Starting Seed Production Business – Profitable Business Plan

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seed production business plan

For people wishing to use their money and time in some useful work, organic seed business gives an opportunity. First let me tell you clearly what seed farming is. Seed business is a profit obtaining work through the exchange of seeds for money. Making it clear, seeds are sold in bulk or smaller units for cash.

Opportunity

There are few reasons which strengthens the value of investing in seed business. Those are:-

  • Growing trend towards organic food
  • People’s interest in having kitchen garden
  • Agricultural industries outsourcing for seeds alone in-order to cut down costs incurred in producing seeds
  • Change in lifestyle which has increase the number of online sales
  • Less availability of seed selling shops
  • Greater awareness towards greenery in the society
  • Fast-developing technology enabling easy production
  • Firms supporting agriculture, thereby funding for these businesses

Get certification from agricultural department of the country

Since this business deals with the production of seeds which is related to food and health indirectly, certification is a must. The department of agricultural activities of the country will check for the quality of the seeds and then certify them. Inspection will be done after production by an inspection officer. If you fail to meet the quality, your industry might be under trouble. So, make sure you produce healthy pure seeds. The certification provided has a benefit of increasing the sales because some people check all these and then only buy.

Seed business as an additional income

Seed business though gives huge profits can be taken as a side business due to its simple business structure. Seed business can be done both in small scale and large scale. This again depends on the available resources. Higher-level business will require expensive stages of production, whereas people who do it just to earn small income will produce the seeds by natural methods by themselves without the use of machines or any other technical processes.

Seed production at home

Seeds can be produced at home by the technique of dryness. Seeds are always advised to be kept in a dry place to prevent from spoilage. Basically, any seed taken from a fruit or a vegetable should be allowed to dry before it is ready for selling purpose. Seeds taken from these vegetables and fruits are dried by placing them on a sheet of newspaper.

Here, remember not to use plastic stuffs since the material may cause harm to the extracted seeds. And also, too much dryness will lead to adverse effect in the plant growth. Make sure that the seed does not reach either the extremes of coldness and heat. By this stage, the process of production comes to an end. Packing them is not at all a complex process since it is a small- scale business. Any paper bag with proper closure will be suitable to store these seeds.

Seed production partnered with agriculture

Apart from traditional process and modern process of production, you can also adopt production through agriculture. This is applicable only if the person owns a farm or someway related to farming business. During the end process of every cycle of farming, the crops harvested are entirely sold. But, this farm can be utilised for seed production also. Simultaneously, a part of farm can be engaged in seed production.

Process of seed production in farms

  • Soaking the seeds- To start the production, you will need pure seeds in-order to replicate the same. These seeds are soaked in salt water so as to remove dirt and other impurities in it. This step also weeds out the undeveloped seeds. Another main important purpose of this step is to remove the seeds which are damaged by pests. It is very important to remove these seeds since they are capable of making other seeds inactive due to their spoiled state.
  • Land preparation- The seeds which are for further production are to be employed in a healthy land. Thus, the land in which this takes place is made ready through traditional method involving harrowing and ploughing on a planned time chart.
  • Seedbed- Now at this stage, the seed bed is prepared for the seeds to grow. This seedbed should be smooth and fertile to support fast growth. The size of the seed bed should be decided based on the soil and climate. During the end of this stage the seeds are retrieved from the grown plants from the down-end.
  • Sun-drying- The extracted seeds are now allowed to dry for a particular period in the sun. This is to stimulate germination.
  • Seed-grading- The seeds are then grade according to the quality. Inspection will be done at this stage to group the seeds properly.
  • Seed storage- A suitable package method is chosen after applying necessary fertilizers and other preventive solutions. The final check is viability.
  • By this, seeds are produced through farms without the use of major technology

Production of seeds at industrial level

This type of production targets on producing seed using machines and technology. If you wish to choose this, a clear study on the various production methods will be required. Different varieties of crops will open the need for specialised machines for production.

There is no one standard production method which will work for all varieties of crops. But to give you a rough idea there are few things to be taken as checklists. Most importantly, the viable state of the seeds. This is very important since the seeds are expected to germinate after they are sold.

Extreme care and application of anti-pest methods will automatically give a perfect quality seed. Secondly storage methods should be taken care of. Next is packing it accordingly for various users. The last step is to despatch it before it loses its capacity to grow. But before all this, check for latest technical innovations and machines in the agriculture industry to make production more efficient.

While installing machines in the industry, also make sure that those high-tech machines do not disturb the quality of the seeds produced. Keeping the seeds safe and clean shouldn’t involve too much of chemical processes. The more they are natural, the more is the benefit. Thinking of producing tons of seeds at a time might result in poor quality artificial seeds. Though the seeds are produced in industries, basic purpose or objective is similar to the seeds produced in the field.

What kind of seeds are produced in industries?

To discuss on the kinds produced in industries, you have to know about hybrid concept. 70% of the seeds produced in industries are of hybrid varieties. They are formed after a series of research done. These seeds basically arise out of combination of two or more crops with the help of bio-technological methods. One drawback is, production of hybrid varieties will involve huge costs since research phase will be expensive.

Packaging part of the produced seeds

Here comes another important part. There is no use of producing quality seeds if they do not germinate after they are sold. So, it is very important to choose a right material and a right packaging technique to retain the growing capacity of the seeds. Spending higher costs here is not at all a problem since this is the place which decides profits and loss your company.

If the seeds are poorly packed and they get spoiled even before they reach the customers, it is a huge loss. Or say, the seeds reached the customers but haven’t germinated due to harmful effects of the material in which they were packed.

Your company’s reputation will be negative and automatically the next move of the customers will be to choose your competitive seller in the industry. Best material to use for packing is paper. Modulate the paper into any desired way to store your seeds but try not to seal it completely making the seeds inactive.

Marketing through the cover of the product

The seeds are now into desired covers or packs and ready for business. Selling happens only if the product is properly communicated to the public. Try to explain the product as much as you can through the cover itself. Have a very attractive cover with the picture of the crop and few specifications about it. Give the customer directions to use it before they plant and also the necessary conditions to store them. For public users, packing is made in single system but for bulk orders from agricultural firms simple packaging can be employed.

Where to sell?

  • Selling seeds to agricultural firms is a direct business. This does not need attractive packing and directions, since they are well educated as to how to use those seeds. In such cases, as already mentioned packing can be done by adopting family packaging system having multiple units in one pack.
  • Partnership with agricultural sectors and official bodies might ensure regular flow of business due to supply orders.
  • Coming to the public users, the product should be advertised as much as possible.
  • Public users are those who have gardening as their hobby and or anybody who buy in smaller units for personal use.
  • Online selling is one best idea to sell seeds. This is because, most of the people try to ease their work by just ordering things online. This product is something which is not available everywhere and so people will obviously try to find it online.
  • And for these users, varieties are must. They do not grow for any business purpose which stresses on one single type.

Crops that can be sold for public users

These users here cannot buy seeds which can be sown only in farms. Rice, maize, corn etc, cannot be grown at home. Thus, small herbs and other feasible crops can be targeted. For example, broccoli, chillies, cauliflower, coriander, lettuce, spinach are some of the varieties which can be sown in terrace pots. Make sure that the seeds are packed in required quantities to germinate and also to ensure less wastage.

Financial side of the business

Investment

The investment that has to be made in this business is undoubtedly your choice. Depending on your financial status, you can formulate your own plan for investment. Funds can be collected from the government of respective countries showing proper report of the start-up.

Costs involved in seeds production

  • Production in farm- The costs involved here are quite less compared to the costs in industries. Traditional methods lessen the need for more chemicals and machines. Labour costs are also less since they are carried out mostly in rural areas.
  • Production in industry- Industries require high cost of setup and planned investment. Latest new technology can minimise number of workers and partially decrease labour costs. Administrative costs are an extra part here since it is mandatory for any industry to have a proper administrative background.

Pricing

  • Pricing has to be decided after considering costs involved in production, packaging, marketing, selling and despatching. Initially, have a low margin profit to advertise your product for its high quality and low price. Later, when the market accepts your product try including new varieties thereby indicating change in price.
  • Check for competitive seller’s price before deciding on fixing the value.
  • Launch new ideas where two three varieties of seeds are sold together as combos. This might positively increase the sales.

Tips to increase sales

  • Sell unique varieties of seeds that are not available everywhere
  • Sell seeds which will actually suit the environment. Do not miscommunicate things just to increase sales.
  • Add free samples to the purchased pack. The quantities can be in a very less quantity also
  • By adding few sums of money provide the customers with appropriate soil to sow the seeds.

Alternate method to the usual method of selling seeds

  • Today’s world has got the importance more towards natural stuffs than artificial ones. The use of chemical fertilizers to prevent from spoilage can be avoided by adopting a new technique.
  • Produce seed balls to attract more customers.
  • Seed balls are formed by placing seeds inside mud and forming them as a ball. These seed balls are allowed to stay in a cold place for the first three days. Later, the seed balls are allowed to dry for next three days.
  • Now they are ready to be packed and sold.

Conclusion

Seed business is thus a very unique start-up which will eliminate the situation of losing value in the market. 90% of the entrepreneurs who invested in seed business have achieved success and have proved seed business has really got people’s attention.

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