With the rising demand for fresh produce and increasing interest in food security, banana farming offers a unique opportunity for entrepreneurs to make a mark, especially, in regions previously overlooked.
Bananas are super useful and can be turned into many different things. People eat them fresh as a snack or dessert, but they can also be made into treats like chips, bread, jam, and even baby food. Some drinks, like banana wine and vinegar, are made from bananas too.
Farmers don’t just grow bananas for eating, they also use the leaves and stems to feed animals when grass is hard to find. In some places, banana flowers and peels are used as natural medicine to help with stomach problems and other illnesses.
For entrepreneurs, Banana farming offers a rare chance to build a business that’s sustainable, scalable, and deeply rooted in the country’s agricultural potential.
Business Capital
Starting the business doesn’t require millions but it does require smart planning. One needs initial investment between N700,000 and N1.2million which will cover land acquisition or lease, hiigh-quality suckers, irrigation setup, fertilisers and soil amendments, pest and disease control, and labour and equipment.
However, one can start small with around N50,000 to N100,000. This amount can get a trader started with a few bunches of bananas, and they can gradually build up their business.
Profitability
Banana can yield between 15 and 30 tons annually per hectare. According to survey, market price per ton is between N100,000 and N150,000. So, annual revenue ranges from N1.5 million and N4.5 million.
Speaking with a trader who has been in the banana business for over a decade, who simply wants to be known as Mrs Adebayo, she said, she sourced her bananas directly from farmers in Ogun State, where she has built relationships over the years.
According to her, the profit margin in banana trade varies depending on the season and demand. During peak season, one can make a profit of a out 20-30 per cent, per bunch, while during off-peak season, the profit margin can be as low as 5 and 10 per cent.
Mrs Adebayo said, she sells an average of 50 bunches of bananas per day, with a profit of around N5,000 to N10,000 per day.
When asked about the initial investment required to start the business, Mrs. Adebayo advised that, one can start small with around N50,000 to N100,000 and that, with this, a trader can start with a few bunches of bananas, and then gradually build up their business.
She sources her produce from farmers who cultivate bananas and plantains on large plantations. She also buys from middlemen who bring the produce from other parts of the country. She emphasised the importance of building strong relationships with farmers and suppliers to get the best prices.
