are a profitable business in The World. You can start with a specific product. Or you can establish a multi-fruit juice processing plant. Definitely, if you go with different types of juice production, investment will be higher. In that case, you can also expect a higher percentage of gross profit from your business.
- Ginger Garlic Paste Processing
Ginger and Garlic Paste are mainly used as a condiment in various food preparations and also serve as a carminative and gastric stimulant in many medicine preparations. As instant mixes and spices are becoming more popular, the demand for ginger garlic paste is also increasing.
The Production process is simple and the product has an immense market opportunity for export also. Ginger garlic paste is one of the essential ingredients in Indian cuisines. It is added to almost all of the Non-vegetarian preparations and a few vegetarian dishes in Hyderabadi cuisine.
- Ginger Oil Production
The main application of ginger oil is confectionery beverages and baked products. The World is the largest producer of ginger. Ginger oil production is one of the most profitable food processing businesses that can be started as small scale basis also. This is one of the best things that can ever happen to you if you garner all the right information to start this business.
- Grapes Wine Production
Grape wine making is actually fermenting the grape juice. The major raw material required for the processing and making of grape wine is grapes. Grape wine making is capital intensive and it requires proper operational and marketing strategy.
- Groundnut Oil Production
Groundnut oil processing is one of the most profitable food processing businesses considering the required capital investment. The oil that is obtained from groundnuts / peanuts is very healthy and suitable for best human consumption. The manufacturing unit can be established as small scale basis. Groundnuts are a popular source of food throughout the World.
Groundnut oil is used for cooking food and as a shortening or as a base for confectioneries and they can be used to make peanut butter. Groundnut oil ranks at the top among edible oils exported from many countries in the World. It is premium oil and its cost is also high. Most other edible oils are priced lower than groundnut oil. Groundnut oil is available in the market in refined and filtered forms.
- Groundnut Processing
Groundnut processing is one of the profitable agriculture business ideas to start with small capital investment. This business has as export potential also. Nuts can be a very tasty snack to munch on and even more so is the fact that we are talking about peanuts. Peanuts are also known as groundnuts.
There are so many healthy values which the groundnut gives to the body; this is why some folks swear by the groundnuts. . Groundnuts are highly nutritious and it is no wonder doctors usually recommend it for pregnant women. Groundnuts are nuts that grow all year round. It isn’t a seasonal crop and as such can be found all the time.
- Honey Processing
Honey processing is actually removing wax and other foreign unwanted particles from honey. You can establish the processing unit by two ways either by a manual system or by electrically driven. The Production process is simple and can be initiated as small scale and home based basis.
With a low start up capital investment one can establish honey processing plant to facilitate the production of high quality honey. In The World there is a growing awareness of the nutritional, medicinal and industrial uses of honey. Consequently, demand for pure and good quality honey is increasing. In view of this a trend is fast developing to install honey-processing plants by entrepreneurs as well as public institutions.
- Ice Cream Production
Ice cream making business can be initiated as small scale basis with low start up capital investment. Ice cream making is a wonderful small business idea that any individual can explore to make handsome money out of it. Ice cream is a frozen blend of a sweetened cream mixture and air, with added flavourings.
A wide variety of ingredients are allowed in ice cream, but the minimum amounts of milk fat, milk solids (protein + lactose + minerals), and air should be maintained in ice cream making. Ice cream making business can be initiated as small scale basis with low start up capital investment. Ice cream making is a wonderful small business idea that any individual can explore with making handsome money out of it.
- Insecticide Formulation
Insecticide formulation can be done by having CIB permission. Insecticide is an essential item in any type of crop farming. Consumption is so high in The World. One of the best ways to go into this kind of business is by employing the services of an expert / consultant who will help you garner all the necessary information and leads that will help your business.
- Jiggery-: Selecting the right location is very important for jiggery processing plant. It should be located on the place where sugarcane is easily available and can be procured with minimum transportation cost.
- Jam Jelly Production
Jam jelly-making business is profitable and can be initiated on a small scale with low capital investment. With proper planning and strategy, jam jelly-making business can be initiated home based also. Different allowances and grants from Government sector are also available.
Most kinds of fruit and some vegetables are used to make a wide variety of jam and jelly. Fruit jam contains rich fruit pulp and available in mango, apple, mixed fruit, pineapple and orange flavours. Jelly is a clear, bright mixture made from fruit juice, sugar and sometimes pectin. Jelly and jam are used as a bread spread and as a filling for some cakes and cookies.
- Livestock Feed Production
Livestock feed production business can be initiated with proper planning and know-how about the right mixing formula. Most of the livestock farmers are always searching for right food and food supplementary product for their farm. Several different livestock feed needs to serve the different requirement legitimately.
- Meat Processing
Meat processing technology comprises the steps and procedures in the manufacture of processed meat products. All processed meat products have been in one way or another physically and/or chemically treated. Meat processing is capital intensive. Proper distribution and marketing strategy is required before initiating.
Microbreweries produce a small amount of craft beer than large-scale corporate breweries and are independently owned. The market of microbreweries is immensely developing. Different licenses and permission is required in initiating microbrewery business.
- Micro Irrigation System Providing
Micro irrigation technology is gradually emerging as demand-driven technology these days in The World. 48% of the geographical area of countries like India receives less than 1000 mm rain and the rest 1000-2500 mm. providing micro irrigation system is a profitable agriculture start up opportunity.
The artificial way of supplying water to the agricultural land at the right moment in an appropriate volume for the proper growth of the plants in order to get the maximum yields of cultivation is technically called irrigation. But irrigation also includes clearing away of excess water from the agricultural land. There is a great necessity of irrigation in The World agriculture.
- Milk Chilling Plant
Chilling basically stunts the growth of bacteria converting the lactose or sugar in the milk into lactic acid, which curdles the proteins and causes soaring. It should be done within one/one-and-half hour of milking, after which the naturally occurring preservatives in the milk (including carbon dioxide) stop working. Milk chilling plant is a profitable venture to start, provided you get enough milk to be chilled.
- Multi Purpose Cold Storage
Cold storage is essential for extending the shelf life, period of marketing, avoiding glut, reducing transport bottlenecks during the peak period of production and maintenance of quality of produce. The cold storage industry, therefore, plays an important role to play in reducing the wastage of the perishable commodities and thus providing remunerative prices to the growers.
- Onion Paste Processing
Onion is one of the important ingredients of curries used by almost all household in the World. Onion paste is one of the items, is manufactured and preserved having high market demand. Being involvement of simple technology, any entrepreneur can establish this unit and be successful in the business.
- Organic Farm Green House
An organic farm greenhouse project business has a high potential to grow and succeed because steadily the demand for organically grown farm products has grown. With the increase in awareness of the multiple health risks of foods grown with chemical more and more people are turning away from food products are grown with fertilizers and other chemicals towards organically grown food. An organic farm greenhouse project business has a high potential to grow and succeed because steadily the demand for organically grown farm products has grown.
- Palm Oil Production
The main raw material is palm fruits. Palm oil is used as edible oil. Apart from that, there is a demand for commercial industry use. Palm oil processing is profitable and capital intensive. All type palm oil processing units differ in the level of mechanization of each unit operation and the interconnecting materials transfer mechanisms.
- Pesticide Formulation-: By importing the technical of pesticide, any individual can initiate a pesticide formulation unit with substantial capital investment. The demand is high and the margin is also lucrative in this business.
- Pickles Making
Pickles are the most popular item in many countries in the World recipe. Besides domestic market pickles have an export potential also. Various different quality pickles can be produced. The product should be selected according to the availability of the raw materials. Simple machinery and equipment are required and production process is simple.
- Potato Powder Processing
Potato powder is increasingly being used in a variety of food preparations like snack foods, soups, curries and other dishes as a thickening agent. Potato powder manufacturing is capital intensive. FPO and Pollution Control Board permission are required.
- Rice Bran Oil Production
The Commerce Ministry of India and Singapore recently allowed bulk exports of rice bran oil and removed quantitative restrictions on outbound shipments of organic edible oils. Rice bran oil is considered as premium edible oil with limited consumption in The World. Rice bran oil production is capital intensive. The unit must be focused on export-oriented to get much better profitability. This is a very popular agro-based business.
- Rice Mill
Rice being the staple food of majority the world population, the mini rice mill consists of a paddy cleaner, Sheller, separator and a polisher. Mini rice mill is one of the most profitable food processing and agro-based businesses. First, you must figure out the requirement of the area. It broadly depends on two aspects.
Whether the unit will be using a parboiling unit for pre-treatment of paddy before the commencement of milling operation or it will be directly milling raw paddy. Generally, 1.00 to 1.50 acre of land is required for establishing an improved rice milling unit having an installed processing capacity of 2 MT/ hr.
- Rope Manufacturing
India is the single largest jute producer in the World producing around 35% of the World production and earns highest foreign currency from jute. The demands for jute products are good and there is a bright scope of jute yarn, jute rope making unit. You can start rope manufacturing in any country in the world and make money.
- Seed Production
Seed processing is one of the most profitable agro-based business ideas to start with substantial capital investment. Proper raw material resources, marketing strategy and attractive packaging are important in getting success in this business.
- Soybeans Processing
Soya chunk processing can be initiated as small scale basis. The major raw materials are soybean meal and peanut meal. Soya chunk production process involves milling, mixing, extruding and cutting. This is one of the most profitable food processing businesses one can start with moderate capital investment.
- Spice Powder Processing
Spice grinding and packaging is one of the most profitable food processing business to be initiated as small and medium scale. Spice is an essential item and is considered as a tastemaker. Apart from individual spice powder like chilly, cumin, turmeric; special quality mixed spice powder processing is more profitable.
Some of the most popular items are meat spice, curry powder, chat spice etc. With changing of lifestyle and especially with changes in food habits and the increase of income level, the use of powdered spices has increased. Of late, the market for ready-to-mix of spices has grown significantly.
- Sunflower Oil Production
For sunflower oil processing, the main raw material is sunflower seed. Refined sunflower oil goes through the long way of purification which consists of the following stages: mechanical cleaning, hydration, neutralization, bleaching, freezing, deodorization and nitriding. Sunflower oil processing is capital intensive and profitable agro-based business.
- Textile Mill
Textile mill is considered as a lucrative business in The World because of the massive availability of raw materials. Textile mills are buildings where fibres are interlaced together to produce fabrics. Cotton, wool, synthetic blend and wool blend yarns are also produced there.
- Tomato Processing
Tomato is a wide available item and processed tomato products are also very popular. Most popular products are tomato sauce, puree, juice, ketchup etc. In initiating tomato processing, you can also produce tomato pulp for other small scale industries. The production process is not complex. Simple machinery and equipment are required. Tomato Processing is regarded as a very profitable agro-based business idea.
- Tutti-frutti Production
Tutti-frutti is concentrated processed food product produced from raw papaya with attractive colour, sugar, and preservative. It is also used by several other food processing industries like cake, bakery bread etc. The product has also a very good retail opportunity and a popular agro-based business idea.
- Vermicompost Production
Vermicompost production is one of the most profitable agro-based business ideas one can initiate even from his or her backyard. Easy procurement of raw material and proper promotion strategy is important to get success in this business.
- Weedicide Production-: Weedicides are one of an essential consumable item in certain types of crop farming. Botanical and chemical both two types of weedicides are popular among the farmers.
In conclusion, these 50 agro-based business ideas we hope will inspire you in taking a decision for initiating an agriculture start up operation with small start up capital investment. Analyze and find the suitable agro-based business idea which fits you most as per your skills, experience, and knowledge.