Sweet tales of agribusiness

Sweet tales of agribusiness
Back to agribusiness, the focus of this blog, there are several young
people getting lured into agriculture as a source of stable income.

A substantial number of graduates are now finding agribusiness to be an
exciting career choice. Agribusiness is currently a hot venture, no
dispute. 

Bloggers, myself included, have taken to the internet to make
agriculture sound even sexier. The truth is that agribusiness has an
attractive bottom line that is hard to resist.

To prove this, try sit with young people who are already making a killing
from agriculture. Their gusto for the trade will make you want to quit
your job and get your hands dirty too. 

These digital farmers will give
you the figures they make and you will want to pack your bags and
head back to the village to farm.

However, you will make sure you
have access to the internet so that you can keep up with the latest
research and trends.

This happened to me last year as I interviewed at least 10 young
farmers and attended a few conferences. I so badly wanted to
forfeit my career and become a farmer. I could not resist the sweet
tales and tidy returns that were coming from Mother Nature. I mean,
how hard would it be to pick up a jembe to make three hundred
thousand a month?

Luckily, I didn’t have the required money to invest and that held me
back. I was so determined that without land nor prior experience Iwas
ready to get started. I say I was lucky because I was not prepared
for the dirty side of agriculture. I only had three months experience of
writing and colouring other people’s success in agribusiness.

That does
not in any way make me an agribusiness pundit.
This situation got me thinking that perhaps before investing your hard
earned cash in agribusiness, you should take a breather and ask
yourself whether you are cut out for agriculture. 

Talk to someone who
is in agribusiness. Ask them how they got there. Find out what time they
get up and what time they get to sleep. Find out how many times they
got disappointed by a failing crop or dying animals before hitting the
jack pot. Find out what keeps them going despite their produce being a
glut on the market, or a drug on the market.

10 things to consider:

Here are ten things that you need to think about before ditching that
job to get into agribusiness:

1. Passion for agriculture

Before entertaining the thought of diving into agriculture, ask yourself if
you have any interest whatsoever in agriculture? The returns might
sound enticing but are you the kind of person who likes plants or
animals and taking care of them?

Have you previously done anything to
do with agriculture? Do you even have a kitchen garden? If you hate
the thought of dirt on your hands, then agribusiness is not for you.

2. Identify your area of interest

After assuring yourself that indeed agriculture is one of your passions,
then start analyzing what area to focus on.

You cannot excel in
agribusiness if you are a jack of all trades. Pick one area and focus on
it. If chicken farming is your thing then pursue it entirely.

3. Do your research

After clearly defining your area of interest, get information about it.
You will require technical knowledge about that crop or livestock you
have narrowed down to.

You need to know the best practice(s) that
will yield best results. Identify the opportunities available in your chosen
field. Find out how you can strategically add value to what exists to
gain an advantage over your competitors.

4. Planning

Getting into agribusiness without a business plan is like shooting your
foot and later wondering why you cannot walk.

Have a clear business
plan and assess the risks of your business. Agribusiness has money
making in it. You therefore have to treat it like any other business.

Dry run planning will reduce the possibility of your venture failing.
In addition, consider all the requirements necessary to start off your
business. Do you have land? If you don’t, how do you intend to acquire
one? How much will it cost? How far is the land from your nearest
selling point? What will be your means of transport and how much does
it cost?

5. Start with the end in mind

Market is the end in business. The primary goal of getting into
agribusiness is to make profit. Before you get into any form of
agribusiness, find out if there is a market for your product and seek a
thorough understanding of that market.

This saves you the hassle of
having a product and no market for it in the long run.

6. Have some savings

To set up a business you need money. To get into agribusiness will also
require you to invest generously before you start reaping anything.

My advice is that you stay clear of loans if you can and invest your savings
instead. Agribusiness is risky for a starter. You are safer investing your
savings than investing money that you do not have, a.k.a loans.

7. Do not invest all your life savings

Since you are taking a risk by investing in agribusiness, you should have
some money put aside in case things do not work out as planned.

8. Network

Get to know people. Make friends in the agribusiness sector both online
and offline; this way you will have people to share your experience
with and to learn from. Join farmer groups on Facebook, Twitter and
Google Plus. Contribute to agricultural discussions online.

Most importantly, cultivate healthy relationships with your suppliers and
customers.

9. Commitment

Agribusiness is just like any other business; it has its fair share of risks.
In fact, I would rate it as a high risk business. 

You need a neat mix of
tough skin and passion to survive. Numerous challenges will come your
way and you have to be committed to the venture to get back on
your feet every so often. 

Your entire crop might dry up due to a
strange disease and there will be little that you can do. Your
commitment to that business will drive you to continue despite such
painful disappointments.

10. Have options

Doing the same thing over and over again and expecting different
results is insanity. 

This is one of my favourite aphorisms because it’s
true! If after three years you realize that you have not made any
profit in your agribusiness venture, then perhaps it’s time to pitch tent
elsewhere. Keep an open mind and be ready to exit when the time
comes.

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