How to Start Profitable Agricultural Business – Agriculture is one of Nigeria’s, if not all of Africa’s, oldest occupations.
We all know that agricultural business in Nigeria consists of a variety of techniques, including livestock/animal husbandry, farming (which includes planting and harvesting), and mineral extraction (which involves trapping natural resources in the soil). Only a lazy guy, it was formerly thought, would refuse to work the ground in order to make the most of Nigeria’s fertile soil.
More so, as Nigeria’s population continues to grow, there will be a greater demand for food to meet the country’s demands. In Nigeria, there is a surge of interest in the agriculture industry. Many entrepreneurs are developing an interest in various aspects of agriculture, with the goal of turning it into financially viable ventures using various forms of information technology. As a result, the agricultural sector is rapidly reclaiming its long-lost prominence.
Furthermore, the Federal Government of Nigeria has supported agriculture through a variety of programs throughout the years; from local farmers to foreign investors, the Nigerian government today actively supports efforts to restore the country to its former glory (agricultural dependence).
To do this, the Nigerian government has softened several of its laws, making it simpler for local and international farmers to do business in the country. Tax rebates on agricultural produce and investment allowances for agricultural business enterprises developed in rural areas without crucial infrastructural amenities are also part of this mitigated strategy.
Agriculture is one of Nigeria’s fastest-growing industries. Anyone with a basic understanding of farming, manufacturing, and operations may establish a profitable agriculture firm with good strategic planning. You’ll discover a helpful guide here if you want to build a profitable agriculture producing business.
What Is Agriculture?
Agriculture is the science and art of cultivating individual plants and rearing domesticated (livestock) animals for the purpose of generating food, feed, fiber, and a variety of other desirable items, as well as the processing of these products for human use. Foods, fibers, fuels, and raw materials are all examples of large-scale agricultural products (such as rubber).
How to Start Profitable Agricultural Business
. POULTRY FARMING
Poultry farming is the practice of keeping domesticated birds such as chickens, ducks, turkeys, and geese for the purpose of food grazing. Every day, a variety of dairy products are consumed, including eggs, chicks, and cheese, among others.
b. PIG FARMING
Pig farming refers to the practice of raising pigs. It is one of Nigeria’s most profitable and successful animal industries. Pigs are prolific breeders, capable of producing 10 to 14 piglets in a single birth, which makes commercial pig farming profitable.
Pig meat (pork) is in high demand since it is both nutritious and delicious. In terms of consumption, the pork market in West Africa is valued around $3 billion, with imports accounting for 80% of the total.
c. MAIZE FARMING
In Nigeria, maize farming is a major source of food. Maize, often known as corn, is thought to be one of Africa’s most popular starchy foods. Maize can be boiled, roasted, or further processed into pap, cornflour, popcorn, corn flasks, and a variety of other goods. Maize is in high demand all year due to its many uses.
d. RICE CULTIVATION
Nigeria is still West Africa’s major rice grower and Africa’s third largest producer after Egypt and Madagascar. Rice production in Nigeria is estimated to be at 3.6 million metric tons per year.
Surprisingly, despite its massive production, Nigeria is still unable to meet its domestic demand, which is estimated to be over 5.5 million tons.
e. FISH FARMING
The process of rearing fish is called fish farming. It is a prominent sector in Nigeria, and it is growing in popularity as the demand for high-quality animal protein rises. Fish farming has the advantage of not being seasonal, as opposed to other types of farming. It’s possible to accomplish it in both wet and dry weather. How to Start Profitable Agricultural Business
f. CASSAVA FARMING AND PROCESSING
Cassava farming is getting more profitable by the day, thanks to Nigeria’s growing variety of cassava products. This farm crop has traditionally been a source of livelihood and food for millions of Nigerians. 90% of Nigerian families consume cassava products on a daily basis. Garri, wheat-flour, animal feed, commercial caramel, and many more cassava dishes are popular.
How To Start Agriculture Business in Nigeria
1. MAKE RESEARCHES AND DETERMINE THE AGRICULTURE ASPECTS IN WHICH TO INVEST: Defining the scope of an agricultural business is a key aspect of getting it off the ground. Agriculture is a large industry with many different sub-sectors.
Would you like to start a vegetable farm? Farms with livestock? Do you intend to plant cashew, cassava, or cocoa (perennial crops) on a large scale? Or how about a mixed farm? I.e. a livestock and agriculture operation with a variety of livestock and crops.
All of these are important topics to consider when starting an agricultural business. This, in my opinion, should be the first step for any potential agribusiness investor. Outlining your objectives allows for effective planning.
2. OBTAIN THE TECHNICAL KNOW-HOW REQUIRED IN THAT INDUSTRY: It is better to obtain all of the technical abilities needed to embark into the agricultural production industry after picking the sector you wish to venture into.
This is an important phase because your ability to succeed in any subject is heavily influenced by your understanding of that field.
3. FORM AN ENTREPRENEURIAL PLAN (BUSINESS PLAN): Is a business strategy required for agriculture? Yes. In agribusiness, a business plan is perhaps more critical than it is in most other industries. This isn’t to argue that a business plan isn’t necessary in other industries. Agriculture is more than just planting and harvesting; it provides income not only to individuals but also to nations, and it should be treated as such.
A business plan helps investors understand the concept behind your business, how your products will be sold, who your target market is, and how the company plans to sustain the market. Most importantly, it portrays professionalism and the viability of your business venture.
4. OBTAINING FUNDS: The next stage is to secure the capital required to operate the company. You could get money by taking out bank loans, looking for investors, borrowing from friends and relatives, or asking for government grants.
5. OBTAIN A PRODUCTION SITE OR FARMLAND: After obtaining your cash, the following stage is to acquire a production site or farmland, which may be obtained either outright or by renting the property for a set amount of time. Make sure your acreage or production site is appropriate for your agricultural operation.
Getting a piece of land, on the other hand, isn’t sufficient for starting an agriculture business. There are a few more things to consider.
a. Selecting a location with the best climate for the crops you want to grow.
b. Determining the topography of the land.
c. Identify the soil type that best suits your chosen agricultural produce, such as cashews and cocoa, which grow well in sandy loams, and yams and cassava, which grow well in sandy clay.
When choosing farmland, all of these factors, as well as others, must be taken into account.
6. APPLY FOR A COMMERCIAL NAME, LICENSE, OR PERMIT: Obtaining a business name, license, or license is a legal requirement for establishing an agricultural business in Nigeria. A business name, usually referred to as a trading name, is a name or title that a person or other legal entity uses to conduct business. Your firm becomes a legal entity after you register a business name.
Before doing business in Nigeria, a company with foreign ownership must get a business license from the Ministry of Internal Affairs. It is critical to understand that starting a business in Nigeria needs the acquisition of a license or permit that allows the company to be formally and legally recognized.
7. OBTAIN REQUIRED TOOLS AND LABOR FOR PRODUCTION: This is the final step in the process of beginning agricultural production. It’s time to put a property into production after you’ve bought it. This step entails obtaining all essential tools, machines, and goods, as well as the necessary labor to begin production.