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How to Start an Agricultural Business in Nigeria

start agricultural business in nigeria

As a result of the negative impact of oil on the Nigerian economy, the focus of investors, entrepreneurs and people in power are gradually shifting from oil being the main source of revenue for the country to other sources of revenues.

This is when diversification of resources comes into play. One of the trademark of this change was when the government increased their efforts into making the agricultural sector in particular more productive by supporting every campaign made towards that course through loans, grants and so on.

Hi everyone  my name is Timileyin and in this post i will be explaining to you the steps to follow when starting an agricultural business in Nigeria.

The first thing to do when thinking about starting an agricultural business or any business is to

IDENTIFY A PROBLEM

This is pretty much the start, even scientists when they are about carrying an experiment one of the first things to do is to identify the problem in their environment. This is done by carry out various research on the area of interest.

When identifying the problem, also find out other related problem that may be attached to that singular problem that you are trying to fix.

Some of these other problems could be transportation means, topography of the area,the demand and supply.

In terms of the transportation, they could have issues when dealing with how to move the farm produce to the market especially when the good is highly perishable.

The topography could cause an issue especially when farming, taking an example of a steep terrain, crops cannot survive there due to constant eroding of the top soil by water which leads to erosion among other things.

The demand could be an issue when consumers need more produce from the farm than the farmers or agriculturalists can provide and also when processing factories like fruits or food industries need more raw materials from the farm than what is being supplied or when the price of the goods supplied is really on the high side making it difficult for consumers to purchase as much as they want.

The supply could also be an issue when the farmers cannot harvest a lot of produce due to factors like weather and climate conditions, expertise of the farmers and so on .

The supply could also be lacking due to inadequate funds for scaling up and making more avenues for more produce.

Supply could also be an issue when there are no profitable markets where farmers can sell their produce at reasonable prices.

The second thing to think about is

GOING THE EXTRA MILE OF LEARNING WHAT YOU ARE GOING INTO AS AN AGRICULTURALIST.

We all know the phrase ” knowledge is power”, it takes about 80% of what you need to succeed as an entrepreneur and even as an individual.

Once you have identified the problem and the related problems, you can then begin to learn about it, read about previous work done on that problem because obviously you most likely aren’t the first person to have identified that problem.

Take lessons from people who are more knowledgeable than you, read books, attend conferences, just like Sir Isaac Newton said ” if i have seen any further, it’s by standing on the shoulders of those who have gone before me “.

Making the effort to learn from someone doesn’t mean that you are inferior, it’s because you need to acquire more knowledge on those areas you find interest in.

For example as a farmer, you need to find out where you will be getting your farm inputs like seeds, fertilizer, pesticides to keep pests from attacking your crops and so on. Once you have identified your inputs you also need to know the viability or integrity of those inputs so as to guarantee that they are the right ones.

One other important thing to learn bought is the SITE you are choosing

As i earlier mentioned in the post, choosing a location for your agricultural business is also very integral in the success of your business.

Apart from the sloppy nature or topography of the area, the soil type is also important to take note of along side the soil texture, the temperature of the soil you are going to be farming on.

You should also know the history of the location or site you are choosing to farm on as it posses an important factor to the success of your business. For example, a land that was originally situated as an industrial area and a lot of industrial processes have been done on it then suddenly it’s been changed to a farmland, the farmer won’t enjoy the land due to the unavailability of nutrients in the soil.

Another thing i shouldn’t forget to mention when learning about your business is to ensure

PROPER MANAGEMENT

Management entails a lot of things,  from finances, to workers, to farm produce, to maintaining the integrity of the soil and so on.

If the soil is not properly taken care of, it will depreciate in no time and lead to a decline in yields.

When you start your business as an agriculturalist, ensure you act the role of the overall manager to oversee every thing that’s being done in your business even when it’s already scaled up,  you need to still oversee it because lack of proper maintenance or management will wreck your agricultural business in no time.

 

The last thing i think you should learn about is how to

PROVIDE SECURITY FOR YOUR BUSINESS

One of the greatest cause of growth decline in the agricultural business is pests, they are business spoilers and they need to be taken care of.

The use of pesticides appropriately will ensure that your crops are secured from pesticides, as a poultry person, one way to provide security for both your livestock and their produce is by providing an enclosed area for them where potential predators can’t reach them.

You should also ensure that their habitat is safe from disasters like flood, fire and when natural disasters like drought occurs, you have a system in place to provide them the adequate water they need to survive.

The third thing to think about is

THE FINANCES

Money is what drives any business, irrespective of the idea you have if money is not available you most often than not will not achieve what you aim to achieve.

There are various means to get money to kick-start and scale up your business, ways like venture capital, angel investors, loans, grants, reaching out to family and friends and so on.

There are a lot of posts on the blog that i have written as regards funding, read them up to give you access to the knowledge required.

You can read this posts on how to raise funds for your business by following these links

HOW CAN YOU RAISE FUND FOR YOUR BUSINESS

FACTS ABOUT MUTUAL FUNDS

The fourth thing to think about is

LAUNCHING YOUR BUSINESS

After going through these steps, you need to take the bold step of actually commencing because the sad thing is to prepare so hard and not start.

The good thing is that, you don’t know all you need to know whenever you are just starting and while starting and going on with the business, be open to change whenever it comes and have fun all the way.

Make the most of every experience, encounter and challenge.

Do not quit irrespective of how tough it gets because when the going gets tough, the tough gets going.

Please practice all you have read here and kindly share on your social media platforms.

Thank you

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