9 Pro Tips to Consider before Starting Agribusiness
Why You Should Start Agribusiness in Nigeria
Agribusiness covers everything about rearing animals and growing crops for commercial purposes. Agribusiness is also everything relating to agriculture.
From dealing in land to growing crops, production, processing, marketing and all the process involved.
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Engaging in agribusiness in Nigeria, USA or any country of your choice is very lucrative no matter the area you want to invest in.
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Agribusiness is not just growing crops and rearing animals, it is a very wide business for the wise. This business has made the few who are willing to take the risk very rich.
At cehub, we interviewed two young agripreneurs who are making it in the business.
Read their stories and learn more:
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- MYWE: Interview with Affan Ismail, CEO Halal Poultry Farm
One of the oldest occupations in the world is agriculture, this occupation has witnessed enormous growth over the years. Today, agriculture has taken a new look, agriculture has grown into a large commercial business.
Modern machinery has been invented which makes the business easier than using crude tools.
Agriculture is booming in Nigeria. So much money to be made from this business, Many people especially youths in the country have turned to agribusiness as a source of income.
Agropreneurs are now smiling to the bank. Many others wish to practice this business but don’t know how to start or are simply afraid to take risks.
Don’t worry, I have you covered , continue reading.
Now,let’s talk about the necessary steps needed to go into agribusiness.
You simply don’t go and start an agribusiness just for fun. You are simply wasting your money, to make it in the business these are steps you have to consider before going into the business.
Steps to consider before going into agribusiness
1. Make a Research
This one is simple. In every business you need to know the business before starting. Research widens your scope and gives you more knowledge in agribusiness, it also helps you to know which agribusiness is profitable and which business fits you.
Research also helps you to know more about the livestock and crops that are profitable, their peak season and the market availability. It is advisable to visit a farm or market to do your research and get more information.
2. Technical know-how
This is one of the most important things you have to consider. No matter the agribusiness be it livestock, crops, fruit farming and other, lack of technical know-how will lead to waste of time, money and effort. But you can keep things simple by hiring an experts in the field.
You will need to understand everything to make the business a success. Your research will help a lot, but advisably go for an expert or find a mentor to help you out.
By learning for experienced hands, you will learn a lot and avoid mistakes that can spell your doom in the business.
3. Licensing and Registration
Every business in Nigeria has a form of registration. This could be company or association registration. You have to decide what kind of registration fits your agribusiness.
Be it sole proprietorship , partnership or company. You have to make sure you are duly registered with the right bodies to avoid legal problems, penalties for breaching of rules you know nothing about.
4. Choice of crops, animals and sector
In agribusiness, there are a lot of sections you can invest in. You have to choose the one that fits you . Choosing the right one is very crucial to a successful agribusiness.
Most people make the mistake of following popular trends, this usually ends in failure.
In choosing the right agribusiness, you have to Make Research and find out which one is best suitable for your location, land and a whole lot of details that will enable you to make the right decision.
5. Choice/condition of farmland
If you are going into crop farming, you have to consider the choice of land. You will be making a big mistake if you are planting on farmland with the wrong soil condition which will lead to a waste of your investment.
Each plant thrives on different soil, starting without knowing the right soil condition will lead to failure.
6. Potential risks
Environmental hazards and risks such as snakes, rodents, insects and more can hamper your business. For example, in the chicken egg business, snakes can spell doom for your business if you are not careful.
You must ensure that your chicken house is well built to avoid this problem. You have to analyze the risk involved very carefully and also take the necessary steps to avoid them.
7. Market availability
You may be very interested in growing some crops or want to rear an animal.
But there is no market in your community for it.
For instance, you want to set up a piggery in Kano state, but we all know that you are wasting your time and money because Kano is a northern state and most of them are Muslims, so a piggery in Kano is not a viable option.
So it is very essential to know your market, it’s size and potential. You can also consider exportation of your produce.
8. Financial analysis
You have to seriously consider this and pay attention to it. Before you start an agribusiness or any business.
You have to consider the profitability of the business, the break through period, the expenses involved,the labour charges and a whole lot.
You can also seek the help of an expert to do it for you. Having a financial analysis helps you budget your money and avoid unnecessary expenditures.
9. Consider farm labour
You have to consider farm labour to help you in your farm. They will be of great help in feeding your livestock, giving the crops water, giving injections and other services.
Agribusiness is a very profitable business to invest in. But it is not easy as the name implied. A lot is needed to make it in the business. Make a decision, have a market plan and marketing strategies that can make your business a success.
Agribusiness is fast growing in Nigeria and the market size is enormous. There is also the possibility of exportation. With proper planning and well devised plan, you can make it through and be the next agro millionaire in Nigeria.