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How to start a produce business in Uganda

How to start a produce business in Uganda. Farming has always been known as the backbone of Uganda and the produce business is based on agriculture too for survival.

A produce business is a type of agricultural business in which a business owner buys agricultural products especially grains like beans, and maize soya peas at a low price and sells them at a high price.

How to start a produce business in Uganda

Produce on the other hand are all those agricultural products that can be bought and resold. They include Maize, Gnuts, Beans, sorghum and many more.

Starting produce is such a good business idea because there is the availability of many products from which one can choose and specialise and sell.

If you are one of the many Ugandans today who are looking at starting up a produce business this new year 2021, this post is yours.

The produce business is so profitable and many Ugandans who have started this business have grown rich in a matter of time.

Produce business thrives most in Uran areas as compared to the rural areas because few people cultivate crops in the Urban areas of Uganda.

There is a high demand for food in form of beans, maize and many more. That is why produce based businesses thrive most 9in towns than in Villages.

How does one start this business?

Step 1; Look for The Market of Your Produce

A business is an exchange of goods for money. If there is no market for your products, you are not in business.

Before starting your produce business here in Uganda, you need to look for a market for your produce business.

If there is no market for the product you want to sell, you can either change the product you want to sell or change the area where you want to sell the product from.

Finding a market is not complicated. You can investigate the area of your interest and look at what products people need that you can supply.

Don’t make the mistake to start a produce business here in Uganda based on assumptions, not facts of what your targetted customers want.

Step 2; Pick the produce to trade

There is a wide variety of crops from which you can trade.

But as the saying goes that “if you want to succeed, limit yourself” it is good to pick among the many types of products a single product or related products that you will deal in.

For example, you can specialise in beans or maize. Or you can sell both beans and rice at once. There may some factors that may guide you in making the right choice.

  • Current price
  • Your storage facilities
  • The current demand for the produce

Step 3; Find Your Suppliers

Unless you are going to sell directly from your garden, you will need people to supply you with the products which you will also resell.

Suppliers need to be met immediately after deciding which specific product you will be dealing with.

Suppliers can be farmers, local traders and also urban wholesale trade centres.

It is good to make a pre-contract that you will buy from these suppliers before the products are ready because they may sell the product to other buyers.

Establishing a good connection with your suppliers is crucial for the success of this business.

Factors to consider when looking for suppliers include;

  • Their physical location
  • The price at which they sell the produce
  • The quality of the produce they sell

If all other factors are constant, it is good to deal with suppliers near you for ease of transport and communication.

Step 4; Get a store

A store is a place where you will keep your products after buying them from your suppliers before selling them off to traders. 

Most produce business owners have warehouses where they store their produce and they have their workers bring the products to the shop when a trader comes to buy.

If you don’t have a warehouse, you can rent a room where you can keep your products.

Any business owner planning to start a produce business in Uganda in 2021 needs to prepare a place where he/she will keep his products.

A good store for your products should be dry, and free of insects and rodents. You may need to treat your products while they are being stored in order to preserve them from getting spoilt.

It is also good to have the store near your place of work so that you won’t incur additional transport charges when transporting the products from the store to the shop.

Step 5; Advertise Your Business

There is a high possibility that you won’t be the only produce business owner in the area where you are going to start your produce business.

So advertising your business is so crucial if you want your business to stand out. You can advertise via radio, Tv or even Newspaper.

You can choose which method best works for you and use it to advertise your business. This puts your business in your customers’ eyes and ears and they will soon start coming to your business for products.

Your Turn…

Before you start a produce business in Uganda in 2021, you need to know that operating a produce business in Uganda is not a bed of roses.

There are many ups and downs in the produce business. You need to be patient when operating this business. There is a price fluctuation challenge in this business.

You can buy a kilo of beans at 600Ush only to have it drop to 400Ush tomorrow. Prepare for all this before you start your business.

You need to learn the inside and outside of this business. It is profitable but risky as well. You need to be well conversant with seasons and prices.

But the good thing is “Experience is the best teacher“.

You will learn how to run a productive business better with time and practice. So go ahead and start up your dream business. All the best.

Share with us your experience in produce business in the comments section below.

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