profitability

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

 

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