Onion Growing Business Plan

1. PRODUCTS & SERVICES

We will plant and grow onions in one acre piece of land located in Birika, Olooloitikosh area. The
area is dry and hence need for irrigation when planting off the rainy season.
2.

MARKET ANALYSIS

Nairobi will be our main market as it has many residents, and it has very good potential as there are
people living there. Further more there are many markets and we will target, Wakulima market,
Kenyatta market, Githurai and Ngara Markets. Further more there are many restaurants in Nairobi
that we can sell the onions to. It has been estimated that at least 85% of households will cook one or
two onions on a daily basis.
3. STRATEGY & IMPLEMENTATION
We will implement an effective marketing campaign,by word of mouth and making phone calls once
in a while to vegetable brokers in the major markets mentioned above. Additionally, we will also
advertise on the internet especially on Facebook Soko Kuu and I-Wakulima market. We plan to plant
our onions one and a half months later after the other farmers have already planted to ensure that
ours will be ready to sell when there will be no onions in the market.
4.

FINANCIAL PLAN

We will have a strong financial plan with the first year earnings exceeding kshs 500,000 and cash
flow positive by month 8. It is expected that we may have losses during the first season as we start,
due to bad weather; however if we harvest when there are no glut in the market; we expect to
make double or even triple profits. Year end cash balances will exceed kshs 1,200,000.00.
FUNDS REQUIRED & USE
We require a capital of Kshs 126,980 for start-up.
Funds will be used primarily for:

Ploughing 3,000
Rotafeta for fine ploughing 3,000
Making beds 3 days 5 causal 5,250
Making holes 5 casuals @350 = 1,700
Super money maker kick start pump 8,250
Delivery horse 120 ft 3,900
Suction pump 10 m @100 = 1,000
Diesel for pumping water 2,000 per week x4 = 8,000 x 3 months = 24,000
Planting 5 casuals @ 350 = 1,750
Sprayer 400
Dry weed 1 ltrs 1,000
Seeds- 1 acre needs 1500gms comes 2qin 381 gms & 37 gms :
Need 381gms pkts 4 pkts @ 4,800 = 19,200
Manure 4 tonne truck 12,000
Carrying of the manure from the site to the farm 1,750
Fertilizer DAP 2 sacks of 50 kgs @ 3,550 = 7,100
Fertilizer CAN - top dressing 2 sack- 50 kg bags @2,500 5,000
First weeding 10 casuals @ 350 = 3,500
Insecticides Dursban 1l 2,000
Insecticide Protrin 1 l - 1500
Fungicide Milraz kg 1400 x3 (2 weeks interval) 4,200
Evergreen Foliar fertilizer 1 lts - 100
Foliar feed booster 1 lt - 280
Second weeding 4,000
Hygro fertilizer - 450
Gatitis Fertilizer - 250

Booster 100
Calmax 1 lt - 300
Transport to the farm 1,000 per week = 4,000 per month x3 = 12,000
Total expenditure = Kshs 126,980

Transport to Nairobi after harvest 7 tonne truck 25,000 ( can discuss with the truck owner
to pay after the sale)

5. KEY ASSETS
Fertile land.
Availability of borehole hence able to farm throughout the year.
6. COMPETITION
Many other farmers there are planting the same crop all year round in some parts of kenya
7. DEVELOPMENT
In a span of 2 years we will have made enough profit to invest in more crop production in other
areas. We will also be able to give employment to many local people.
8.

SWOT ANALYSIS

Strengths: onions are not complicated to grow, they mature fast 4 months, first mover crop; can be
stored for upto 4 6 months till the prices rises
Weaknesses: irrigation has to be done daily or every 2 days
Opportunities: There is always a market for onions national wide by families and restaurants
9. GOALS

Be the farmer of the year

Expansion to other locations like Kilifi where we will be able to teach the locals on best
farming methods

Have a strong community involvement

10. EXIT STRATEGY
It is anticipated that within 10 years, we will have taught many Kenyans how to farm and we will
also be contributing towards poverty and hunger eradication in Kenya.

Expected sales:
At least 8,000 kgs per acre x 70 p/ kgs = 560,000
Less transport charges 25,000
Less start up capital = 127,000
Less market fee 6,000
Less agent fees 3,000
Profits = 399,000