By Agbaji Chinedu
The agricultural industry is a sector that has huge lucrative business and career opportunities within the value chain. If you have an interest in agriculture or open to learn about business ideas in agriculture sector, you don’t need to own a farm or practically engage in any kind in animal husbandry or crop production before making money from Agricultural business. In fact, people that make the most profit from Agribusiness are not necessarily farm owners.
In recent time, agribusiness has taken a dramatic turn to a better direction, creatin all year-round wealth and making Millionaires through it in Nigeria and there is certainly no end to the prospects of creating more wealth through Agribusiness in the coming years.
According to Dr. Akinwumi Adesina, President of the African Development Bank (AfDB), who noted that, “The size of food and agriculture in Africa will rise to $1 trillion by 2030. The population of Africa, now at 1.2 billion, will double to 2.5 billion by 2050. They all must eat. And only through food and agribusiness can this be achieved,” If you are thinking of how to make money in this new year Agricultural business is the best and surest option.
It’s a business sector surrounding farming and farming-related commercial activities. The business involves all the steps required to send an agricultural good to market: production, processing/packaging and distribution. It is an important component of the economy in countries with arable land, since agricultural products can be exported for foreign exchange.
Expanding the term “Agribusiness” is an aspect of agriculture comprising of production, manufacture and distribution of farm inputs, equipment and supplies at one hand and the processing, storage and distribution of farm commodities on the other hand. This implies that the entire agricultural production, processing, distribution and consumption ranging from farm input supplies inclusive of wood producers, furniture manufacturers, food processors, food packers, food transporters and food marketing companies to restaurants and shopping malls, is a good ground for job creation.
As agribusiness plays a critical role in jump-starting the economic transformation through development and growth of agro-based industries, successful agribusiness investments stimulate agricultural growth by providing new markets and developing a vibrant input supply system to all sectors.
2022 is here with great expectations and challenges, but in all these there are opportunities, which we must not fail to take advantage off. Agribusiness is one of the businesses in this year that one need to invest and rake high return on investment especially in Nigeria because of the solution it proffers to challenges faced by the society in the areas of sustainable food security, unemployment, low income and poor revenue generation etc.
There is no doubt that agriculture is vital for the sustainability of most countries, as it supports the basic need of a consumer, provided it is placed in the right direction. Everyone in Nigeria, from the president to the man in the street, is talking about diversifying the economy from the oil-dominated mono economy to agriculture/food production focused-economy, with the Covid-19 pandemic that came with its attendant oil price crash, as demand dropped in 2021, yet we must not be deter in investing in this goldmine.
With lockdown in China, which consumes about 14 per cent of the global crude oil daily in 2021, and reduction in major economic activities globally, the price of the commodity went downwards, and the threat of Omicron from this, you can see the importance of agro-business for the future of the Nigerian economy.
Nigeria Agricultural business are faced with challenges such as Herdsmen/farmers conflicts, Banditry, Kidnapping, which has discouraged many, especially youths from venturing into Agribusiness; these challenges can be resolved through modernization of cattle breeding business and institutionalization of ranching and Improved security. Other Challenges are Financing, Land use act, Researches etc.
To sustainably develop agricultural business in Nigeria and make it an alternative source of income to the nation’s private sector is critical in the development of opportunities in the desired value chain component for our agricultural products. It is the private sector that drives the process and government role is to create conducive environment through sustainable policies which stake holders in Agricultural sector such as AFAN (All Farmers Association of Nigeria)should be part of, that will encourage private sector participation. For instance, government policy on rice importation ban paid off, the rice value chain has been improved as many investors invested into processing and packaging machineries that has improved the quality of our local rice, I can stand to say some our local rice can compete with the foreign both in quality and finishing. viable and sustainable jobs are now available within the value chain.
In this year 2022, there are a whole lot of opportunities for those that wants to invest into Agric related business value chain. such as (a) productive resources e.g., feed, seed, fertilizers, equipment, energy, machinery etc. (b) agricultural commodities e.g., food and fiber etc. (c) facilitative services e.g., credit, insurance marketing, consultancy, storage or warehousing, processing, transportation, packing, distribution etc.
With revolution in Agriculture, the business of Agriculture within the value chain has been made attractive. Every kobo invested into Agricultural business value chain this year will have sure return on investment. Do you know that the demand for organic produce and essentials oil such as ginger oil, garlic oil etc. are on the increase since last year for the treatment of covid related symptoms? They are part of farming business. Smart farming and IoT are changing the narrative, processing plants with low power consumption, soil testing software has encouraged more people to invest into agricultural business.
Note: The multiplier effects of the success of Agricultural value chain on the Nigerian economy is far enormous, with the current agricultural income of the country, put at N15 trillion as against the potential value of about N40 trillion. Nigeria could pride herself as an investment hub in Agriculture and put the nation back to limelight as an agrarian nation that can guarantee food security and generate foreign exchange through Agro produce exports.
I wish you a prosperous new year as you keep date with us for more educative and business-oriented articles for the year. Thanks for being part of us.