Long term investment in farming
Long-term investment farming ventures are those that take more than 3 years to begin making returns or profit. With a majority of Africa’s agribusiness space occupied by short-term ventures, long-term ventures have flown under the radar despite their high profitability potential. This article will discuss five of the best long-term farming ventures that you can set up in Africa today.
Why should you consider a long-term investment farm?
A long-term farming investment gives the farmer adequate time to plan. Depending on the choice of the idea, the farmer will have several years to plan how the farming venture will operate from production to the market stage.
For fast-maturing crops like vegetables or Cornish Cross broilers, the farmer has very little time between setting up the farm and getting the harvest to the market. Occasionally, fast-maturing commodity ventures can result in losses as farmers may not have adequate time to seek lucrative markets.
A long-term investment farm is also a good way of creating generational wealth. As you will discover in our list, there are long-term ventures with a productivity period of more than 40 years. Such ventures have the potential of benefitting your dependants for a long period of time.
How we determine our top long-term investment farms
We determine our long-term investment farms based on the following factors;
Productivity period
Ease of setting up and management
Past market trends and future projections
Top 5 farms for long-term investment in Africa
Eucalyptus
The eucalyptus tree is one of the biggest sources of timber in the world. In Africa, timber from the tree is used in construction, making furniture, and as firewood. Available in 9 species, the tree can perform well in various climatic conditions. All the species are adapted to varying ecological conditions. This gives the tree in many different regions.
Eucalyptus trees for timber purposes are harvested ten years after planting. For bigger timber sizes, this period can be stretched to 13 or 15 years. With timber prices projected to rise over the coming years, eucalyptus farmers stand to reap big. Tree populations in Africa are dwindling, placing tree farmers in a strategic position for profitability in the years to come.
For a long time in Africa, avocado trees were planted for subsistence purposes. A single tree would produce fruits that could serve several families in rural Africa. As more people shifted to urban areas, avocados gradually began to be sold in urban markets. Capitalizing on this newfound demand, commercial avocado farming began, with Hass and Fuerte varieties leading the way.
These varieties take 3 to 4 years to begin fruiting. They go on to stay productive for more than 40 years. What is interesting about avocado farming is that it is a field that is developing fast in Africa. The international market is embracing avocados from Africa at a fast pace. This demand is projected to rise over the coming years, making avocado farming one of the best long-term ventures to invest in Africa today.
Learn more about avocado farming opportunities in Africa.
Mangoes have a very high consumption rate in Africa. As the population in Africa rises, this consumption is also likely to increase significantly. Farmers looking for a long-term investment in Africa should consider mango farming. There are over six commercial mango varieties to choose from.
Mango trees have a productivity period of over 50 years. Depending on the variety, they begin bearing mangoes at the age of 2 to 3 years. In each year, mangoes fruit. This means that mango farmers are able to earn money from mango trees for their entire production period.
Learn more about mango farming opportunities in Africa.
Oranges
Just like mangoes and avocados, orange fruits also have very high rates of consumption in Africa. With the oranges set to enjoy even higher consumption due to urbanization and continued population growth, farmers can strategically set their orange farms to meet this demand.
Orange trees take three years to begin fruiting. Interestingly, orange trees will yield fruits for more than 50 years. Orange trees that receive good care produce better and for a longer period. You can plant oranges to sell on the local or international market.
Macadamia
Macadamia is relatively a newcomer commodity as compared to other items featured in this list. A native tree of Australia, Macadamia trees began experiencing popularity in Africa over the past decade. More farmers are turning to macadamia farming after realizing the great potential of macadamia farming.
Grafted macadamia trees begin fruiting after 2 years while ungrafted macadamia trees begin fruiting after 4 years. Macadamia trees stay productive for up to 60 years if grown under great care and management.
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