Get more bang for your buck by diversifying

Diversification enables farmers to spread risk and add additional income streams, but within the opportunities lie some hazards. Lindi Botha spoke to farmers who have successfully integrated their current operations through multicropping and other methods about how to tackle this juggling act without dropping the ball.

- Lindi Botha

There is a saying that perfectly sums up the caution one should take before starting a new business: “Just because there is a gap in the market does not mean there is a market in the gap.” The same rings true for the myriad options that farmers can exploit to fully utilise their land and expand operations: just because you can, does not mean you should.

Diversification can, however, be a gold mine when approached correctly, and prevent seasonal lulls in income.

“Diversification is about getting the bounce factor – being able to spread risk and ensure there are different income streams should policy changes or market disruptions affect your income in one area,” says Arné Verhoef, chief technology officer at insect protein producer the Nambu Group in the Eastern Cape.

FAST FACTS

Diversification can add additional income to a farm. 

Chosen commodities should complement one other.

Caution must be taken not to spread yourself too thin.

Verhoef has paid his school fees over the years, trying his hand at numerous activities to maximise his income and use of the land. He learnt a few hard lessons, but also reaped the rewards of making the right matches.

“You name it, I’ve tried it! At times, my fields looked like a complete mess, with all the different crops growing as part of an intercropping system. I don’t understand barren orchards. Why would you not use the land between the trees to grow another crop?” 

He finally came to the conclusion that any addition needs to fit into the whole system.