18/04/2024
1 ACRE COST BREAKDOW FOR ONION FARMING IN KENYA 2024.
Starting onion farming in Kenya from Scratch?
To attain the highest ROI, ensure to use the right variety, correct seedrate, proper irrigation, nutrition and spray program.
Investment Period: 5 months
Seedrate 1.5kgs per acre
Variety:Hybrid
Expected tonnage: 10t -17t
Average price per kg: 120Ksh
ROI: 1.2m - 2m
Invested: 400k with Drip irrigation/250k with basin irrigation.
STAGE 1
Land Acquisition
Installations
Soil Test
Seeds Acquisition
Nursery Establishment
Sowing
Nursery Management
LAND ACQUISITION [15,000/-]
Assuming you don’t have land, it's a good time to lease land. The cost of leasing land greatly differs from one region to another. There are several areas you can acquire land, just make sure the area is hot with lots of sunshine and a permanent source of water. Onions need such climate and a lot of water for optimum growth and high yields. These areas include, Juja Farm, Mang’u, Thika, Kithimani, Matuu, Machakos, Emali, Loitoktok,Isnet, Isinya, Athiriver, Kajiado, Naivasha, Narok, Nyahururu, Rumuruti, Maralal, Nyeri, Karatina, Embu, amongst others. In areas around Nairobi, Leasing cost can be up to 30,000 annually. Other areas range from 7,000 to 14,000 per year. This is a good point to ensure the acquired land is cleared of all bushes, trees or rocks in preparation to start onion farming. If you need assistance in land acquisition, contact us.
Average land lease cost 15,000 Kes.
IRRIGATION SET UP [ 150,000/- Drip or 65,000/- Basin]
This is where you do irrigation systems installation depending on your prefered method for irrigation. If it is drip irrigation, Total cost for buying and installing drip system is about 120,000/-.150,000 If using flood or basin irrigation, you need a pump and about 30 units of 2-3 inch back to back pipes @950 each and a delivery horse @1500/-. A good pump of at least 6HP, can cost around 35,000/- or cheaper depending with quality.
With drips the total iriigation cost is 150,000/-
Basin Irrigation Cost is: 65,000/-
SOIL TEST [4,500/-]
Soil testing is a very important step when it comes to Onion Production. Collect a sample and submit it for analysis. This will guide you on the type of fertilizers and quantity to use in your onion cultivation. A soil test will cost 4500/- on average for a comprehensive analysis.
Seed Acquisition [40,000/-]
Having the right seeds is key to a successful venture. Ensure to plant the right seeds with a seed rate of 1.5kgs in basin irrigation and 2kgs in drip irrigation for a good production. On average most hybrid seeds cost between 35k to 40k. Consult an expert on the best variety that suites your area of farming or talk to us.
Nursery Establishment[2,500]
Establishing the nursery is a simple task. You can put up raised beds, or sunk basins depending on how you intend to irrigate your nursery. Make at least 15-20 beds with 10m length and 1m width. This is a one man work and can cost you 2500/-.
Sowing [2,000]
After the establishment, sowing is the next activity. You can either sow in rows or broadcast. To save space and ensure maximum germination, we recommend the broadcasting method. Use DAP/NPK fertilizer 1 kg and cover with light soil then add mulch. Water immediately after mulching.This is a one day job using at most 5 people for the Job, paying 250/- Per person. DAP will cost you 100/-: Acquiring Mulch will cost about 500/-: Total Cost for Sowing is: 2000/-
Nursery Management [18,000]
Nursery management encompasses essential practices such as spraying, w**ding, and general crop husbandry. Many farmers unknowingly lose up to 40% of seedlings during this stage. It's crucial to ensure timely w**ding and spraying to prevent losses. Avoid using herbicides for w**ding at the nursery stage; instead, opt for hand w**ding. Hand w**ding should be performed twice during the nursery phase. This may require up to 10 people each time, working for 2 days at a rate of 300/- per person per day, totaling up to 12,000/- for the nursery's lifespan.
The cost of spraying depends on the products used. With our spraying program, the cost is negligible if you purchase the entire spray program for the entire season. Our spray program has been meticulously designed and has proven highly effective, enabling us to address 99% of nursery complications arising from common diseases and pests. This proactive approach has significantly minimized damage and loss. The cost of items is this program is 6000/-.
Total nursery management cost is 18,000
STAGE 2
Land Preparation
Transplanting
Weeding
Spraying
Top dressing
Irrigation
Land Preparation [16,000/-]
Commence land preparation three weeks before the seedlings are ready for transplanting to avoid the need for double plowing. Land preparation entails plowing, costing approximately 4000/-, and harrowing, costing around 2000/-. For those using drip irrigation, this is the opportune moment to inspect all installations to ensure they are in optimal condition and functioning correctly. If irrigation installations were not completed initially, they can be done at this stage.
For those utilizing basin irrigation, this is the stage where basins are prepared. An acre typically contains about 1200-1400 basins, with each basin costing roughly 7/-. Therefore, the total cost for basin preparation amounts to 9,800/-, in addition to the costs for plowing and harrowing. Basin preparation may take up to a week, so meticulous timing is essential to prevent the seedlings from overstaying at the nursery beyond the recommended 45 days. The total cost of land preparation per acre sums up to 16,000/-.
Transplanting [24,000]
Transplanting is a rewarding activity that instills a sense of accomplishment. However, it is important to acknowledge that it comes with its costs, and sufficient funds should be allocated to ensure its smooth ex*****on. Prior to transplanting, it is advisable to review the spray program to determine any necessary additives for promoting quick growth and ensuring the robustness of plants post-transplanting. This proactive approach helps facilitate a seamless transition and mitigates potential damage or loss due to shock.
Typically, at least 12 individuals are required for the transplanting process, with an average duration of 3 to 4 days depending on the efficiency of the workforce. The standard remuneration rate is 500/- per full day. In our scenario, a full day for 4 days is feasible, resulting in a total cost of 24 000/-.
Fertilizer application[26,000]
Fertilizer application stands as one of the pivotal aspects of successful onion farming. Timely and appropriate fertilization is crucial, as any delays or inaccuracies could potentially lead to reduced yields. It is imperative to reference your soil test results to ascertain the specific fertilizer requirements. For organic farming practices, understanding your soil test results aids in determining the type and quantity of manure to apply.
One week after transplanting, it is recommended to apply DAP or NPK. Following this, commence topdressing with NPK or CAN three weeks later. To encourage optimal bulb formation and yield, topdressing should be conducted two to three times at a rate of 50 kilograms per acre. This translates to a total of four bags of fertilizer for the entire season. Each application requires the labor of one individual, typically charged at 500/- for the day. Depending on the prevailing fertilizer costs in your region, fertilization expenses could amount to up to 6,000/-. Per bag.
For uniform growth of bulbs and the development of compact, heavy bulbs, consider utilizing chelated foliar fertilizers.
Our comprehensive spray program (2024 edition) encompasses detailed guidelines for fertilizer and foliar application tailored to your soil test results and recommended application rates per linear row.
The total cost is 26000/-
WEEDING[20,000]
Maintaining a w**d-free environment is imperative for maximizing onion production, as onions struggle to compete with w**ds. Hand w**ding remains the most common and effective method of w**d control. Typically, you will require a team of 10 individuals, with a daily rate of 500/- per person, to complete each w**ding session over three full days. Depending on your farm's specific conditions, w**ding may need to be conducted up to two times throughout the season.
Consequently, total hand w**ding expenses could amount to 20,000/-
Chemical w**ding can be used as well to manage w**ding cost. Up to two applications are made within the season. Do not exceed two applications for chemical w**ding as this may affect the growth of your onions. 1ltr of a selective herbicide for onions cost up to 3,500/- which can do two applications.
Chemical w**ding labor is 500/-, two applications labor will be 1000/-
Total chemical w**ding cost is 4,500/-
SPRAYING
SPRAYING[15,000]
Spraying plays a pivotal role in successful onion farming. For organic farmers, read on effective biological control methods tailored for onions to combat pest and disease infestations. Many farmers experience significant yield losses due to inadequate pest and disease management practices, often resulting in excessive spending on various products. Unfortunately, these products tend to offer similar solutions, leading to unnecessary expenses.
Implementing a targeted spray program specifically designed for onions can significantly reduce costs and prevent potential yield losses. Our comprehensive spray program includes precise timing and preventive products, ensuring efficient pest and disease control while minimizing expenses. On average, farmers utilizing our spray program can expect to spend approximately 15,000/- for the entire package needed for the season.
IRRIGATION [30,000]
At this stage, your irrigation system should be fully operational, marking the beginning of consistent watering for your onion crop. Irrigation commences during transplanting and continues every 3 days throughout the season until the bulbs appear mature. It's crucial to cease irrigation 2 weeks before harvesting to facilitate the drying process, preparing the bulbs for the bending procedure of the necks.
If you're utilizing a drip irrigation system, your primary expense will be the cost of pumping water to the tank. The frequency and duration of irrigation sessions will vary based on factors such as climate, soil type, and water retention capacity (WRC). Typically, drip systems may require running for 30 minutes to 1 hour, 2 or 3 times daily, utilizing 3,000 to 6,000 liters of water per day. You can calculate the specific cost based on your water usage patterns.
For basin irrigation, you'll need approximately 5 liters of petrol or 3 liters of diesel for each irrigation session. The estimated maximum cost per irrigation session is around 600/-. Assuming no rainfall, this totals 1200/- weekly for 8 weeks. In areas with high temperatures, irrigation may need to be conducted every 2 days. On average, irrigation costs may amount to 10,000- 30,000/- or vary depending on climatic conditions.
You can therefore do your own summary on the above costings depending on the factors mentioned at each level of your farming.
Harvesting Onions[5,000]
Harvesting onions will require labor to uproot and trim off the neck and the roots. 10 people are enough to do the harvesting at a cost of 500/- per person for 1 day. Grading and packing is mostly done by the buyer and that cost is upon them.
Here's the breakdown in tabular format:
| Activity | Cost |
|----------------------|--------|
| Land Lease | 15,000 |
| Irrigation Setup | 65,000 |
| Soil Analysis | 4,500 |
| Seeds | 40,000 |
| Nursery Establishment| 2,500 |
| Sowing | 2,000 |
| Nursery Management | 18,000 |
| Land Preparation | 16,000 |
| Transplanting | 24,000 |
| Fertilizer | 26,000 |
| Weeding | 4,500 |
| Spraying | 15,000 |
| Irrigation | 15,000 |
| Harvesting | 5,000 |
| **Total** | **248,500** |
The total cost for all activities amounts to 248,500 Ksh.
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