how to start a seed company
What is a seed company?
Basically, a seed company is a company that produces and sells seeds for
Moreover, there are other seeds to grow. In particular, there is a high demand for other seeds which can be eaten:
- flax seeds;
- poppy seeds;
- sesame seeds.
There are various companies in SA (Klein Karoo Seed Production, Capstone Seeds, Pannar Seed) that produce a variety of seeds then there are companies that provide a single type (Potato Seed Production – as the name implies, it produces only potato seeds). Not only is it a successful potato seeds manufacturer, but also this company is a well-recognised leader in this area.
What’s the point? Before you start writing a business plan, decide on a specific focus for your business. No need to grow as many seeds as possible. You won’t beat the most successful companies, but if you concentrate your efforts on one specific plant, you can become a well-recognised industry leader, as the company mentioned above.
Now small businesses in this industry usually sell to gardeners that is because the farm market is dominated by large companies including behemoth Monsanto. So smaller seed growers focus on a particular niche such as flowers that they can sell in retail stores or at organic markets.
Target Market & Your Customers
Since South Africa is a leader in seed production, the market is occupied by big companies. But you can apply one strategy. The problem with seeds is that most of them are GMO (genetically modified ). Not everyone understands what these three letters stand for, but most people (whether consciously or unconsciously) prefer non-GMO products.
So why not choose one specific plant to grow (for example, a flax) and establish your company as an organic producer of flax seeds? In this case, your customers will be people who are conscious about their health.
You have to think like a farmer when growing seeds, and like an entrepreneur when selling them, because growing is one thing, marketing and selling – quite another.
Watch this long and detailed video on making money growing and selling seeds on a small scale:
Integrating commercial seed production with the market garden featuring Daniel Brisebois. Growing seeds can be a profitable addition to your market garden. There is a market to sell local organic seeds to small seed companies. Or you can start your own retail seed company.