Seed production business offers good start-up opportunity for new investors. Highly lucrative customers include local/ foreign farmers and research institutions.
Types of seeds to sell
An investors has a huge list of seeds to produce. Make sure the verity are suited for the geographical location and soil type. Common seed produced are cauliflower, chili peppers, broccoli, and lettuce. More are spinach, rice, maize, corn.
- Chili peppers
The amount of funds depends on lease of factory, equipment, labor costs. Others are marketing, packaging, storage facility, transportation or courier service. Fund the business through target savings, cooperative loans, bank loans. Use venture capitalists, crowdfunding, angel investors or partnership arrangement.
- Commercial bank loans
- Target savings
- Cooperative loans
- Venture capitalists
- Angel investors
- Partnership arrangement
Quality control and standardization is important in seed production. Government regulates the industry with inspection and certification.
Seed production costs
Seed production costs depends on method of production. There are two methods of production industrial or farm based production. Farm production involves local or traditional methods of seed production while industrial method use advancement in technology.
Industrial method requires more funds because of administrative costs, labor, technology, factory lease, equipment. Farm production has lower labor cost, cheaper land requirements in rural areas.
Other methods of production is home production, farm product, industrial production, conjunction with research institutions.
Seed production method
Seed production process involves soaking, land preparation, seed bed preparation. Next is sun drying, seed grading, packaging, sales.
How to increase sales
There are many ways to increase sales by offering customers seed samples and soil. Sell quality products have a selection of different variety seeds. Make sure the price of the product is competitive and fair. Finally sell them to farmers in geographical regions suited for the product.
Methods to increase sale of seeds
- Offer customers seed samples
- Sell quality soil
- Sell quality products
- Have a selection of different variety seeds
- Competitive pricing
- sell directly to farmers in same geographical region
It is important to check out what the competition is offering in price or verity. Knowing the competitors price offers a good template for pricing. Things to consider when pricing is cost of production, labor, marketing, packaging, transportation/shipping, warehousing.
Appropriate pricing is very important to the success of the enterprise. A good strategy is to sell two types of seeds in a package deal to reduce price and move stock.
Where to sell
- Agricultural firms
- Local farmers
- Private individuals
- Government research institutions
- Advertise in agro-based publications
- Local newspapers
In some countries there are government agencies that regularize seed quality and standardization. Things to consider are company registration, tax identification number, number of staff, equipment.
Branding is important for product marketing or sales. On the package include useful information like type of seed, preferred soil, address of manufacturer, email, identification number. Make sure cover is attractive, add specifications, direction of use.
Sell the product to agricultural firms, farmers, gardeners, private individuals, government research institutions, online. Advertise the product in agro-based publications, local newspapers.
Build a website to showcase the products and include email address, testimonials and contact address. Use farmers groups on social media like Facebook to introduce the product. Don’t forget social media marketing and Google Adwords.