agricultural productivity

HOW TO ACCESS FINANCE FOR YOUR AGRIBUSINESS DURING RECESSION

 

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In line with the current economic situation, Agrihub together with other partners has decided to host a virtual workshop to engage youths in Agriculture on how to Access Finance for your Agribusiness.

As part of its capacity building activities, Agrihub Nigeria invites you to participate in the themed workshop – Financing Agriculture for Economic Development.

This Workshop will be in Partnership with Agropreneur Nigeria and it will be a series of 4 events held over the coming week. The initial 3 events will be online while the 4th a physical meeting.

For now, the event will mostly require you to view pre-recorded videos with some of the speakers and engage with them via tweets for questions and comments. Speakers will discuss on different topics on Financing Agriculture for Economic Development.

This will require your engagements via your twitter handle, please use the hashtag #Agrifunding and tag @agrihubng in all questions, and comments on twitter.

Objective of the Workshop

The objective of the workshop is to ensure that participants have the understanding of the various forms of financing that are available to them in the agricultural sector while at the same time change the mindset that only commercial banks or government can finance agribusinesses.

Schedule of Events

  • On Saturday, November 19th, 2016, Begin of Online Workshop on funding Agriculture for Economic Development with the Upload and streaming of series of pre-recorded interviews around the theme from 9am via the AgriHub Youtube Page.

 

  • On Tuesday, November 22nd, We will have a tweet chat with Dr. Mayowa Oguntoyinbo CEO Freshly Yours Ltd, on Record Keeping for Agribusinesses from 5 – 7 pm. Please use the hashtag #agrifunding and tag @agrihubng in all questions, and comments on twitter.basicbookkeepingagrihubnov22seminar-tweetchat
  • On Thursday, November 24th, We will have a tweet chat on Insurance in Agriculture based on information received during an interview with a representative of the Nigerian Agriculture Insurance Co-operation, NAIC from 5 – 7 pm. Please use the hashtag #agrifunding and tag @agrihubng in all questions, and comments on twitter.

  • There will be a number of viewing centers across Lagos to discuss the said topics and spark the conversations around financing agriculture. YPARD and Agroprenuer Naija, will moderate Physical Group Discussions at 2 locations, 9 Adepegba Street, Ilupeju and The Jetty, Wole Olateju, Crescent off Admiralty way Lekki Phase 1 , Lekki, Lagos from 12 – 2 pm on Saturday, November 26th, 2016 where opportunities and next steps forward will be discussed.

NB: Speakers would be available on Twitter at various times of the day to answer possible questions from viewers. Questions and comments can be asked on twitter on Sunday 20th November by 5 – 7 pm

See Agrihub’s Youtube Page for All Speaker Videos http://bit.ly/2g5JSNw

PS: Twitter comments are be welcomed and will be discussed during these conversations.

Please register here to gain access to the videos and ATTEND the physical event at http://agrihub.org/REGISTRATION/

Speaker Videos

Speaker 1 Welcome and Introduction by Agrihub

Introduction to Workshop by Ronke Aderinoye, Founder and CEO Agrihub Nigeria discussing on why talk about Finance in Agriculture now. A description of Agrihub Nigeria and an overview of the agenda. http://bit.ly/2gtCI7o

Speaker 2 Finance in Agriculture; Types of Finance available.

Financing Options for Agribusiness by Ada Osakwe, CEO Agrolay Ventures, Nuli Juice and Foods. Discusses what Finance options are available to Agric businesses http://bit.ly/2g5DBRY

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Speaker 3: Funding Opportunities Available and the Challenges (Panel Discussion) –What records are necessary, what amount can be accessed?

Micro Finance Bank: Micro Finance in Agriculture by Gbemi Awoniyi-Folayan http://bit.ly/2fF9bWb

Speaker 5 Agrihub’s “Financing Agriculture for Economic Development”

Real Life Experiences of an Agropreneur in Nigeria, by Seun Abolaji, Founder, Wilson’s Juice Co. http://bit.ly/2fF8tZ3

Concluding Remark, Agrihub’s “Financing Agriculture for Economic Development”

Conclusion by Ronke Aderinoye http://bit.ly/2fF9IaC

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Exploiting Agribusiness Opportunities in Africa: Food Security, Employment, and Economic growth

Photo credit: esoko.com

In various continents of the world, Agribusiness has been known to be a driver of economic growth. In Africa, it has a positive impact as it accounts for 30% of national income as well as a bulk of export revenues and employment. Kenya for example, is a key producer of tea, accounting for 59.6% of total production in Africa. The country is a leading tea exporter and one of the largest black tea producers in the world. With an estimate of 33 million small holder farms in Africa, a vibrant agriculture driven economy can cause increase in yields, increase in income generation, reduce in post- harvest losses and thereby put an end to food wastage. Agribusiness is capable of initiating the agricultural growth that will positively improve the livelihood of Africa’s increasing population. It can fasten Africa’s progress towards development.

In Nigeria for example, over 78.4 million people are willing, able and actively looking for job, development in agribusiness can have a direct impact on this people because an efficient and effective agribusiness will lead to increased employment in agro industrial activities.

Agribusiness does not only cover farmers it covers input suppliers, agro processors, traders, exporters and retailers. It is a term which indicates farming and all other industries, and services, that constitute the supply chain. The business of agriculture is not to be neglected in development priorities, the focus should not only be on urban industrialization, government need to get their role right on building necessary industrial capability and capacity, strengthening managerial capacity and promoting institutional services.

To successfully achieve desired result in agribusiness, understanding and comprehension of the nature of the business and its untapped opportunities is important. Food importation in African countries has to reduce and promotion of local agricultural products has to be carried out adequately. Although there are challenges as regards climate, policies, governance, laws, infrastructure and basic services, the goals to end poverty, hunger, have improved nutrition and sustainable agriculture should be a focus that will ensure motivation. To reduce the incidence of extreme poverty and unemployment, increase in importation, massive migration of rural peasants into the cities, agribusiness needs to be promoted and financially supported efficiently and effectively.

Africa’s projected population by 2050 is 2 billion; the continent has an estimate of more than one- fourth of the total un-fed people in the world. To guide against starvation, rapid rise in food prices, severe malnutrition, food riots, extreme poverty, higher rate of social vices and diseases; there is indeed a crucial need, to exploit the opportunities in agribusiness and make the business of agriculture more productive and profitable like never before so as to achieve improved social outcomes and solve the problem of poverty and food insecurity.

For a better result, Africa needs to take important decisions concerning agribusiness opportunities and act in a better way.

Written by Idowu T.Owoeye

 

Growing In Confidence: Understanding Latest Farming Technologies, Creating Opportunities

Planting of rice using the DPS machine

Planting of rice using the DPS machine

Tolu while growing up loved Agriculture but wasn’t interested in taking up a profession in the sector, she was latter convinced by a close friend to study Medicine to become a medical doctor. After writing JAMB twice to study Medicine (but not offered admission), Tolu decided to take up soil science and land resources management offered to her at Obafemi Awolowo University (OAU), Ile-ife, Osun state hoping to eventually change course to Faculty of health. She however, fell in love with the course and made up her mind to continue.

Today she leverages on her work at the International Fertilizer and Development Centre (IFDC) to facilitate farmers on using latest modern farming technology (UDP) aimed at increasing N fertilizer use efficiency in rice production among other crops, her interaction with farmers has enabled her to understand basic challenges farmers face and help proffer solutions and advice.

Tolu shares her excitement about future possibilities for Agriculture in Nigeria, if competent individuals with proven track record for getting things done are brought in and put in charge of farming centres established in each state of the Federation. She also advised continuation but review of the process and approach used for the Growth Enhancement Support scheme (GES) of the last administration for optimal result.

Q1. Can you briefly introduce yourself? How was growing up like for you?

Ans: I am Tolulope Ayeyemi, I hail from Itaogbolu in Akure North LGA, Ondo state. I attended Christ the King Nursery and Primary school Akure and proceeded to Saint Louis Grammar School, Akure for my secondary school education after which I got admission to Study Soil science and Land resources Management at Obafemi Awolowo University, Ile-Ife, Osun state, Nigeria.

Q2. Can you please tell us how you came into farming/agribiz? Do you have a background in Agric? If No, Tell us why you considered agriculture?

Ans: Let me start this way, I had always loved agriculture, probably because my dad is a passionate agricultural science teacher and was my agric teacher at some point in secondary school, in fact I was a member of young farmers club in my secondary school however I wasn’t interested in taking up a profession in the agricultural sector. I had always wanted to be in the health sector, at first, I desired to be a Nurse but a very close friend convinced me to go in to Study Medicine and become a medical doctor, however things turned around when I was offered Agricultural economics and Extension at University of Ibadan at my first JAMB attempt. I didn’t take up the offer because I wasn’t interested in Agriculture as a profession. I took the next Jamb, this time, I was offered Soil Science and Land resources management at Obafemi Awolowo University, I didn’t have so many choices anymore and I had to take it with the hope that I will cross over to Faculty of Health sciences the next session or better still put in for another Jamb. I did put in for the Next Jamb, however I already made up my mind to continue with studying Soil science. During the university days as well, I was opportune to travel to Songhai farms for a training on integrated and sustainable agriculture, this further ignited my passion for agriculture and today am so happy to be a Soil scientist/Agronomist.

Q3. What aspect or nature of work in Agriculture do you practise in your work? Tell us about your interactions and experiences with farmers in your work?

Ans: Right from my university days, I have been involved in capacity building of smallholder farmers in different aspects. As an Harambe Nigeria fellow, myself and eight other young agri fellas worked with farmers in a particular commodity in Osun state and trained them on safe handling of pesticides, processing of their cassava into garri and storage/preservation of their vegetable products and fruits. It was quite an interesting experience. And for some years now, I have been involved in training farmers on improved/modern farming technologies through the establishment of demonstration plots which is thereafter used as a practical platform to train farmers. I have also been involved in training of youth spray service providers (YSSP) on safe and responsible handling of agrochemicals which includes both classroom facilitation as well as field demonstration. Moreso, I am also involved in the training of Agro input dealers for effective service delivery of agro inputs to farmers. Generally speaking, my activity centers around capacity building of major stakeholders in the farming community- smallholder farmers, agro dealers, spray service providers also called spray gangs.

Training of agro input dealers

 

 

Q4. What societal problems are you solving with your work and what solutions are you using in technology and practises? What are the hurdles currently being faced?

Ans: My activities have been solving problems that relate to environmental pollution from incessant application of agrochemicals, as well as helping farmers increase their yield through the use of improved technologies they have received training on. The challenges being faced is that farmers are somehow difficult to convince about the use of a new/improved technology and this is why the concept of demonstration plot is used when training farmers.

Q5. What do you think about youth participation in Agriculture?

Ans: In recent times, there seems to be an improvement in that regard probably because of the issues surrounding the oil and gas sector at the present moment. In addition, there are a number of similar activities just like Agropreneur Naija who are also involved in sensitizing youth in agriculture. By and large, I think youth participation in agriculture is on the increase. I have a number of young friends who are also involved in agriculture in one way or the other- production, processing, capacity building, marketing and lots more, however, it will be very interesting to see more youth venture into agriculture, the older generation are gradually fading off and the baton has to be taken by the young people.

Q6. What do you think are challenges of youth participation in agriculture, how has this affected Agricultural productivity in Nigeria?

Ans: One critical challenge about youth participation in agriculture is the drudgery. Ask youth about agriculture and the excuse they give is that it could be stressful, truth be told, yes, infact sometimes at the peak of the season, I get stressed up as well but tell me, which job doesn’t have its own kind of stress? Secondly, funding is also a major challenge, there’s no business that can run without some capital. Furthermore, the generation of youth we have these days are somewhat impatient, no matter the crops/animal you raise, it will take some time to get to maturity for sale and get some profit, and however youth are not interested in that kind of waiting, and they just want quick money.

Checking maize seedlings for pest attack

Checking maize seedlings for pest attack

 

Q7. Where do you see yourself in the next 5- 10 years from now?

Ans: In the next 5-10 years, I desire to own my personal commercial farm that will have both plant and animal section. I will also continue building the capacity of farmers most especially women farmers and I desire to be a mentor to female Agropreneurs.

Q8. What advice do you have for young people engaged in agriculture?

Ans: Agriculture is a very broad sector, my advice is they should be focused and get the best out of the aspect they are focused on, ask questions and get more knowledge.

Q9. What do you think government should put in place to improve the agric sector in Nigeria?

Ans: I am of the opinion that through a sort of public private partnership, the government of each state should establish modern farming centres with the kind of capacity and infrastructures that the popular Obasanjo farms has and employ people both skilled and unskilled labour to work there. I am assured that if this is done, aside providing employment for a good number of people, food production and distribution will also be increased. Aside this, government should put forward policies that will favour the small holder farmers and help him be able to sell his farm produce at the best market price. In the northern part of the country, more irrigation schemes should be constructed to enable farmer’s crop during the dry season. Furthermore, the growth enhancement support scheme (GES) of the last administration in which agro inputs were distributed to farmers at subsidized should continue and be made sustainable, however the process and approach should be reviewed in order to achieve optimal result.

SIMPLE STRATEGIES FOR PROFITABILITY IN YOUR AGRIBUSINESS

Agriculture should be viewed as “agri-profit” since business is all about making profit. Once you have a chosen agribusiness venture, your key profit drivers need prioritized strategies to ensure growth. In making your business more profitable that is increasing sales and revenue as well as decreasing cost and having savings, you should choose and focus on effective agribusiness growth strategies.

Agribusiness strategies transform subsistence activities of low productivity and low value addition to commercially oriented, innovative and modern agribusiness. It will enable you invest your resources technically to trigger profit and growth, and change your thought of just producing to producing to solve  problems and meeting market needs. When you choose to implement agribusiness strategies, it means you choose to allow your produce/product find a positionand meet competitive demands in the market.

Core values that will drive these strategies include:-

  • Efficiency which will be driven by the aim to reach higher competitiveness.
  • Innovation which will be driven by the aim to be impactful.
  • Positivity which will be driven by the aim to sustain performance.

The prioritized strategies include:

Putting Markets at the Center of all Production, Processing, Product Development and Packaging

  • Collate, update and provide relevant, timely and accurate market information to your customers and potential customers.
  • Be specific about your target market and the agribusiness you are into, so as to ensure optimum use of your resources in a particular direction.
  • Promote your produce and products by value addition, for example increase the quantity of your produce or products and still sell at the same price. This definitely doesn’t mean your business will run at a loss. Don’t forget I said agribusiness means agri-profit.
  • Be informed on agribusiness marketing, you can do that by using the internet appropriately and attending organized seminars and programs on agribusiness marketing.

Joining Vibrant Agribusiness Organizations and Forums

  • Connect, network, collaborate and share ideas with people of like minds.
  • Be part of a collective action that will lead to increased bargaining power.
  • Be active in the organization, dialogue and share information that will establish favorable business relationships with other agribusiness managers. This act can spur a member to refer you for business or link you with people that need your services.
  • Be part of organized seminars and programs by the organization or forum. There will be an opportunity for you to market and promote your agribusiness.

Improving on Quality Service to all Customers and Potential Customers

  • Treat all your customers well, definitely loyal customers should be well recognized but all customers deserve a great treat.
  • Satisfy your customers beyond their expectation, they will be motivated to continually patronize and refer you to other people.
  • Motivate steady customers by acknowledging their loyalty and by rewarding them; this can be with a discount, extra produce/ product or gift item. They can also be appreciated with a thank you message or call.
  • Provide concise information of your agribusiness services to all customers and potential customers.
  • Issue receipt to your customers, even if your agribusiness is small. Look at your agribusiness as a dressing that needs to be addressed appropriately. So step up and start issuing receipt.
  • Promote your business on different media (facebook, whatsapp, bbm, twitter,instagram). You can read on digital marketing for more information.
  • Be informed on climate, diseases, market trends to guide against low quality of produce/products and loss, through various means like paying attention to agribusiness news, joining interactive groups and platforms on social media.
  • Be informed about credit services, be part of a mentorship scheme and have a model farmer.

Read And Apply These Strategies To Your Agribusiness And Make Your New Profit Level A Reality. SUCCESS!

This blog post was written by Idowu T. Owoeye

email; idowuowoeye6@gmail.com

The Last Frontier: Helping Africa feed itself and others

An irrigated farm: Smallholder African farmers will need access to irrigation to improve their productivity

These are interesting times for African agriculture. Apart from the fact that all over Africa, agriculture is coming back on the front burner as a tool for empowerment, as a business and as a development agenda. Truth is, all over the world funding for agriculture is also increasing after having plummeted – and being somewhat ignored – for some decades.

At the heart of this interest is the increase in global population which is expected to hit 9 billion by 2050, and the race to expand food production to meet the expected demand – which cannot be met based on current production and distribution metrics – from this increase.

The current pressures on the world’s food production systems – exacerbated by the increased population, climate change issues, and dwindling natural, non-renewable resources – have placed Africa in good stead or position to benefit from the global drive to raise food production to meet the rising demand which is a corollary of the expanding population.

This need for increased production has necessitated the need to open up more land to agriculture and to improve on existing agricultural practices and farming systems to increase yield and productivity, and also to improve or overhaul existing market structures and food distribution systems/networks to prevent or minimize waste.

And no other continent is in a better position to benefit from all these needed changes than Africa. First, while Africa’s population is just 13 percent of the total population of the world, it owns 27 percent of the total land available and just over 50 percent of the total unused arable land.

Besides, while agricultural productivity have reached their peaks – thanks in part to technology and good management systems – in many continents, the fact that productivity is still many times, and in many areas, far below the global averages in Africa, although often viewed as a disadvantage in itself, presents an opportunity in the race to raise global production. It means Africa presents the world a sustainable means to increase production substantially without even opening up new lands.

Another interesting point to note is that, over 70 percent of Africans are already involved either directly or otherwise in agriculture, and considering the significant population of the continent, its demographics in terms of the large percentage of young people and lower wages in comparison to other areas, Africa provides a combination of factors that makes its agricultural and agribusiness sector more appealing now than it has ever been.

Although, the well known and widely rehashed problems of weak market structures, poor access to finance, ineffective policies, inadequate infrastructures, water/irrigation, erratic power and so on still remain. These problems, notwithstanding, the recent recognition and push being given to agriculture – by African governments – as a sector of all-inclusive growth, and the strings of modest successes being witnessed in solving some of these issues across the continent provide some reason to hope.

And this is the crux of this piece, that is, while Africa presents the best opportunity to feed the growing global population without further degrading or with the least degradation of the environment and without having to result to more controversial technologies (GMOs for example), the continent will need all the help it can get – in terms of information, technology transfer and (marketing/distribution) structures – from more advanced continents and countries to overcome some of the problems militating against this objective.

In this regard, helping Africa will not be out of any altruistic reason or neo-colonial motive, but solely out of the recognition that Africa presents the most cost-effective, ecologically sustainable and environmentally friendly way of feeding the impending global population. Besides, an additional benefit is that, the lifting of hundreds of millions of Africans out of poverty to a more comfortable lifestyle through agriculture will inevitably provide a booming market to the manufactured goods from more developed regions of the world.

This could present a win-win situation whereby Africa, given its untapped abundant natural and human resources, help to feed the expected billions without further degrading the earth’s ecosystems; while at the same time help in fostering a sustainable and long-term global economic recovery/growth through increased demand for heavy equipment, manufactured products and consumer goods, which will benefits the industrial/more developed nations.

Photo: UN