Business in Agriculture Sector

Small or medium sized business in agriculture sector offers many opportunities in Pakistan. But it is important that those who want to select & pursue such business should have some knowledge, experience and most importantly passion for the agriculture sector. Otherwise, the probability for failure may be high.

Below are the listed businesses in agriculture sector.  SMEDA has also made very good pre-feasibility studies on these businesses in agriculture sector.

For the complete detailed pre-feasibility reports, you will first have to register with SMEDA and then you can download it FREE.

For registration, you may click the link:  SMEDA Registration

Below are the summarized versions of the pre-feasibility reports on Business in Agriculture sector by SMEDA for you to get an idea before you download the full version.

1 - Aloe Vera Processing

Region: Punjab
Investment Size: PKR More and Above 50 Million

The proposed project is for setting up ALOE VERA PROCESSING UNIT. The Project will cater to the needs of domestic market. Aloe Vera cannot tolerate a hard freeze; therefore it cannot be grown in areas that have temperatures that fall below freezing. Aloe Vera will freeze at 28 degrees Fahrenheit, and if freezing does occur, the plants will die. Aloe Vera Barbadensis Miller is the most common type grown. It can be distinguished by its yellow flower. 150 ml of water a month is required in order to produce a quality leaf weighing around 1 Kg. When the Aloe Vera leaf is starved of water, there is an increase production of aloin and emmodin which causes the gel to have a very bitter taste, a brownish color, and a very strong odor. If Aloe Vera is planted in rows at 31 inch centers, with 36 inches between the rows, around 5,000 aloe plants per acre can be planted. Harvest aloe plants can be harvested 4 times per year. Three leaves per plant can be obtained. This makes a total of 12 leaves per plant per year. At an average weight of 1 kg one can expect an annual return of 60,000 kg of aloe leaves per acre. Filleting depends on whether it is done manually or through an automated extraction machine; whatever the case may be one should yield at least 43 to 45 percent from a 1 kg aloe leaf. Aloe leaves are harvested one leaf at a time and are generally chosen from the outermost edge of the plant, then removed by creating an incision at the bottom of the leaf, nearest to the stalk. The leaves are immediately packed and transported to an on-site processing plant to be prepared for stabilization.

2 - Animal Feed Mill

Region: Punjab
Investment Size: PKR Between 20-50 Million

Livestock production is an integral part of Pakistan's agriculture sector and plays a vital role in national economy. At present, livestock is contributing about 52% to the agricultural sector and 10.9% to the GDP. The role of livestock in rural economy may be assessed by the fact that 30 to 35 million of the total rural population is engaged in livestock farming, having 2 to 3 cattle/buffalo and 5 to 6 sheep/goats per family deriving 30 to 40 per cent of income from it1. Pakistan's livestock population is supported by feed resources derived from the crops sector, rangelands, grazing areas and agro industrial by-products. The type, availability and utilization of these feed resources vary greatly in the country's different agro ecological zones. In order of importance, the major feed resources are crop residues (46%), grazing (27%), cultivated fodder (19%), cereal/legume grains and by-products (6%) and oil cakes, meals and animal protein (2%). Most farmers (about 75%) have small land holdings on which most of the livestock population is concentrated. The smallholders' priority is to grow cereal grains for human consumption, but these also provide straw and Stover for their animals, which is low in protein and energy. In the case of wheat, the value of the straw is around 60% of that of the grain. The nutrients available under the present pattern of feed utilization do not meet the requirements of Pakistan's existing livestock population.

3 - Cut Flower Farm (Gladiolus, Marigold, Statice and Chrysanthemum)

Region: Balochistan
Investment Size: PKR Between 1-2 Million

The project is related to setting up Cut Flower Farm for production of Gladiolus, Mari Gold, Statice and Chrysanthemum variety. The document highlights all the marketing, management, and financial aspects required for the establishment and successful running of the project. Floriculture is a discipline of horticulture related to the cultivation and management of ornamental and especially flowering plants. In floriculture farm different varieties of flowers are produced to be sold in the market as potted or cut flower, the following prefeasibility deals only with the production of cut flower.

4 - Cut Flower Farm (Rose)

Region: Punjab
Investment Size: PKR Between 1-2 Million

The project is about starting a cut flower farm near pattoki. Cut flowers growth is not a new phenomenon in floricultural sector of Pakistan; however it is an infant industry as far as its growth is concerned. The resource rich local soil provides ideal agronomic conditions for the production of cut flowers. Despite lack of knowledge on modern floricultural production techniques, difficulty in obtaining the latest varieties and the lack of infrastructure, the industry is continuously attracting new entrants. This pre-feasibility is being prepared by SMEDA and is intended to provide general information on the opportunity for an investor in the floricultural sector to develop cutflowers farm of roses for supply in local market. Roses are the most traded of all cut flower varieties around the world. The trend in Pakistan is no different.

5 - Fodder Production & Trading Company

Region: Sindh
Investment Size: PKR Between 1-2 Million

Almost 70% populace of Pakistan is engaged directly or indirectly with the agricultural sector. Live stock is a vital part of this sector for it to continue different activities, such as, to produce milk and their bi-products. The basic need to make animal healthy and productive round the year is their diet (fodder) which must be good and persistent through out the year. But the availability of fresh fodder having same proportionate ingredients through out the year is restricted by the natural circumstances. To preserve fodder in the shape of hay by rinsing it with water and moisture by approximately 85% helps to feed animals with the same quality forage round the year. Alfalfah which is widely used as an animal feed to provide healthy and nutritious diet and plays a vital role to maintain and increase the productivity. The harvesting period is not bound to a specific season and one may reap this Alfalfah all year round. There are several benefits for haymaking as listed below: - Decrease cost of production - Ensure permanent supply of nutrients to livestock throughout the season/year Pre-Feasibility Study Fodder Production and Trading Unit PREF-27/July 2008/Rev1 - Help maintain the milk yield - Keep away the animals from diseases associated with green fodder such as bloat. Animals consume green fodder in high quantity as it is backed by water so people don’t find it economical. While Alfalfah is consumed less as the making process rinse the moisture, but give the same nutrition to the animal. Secondly, the requirement is persistent across Pakistan and round the year vis-à-vis the international market is also open and looking for a new venture to trade.

6 - Green House Farm (Export of Fresh Cut Roses)

Region: Punjab
Investment Size: PKR Between 10-20 Million

The world trade of cut flowers runs into billions of dollars. Netherlands serves as the center of cut flower Millions of flowers are traded through the auction houses in Netherlands. Major suppliers of fresh cut flowers to these auctions are Kenya, Columbia, Zimbabwe, Ecuador, Israel, Iran and India. Pakistan has no significant share in the international trade of fresh cut flowers. Although, Floriculture could not get established up to the mark in spite of availability of all natural conditions in the country. A large number of fresh cut flowers are wasted due to mishandling and other related problems. This pre-feasibility is being prepared by SMEDA and is intended to provide general information on the opportunity for an investor in the floricultural sector to establish a fresh cut rose flower farm equipped with a glasshouse. This would allow the project to export flowers to European markets, thereby, adding value and maximizing profits.

7 - Maize Starch and Related Products

Region: Punjab
Investment Size: PKR More and Above 50 Million

Maize is one of the important crops of Pakistan and has a great potential of processing due to its high nutritive value and commercial uses. Maize (also known as corn) is a common name for a cereal grass widely grown for food and livestock fodder. Maize ranks with wheat and rice as one of the world’s chief grain crops. Starch is produced from maize than any other crop.

8 - Off-season Vegetables Farming (High Tunnel) [Apr-2012]

Region: Punjab
Investment Size: PKR Between 2-5 Million

The proposed project is designed as a medium sized off-season vegetable farming unit, spreading over a land area of 9 acres. Off-season vegetables, such as, tomatoes, chillies/hot pepper, cucumber, brinjal, sweet peppers, ridge-gourd (teendi) and bittergourd (krela) can be cultivated using high tunnel technology. However for the purpose of this pre-feasibility three crops have been proposed, namely: tomato, sweet pepper and cucumber. The land can be utilized for green manuring during the idle period to maintain the fertility of soil. Apart from green manuring, the land can also be utilized for growing seasonal vegetables in the idle period. The estimated yield potential of the farm varies according to the selected type of vegetable. For this project a mix of three proposed vegetables is listed below. For this vegetable mix it is estimated that a 9 acre farm unit will yield a total of 293,250 kg per season excluding 15% wastage.

9 - Off-season Vegetables Farming (Low Tunnel) [Feb-2012]

Region: Punjab
Investment Size: PKR Between 1-2 Million

The proposed project is designed as a medium sized off-season vegetable farming unit, spreading over a land area of 7.5 acres. Off-season vegetables, such as, tomatoes, chillies, cucumber, brinjal, hot pepper, sweet peppers, watermelon, muskmelon, pumpkin, ridge-gourd (teendi) and bitter-gourd (krela) can be cultivated using low tunnel technology. However for the purpose of this pre-feasibility three crops have been proposed, namely: watermelon, muskmelon and pumpkin. The land can be utilized for green manuring during the idle period to maintain the fertility of soil. Apart from green manuring, the land can also be utilized for growing seasonal vegetables in the idle period. The estimated yield potential of the farm varies according to the selected type of vegetable. For this project a mix of three proposed vegetables is listed below. For this vegetable mix it is estimated that a 7.5-acre farm unit will yield a total of 142,375 kg per season excluding 15% wastage.

10 - Off-season Vegetables Farming (Walk-in Tunnel) [Apr-2012]

Region: Punjab
Investment Size: PKR Between 2-5 Million

The proposed project is a medium size off-season vegetable farming unit, spreading over a land area of 9 acres on the outskirts of Lahore. Off-season vegetables are proposed to be cultivated in this project using walk-in tunnel technology. The three vegetables planned to be cultivated in this particular project are cucumber, bitter gourd and hot pepper. The approximate total time from land preparation to harvesting is around 8 months. There is great demand of vegetables all year round and the price is high at the start of the season and at the end of the season. If modern techniques are applied to grow off season vegetable, high prices can be fetched. Vegetables can be cultivated in offseason, with the induction of an artificial technique like tunnel technology, in which temperature and moisture is controlled for specific growth of vegetables. The production of vegetables all around the year enables the growers to fully utilize their resources and supplement income from vegetable growing as compared to other normal agricultural crops. As the landholding power of farmers is decreasing, they need to increase the productivity of their available land, off-season vegetable farming is a measure through which they can attain higher profit margins from the crop. Tunnel farming is gaining popularity and being practiced in many areas of Punjab like, Lahore, Faisalabad, Mamokanjan, Gujranwala, Okara, Sahiwal. But still its cultivation is not at a level to be exported.

11 - Olive Cultivation (Fruit Only) [Dec-2011]

Region: Punjab
Investment Size: PKR Between 20-50 Million

The proposed project is designed as Olive farming unit, spreading over a land area of 50 acres. Growing Olive in 50 acres with modern farm management techniques can be a long lasting business. It is recommended that land should be purchased in the suggested rural areas. The total cost of project in this pre-feasibility is Rs. 37.781 million including land, plantation and working capital. The olive plants starts giving fruits at the age of four to six years so the cost incurred during the initial four years is required which is included in pre operating cost in this pre-feasibility. However the fruit bearing capacity of plant depends upon the nature of plant and land on which it is cultivated. Plants usually start giving fruits at the age of four to six years.

12 - Refined Guar Split [Feb-2012]

Region: Balochistan
Investment Size: PKR Between 1-2 Million

Guar Split Processing is about obtaining semi finished product of guar split that is further sold to refinery to obtain guar powder of special grades. Apart from this the guar split can also be utilized for different commercial purposes. In addition the by products obtained from the process are Churi and Korma that are used as feed for cattle and poultry.

13 - Rose Water [Mar-2008]

Region: Punjab
Investment Size: PKR Between 2-5 Million

The project is about to produce rose water and packed in pet bottles of 250 ml and 750 ml, through water extraction process from rose flowers. “Rose Centifolia” is the particular species that is used for the rose water and rose oil extraction. This specie is suited enough to be cultivated in a warm climate, which can be easily located in Punjab. The project does not come up with revenue in execution phase(year 0), it takes one year right from the sowing to harvesting of rose plants; hence sales are available in first year. From there onwards crop of flower would be available for next 10 years. All the expenditures that are required to be incurred during that phase are included in the capital cost of the project.

14 - Seed Oil Extraction Unit (Cotton seed) [Jan-2012]

Region: Balochistan
Investment Size: PKR Between 1-2 Million

The proposed project is about establishing a Seed Oil Extraction Unit. The main theme of the project is to use seeds of different commodities for economical purposes by extracting edible oil. In addition, the project would generate revenues by processing/selling seed residuals for different economical purposes. The project may be utilize for seeds of different commodities such as Cotton, Canola, Sunflower, Coconut, Rapeseed/Mustard and Sesame etc. The selection of input commodity is the sole desire of the proprietor, however keeping in view the resource availability, cost & demand factors cottonseed is proposed for the said unit. The project would facilitate in employment generation both direct & indirect and result in utilization of seeds for more commercial purposes rather than its typical usage as animal feed. Moreover features like low cost & less complexity associated with such establishment make it more attractive project. Currently the project is being designed / proposed for major cities having potential cotton production, whereas the project could also be proposed for cities where input requirements are available or in whole seller / trading cluster of seeds. Initially project focus would be domestic market, however on its maturity national market would be consider.

15 - Seed Processing Unit (Wheat & Rice) [Apr-2008]

Region: Punjab
Investment Size: PKR Between 10-20 Million

Seed processing unit is a project in agriculture sector in which Approved/Certified seeds of wheat and rice will be produced through the multiplication1 of Basic Seed (Breeder seed), which will be acquired from seed research institutes & Seed Corporations. This business can be started in the rural and peri-urban areas. Under the proposed project, the approved seed will be processed and marketed in the local market. The processing of the seed involves cleaning, grading, treating, packing, and storing operations. Currently, there is a shortage of the approved seed, due to which its price has spiraled up. Hence, it has become difficult for a farmer to purchase seed at a higher price. The proposed project will facilitate in fulfilling this gap and will provide wheat and rice seed suitable for sowing. Moreover, this project in the long-run can be considered as a lucrative investment because the potential for quality seed is quite high in the agriculture market. Processing is a value addition activity which improves the physical purity and health of seed stock by removing various contaminants including undersized and shriveled grains, inert matter and seeds of other crops.



For the detailed pre-feasibility reports on Business in Agriculture sector, you will first have to register with SMEDA and then you can download it FREE.

For registration, you may click the link: SMEDA Registeration



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