Translate

PASSION IS NOT ENOUGH IN AGRIBUSINESS, YOU NEED TO GET SOME THINGS RIGHT





Today’s agriculture is changing and evolving. Agriculture cannot be seen as a hobby or rural development initiative only but as a business which require high-tech management. Even, agropreneurs need to possess some qualities to succeed in agribusiness. Many agribusinesses have been short-lived because the owners failed to get some things right. They were just captivated by ROI and developed passion immediately. They put their hard-earned or loaned money into agribusiness and waiting patiently for bountiful return, unfortunately, the business could not survive and return becomes an illusion. Although, passion is very important requisite in any agribusiness but, it is not enough to guarantee long term success. The following experiential tips are very germane to see through an agribusiness to the success destination;
1. Training and Learning: It is good to acquire necessary knowledge and practical skills in any agribusiness you want to venture in from experienced source. Many entrepreneurs don’t even want to learn the nitty-gritty of business they want to invest in, they just want to start making money. The truth is, if you don’t learn, you cannot become leader in your business. An agribusiness owner that wants to improve its operation and profit need to learn new and pertinent technology. You also need to research on what’s working and not working. Attend seminars, exhibitions and conferences. Buy only agribusiness books related to your field, from trusted source, designed for your climate and with practical information.  Everyone directly or indirectly involved in agribusiness needs training and learning for optimum performance.

2. Market for the product: Marketing is an important aspect that an agropreneur need to consider before operating an agribusiness. It also entails understanding consumer needs and wants. This activity need to come first in any agribusiness venture. Market analysis is the basis of business planning. Some people rush into business without adequate market analysis for their product or service. You can write your business plan yourself or give it to a business development personnel  that understands, practises or has great knowledge in agribusiness.  However, proper marketing plan should include;
Product-Market Fit: There is need to fashion out the right product for the right market. Most of agricultural products come in breeds or varieties. Some markets accept particular varieties or breeds while some don’t bother. Some require processed or value added products while some require fresh products.
Place to sell the Product: Understanding the marketplace is fundamental to marketing success. Before you launch your product, it is very important to know where to sell your product. Place also signifies the road/channel through which the products will be conveyed to the customers and the transport facilities available. Some products can tolerate long distance while some cannot. Many agricultural product especially vegetables are lost in transit or shelf life becomes reduced during transport. Some agribusinesses like greenhouse farming don’t need rural areas or distant farmlands before you can start while some requires distant virgin farmland. Knowing when to supply your produce will help you to properly plan your production. It is left to an agropreneur to decide whether, he will pass through middlemen or cut them off during product supply although it’s difficult to avoid middlemen in market places.
 Price to sell in the Market: Price is everything a buyer gives up (money, time, energy, etc) in exchange for a product. Setting price for a product depends on how much buyers are willing to pay. There is a lot of variation in price of agricultural product due to seasonality of farm produces. The price of farm produces is usually high during scarcity. It is important to understand market trend in order to set good price for your product.
Cost and Input analysis: You need to analyse cost based on current market information and situation that best fit production area. Some people don’t analyse cost based on requirement of production area but they find out that their guess is unable to take them through the production cycle. When planning cost, it is important to plan for contingency that may ensue along the way. Some agribusinesses get stuck because of insufficient fund to procure inputs. It is essential to get the right inputs for the right investment climate. Agricultural inputs include seeds, fertilizers, farm implements & equipment, Irrigation kit, Agro-chemicals, Greenhouse materials, etc. When you use the right agricultural input in correct climatic conditions, you produce the best yield/output. Remember to get agronomic training and/or technical support from input supplier.
Promotion of Product: It entails communicating your product to customers using various promotion strategies. Promotion also entails advertising, packaging and branding. Many sellers are using health benefit to promote their product. Value addition is also very important in agricultural production. Using polyethylene to package vegetable product gives it additional value. Currently, young agropreneurs are using social media such as Facebook, Twitter, Forum sites, etc. to promote their products.
3. Investment/Production Climate: Knowing climatic condition of agricultural product and production area are very important. This concept also entails understanding security condition and peculiar environmental hazards in the production area. In most crop and animal production, important climatic factors to consider are temperature, soil & topography, sunshine, wind, rainfall or water bodies or available water. Careful analyses of those factors are important to the success of crop or animal production. A good investment climate makes agribusiness to thrive. Each particular crop or animal has its own climatic requirement. It is good to visit production area and analyze all climatic factors peculiar to that area and juxtaposed them with what it’s to be produced.
4. Workforce: Agribusiness is not a business you can do alone; you need the right people to work with. The workforce may include, Technical personnel, Farm Supervisor, Farm Manager, Permanent workers, Casual labourers, etc. Proper personnel/labour analysis need to be done to ensure work is carried out appropriately and efficiently. Get required number of workers for a particular task. Maximize your personnel, pay them reasonably well and never mistreat them. Always motivate your personnel towards better performance.
5. Management: Management is a multifaceted function in agribusiness. Every aspect of agribusiness need good management practices. Many agribusinesses failed not because of lack of fund or right workforce but lack of good management practice that cut across all levels. Management also entails proper monitoring, maintenance function, resource use efficiency and cash flow management. There is need for proper management of production, resources (inputs), workforce and risk. As customers are important to continuity of agribusiness, so also is workforce hence the need to take proper care of them.
6. Three Ps of Agribusiness: The three Ps of Agribusiness include Patience, Persistence and Perpetuity: These are very crucial qualities on the part of agribusiness owner especially when the business is just starting or growing. Inadequate patience, persistence and perpetuity have pushed some people out of business. It usually takes some time to breakeven in Agribusiness. Therefore, any agropreneur that want to venture into agribusiness must exhibit the three Ps of Agribusiness.

Drop your comment or inquiry below!!!