By Beatrice Nakibuuka
Uganda’s agricultural sector is one of the country’s most lucrative industries, contributing nearly 24 per cent of the GDP and employing over 70 per cent of the population. With fertile soils, favourable weather, and growing local and export demand, agribusiness presents significant investment opportunities.
Poultry farming
Poultry farming, particularly broiler and layer production, is a profitable venture due to the steady demand for chicken meat and eggs. Farmers can supply eggs to supermarkets and sell broiler chickens to hotels, eateries, and butcheries.
Entrepreneur and data scientist Drake Namanya highlights additional revenue streams, including selling poultry manure to crop farmers and processing chicken meat for higher margins.
“You need a start-up capital of UGX 5 million to 20 million, depending on scale. Set up near urban areas for easy market access. Monthly profits range from UGX 500,000 to 5 million,” he says.
Dairy farming
Dairy farming is another lucrative opportunity, with high demand for milk and dairy products. Farmers can sell fresh milk to processing companies or directly to consumers.
“There is potential in producing yoghurt, cheese, and ghee, as well as breeding high-quality dairy cows,” Namanya explains.
A start-up investment of UGX 10 million to 50 million is needed for land, cows, and infrastructure. Rural areas with access to pasture and water sources are ideal. Profits range from UGX 1 million to 10 million per month.
Beekeeping
With increasing local and international demand, beekeeping is a promising agribusiness. Farmers can sell raw honey to supermarkets, produce value-added products such as beeswax and royal jelly, and offer pollination services.
Beekeepers can also generate income by establishing training centres. Exporting organic honey is another lucrative option.
“Start-up costs range from UGX 1 million to 10 million for beehives and protective gear. Profits per harvest range from UGX 500,000 to 5 million,” Namanya says.
Fish farming
With tilapia and catfish ranking among Uganda’s most consumed fish, aquaculture presents a lucrative opportunity. Farmers can sell fresh fish to local markets and restaurants, process fillets for supermarkets and exports, or supply fish fingerlings to other farmers.
“Fish waste can also be repurposed into organic fertiliser or animal feed,” Namanya adds.
Start-up costs range from UGX 10 million to 50 million for ponds, fingerlings, and feed. Locations near water bodies are ideal, with potential earnings of UGX 2 million to 15 million per harvest.
Fruit farming
Uganda’s climate supports the cultivation of tropical fruits such as mangoes, pineapples, passion fruits, and avocados. Farmers can sell fresh produce or process fruits into juices and dried snacks for added value.
“Exporting high-value fruits like avocados to international markets is especially profitable. Agritourism ventures, such as fruit farm tours, also generate extra income,” Namanya notes.
An investment of UGX 5 million to 30 million is needed for seedlings, land preparation, and irrigation. Profits per harvest range from UGX 1 million to 20 million.
Coffee farming
Uganda remains one of Africa’s top coffee producers, making coffee farming a profitable venture. Farmers can sell raw coffee beans to exporters, brand and process their coffee for premium sales, offer farm tours and coffee tastings, or set up local coffee supply chains.
Start-up capital of UGX 10 million to 50 million is required for seedlings, land, and maintenance. High-altitude regions such as Kapchorwa, Masaka, and Mbale are ideal, with earnings of UGX 5 million to 50 million per harvest.
Other profitable agribusiness ventures
- Maize farming and processing: Selling maize grains to milling companies, producing maize flour and animal feed, and exporting dried maize to regional markets.
- Herbal medicine and spice farming: Cultivating crops such as ginger, turmeric, lemongrass, and moringa to meet the growing demand for herbal products can be financially beneficial.
- Goat and sheep farming: Supplying live goats and sheep to local markets, breeding high-quality livestock, and producing goat milk products.
Key factors to consider
Before investing in agribusiness, thorough market research is essential. Entrepreneurs must analyse demand, competition, and pricing while identifying profitable niches.
“Use improved crop varieties and high-yield animal breeds. Practise good animal husbandry, including vaccination and nutrition. Modern techniques like greenhouse farming, drip irrigation, and hydroponics can boost productivity,” Namanya advises.
Adding value to agricultural produce significantly increases profits. For instance:
- Processing maize into flour instead of selling raw maize.
- Branding and packaging honey, yoghurt, and herbal teas for higher prices.
- Using by-products to produce animal feed rather than discarding them.
Farmers should also embrace digital platforms such as social media, websites, and e-commerce for sales. Establishing relationships with wholesalers, supermarkets, and export markets is crucial. Agritourism can provide an extra revenue stream through farm tours and training workshops.
“Keep detailed records of expenses, sales, and profits to track business growth. Consider agribusiness loans or grants to expand operations. Diversifying income sources by integrating multiple agribusinesses is a strategy for long-term success,” Namanya concludes.
