Greenhouse farming is profitable for growers that can do the leg work of marketing. Greenhouse farming does not only involve the growing of crops and getting a great yield.
If you get a good crop yield from your greenhouses and you do not market your produce to premium customers, you may not record a profit.
We have seen greenhouse farmers with positive Returns on Investment (ROI), we have also seen a lot of farmers recording losses on their greenhouse farming ventures because they think that greenhouse farming is only about growing of crops. They mostly neglected the marketing aspect.
Is Greenhouse Farming Profitable in Nigeria?
Greenhouse farming is arguably profitable in Nigeria. A typical 240 square meter greenhouse in Nigeria is sold for N2.4 million. If a greenhouse farmer decides to grow tomato crop in this greenhouse, he can break-even within 12 – 18 months.
A greenhouse allows people to grow all year round unlike growing in the open field.
The cost to operate a 240 square meters greenhouse in Nigeria is detailed below:
- Labour Cost Per Season N250,000
- Cost of Fertilizers N100,000
- Cost of Pesticides N70,000
- Cost of Irrigation N100,000
- Cost of Acquisition of Greenhouse N2,400,000
- Cost of Power N70,000
- Cost of Seeds N20,000
- Cost of Planting Materials N20,000
The revenue from a 240 square meters greenhouse can be between N1 million – N3 million depending on yield and the season.
Factors that can affect the profitability of greenhouse farming in Nigeria
The factors that can affect the profitability of greenhouse farming in Nigeria are:
Crop Yield
If your greenhouse crop yield is low, you will likely record a loss. A high crop yield may assure good profitability.
You should implement good agronomic practices in order to assure a good yield in your greenhouse. One of the reasons greenhouse farmers make more money than open field farmers because they record high yields.
Buyers
If you sell your greenhouse produce to buyers in the open market, you are likely to sell at low prices. This can negatively impact the profitability of your greenhouse.
Buyers playing in the organized markets like supermarkets and hotels often buy greenhouse produces at premium prices, this can increase your greenhouse’ profit.
The export market is the most profitable; however, there are a lot of hinderances to exporting greenhouse produce from Nigeria. This does not mean that export of greenhouse produce is not possible in Nigeria.
Type of Crops
You should only grow premium crops like tomato, cucumber and sweet pepper in your greenhouse. You are likely to make a loss if you grow maize, soybeans or groundnuts in your greenhouse.
As a matter of fact, tomato and sweet pepper are the most profitable crops to grow in greenhouses in Nigeria.
Cost of Acquisition
If you build your greenhouse yourself, it may be cheaper and profitable. However, you should ask your self this question, do you have the expertise and materials to build a greenhouse yourself.
What Crops are Profitable to Grow in Greenhouses in Nigeria
The following are the crops that are profitable to grow in greenhouses in Nigeria:
- Tomato
- Sweet Pepper
- Cucumber
- Kale
- Brocolli
- Strawberry etc.
To know more about greenhouse farming, please click here.
Do you need more information about the profitability of greenhouse farming in Nigeria, if yes, please contact us through sales@veggieconcept.ng.