As the economy slowly opens up, we see a strong year for many agribusinesses in the Philippines this 2022.
Whether you have an established business or just starting, it pays to look at the trends to explore how you can improve productivity and increase profits.
Here are 22 profitable agricultural businesses this coming year (in no particular order):
FRUITS & VEGETABLES
With the pandemic, Filipino consumers are making healthier choices and are actively adding more fruits and vegetables into their diet. Demand for fresh produce is foreseen to increase in the next 10 years.
1. Sugarcane (Tubo) – Profits can be seen mostly from the by-product of sugarcane (confectionary, rum, ethanol, building materials, and fuel).
2. Bananas – Bananas are the top-grossing fruit produce as of Q3 of 2021. Projections are positive in the next several years. These crops are easy to maintain and the period from planting to harvesting is short.
3. Pineapple – The average net return of pineapple is P166,030 per hectare in 2019. Its estimated annual rise in profit is up to 3%.
4. Onions – Onion farms have always been profitable as a staple ingredient in Filipino cooking. The average Filipino consumes 1.9 kilos of onions each year.
5. Garlic – another Filipino cuisine staple with very minimal tending requirements. You can start harvesting within 40 days. Garlic had an average net return of P190,291 per hectare in 2019.
6. Organic Crop Farming – consumers are willing to pay more for safer and healthier fruits and vegetables. Consider adding door-to-door delivery to upsell your product.
7. Herbs and Spices – with more people cooking at home, herbs like sweet basil, coriander, dill, tarragon, and lemongrass were in high demand in 2021 and will continue in the coming years.
8. Coffee Beans – the climate in the Philippines makes growing the berries easy plus the growing coffee culture both in urban and rural places has increased the demand for coffee beans.
9. Root crops – particularly, potatoes (all varieties), yams (ube), and carrots achieved an all-time high in demand in 2020 and 2021. Root crops require minimal tending and turnaround time is only around 3 months.
10. Pineapple – The average net return of pineapple is P166,030 per hectare in 2019. Its estimated annual rise in profit is up to 3%.
11. String Beans – this includes all varieties of string beans. These low-maintenance crops can be harvested after 80 days. One can get as much as P260,000 net return per hectare.
12. Herbs and Spices – with more people cooking at home, herbs like sweet basil, coriander, dill, tarragon, and lemongrass were in high demand in 2021 and will continue in the coming years.
13. Hydroponic Farming/Urban Farming – no land, no problem. Hydroponic farms have been popping up in metropolitan cities since 2018. The trend will rise as more businesses shift to agriculture. Start with this article if you’re curious.
LIVESTOCK
Livestock farming often requires bigger capital. However, it also means bigger returns in the process.
14. Hog Raising (Piggeries) – pork will continue to be a highly consumed meat in the country. One sow (female pig) costs around P20,000 – P30,000.
15. Poultry – The fast turnaround of chickens (45 days) makes this industry very lucrative.
16. Eggs – You can either be the supplier or a distributor. Eggs have always been profitable when your business is scaled.
17. Backyard Farming Cattle – The average farmgate price of cattle for slaughter in backyard farms for July to September 2021 was estimated at P147.21 per kg. That’s a 15.1% increase from the previous year, according to the Philippine Statistics Office.
18. Dairy Farming – In 2020, Australia and the Philippines have launched a research initiative to maximize the potential of the Philippine dairy industry. You’ll notice more local dairy-based products on grocery shelves and online retail stores in the coming years.
19. Milkfish (Bangus) and Tilapia – You can start a small backyard fishery for around P100,000. This includes pond excavation, irrigation preparation, and your first batch of fingerlings.
AGRI SUPPLIES
There’s plenty of profits to be made in agribusiness supplies too! This type of business doesn’t require a lot of farming know-how. Your main concern will revolve around transport and supply logistics.
20. Livestock Feeds (Distributor) – chicken and hog feed are two of the most profitable options. Sign up as a distributor to move things a lot faster.
21. Farm Machinery Leasing – Go the B2B route and lease trucks, tractors, air seeders, cultivators, and lifters. The more machinery you have to rent out, the faster the returns for your initial investment.
22. Aquaculture Supplies – explore getting into the business of fish feed and fishery machineries like water pumps, nets, and traps.
OTHER NOTABLE AGRIBUSINESSES:
Landscaping/Ornamental Plants Supplies – be a tita to the plantita and sell pots, plant stands, fertilizers, plant food, insecticides, and other landscaping needs.
Packaging – Supply other farming businesses with rice sacks, food-grade packaging, styro boxes, and jam jars. This B2B business can even go beyond the bounds of agriculture if you so choose.
—
First Standard can help you start any agribusiness expansion in as fast as 5 days with flexible terms. Get in touch with us today to learn more.
