Updated: Oct 5, 2019
Many agribusinesses fail because of lack of proper planning. The notion that agriculture is hugely profitable as led many into rushing into the industry without adequate knowledge or preparation. In this article we would be sharing some things to consider before starting an agribusiness.
1. Why you are interested in agriculture
A popular quote read “when the going gets tough, the tough gets going”. Many successful agropreneurs will agree with this quote. Agriculture is a tough business with many risks. It involves many conditions a farmer has little or no control over. It involves long sleepless nights and endless tinkering to produce the best results.
The only thing that is sure to keep you going is being sure of the reason you ventured into it in the first place.
Many have failed because they don’t have a reason or conviction before investing in agriculture. To succeed you will need one. Ask yourself why you want to venture into agriculture and make sure it is a good one because it will be your anchor during the storm.
2. Choose a Field of Agriculture
Agriculture is a broad industry, it ranges from supplying farm inputs to production, processing and marketing. You can be a Crop farmer or Animal farmer. Under the crop farming classification, you can decide to be a plantation farmer, arable farmer or horticulturist and many more. Being an Animal farmer also has its different classes and under each class, more classes exist.
You can decide to leave the production area and venture into other areas along the supply chain.
With different options available within the industry, it is prudent to choose one that suits your strengths and reason to start with. However, as you grow in the industry, you can venture into other areas.
This is very important in the planning stage. You need to gather as much information with regards to the field of agriculture you are interested in. You need to understand all there is about the product or service, consumption trend, market, availability of inputs and other materials, pricing (both locally and internationally) and opportunities to learn and grow.
You want to know everything that is needed to help you succeed.
Identify farmers in your area of specialization and seek their knowledge, scour the internet and learn from reliable sources. Go out into the market and do a market analysis, get busy inquiring from wholesalers and retailers.
This is the best time to identify suppliers, transporters and all supporting cast to your farm.
Research helps minimize the unknown and gives a peek into the realities of the venture you are interested in. We encourage you take your time in the phase.
As in life, preparation is important to success in Agriculture. Those who fail to plan are planning to fail.