Agribusiness is the business sector surrounding farming and farming-related commercial activities.
The business involves all the steps required to send an agricultural good to market: production, processing/packaging and distribution. It is an important component of the economy in countries with arable land, since agricultural products can be exported for foreign exchange.
Expanding the term “Agribusiness” is an aspect of agriculture comprising of production, manufacture and distribution of farm inputs, equipment and supplies at one hand and the processing, storage and distribution of farm commodities on the other hand.
This implies that the entire agricultural production, processing, distribution and consumption range from farm input supplies inclusive of wood producers, furniture manufacturers, food processors, food packers, food transporters and food marketing companies to restaurants and shopping malls.
It covers input industries for agricultural production, post-farm gate industries; including the commodity-processing, food manufacturing and distribution industries and third party firms that facilitate agribusiness operations including bankers, brokers, advertising agencies and marketing information firms (Yumkella et al., 2012).
In other words, agribusiness is the sum total of all the operations involved in the manufacture and distribution of farm supplies, production operations on the farms, storage-processing-distribution off-farm commodities and other items made from them.
It is used as a combination of agriculture and business referring to the range of activities in modern food operations (Igbokwuwe et al., 2014).
As agribusiness plays a critical role in jump starting economic transformation through development and growth of agro-based industries, successful agribusiness investments stimulate agricultural growth by providing new markets and developing a vibrant input supply system to all sectors.
Agricultural market potentials in Nigeria, Africa’s fast growing and second largest economy, is huge with rapid growth in telecommunication, banking, film industry as well as oil industry.
All activities necessary to bring about the transformation of Nigerian agriculture hinges on agribusiness spanning services from production, manufacturing of agro-inputs (fertilizers both organic and inorganic, pesticides, improved seed), packaging and distribution, extension of credit facilities for agricultural investments.
2021 is here with expectations and challenges, but in all these there are opportunities.
Agribusiness is one of the businesses in this year that one will invest into and have high return on investment especially in Nigeria because of the solution it proffers to challenges faced by the society in the areas of sustainable food security, unemployment, low income and poor revenue generation.
There is no doubt that agriculture is vital for the sustainability of most countries, as it supports the basic need of a consumer, provided it is placed in the right direction. Everyone in Nigeria, from the president to the man in the street, is talking about diversifying the economy from the oil-dominated mono economy to agriculture/food production focused-economy, with the COVID-19 pandemic that came with its attendant oil price crash, as demand plummeted.
With lockdown in China, which consumes about 14 per cent of the global crude oil daily, and reduction in major economic activities globally, the price of the commodity went southwards, from this, you can see the importance of agro business for the future of the Nigerian economy.
Nigeria Agricultural business are faced with challenges such as Herdsmen/farmers, Banditry, Kidnapping, which has discouraged many youths from venturing into Agribusines, these challenges can be resolved through modernisation of cattle breeding business and institutionalisation of reaching and Improved security. Other Challenges are Financing, Land use act, Research
To sustainably develop agricultural business in Nigeria and make it an alternation source of income to the nation, the private sector is critical in the development of opportunities in the desired value chain component for our agricultural products.
It is the private sector that drives the process and government role is to create conducive environment through sustainable policies which stake holders in Agricultural sector such as AFAN (All Farmers Association of Nigeria) should be part of that will encourage private sector participation. For instance, government policy on rice importation ban paid off; the rice value chain has been improved as many investors invested into processing and packaging machineries that has improved the quality of our local rice, I can stand to say some our local rice can compete with the foreign both in quality and finishing. Viable and jobs are now available within the value chain.
In this year 2021 there are a whole lot of opportunities for those that wants to invest into Agric related business value chain such as : productive resources e.g. feed, seed, fertilizers equipment, energy, machinery, agricultural commodities e.g. food and fiber, facilitative services e.g. credit, insurance marketing, consultancy, storage, processing, transportation, packing, distribution
With revolution in Agriculture farming business has been made attractive such as Organic liquid fertilizer with soil conditioner and pesticides all in one, improved storage system without the use of chemicals, solar Agro produce dryer which can dry any Agro produce such as grains, vegitables, fruits , solar cameras that can record for 24 hours and can capture image in the dark and send massage to phones for security purpose and introduction of hand tractors, processing plants with low power consumption, soil testing software, smart farming facilities, and so on.
I wish you a prosperous new year as you keep date with us for more educative and business-oriented articles for the year. Thanks for being part of us.