Do you want to find out about the best agricultural businesses in the Philippines? We are here to help.
An investor may wonder why they should invest in agribusiness, but the reasons are simple.
With the climate of the Philippines, a farmer could technically grow and sell their produce and livestock year-round, ensuring stable profitability for any savvy businessperson. With nearly 10% of the gross domestic product of the Philippines, an agribusiness is a viable option for investors in the country.
With that being said, what are the top 5 agricultural businesses in the Philippines you can invest your money? Let us run it down for you.
1. Poultry Raising
Let us start with one of the most lucrative, poultry raising. Did you know that you can get market-ready chickens in just 45 days through free-range backyard farming? That is a fast turnaround, and a farmer could be selling chicken meat in a month and a half by starting with a small poultry operation.
Poultry is also a growing industry. According to the Philippine Statistics Authority, the poultry industry grew by 6.7% in 2022 and is set to grow even higher. According to Poultry World, there is an ever increasing demand for chicken meat in the market, which means that poultry raisers can sell their products at a good price, helping to increase their profits.
But another way for poultry raisers to profit is through the eggs which the chickens lay. A good layer of eggs can produce up to 270 eggs a year. With each egg costing around P8 to P9, it can mean revenue of P2,160 to P2,430 per egg-laying chicken per year.
You can be an investor as a contract grower or breeder. These are partnerships where you can raise chickens in partnership with a production and processing company like Bounty. At Bounty, we can increase a poultry farm’s growing cycles to up to 9 cycles per year. Also, you get the help of our highly experienced professional technicians who can help you set up and optimize your poultry business. It doesn’t matter if you are new to poultry agribusiness or seasoned ones, our team will guide and advise them accordingly. Bounty’s support for our partners are unwavering.
If you want to start your own poultry business, visit our page to know more about how the poultry business works.
2. Dairy Farming and Cattle Raising
Like poultry farming, a person can earn in dairy farming and cattle raising in two ways – the meat of the cattle and the milk produced by the cows. This creates two revenue streams from which a business can earn.
However, the return on investment can take much longer as cattle take longer to grow to slaughter and produce milk, unlike poultry wherein the return on investment is much faster. It takes at least two years for a cow to be fit for slaughter, while a cow can only produce milk once it has given birth to a calf. Farmers also have to take into consideration the larger investment in land and money that it takes to get a cattle farm off the ground.
But the profits can be enormous. Beef can go up to as high as P600 per kilo. A cow can produce nearly 9,000 kilos of milk every year. Each of these becomes a profitable stream of income for many years for the farmer.
3. Rice Farming
Now who does not love rice? I love rice, as nearly every Filipino in the country does. The Philippines is one of the largest consumers of rice which is why rice is the most important crop in the Philippines.
It takes 120 to 150 days for most rice varieties to grow from seedling to harvest, which can be good for at least two to three harvests every year. A good rice farm can produce up to 3 to 6 tons of rice every year.
The greatest consideration for rice farming however is that a rice farm is affected by weather more than the first two options. However, modern rice farming techniques blunt the effect of weather fluctuations most of the time.
4. Vegetable Farming
Vegetable farming is also a profitable agricultural business in the Philippines, with the country’s tropical climate being conducive to year-round production of a wide variety of vegetables. Vegetables such as onions, garlic, tomatoes, eggplants, okra, and ampalaya are in high demand in the local market. Vegetable farmers who adopt modern farming techniques and good post-harvest practices can earn a good income from vegetable farming.
What is more, you can potentially increase your profits if you invest in organic farming. There is a premium for organic produce in the market, with up to a 10% to 21% increase in price for organic vegetables. These use organic fertilizers which make soil have an improved structure, making it more fertile plus is environmentally friendly. Get in touch with us today to learn more about our Seasons Organic Fertilizer.
5. Hog Raising
Hog raising is also a lucrative business in the Philippines. You can find many backyards have their own piggeries, and this is because pigs have a short timeline to slaughter. It only takes 5 to 6 months for pigs to achieve slaughter weight and a farmer can already send the pigs to market at that time.
With the relatively fast turnover, piggeries can turn an amazing profit in a short amount of time. However, a farmer has to take into account the risk of diseases like foot and mouth disease. That is why a farmer must source their pigs and feeds from reputable sources or risk their investment going up in flames.
INVEST IN AGRIBUSINESS TODAY
With a vibrant agricultural economy and a large population, agribusiness is always an in-demand sector in the country, and an investment in agriculture can be very profitable for an agribusiness investor in the Philippines. These five are not the only available agribusiness for an investor to make a profit but these are the most accessible and have the most resources available to build a revenue-generating machine.
But the best agribusiness in the Philippines is the one that fits the investor’s goals. Does the investor have the time to invest in something as long term as dairy farming or does the investor need quick turnarounds like hog raising or poultry? Also, you need a partner like Bounty to make sure you get the right know-how and resources to make any agribusiness fly.
In the end, all of these are profitable. But diligent research and the right partner go a long way in ensuring investors get their money’s worth.
Send us a message here to know more about how we can help you start or grow your own agribusiness.