In this article, we are going to list the 5 Most Profitable Agricultural Business Ideas in 2021. To read our detailed analysis of the global agribusiness trends, please go to the 10 Most Profitable Agricultural Business Ideas in 2021.
5. Mushroom Cultivation
Market value: $16.7 billion
Mushroom cultivation ranks 5th in our list of the 10 most profitable agricultural business ideas in 2021. If you are considering starting up an agribusiness with low start-up capital investment and highly profitable, you might want to consider mushroom farming. You can easily start growing oyster and shiitake mushrooms indoors and they are best-sellers in the market.
Canadian mushroom cultivating company Champignon Brands (OTC: SHRMF) is known for its artisanal and medicinal mushrooms. Shares of SHRMF jumped 55.9% over the past twelve months.
4. Organic Fruits and Vegetables
Market value: $30.7 billion
If you want a steady stream of income, growing and distributing organic fruits and vegetables is one of the most profitable agricultural ideas you can invest in 2021. It is one of the fastest-growing segments of the agriculture industry due to the rising demand for healthy food. Organic fruits and vegetables are more profitable in the market as their prices are higher. People are ready to pay good price for healthy food that is free from chemicals and pesticides.
Hain Celestial Group (NASDAQ: HAIN), headquartered in New York, is a producer of natural and organic foods and personal-care products. The company’s net sales were up 4% to $528.4 million in the second quarter of 2021. Shares of HAIN jumped 80.3% over the last twelve months.
United Natural Foods Inc. (NASDAQ: UNFI) is another major player in the market. It was created after the merger of Cornucopia Natural Foods and Mountain Peoples Warehouse. Based in Rhode Island, United Natural Foods Inc. supplies and markets natural and organic and gourmet ethnic products, organic produce, and other fresh products including fruits, vegetables, juices, milk, eggs, nuts, and coffee. In the second quarter of 2021, the company’s net sales increased 7.1% to $6.9 billion. Shares of UNFI surged 251.4% over the past twelve months.
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3. Farm Machinery
Market value: $103.3 billion
Ranking 3rd on the list of the 10 most profitable agricultural business ideas in 2021 is farm machinery. Agricultural machinery does all the action during soil cultivation, irrigation, planting, fertilizing, haymaking, and harvesting. Because of emerging technologies in the sector, as well as improving economic conditions and increasing farm income, the global agricultural machinery market is expected to expand dramatically in the years to come.
Headquartered in Georgia, one of the biggest tractor manufacturers in the US is AGCO Corporation (NYSE: AGCO). In the fourth quarter of 2020, the company’s net sales amounted to $2.7 billion while shares of AGCO surged 206% in the last twelve months.
London-based CNH Industrial N.V. (NYSE: CNHI) on the other hand sells farm and commercial equipment and vehicles such as excavators and large wheel loaders. The company had revenue of $8.5 billion in the fourth quarter of 2020. Shares of CNHI were up 171% over the past twelve months.
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2. Fertilizer
Market value: $196 billion
Ranking 2nd in our list of the 10 most profitable agricultural business ideas in 2021 is the production and selling of fertilizer. One of the main factors driving the market’s success is significant growth in the agriculture sector as well as a growing need to improve soil fertility and crop production. It is the best time to invest in the selling of fertilizers as organic and non-organic farming are both blasting in production.
Illinois-based CF Industries Holdings Inc. (NYSE: CF) manufacture agricultural and industrial chemicals. The company’s net sales in 2020 were $4.1 billion. Shares of CF increased 65.6% over the last twelve months.
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1. Poultry Farming
Market value: $319.2 billion
Topping the list of the most profitable agricultural business ideas in 2021 is poultry farming because the demand for poultry, as well as its byproducts, is always high. Poultry farming is one of the fastest-growing businesses you can invest in. The US (23 million tonnes), Brazil (16 million tonnes), and China (20 million tonnes) were the leading countries in poultry production in 2019. In 2020, the Food and Agriculture Organization (FAO) estimated that global poultry meat production will reach 137 million tonnes. The poultry sector is one of the most profitable agribusinesses as it offers steady demand globally.
Tyson Foods Inc. (NYSE: TSN) is one of the biggest poultry companies in the world with a revenue of $10.5 billion in the first quarter of 2021. The American food company offers chicken, beef, pork, and processed meats. Shares of TSN increased 16.4% over the last twelve months.
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