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Seven Success Tips on how to earn from Agribusiness without having to farm

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Seven Success Tips on how to earn from Agribusiness without having to farm

Author: Kingsley Mayor Omenaiko

As you may have already discovered, I don’t share trashy information. So, if the business model isn’t practical, scalable and financially profitable I’ll avoid it with the same energy my secondary school crush used in avoiding me.

When diving deep into the struggling world, you will begin to realise that ‘hardwork’ does not really bring money, it’s ‘smartwork’ that delivers money to your palms.

I may not be an Agric professor from Harvard nor a professional farmer, but one thing I have spent years practicalising is the business of Agriculture.

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Without fear, I make bold to tell you that the future of Nigeria will be in Agriculture. Though presently there is a little bit of negligence

But in the coming years, those who invested in Agriculture will come to smile. Most people are presently investing in Agriculture because they have forseen the future.

Opportunities in Agribusiness

Now let me quickly list out the seven powerful platforms in Agribusiness that could take you to the bank smiling.

1) Arbitrage

This simply means leveraging different markets that sell the same agricultural commodities for different prices. For instance, a bag of onions in Lagos is averagely 150% higher than Kaduna at almost all seasons.

Last week, my friend bought 10 bags from nothern Nigeria at ₦90k and sold it at ₦250k in Lagos.

Train transportation bill was ₦25k. He bagged ₦135k in profits.

2) Crowdfunding

In this model, agricultural experts partner with practical farmers to research, build and expand farms.

The two reasons their farm projects are almost always successful is that:

  • The entire process are handled by reputable agro professionals and;
  • It’s usually under full insurance in case of any loss.

By far this is the most stressless and secured means of generating income from Agribusiness.

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My top recommended crowdfunding companies is FarmCrowdy.

3) Processing and packaging

Here’s a quick question: Between Frank the local farmer and Gino Tomato company, who do you think makes more money? It’s obviously Gino.

Who toils more? Obviously Frank What differentiates them? The Art of Processing & Packaging!

Processing can be relatively expensive to set up but packaging is super affordable. Get creative.

4) Exportation

A very untapped sector in Africa leveraged by just few to enrich themselves. It involves sending high-in-demand agricultural products to other countries.

Is it capital intensive? No. Does it have a good profit margin? Absolutely Yes. Does it contain technicalities? Slightly.

My only regret with exportation was not discovering it sooner. It’s so lowkey but highly profitable! Search for courses on exportation.

5) Partnership

Mr X is a practical farmer. He runs a small farm(crop or animal) but do not have funds for expansion. Mr Y reaches out to Mr X with his fund and partners with him.

Profit is splited after harvest time. Now that’s a win win. My clients/friends who I connect to this local farmers have a 93% success rate with averagely 50-100% profit margin.

6) Importation

African farmers buy a 20L knapsack sprayer for about ₦10k whereas it can be gotten from Alibaba at ₦2k (as of this morning).

The profit margin for importing agricultural tools and equipment are often high because they’re not commonly found. Take Pat Ogidi course or Anita Sam

7) e-Agric

A lot of people have bagged fortunes by simply bringing agriculture online.

The thriving initiative are; Agric only e-commerce store. Mobile App to connect farmers/suppliers/retailers. Website to share latest agricultural news, grants and opportunities, etc. Monetising any concept above shouldn’t be challenging.

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As a financial advisor, i Will emphasize that if you plan to invest good capital in any above model, always seek an expert guidance.

So, have you (or anyone you know) gotten involved in AgriBusiness?

Was it profitable? Challenging? Are you intelligently planning to leverage any of the above points?

A step brings forth millions of step. Start making research and invest your time and resources in Agriculture. Trust me, it pays.

Toe the line of Agricultural investment

Investing in Agriculture doesn’t mean you are a farmer, but it means you have chosen to do things differently.

If you desire to be the greatest of all time ( G.O.A.T ), then you must make a difference ( M.A.D )

As at today, there are few investors in the Agricultural sector. It is not yet overcrowded. Draw leverage from these facts and make that bold step towards achieving financial independence.

I will draw the curtain to a close here. Feel free to drop your questions in the comment section. Kind regards

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