Agribusiness Potential is Huge and Promising
If my guess is right, I can say with all boldness that you are on this page because you are a lover of agribusiness. And that is a very wise choice. Why?
Here are some staggering and encouraging predictions you will be interested in:
1. Did you know that Foreign Direct Investment in African agribusiness was $10 billion in 2010 and is projected to reach $45 billion by 2020?
2. Did you know that Africa’s agribusiness industry will be worth $1 trillion by 2030! That’s huge! If this projection by the UN comes true, agribusiness will become the ‘new oil’ in Africa!
So, you are not wrong if you say that agriculture is taking a huge leap in Africa and investors want a piece of the action too.
As beautiful as the prospects are, the possibilities of failing is also very high, especially if you make expensive mistakes. In this article, I will describe some of these mistakes and how to avoid them.
Top Mistakes to Avoid
1. Unrealistic Expectations
People have been wrongly informed about the way agribusinesses work that most believe that it achieves a kind of magical result. To them, it is as if developing an Agribusiness offers an instant cure for all money problems.
But in reality, is agribusiness a sort of get-rich-quick scheme?
Or is it a sort of investment program where you pay money and expect profit to mature?
Not at all.
Agribusiness may take some time, but it definitely yields result.
2. Starting Out Big
Anyone can be a victim of this particular mistake, especially the rich, seeking to invest their money. You have a huge capital, a large expanse of land, full control over all the resources you need, what is the next thing? Invest big, and make more money.
The truth is, with all the success stories you have been watching on TV, it is difficult to resist the urge to invest big.
The best way to go as a beginner is to start small, gain solid experience that money cannot buy, and scale up. And in your growing and learning process, be close to the local practicing farmers. They do sometimes have what you need.
3. Trusting People Unnecessarily
I must confess that I am also a victim of this mistake.
Let me tell you my experience.
During the last watermelon planting season, I got a promotion that added so much more to my official responsibilities.
I was required to be in charge of managing three thousand two hundred and eighty-five (3285) hectares of oil palm plantation.
So, I decided to involve another friend in the watermelon project for the season. It was to be a partnership deal with a very honorable and well-respected man.
To avoid disappointing him, I pleaded that my friend joins the partnership deal, and since he is an experienced watermelon farmer, we cultivated a big farmland.
That was a mistake of the century, because he secretly started his own farm, and diverted our investment into his. That was the moment I decided never to engage in a business I cannot fully control myself.
You should not wait to experience the same before you learn from that. Even if you cannot be there all time, be sure you have some time to monitor and control things. Or else, that may be the beginning of failure.
In the coming series…
I will identify other mistakes in the next part and thereafter, unveil some key sustainable agribusiness ideas you can embark on for reassuring results.
Feel free to use the comment box to drop your inputs if you think of other factors we can benefit from. Should you have questions too, feel free to use the box.
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