Emerging agribusiness niches are those gaining popularity among the farming community and consumers in Africa and abroad over the last decade. While these niches have existed in Africa, their economic potential had not been leveraged until the recent past. We explore the opportunities surrounding these agribusiness niches and why you should consider them when looking for ideas to invest in Africa.
Why should you consider these niches?
Emerging agribusiness niches are characterized by rising demand for their commodities. This is attributed to the ever-changing tastes and preferences among consumers. Consumers also need a bigger variety of food commodities to select from, especially as their standards of living increase.
In the history of some of the emerging niches that we are about to discuss, you will note that these niches remained unexplored by farmers due to poor varieties or breeds. With research and innovation of better varieties and breeds, farmers are able to realize profits from these niches. In addition, there is more information on best farming practices that did not largely exist before.
How we determine our top emerging niches
We determine our top emerging agribusiness niches on the basis of the following factors;
Per capita consumption
4 Best emerging Agribusiness Niches
Avocado farming is evolving to become one of the most lucrative ventures in Africa. The introduction of the Hass and Fuerte varieties has seen farmers embrace avocado farming. These highly-producing varieties assure farmers of big profits each year. With a productive period of over 40 years, avocado farming is a good choice for long-term investment.
Currently, Kenya is Africa’s top producer of avocados, accounting for 28% of the total production on the continent. It is followed by Rwanda and South Africa, which produce 20% and 14% respectively. Avocado farming in Africa is boosted by an available market both locally and in foreign markets. Apart from selling avocado fruits, another opportunity that exists in this niche is selling grafted avocado seedlings to farmers.
Learn more about avocado farming in Africa.
Macadamia is a tree nut whose stock is greatly rising in Africa and abroad. A native of Australia, macadamia trees have spread into Africa and are offering farmers a way to earn an income by selling mature nuts. Just like avocados, the growth of macadamia farming in Africa can be partly attributed to the demand for the nuts in the export market and also locally.
The top macadamia producers in Africa are South Africa and Kenya. South Africa exported macadamia nuts worth $172 million in 2020, with the USA being the top destination. In 2020, Kenya exported macadamia worth $69 million with the top destination countries being the USA, the Netherlands, and Germany. The value and demand for macadamia nuts is projected to increase as the popularity of these nuts continues to increase.
Learn more about macadamia farming in Africa.
Mushroom farming in Africa began to take shape when farmers realized that mushrooms can be grown commercially. Previously, wild mushrooms are what many people, especially in rural Africa consumed. Through research, the required conditions for mushroom growth are being mimicked with great success.
Considering the high profit potential of mushroom farming, this niche is greatly underrated. Currently, mushrooms in Africa are sold by supermarkets and other retail stores in dried form. Drying mushrooms increases their shelf life. With high-end restaurants offering mushrooms, this market is likely to grow within the next few years. Even though the export market is yet to be defined and explored fully, this is another area that mushroom farmers can seek opportunities.
Commercial rabbit farming is still in its infancy in many African countries. The rabbit farming industry is made up of small-scale rabbit farmers who rear rabbits for meat and ornamental purposes. While the number of consumers and the production is still very low, there are signs that the industry will peak in the coming decade. More butcheries in African cities are beginning to stock rabbit meat. High-end restaurants are also adding rabbit meat to their menus, helping to popularize it among consumers.
Learn more about rabbit farming in Africa.
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