Skip to main content

5 Forecast for Agricultural Sector in the Post-Covid 19 period.



Definitely times are changing and every sector is being transformed by the impact of covid 19.

In the post covid era, the Agricultural sector will witness changes in the following areas

1)Agro-logistics: 

As home deliveries are gradually becoming the new normal for most people, agro-logistics will become an essential part of Agribusiness. 

Therefore, Agro logistics will be a very good area to invest in as there will be more need to convey farm produce to customers. 

2) Database: 
Money will be tied to the database. With predictions of reoccurring lockdowns even after the end of the first, there will be need to bridge the gap between your business and your customers. 

So, Agribusiness owners will need to build their database to include contact numbers of  retailers, final consumers and not only that of Wholesalers as they may not be available during total lockdowns. This is because they operate mostly in major markets. 

3)Online Sales: 
with the shift in trends, online sales will begin to account for a significant percent of revenue in Agribusinesses.  

Therefore, online business presence will be non negotiable. 

4) Incentives : 

There will be lots of incentives such as low interest credit, favorably policies by the Nigerian government to encourage more people to go into Agriculture as it remains one of our major real sector. 

Therefore, there is going to be a boom in agricultural production and revenue generation in the post covid era. 

However, Agripreneurs will need to be prudent, creative and persistent in preparation for a possible price crash that might result from excess supply.

5) Organic farming: 

On the global scene, more countries and  institutionswill encourage and embrace organic farming than before. 

This is because in the post covid 19 era, people are going to be placing a  premium on their health.

More grocery stores that sell organically grown food items will begin to spring up in their numbers. It will be a  reward season for organic farmers. 


©Jumoke Ayeni 

Agricultural Economist 

Comments

Popular posts from this blog

CREATING ONLINE INCOME STREAMS FROM YOUR AGRIBUSINESS.

This season of global shutdown has so many lessons enbedded in it. Among which one of the most profound insight for Agripreneurs and business owners generally is to explore more avenues of making money from their business. Before now, traditional approach to increasing revenue in most agri-businesses (especially) in Nigeria were usually tied to business activities that can only be carried out physically.  But at times like these when covid 19 pandemic is challenging all the physical structures of doing business, it has become imperative to have online structures that can keep money flowing in. Here are 5 ways to creating Online income streams in your Agribusiness. 1)Online Orders and sales: Having online platforms where customers can make enquiries and place their orders which results into sales is very essential. However, you must also be ready to listen and respond to feed backs from them. Examples of these platforms includes social media, and websites. 2) Record

How to obtain 50 Billion CBN COVID 19 Intervention funds for MSMEs.

In order to cushion the impact of the coronavirus pandemic on MSMEs, the Central Bank of Nigeria (CBN) introduced the N50 billion  Targeted Credit Facility (TCF) as a stimulus package to support households and  micro, small and medium enterprises (MSMEs) affected by the COVID-19  pandemic.  1.0 Who qualifies for the credit? According to the guidelines , eligible participants includes: i. Households with verifiable evidence of livelihood adversely impacted by  COVID-19; and ii. Existing enterprises with verifiable evidence of business activities adversely affected as a result of the COVID-19 pandemic.  iii. Enterprises with bankable plans to take advantage of opportunities  arising from the COVID-19 pandemic. 2.0 Activities Covered Eligible activities under the Scheme include: i. Agricultural value chain activities ii. Hospitality (accommodation and food services) iii. Health (pharmaceuticals and medical supplies) iv. Airline service providers v. Manufacturing/value addition

What do I need to get a business loan?

For business owner who plan on accessing loans either from the government or commercial banks, here are some of the essential requirement: 1. Registered Business Name: this implies that your business name must be registered by the Corporate Affairs Commission (CAC). This shows that your company is legally recognised and also has clearly defined scope of business. This is a major requirement for any kind of business loan including Agriculture loans 2. Corporate Accounts: having a bank account for your company that is different from your personal account can so it makes it easier for the bank giving the loan. As it becomes easier for them to track the cash flow the business. Although, there can be some exemption to this depending on the terms of the financial institution. But if you're planning on getting  a sizeable amount of business loan  either from the government or commercial banks in the nearest future it is advisable to open a corporate account for your busi