Agribusiness is an arm of agriculture used to describe the sector that encompasses all economic activities that are related to farming. Agribusiness is no different from any business, it’s simply the business side of agriculture. Agriculture is a sector in the world economy which thrives, regardless of the economic environment of the country, famine or pandemic. It provides one of the greatest need of man which is Food
Food is the resultant effect of different Agricultural Operations such as farming on arable lands to produce crop plants which can be consumed fresh or processed into other products. Agriculture in Africa can be confused with primarily Farming because 60-70% of agricultural operation are predominantly farming as much as it might be true over the last few years Agribusiness has taken a surge upwards with several mobile application created to solve logistics from Farm to the City, several firms have sprung up to process fruits and vegetables.
Yes Agriculture is still defined as the tilling of crops and rearing of animals, the definition is valid but not all agricultural enterprises are solely concerned with the upkeep of land and animals. Agribusinesses are increasingly interacting with farmers directly and indirectly.
a. Directly: a number of agribusinesses are purchasing and selling from farms, some other agribusinesses are into the sales and marketing of agricultural lands, farmworkers, equipment etc.
b. Indirectly: a number of other agribusinesses are into creating agricultural websites, online learning and processing of agricultural products for example waste from ranches are converted into Methane gas for cooking
N/B: Every aspect of the Agricultural sector is profitable, I was shocked when I saw dried jute leaves powder (commonly referred to as ewedu in my native language). I know if you are from Nigeria. you would understand the serious work that has been done in creating that. If you want to start an Agribusiness, Here are some principles to follow:
Research into the Market
Before deciding on an idea, product, or service, you must conduct extensive study about the specific market you intend to enter. It will assist you in deciding whether or not to proceed at the entry level. The following questions must be answered clearly in this process:
What is the market’s current potential?
What does the market’s future hold?
What advantages do you have?
What are the issues that consumers are dealing with?
What are the issues that your rivals are having?
What are the stumbling blocks?
In this market, how do you view yourself?
How difficult or simple are the legal requirements?
Is your company going to be local, regional, national, or international?
Once you have all of the information, assess the situation and search for a window of opportunity. Always keep an eye out for new information that is both relevant and trustworthy.
What is your Reason?
There are thousand of reasons why you should start a business, but not all really matters to your goal. Some of the reasons why people create a business are
Wealth Generation
Vision for a Better Society
Autonomy and Flexibility is a personality feature characterized by independence and self-governance; you wish to play your own rules and norms without having a boss to supervise your daily activities.
You desire a sense of accomplishment.
Your reason will help you in the mission and vision of your Agribusiness,
Create Your Business Plan
It’s one thing to have an idea in your head, but it’s quite another to put it down on paper. It’s a whole different matter to really start and move forward. Putting a clear and specific plan of action on paper will assist you in staying organized and expressing your thoughts in a form that others can touch, see, and feel. Others will be able to assess and support your ideas once you have completed your business plan.
Educate Yourself Regularly
It’s important to keep studying throughout your life. Continuing your education should be a top concern until the day you die. Whether it’s visiting your local bookstore or continuing your education beyond college, you should always be looking for new methods to learn more. Agricultural techniques are continually changing, and agricultural tactics are always changing, so it’s in your best interest to stay on top of things. For new farmers, many organizations offer programs and classes. Take advantage of any opportunity that comes your way for free and use it to network, get started, and make relationships.
Organise your Business
You must decide how you want to set up your agriculture business when you establish your own company. Partnerships, sole proprietorships, limited liability corporations, s corporations, and ordinary corporations are all viable options. You can then register your company name with your state’s administration.
Carry out a Financing Research
No matter the amount of money you need to finance your venture you need to do your research. Start with your savings, next to family, friends and other farmers. Research about grants, loans from highly-rated banks.
With the following, you would have started your Agribusiness firmly on a strong foot. Agribusiness is about creating value in the Agricultural Sector, solving problems facing humanity.
