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December 2018 .co.zw

Agribusiness farming is a business!

□□ Maize Production Business

□□ Economic considerations for livestock farming
□□ 6 ways to reduce farm costs
□□ Soil Sampling and Analysis
□□ Poultry farm records
□□ 11 Keys to successful maize production
 Agribusiness Proposals
Livestock Crops Agribusiness
Cattle (beef, dairy) Maize Ice-cream making
Goats Soyabean Feed making
Sheep Wheat Dog breeding
Layers, Broilers Cotton
Vermicomposting
Rabbits Sugar bean
Piggery Potatoes Making yoghurt
Bee keeping Sunflower Fish smoking
Fish farming Horticulture Floriculture

Purposes of proposals:
√√ Determining financial viability.
√√ Assessing adequacy of a financing plan.
√√ Advice on methods of improving project via-
bility.
√√ Plan, control project or enterprise.
√√ Loan application.

$50.00
info@agribusiness.co.zw
tel. 0242 790326 cell. 0774 121 076
www.agribusiness.co.zw
 Maize Production Business
M aize production is a great business opportunity for farm-
ers. Also known as corn in other countries, maize is our
staple food in Zimbabwe. Without maize, livestock production be
it for meat, eggs, milk, cheese, sausages would not be possible as
it is the key ingredient in animal feed and nutrition.

Demand for maize is increasing with the ever-growing human

population. More resources are being channelled to import more
maize due to the supply-demand gap. This is irregardless of our
potential to produce enough for our nation and exports.

Is maize farming a business? How can you increase profit per

 Place your advert HERE
hectare? This article will discuss an-
swers to such questions.

email. info@agribusiness.co.zw
The preceding discus-
sion will show how maize
farmers can see farming
as a commercial entity.

Tel.0242 790326
Farmers need basic business and
economics knowledge to help them
see maize farming as a business. It
all starts with the right budget.

There is no one budget ‘fits all’ when

preparing cropping budgets as some
factors may differ from farm to
farm. For instance, not all areas re-
quire broad leaf or narrow leaf her-
bicides. Some areas may also have
poor soils that require more fertil-
izing than other farming regions.
Same applies to different rainfall
 www.agribusiness.co.zw

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patterns.

How can we increase profit per hectare?

Ways on how to increase maize project revenue is two pronged
i.e. production and marketing. A sure way to increase profit is by
increasing yield and selling at the right price.

New seed variety: Research on seed genetics has been going on

for years and varieties with a high output per hectare have been
produced. This means high profit margin from certified seed.
Likewise, the use of non-certified seeds results in reduced yield.

Increase other inputs of variable factors: By increasing fertilizer

application, farmers also increase their output. The law of dimin-
ishing returns will need to be factored in. It is important to get
your soils analyzed for fertility.

Irrigation: Over-reliance on erratic rainfall compromises output.

Supplementary irrigation ensures efficient, uniform plant growth
and development resulting in high yield.

Improving farm management practices: This includes timeliness

of farm operations including planting, weed management, fertil-
izer application and planting methods.

Selling price: To increase returns, maize farmers need to sell at

the highest possible price. This is best achieved through best tim-
ing on selling and improving maize quality. Maize farmers under
contract and government programs may benefit from set market
prices.

Reducing costs of production: Economies of scale reduces other

variable costs thereby increasing profit. Fixed costs e.g. rentals per
hectare obviously fall as yield increases.
 Economic considerations for livestock
farming
T he functions of livestock are an integral part of the total agriculture.
Livestock is well known for converting non-edible (pasture) and low
quality edible feedstuffs into food for human consumption. Many farm-
ers select livestock production due to different reasons. To be successful,
farmers need to consider financial viability prior to project inception. The
article will highlight key economic areas for consideration in commercial
livestock production.

Market and demand analysis

Sustainable livestock production is market driven. Successful farmers
invest their time and resources in market research. This is very important
especially in livestock as any delays tionship with product pricing. For
in sales come at a cost. example, beef demand is higher
than supply in the December-Janu-
Marketing involves logistics, time ary period hence high selling pric-
and form to the end market. With es. Timing of production is there-
proper research and planning, the fore important.
processes involved need to be ef-
ficient and achieved at the lowest Without a careful research on
possible cost. This means distance market demand and supply, farm-
to the market is one of the key areas ers end up producing livestock for
to consider when planning a live- sell at low prices or worse still in-
stock project. For instance, a dairy curring unnecessary costs of pro-
farm 300km from the market has duction. Market and demand anal-
higher costs of transportation and ysis are part of a whole farm plan
risk involved when compared to a which will be discussed in a differ-
farm 50km closer to off-takers. ent article.

In demand and supply analysis,

what is of more interest is the rela-
 INVESTMENT
Labour
DECISION It is advisable to consider the
Ensure the value of output ex- availability of labour for day to day
ceeds the cost of inputs invested. operations. There are regulations in
Can the same inputs be used for the country on farm salaries that
another livestock project with a have to be followed.
higher income? A broiler produc-
er for example, will ensure that his Mechanization and technology
sales, factoring in mortality, exceed reduces the need for manual labour
his production costs. If for the same and a cost benefit analysis has to
investment, a different project will be done before making such deci-
pay more, then it is wise to invest sions. Use of milking machines in
in such. dairy instead of manual work is one
example. Some small stock farmers
Production scale and type of live- have considered automated water-
stock is determined by available in- ing and feeding systems. This re-
vestment and market demand. Key duces farm operating costs without
resources required include land, affecting output thereby increasing
labour, capital, technical and busi- profitability.
ness knowhow.
Capital
Land Capital is required for inputs;
Land size depends on the live- feed, drugs, stock purchases and
stock system adopted. Ranching operating expenses. Investment re-
and feedlots require extensive use quired for macro-livestock (i.e. cat-
of land than intensive land-use tle, sheep, goats and pigs) is higher
high-output systems. Peri-urban than for small stock (i.e. poultry,
livestock projects specializing in rabbits, etc.). Availability of funds
broilers, layers, piggery and other limit production. Partnerships and
small stock are a good example of pooling resources together has
high output systems. It is import- worked for some in establishing
ant for a farmer to know land-size livestock projects. Legal consulta-
required as there are costs involved tion on investment and partner-
in acquisition. ships is recommended.
 Seasonal variability of errors which affect project profit-
ability. Proper education improves
inputs and maintains product quality,
One of the constraints in live- hence increased income. It helps
stock production is the seasonal a farmer to stay up to date with
variability of feed supply. Some technology that can enhance pro-
inputs like hay are seasonal which duction. Visits to successful and
affects its availability and pricing. unsuccessful farmers is important
Farmers plan well ahead for such for learnings and exposure. Suc-
shortages and price increases. This cessful farmers have also invested
ensures continuity and low-cost in business management knowl-
production. Some farmers have in- edge. These see livestock farming
tegrated livestock with cropping to as a business.
ensure the availability of crop resi-
dues for feed. This can be effective
when supplemented with commer- Security
cial feed. 2015 to 2017 statistics show a 2%
reduction of stock theft. This how-
In areas without water reservoirs, ever does not mean farmers should
a livestock farmer may consid- relax as 5185 cattle were stolen in
er investing in boreholes or other 2016 alone. More investment to-
permanent sources to ensure adli- wards security is vital to curb loss-
bitum availability of fresh clean wa- es.
ter. Failure of which severely affect
s productivity. Health and Disease
Technical Know-how/ Disease in one of the many factors
affecting productivity. It can result
Training in high mortality due to outbreaks
Successful livestock farmers in- and may affect product quality or
vest in knowledge and research. farm output. Animal disease con-
This is an ongoing process. There trol and management is impera-
are several institutions offering tive. Before going into production,
courses on specific livestock pro- farmers need to understand animal
duction. Such investment reduces health and how best losses can be
costly production or management prevented be it through adequate
 What is Agribusiness?
A gribusiness involves the production, distribution and con-
sumption of agricultural products and services. It includes all
economic activities in the agricultural system that involves input
supply, finance, agricultural production, post harvest manage-
ment, marketing, processing and distribution.
nutrition, biosecurity, vaccination or production affect farmers’ decision
selecting resistant varieties. Invest- making. When analyzed, they will
ment in health and disease preven- contribute to a successful commercial
tion is important. livestock business operation.
_______________
Engaging experts in animal health
including the Department of Veteri-
nary Services under Ministry of Ag-
riculture can help farmers with effec- NEED
tive management skills.
AGRIBUSINESS
Risks
Livestock farmers may occasionally PROPOSALS?
face price volatility, disease outbreak,
theft, veld fire, climatic shocks that
may lead to losses. It is important to info@agribusiness.co.zw
invest in risk management.
Tel. 0242 790326
These critical economic areas of
 6 ways to reduce farm costs
1. Increasing yield or output.
Break-even point is reduced by
increasing yield hence low pro-
duction costs.
2. Cost of borrowing: This
is reduced by negotiating bor-
rowing rates with financial in-

stitutions and other sources of

capital.
3. Biosecurity: Prevention is
always cheaper and better than
cure. Always put in place and
follow strict biosecurity stan-
dards.
4. Understand and apply the
law of diminishing returns to
avoid unnecessary production
costs.
5. Bulky purchases. Many in- 6. Mechanization. The use of
put suppliers provide discounts machines increases efficiency
for bulky purchases of inputs and output. It reduces the cost
such as fuel, seed, fertilizer and of labour.
animal feed. This reduces the
cost of inputs hence increased
profit margin.
 √√ Market intelligence and research
√√ Business training
√√ Technical training
√√ Agribusiness Seminars
√√ Production manuals
√√ Agribusiness proposals
√√ Advisory and coaching
√√ Value chain partner engagement
√√ Mentoring
√√ Innovation Acceleration Platform
√√ Acceleration events
√√ Product and service showcasing
√√ Access to Finance
√√ Investment facilitation
√√ Crowd-funding

email. info@agribusiness.co.zw Tel. 0242790326

 Soil Sampling and Analysis
What is Soil Analysis?

It is a method of determining the nutrient supplying capaci-

ty of the soil. It involves the analytical methods to determine
the amount of certain plant food elements that is nitrogen,
phosphorus and potassium available for plant growth. Soil
analysis also determines the relative acidity and alkalinity.

Why Soil Testing?

√√ To determine plant nutrients available.

√√ To provide the means of monitoring soil so as to avoid

nutrient deficiency, excess and imbalance.

√√ To detect soil nutrient deficit or toxicity prior to produc-

tion.

√√ To help select the proper liming requirements for opti-

mum growth.
 √√ To provide information on selecting type, timing and
quantity of fertilizer.

In some cases soil pH has the major limitation to crop pro-

duction. Crops do not respond to applied fertilizer. Availabili-
ty of nitrogen, phosphorus, sulphur, calcium, magnesium and
molybdenum is limited under acidic conditions. Acidic soil
conditions result in aluminium and manganese toxicity. Plant
growth and most soil processes including nutrient availability
and microbial activity are favoured by a soil pH range of 5.3-
6.5

Why are you having low yields?

□□ Many farmers do not have information on their soil fer-
tility status.

□□ Soil acidity.

□□ Poor fertilizer application methods, timing, type and

quantity.

□□ Farmers are applying too high fertilizer rates than re-

quired thus are toxic and uneconomical.

□□ Growing crops on unsuitable soils e.g. heavy metal af-

fected soils.

Soil Sampling
It is the collection of a representative sample from the field.
Best decisions can be made only if soil samples are a true
representative of the area sampled and accurately reflect soil
conditions.
 Poor sampling gives misleading test results leading to inac-
curate recommendations therefore poor yield

SOURCE MOA
 Bagged Feed Storage

F eed storage has significant impact on your project perfor-

mance. Always ensure proper storage facilities and equip-
ment are in place. If feed is not stored as recommended by man-
ufacturers, the following may be observed: poor animal growth
and mortality from contaminated feed, losses from rodents con-
tamination.

We recommend using plastic bins or containers for storage.

These should be secured with a lid to avoid contamination. Al-
ways finish feed from the bin before emptying new bags. Timber
and plastic bins can be used. Clean bins of all feed stuck in cor-
ners before adding new feed to avoid formation of moulds.
Maintain cleanliness in and around the storage facility. Any feed
spillage should be cleaned immediately.
 Do not expose feed to heat or cold. Store in a cool dry place. Re-
peated heating and cooling and exposure to direct sunlight leads
to increased vitamin and nutrient deterioration. Heat also results
in ‘sweating’ of plastic bins leading to mould formation. If in a
storeroom, a ceiling especially under iron roof should be installed.
Some producers prefer concrete roofs to avoid condensation.

Ensure feed is stored above the ground on pallets and not direct-
ly on floors. Ensure a clean environment not conducive for ro-
dent breeding. Baiting and rodent control is a continuous process.
Apply first in first out FIFO principle. Always use old stock first.
Label bags by date of delivery and type of feed.

Leave at least 10cm space between the wall and feed bags to
avoid the absorption of moisture. Store feed in a well ventilated
area to allow air circulation and reduce the incidents of high tem-
perature and humidity. Such conditions contribute significantly to
rapid feed deterioration.

Feed supplies should be purchased freshly on a regular basis, to

avoid the problems associated with long term storage. Purchase
and delivery will be determined by availability of stock. Some
have found monthly purchases ideal for small poultry projects.
 Some farmers are tempted to store crop chemicals in feed stor-
age facilities. This has to be avoided by all means as contamina-
tion with dangerous chemicals can be fatal.

Check feed quality before use. Any change in smell, colour and
texture should be reported before using the feed. In the event of
contamination, separate affected bags and take necessary steps to
prevent further damage.

Agribusiness Talk: Farming is a business

Poultry farm records

Record maintenance is important in any business. It helps in
evaluation and monitoring of performance. A poultry farming
business can not be efficiently managed without a record system.
A proper record system should be reliable and provide relevant
data. Farm records should be simple, easy to interpret, accessible,
and should be exhaustive. Records should tell the business posi-
tion of your project. Information provided in records should al-
low for sound decision making, forecasts, planning, changes and
business growth.

The main categories of poultry farm records are 1. Financial and

2. Production or technical. Size of operations determine the na-
ture of record system that can be used.

Employee records
The system captures employee details, working hours, daily
working rate, days off and absence. It is important for every poul-
try operation to have employee record system in place. Automat-
ed systems with fingerprint access or manual systems where one
is assigned to record required data can be used.

Asset register
The recording system is used to capture information on farm
infrastructure like poultry houses and other immovable property.

Equipment and machinery register

The register captures information on all machinery and farm
equipment. These include vehicles, cages,
tractors, feed mills, incubators, feeders
and waterers. Ensure the record captures
all operating, maintenance and repair
costs. Annual depreciation should be cal-
culated and carried forward to the fol-
lowing year.
Feed register
Feed register has columns that capture
all feed received and used (quantity, sup-
plier, cost, quality and type). Feed makes
up to 80% of your production costs
therefore always ensure all required data
is collected on time. Opening balance per
batch, issues, receipts, storage losses, in-
voice numbers, cost per unit and closing
balance also has to be captured.
Flock health and veterinary sup-
plies register
It is equally important to capture all re-
ceipts, invoices, prescriptions, drug ef-
fectiveness, postmortems, disinfectants,
syringes, needles, drugs purchased and
utilized.
 Miscellaneous register
Captures all items that do not fall in the above categories. These
include bolts, nuts, nails, bulbs and other small items.
Layers
Batch records to include the following columns to be filled in
daily: Date, age, opening and closing balance, mortality, feed sup-
plied and consumed, feed per bird per day and eggs per hen pro-
duced.

Eggs pdn. per hen

Opening balance

Closing balance

Eggs produced
Feed per bird
Feed (total)
Mortality
Date

Age

01/01
Egg register
The register is meant to capture egg turnover. The following col-
umns are important per batch.
 Eggs received
Opening bal.

Broken eggs
Closing bal.
Eggs sold
Date

01.18
A separate book on the values and economics is kept to keep a
trail on profitability.

Broiler records.
Keep columns on chick source, breed, cost per chick, batch num-
ber, supplier contacts, paid and free chicks received. Daily records
of opening, closing balance, age, mortality, feed per batch, feed
per bird, postmortems, drugs administered, diseases and infec-
tion. Records are maintained up to when the batch exits the farm.

Production cost per kg, selling price and terms, customer details
also need to be captured to determine profitability and for mar-
keting purposes.
 MAKE
YOUR
BRAND
KNOWN!
email. info@agribusiness.co.zw
tel. 0242 790326
 11 Keys to successful maize production
By John Basera

Increasing maize yield levels per unit area (productivity) is the

major driver as far as achieving food surplus is concerned in Zim-
babwe. Improving maize productivity has immense benefits to the
farmer and the nation at large. Basically, what high productivity
level means is that, a farmer will be producing more for less in
terms of fewer resources (variable costs) and less land area, which
has positive implications on enterprise profitability and sustain-
ability. At farm level, increasing yield per unit area helps reduce
cost of producing a ton of maize grain.

This article gives an account of the 11 fundamental keys to

achieve better yields. The 11 points are enunciated by Good Ag-
ronomic Practices (GAPs) principle, and it is our belief that this
can significantly change the maize crop farming landscape for the
better. It can be done!

1. Start with a well-conditioned soil

2. Start on a well-prepared seedbed
3. Start with the right seed variety
4. Aim to achieve an optimum population and even stand
6. Time of planting
7. Weed and pest control
8. Soil Organic Matter (SOM) build up
9. Moisture management
10. Address soil fertility issues
11. Never underestimate the value of crop rotations
 Parting shots
The most important ingredient farming requires is personal
involvement-how much-presence time- do you invest in your
farming enterprises? The best fertilizer a farmer can have are his
footmarks in the fields. Be a crop doctor, who observe the crop
regularly and know what the crop requires. The crop should dic-
tate what happens on the farm. The crop must call the shots!
Always have the stability and consistency in yield growth. This
is a key fundamental which makes the farming enterprises sus-
tainably profitable. It can be done! Plan, Prepare, Procure, Plant,
Pray-the 5Ps.

Please visit the following link for a full article:

http://www.seedcogroup.com/zw/media/blog/11-keys-achieve-
11-tonha-maize
 √√ Market intelligence and research
√√ Business training
√√ Technical training
√√ Agribusiness Seminars
√√ Production manuals
√√ Agribusiness proposals
√√ Advisory and coaching
√√ Value chain partner engagement
√√ Mentoring
√√ Innovation Acceleration Platform
√√ Acceleration events
√√ Product and service showcasing
√√ Access to Finance
√√ Investment facilitation
√√ Crowdfunding

email. info@agribusiness.co.zw Tel. 0242790326

 Contact us
info@agribusiness.co.zw
agribusinesstalk@gmail.com
+263242790326
+263774 121 076

www.agribusiness.co.zw