The business of agriculture is no doubt a profitable one with the ever increasing number of people who have to eat daily. This explains why demand for food items hardly reduces even when there is an increase in price, that is agricultural produce have an inelastic  demand. Although, consumers might seek cheaper food substitutes to replace expensive ones in a bid to cut cost, taste preferences can be difficult to change overnight. However, the current inflation rate of about 19.64 (NBS), has lead to a sharp increase in the cost of farm inputs like feeds, production materials, electricity bill, transportation bill etc resulting in extremely high cost of production. The consumers on the other hand have declining purchasing power as salaries are still fixed and inflation keeps reducing the value of their money. Hence, Agribusiness owners find themselves in a situation where they cannot sell as high as they should due to the perishable nature of their goods and so have to settle for low...

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...

The Nigeria Incentive-Based Risk Sharing system for Agricultural Lending ( NIRSAL ) Microfinance Bank has an ongoing low interest rate credit scheme called AGSMEIS . What is AGSMEIS ? The Agri-Business/Small and Medium Enterprise Investment Scheme is an initiative to support the Federal Government's efforts and policy measures for the promotion of agricultural businesses and small/medium enterprises (SMEs) as vehicles for sustainable economic development and employment generation A) Eligible industries 1)Creative & Art industries 2)Fashion, Beauty 3)Apparel & Textile 4)Arts & Entertainment 5)Industrial & Manufacturing 6)Agriculture & Allied Processing 7)Automobiles 8)Information & Communication Technology 9)Telecommunication 10)Media & Publishing 11)Hospitality 12)Catering & Event Management B) How Does It Work? Step 1: Get Trained Attend a compulsory training with a CBN certified Entrepreneurship Development Center...

Never before in the history of Agriculture  has there been such a backlog of farm produce yet to be purchased.  Poultry farmers with lots of eggs unsold, fish farmers with fishes unsold and still consuming feed at the farmers expense. This comes as a result of thelockdown.  Prior to this time, buyers and wholesalers buy large quantities directly from the farm  and also distribute the produce to retailers and or consumers.  However, movement and commercial activities have become  restricted because of the lockddown and stay at home practices.  Cause of the backlog Most offices are yet to resume fully. Children are schooling from home, thanks to online school.  So the sales of some farm produce like eggs are reducing. This is not because there is no demand. But rather due to the fact that demand has moved from its usual location (offices, school ,churches etc) to mostly residential areas.  However, this change may have a...

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 provide...

Recently, I heard on CNN that the price of crude oil price fell below low a dollar, this was said to be as a result of excess supply. Which happens to be an offshoot of the lock down period when people  are mostly in doors.  I have seen people generally expressing fears about the likely negative outcomes on air and social media. But until we come to the realization of the fact that the new crude oil is in us, we may not see a way forward.  The only thing about this type of crude oil is that it can only be harnessed through creativity and effort.  It lies in your ability to fine-tune whatever you are doing to suite what your existing customers or market currently  need. It is tied to your willingness to learn new skills that will enable you solve existing problems better and even new ones as they emerge.  It is wrapped in your ability to see opportunies in problems both online and offline and then taking action.  It is first of all about ack...

Having an automated business (that is one that can run by itself) is the goal of every entrepreneur. As it is an indicator of business growth. However, one of the major challenges to this particularly in a product based business is theft. That is having some of your goods unaccounted for which can lead to financial losses.  Hence, there is a need to put measures in place in order to safeguard your business.  Stock taking is a major tool that you can use in monitoring sales and  Types of Stock taking.   Four types of stock taking are examined here; 1. Routine stock taking :  This involves taking stocks at regular intervals. This may be done daily at the close of  business or weekly or any scheduled time.  2. Delegated stock taking :  this implies holding someone accountable for each item accepted into the inventory. This type of stock taking becomes inevitable as the business begins to grow. So, the inventory manager accounts for any mi...

WHY YOU NEED TO TRACK YOUR BUSINESS EXPENSES?  Due to the human nature, we find it more interesting pleasurable to focus on money coming into the business (cash flow) than how it is been spent.  In business however, expenses are usually incurred during the course of production of goods and services. Therefore failure to track your business expenses can lead to you short changing yourself. Tracking or monitoring your Agribusiness expenses enables you as a business owner to capture all the cost incurred during the course of production of your goods and services from start to finish.  It gives you the full picture of your cash outflow.  This also allows you to know your TOTAL cost of production and eventually your actual cost price. As it is not enough just assume your cost price or even adopt your competitors cost price as your own.  When you track your expenses,you will be able to fix the RIGHT selling price for your agricultural produce or product so...

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 mark...

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) Re...

Times like this causes us to look retrospectively at our various business models. With most Agribusinesses (agricultural related businesses) in this part of the world (Africa) conducting over 90 percent of business transactions offline or physically due to several reasons. Now that the whole world is craving for access to goods and services with minimum or zero physical contact, home delivery and e-payment systems (online money transfers) has become the order of the day for businesses that not only want to thrive but also want to remain relevant. People are still making money  As an Agribusiness owner, you must think of how to convey your products to buyers at their own convenience. You can make use of logistics service providers. As you do this, do not forget to give your products Attractive packaging that will make them want to buy more and also advertise your brand.  Statistics has shown that most people now spend most of their time on their phone...

Everyone looks forward to enjoying the fruits of their labour after spending so much on a business. However, other persons might have other thoughts.  I am very sure you might have seen or heard of farmers that lost all or part of their livestock or crop yield overnight due to organised theft. I know of man who ventured into poultry farming on a big scale some years ago and was doing fine until about ninety percent of his matured broiler birds were stolen overnight. Needless to say it was disastrous as a large part of the capital was borrowed. Now, this is not to scare you off but rather a wake up call to the importance of security. This is why you have to safeguard your investment. The truth is that your agricultural output whether farm produce or product or livestock have high monetary value that can attract thieves both within and without. And so you must ensure the security of your farm or agribusiness venture is top notch and it should also correspond to your le...

In the earlier part of the year, I walked into a frozen food store  and asked for the price kilo of Chicken, only for the sales girl to tell me that it is now N1500 per Kilo as against the former price of N1000. Really? I replied. She then went on to tell me that it was as a result of the borders closed according to the Federal government directive. Then I thought to myself why pay for this when I can get a sizeable amount of beef for the same price. Needless to say that later bought beef to make some delicious stew.  I also noticed that more people tend to go for the local substitutes of imported food items With the boarders being closed, Nigerians are being forced to consider and buy more locally made or grown products than ever before. Particularly the Nigerian alternatives of foreign food items that are consumed regularly like rice, frozen chicken etc. It is now a common scene to see people leaving a frozen food store to buy beef from the nearest beef ...

Most times as Agripreneurs, when we think of investors, we tend to feel that our potential investor(s) can only come from the ultra rich community. And so we end up missing the immediate potential investors around us. The truth is, often times, your first set of potential Agribusiness investors are already in your existing network (family,friends, relatives, neigbours etc). Some of your friends may not have the cash you need but may already have the item you want to buy with the cash or may have an important contact that can be helpful. However, they may not be willing to go the extra mile for you if they believe you do not have the right approach to your business. As an Agribusiness owner, you always pitching your business to potential investors consciously or subconsciously. How to attract Investors 1.Have a track record of success: Forget about looking for investors. Yes, you are right! You read it correctly. It is not a mistake. Rather channel all your energy and reso...

One of the most crucial factors in agriculture, and yet highly underestimated is water. Many people start out in farming and agribusiness without taking into cognisance the  importance of water. Water is essential for agricultural production, be it crops and livestock farming, or agriprocessing. Infact, when it comes to livestock production and agriprocessing, access to clean water becomes the focus. So before you decide on where to site your farm, here are the following factors to consider with regards to water. 1) Availability of water: are there sources of water(e.g river, wells etc) or is the land so dry that you have to get water from elsewhere? Is water going to be a major challenge because the place is a rented farm settlement where farmers are not allowed to dig or drill their own wells or borehole respectively? if so, what's your plan? 2) Access to water: Even after identifying a source of water, the proximity of your farm to the source can determine your acce...

In the coming post covid-19 days, there is going be an increase in the need for raising capital as most reserved funds are already depleting very fast.  However, one of the easiest way and organic means to access funds will be to through agro-partnership Now, most times when we hear of the word partnership or collaborations, we think of big brands, cooperate bodies, international organisations, countries coming together with billions of dollars to do big things. Yes,  that's correct but that's just an angle to it. Today, we will look at collaboration from another angle, the micro angle. For instance, Mr Tunji, who happens to be a friend of mine, is a small poultry farmer who previously had about 50 birds(broilers and layers) wanted to scale up to a thousand birds. Having pulled all his resources together, he discovered that he could only afford to buy and maintain 250 birds. So,  he decided to speak to his friends and family in the 9am to 5pm world to joi...

This global lock down period has shown that at the base of it all one of the most pressing human needs is FOOD. As a matter of fact, people now tend to eat more than before as they are mostly at home. While it is obvious that this pandemic is already eliminating some industries, it is equally repositioning others and birthing new ones. In the post covid 19  period, we are going to witness a massive re-empowering of essential sectors such as Agriculture, Health, Technology and Education by proactive governments. And agricultural related businesses (such as farming, food processing, agro-logistics, agro-allied production or even sales) are going to thrive more than ever because people So, if you are an Agri-business owner that want to  expand his business or you always wanted to start a successful agribusiness venture, now is the best time to start preparing for it. Remember that farming and every other agribusinesses in Nigeria  are profitable ventures when do...