Agri Crowdy West Africa

🌱🚜 Welcome to today's post where we dive into the exciting world of marketing and its vital role in agriculture! 🌾 Let's explore the fundamentals and how farming businesses can thrive by reaching their target markets successfully. 🎯

First up, WHAT IS MARKETING? 🤔 Marketing is all about identifying and satisfying the needs of your target audience while making a profit! 💰 It's the heart of your marketing strategies and decisions. Here's what it entails:

Knowing your customers and what they want 🎯

Choosing the right markets 🌍

Matching products to market needs 🛒

Setting prices 📊

Communicating effectively with customers 📣

Attracting and retaining customers 🤝

Selling and negotiating 💼

Providing top-notch service 🥇

Building long-lasting relationships 💖

Remember, all opportunities are not created equal! ⚖️ Now, let's talk about how farmers can make savvy marketing decisions. 🌟

🌾 PRODUCT DECISIONS:

What to produce? 🌱

Bulk or small quantities? 📦

💰 PRICING DECISIONS:

What's the right price? 💵

Consider demand and competition! 📈

📣 PROMOTION DECISIONS:

How and when to advertise? 📅

Sales reps or not? 🤝

🚚 DISTRIBUTION DECISIONS:

Sell directly or indirectly? 🛒

Transportation and storage considerations 🚛

Remember, farmers can enlist help from family and laborers for these tasks! Teamwork makes the dream work! 🌟

Stay tuned for more agricultural insights in my next post! 🌾✨

🌱 GREAT AGRICULTURAL ReTHINK: The Importance of Marketing in Farming Business

💼 In business, revenue and profit only come when products are sold. Investing in production without marketing increases risk and leads to failure and loss of profit.

🚜 In Nigeria, many farmers don't actively market their produce, leading to post-harvest losses. Did you know over 45% of tomatoes rot due to lack of market?

🛒 Farmers must secure markets before and during production to avoid losses. Marketing is crucial for generating revenue and profits.

📈 Tomorrow, we'll delve deeper into marketing's role in farming. But first, a story: A non-Ghanaian, Indian client exports cashews from Ghana, bypassing middlemen. Why can't Nigerian youths do the same?

📱 Youths in villages have access to smartphones and the internet. Instead of wasting time on gossip, they could use it to find clients and access markets directly.

😡 It's frustrating to see potential wasted due to lack of initiative. That's why I started this conversation. Everyone has a role to play in agricultural rethinking.

In today’s GREAT AGRICULTURAL ReTHINK post, we shall be delving into the essential records a CROP FARMER should keep.

PS: If you're a livestock farmer, don't forget to check out our previous post on the records livestock farmers should maintain.

As highlighted earlier, keeping accurate records is paramount for several reasons. It not only provides valuable insights into effective methods but also aids in forecasting price changes and is crucial for loan applications or attracting investments. For Nigerian farmers seeking financial assistance, meticulous RECORD KEEPING IS NON-NEGOTIABLE, as financial institutions and investors require comprehensive records of income and expenditure.

Let’s take a moment to appreciate the significance of crop farming—it's the cornerstone of food security. Livestock farming relies heavily on the success of crop farmers. Without an ample supply of crops like maize and soya, crucial for animal feed production, protein sources such as meat, chicken, and fish won't reach their full potential.

Now, let's break down the two parts of record-keeping in crop farming:

1. Production Records: This encompasses every aspect of the production process.

2. Financial Records: These include all financial transactions related to the farm.

Here are the fundamental records a Crop Farmer should maintain:

Land Preparation and Use Records: Documenting the methods and materials used in land preparation, as well as the crops planted, is essential.

Input/Operation Records: Recording details such as seed variety, source of purchase, fertilizer and pesticide usage, encountered problems, planting modifications, and labor force employed is crucial.

Output Records: Tracking yields provides insight into the success of production methods implemented.

On the financial front:

Financial Transactions: Every transaction on the farm, including sales quantity, value, and buyer details, should be meticulously recorded.

To current and aspiring farmers, the importance of RECORD KEEPING cannot be overstated—it's the key to growth and success. Stay tuned for our next post on the concept of MARKETING and its significance in your Farming Business. I'll share insights to empower you with the information needed to make informed marketing decisions

🌾📊🚜 Today's Agricultural ReTHINK post is all about RECORD KEEPING in farming! Let's dive into why it's crucial for livestock farmers. 🐮🐷🐔🐑

Livestock farmers, listen up! 📝 Keeping records is key to maximizing your meat production and profitability. 🥩💰 Let's break it down:

1️⃣ BREEDING: Keep track of genetics and mating details.

2️⃣ BIRTH: Record offspring details like date, s*x, and weight.

3️⃣ DEATH: Note dates and causes of death.

4️⃣ HEALTH: Document vaccinations, medications, and treatments.

5️⃣ STOCK: Maintain records of all animals by age and gender.

6️⃣ FEEDING: Track feeding and weight to optimize feed conversion rate.

On the business side: 💼 INCOME & EXPENSE: Keep a record of all transactions. 📚 SALES: Track animals sold and to whom.

By keeping these records, you'll run your farm more efficiently and impress potential investors. 💪 Stay tuned for more farming tips in my next post! 🌱

PS: If you find this helpful, LIKE, SHARE, and COMMENT your thoughts! Your feedback means the world to me. 🌟

🌱📊 Hey Agripreneurs! 🚜💼 Today's AGRICULTURAL ReTHINK post is all about the importance of RECORD KEEPING in your Farming Business! 📝💡

In our business, we don't mess around with record keeping. 🚫 We treat it like precious pieces of data because it guides us daily on every decision we make! 💼💰

For small scale farmers, not keeping records can be a huge setback. It makes it hard to track expenses, income, and impress banks or investors. 🏦💸

Remember, banks and investors aren't in it for charity! They want to see proof of profitability, and that's where your records come in handy! 💼💰

Here's why you should keep records in your Farm Business:

📈 Track performance

💰 Evaluate profitability

💵 Establish pricing

🏦 Facilitate access to loans

🌱 Seek advice from extension agents

📊 Manage your business effectively

But hey, keeping records isn't just about having them, they must be accurate, complete, easy to record, and neatly written! 📝✅

Think of record keeping like your trusty compass or Google Maps, guiding you on the right path! 🧭🗺️

Records are classified into Livestock and Cropping. Stay tuned for more tips on what to record for each! 🐄🌾

If you're enjoying these insights, don't forget to LIKE, SHARE, or COMMENT! Let's grow together! 🌱💬

🌱🚜 Welcome to today’s GREAT AGRICULTURAL ReTHINK conversation! 🌾 Before diving into today's topic on Risk in the Business of Farming, I want to extend a heartfelt thank you to each and every one of you for your incredible support, engagement, and enthusiasm. Your comments, messages, shares, and likes have fueled our passion for transforming Nigeria's agriculture industry.

When we embarked on our journey to explore the potential of the Nigerian Agriculture Industry three years ago, we were astounded by the untapped opportunities awaiting. Drawing from our experiences in South Africa, Swaziland, Lesotho, and DRC, we've crafted the Business of Farming concept to address challenges and pave the way for Nigeria's self-sufficiency in food production. Together, let's make this vision a reality!

As promised, we're delving into the complexities of risk within the Business of Farming. By understanding and managing these risks, you'll be empowered to navigate the dynamic landscape of agricultural entrepreneurship. From identifying various risks to implementing effective strategies, we're here to equip you with the knowledge you need to thrive.

In any business venture, including farming, profitability is the goal. However, the journey to success is fraught with uncertainties stemming from factors like economic fluctuations, market volatility, and environmental changes. Yet, despite these challenges, farmers persevere, harnessing resilience and innovation to overcome obstacles.

Within the realm of farming, risks manifest at three critical stages:

Production level: Impacting output and productivity.

Market level: Influencing revenue and profitability.

Income distribution level: Affecting the livelihoods of farmers and workers alike.

In our upcoming posts, we'll explore risk management strategies tailored to each of these stages, empowering you to mitigate threats and seize opportunities effectively. Remember, in the realm of risk management, not all opportunities are created equal—discernment is key.

Stay tuned as we embark on this journey together, transforming challenges into opportunities and cultivating a thriving agricultural landscape. Together, let's redefine the future of farming! 🌱💼

🌾 Join the Agricultural Transformation Journey! 🚀

Welcome to today's installment of the GREAT AGRICULTURAL ReThink conversation! 🌟

As we delve into the intricate tapestry of farming experiences across Africa, we're reminded of the shared challenges and triumphs that unite us all. 🌍💡

In our ongoing exploration of GOVERNMENT REFORMS, we've uncovered a fundamental truth: money alone cannot solve our food production challenges. It's the understanding of the business of farming, coupled with accountability and prudent fund utilization, that holds the key to lasting change. 💰🌱

Allow me to share a cautionary tale from South Africa—a tale of missed opportunities and mismanagement. Picture a family blessed with reclaimed land and government funding, poised for success with a flourishing game farm and guesthouse. Yet, in the absence of proper planning and governance, their dreams crumbled before their eyes. 💔

As trustees prioritized personal gain over prudent investment, the trust found itself teetering on the brink of collapse. But hope emerged when they sought our assistance—a beacon of knowledge and guidance in their darkest hour. 🌟

With a clear vision and strategic guidance, we unveiled the untapped potential of their assets, especially in the lucrative overseas market. Armed with knowledge and opportunity, the trustees embraced reform, ushering in a new era of governance and profitability. 💼💡

Through collaborative workshops and meticulous planning, we empowered the beneficiaries to chart their own course to prosperity. From tracking progress to implementing sustainable practices, every step was a testament to their newfound wisdom and determination. 💪📈

Today, I'm proud to report their transformation—a thriving game farm, a guesthouse bustling with tourists, and a community empowered for generations to come. 🌾🏡

Yet, this journey is far from over. In our next post, we'll explore the concept of RISK in farming businesses—a topic ripe for discussion and reflection. So, stay tuned, share this message, and let's continue this remarkable journey together! 🌱🌟

In our GREAT AGRICULTURAL RETHINK conversation today,We shall continue on this PLANNING matter.

As promised, There are series of steps that you need to undertake in order to compile a great plan.

Step 1
Research and analyse opportunities
This involve the analysis of various opportunities that exist in the environment. For example, which commodities are being demanded in the market, by which buyers and at what price? Don't just farm for farming sake or because others are farming. It is also beneficial for you to know why the demand exist and what your buyers use your product for. This will help you examine the value chains to know if you are going to be producing or processing
Step 2
Once you have analysed and identified opportunities, the next step is to explore those options that are feasible. Feasibility is based on such factors as land ownership, experience, knowledge and infrastructure.
Step 3
Select the best option
This involves picking the best option among several opportunities that are FEASIBLE. For example one may choose to focus on catfish production and soybeans production and not cashew nuts.

Step 4
Detailed planning
Compile a detailed plan. Your plan should include things like, what resources (inputs) are required, what processes are involved, what is the size of the market, what finances and labour are required.
Step 5
Evaluate the plan
This involves revisiting the plan to see if it is the best plan given the prevailing conditions such as the environment, available land, security, etc
Step 6
Implementations
This involves putting the plan on the ground.

To recap, planning involves setting goals and choosing the means to achieve these goals. It is an anticipatory decision-making process that helps in coping with complexities. Planning involves deciding the future courses of action from amongst alternatives.
Planning allows the Agripreneur to set goals and objectives and determine the feasibility of achieving both goals and objectives.
For planning to be successful, you should dream big, think of different options, and avoid planning under pressure as this may affect the planning process.

The farm business planning process involves analysing opportunities, exploring different options, selecting the best option, producing a detailed plan and implementing and evaluating the plan.

Finally, a farm business plan should include what to do, how to do it, how much it costs, and what returns to expect.

I will stop here for today. I will also share a story with you as well, that illustrates the real life impact the failure of planning your farming business has. Stay tuned.

agricrowdynigeria

In today’s GREAT AGRICULTURAL RETHINK conversation, we will consider the important role PLANNING plays within a Farming Business.

I cannot fully emphasise how essential it is for any business person to learn to appreciate the important role planning plays in any business. As it assists you in coping with the complexities of your business. In the business world, this is commonly known as STRATEGY.
Without a proper plan (strategic plan), farmers will not know how to organise themselves and deploy labour and other resources effectively. The bible lets us know, “Where there is no VISION, the people PERISH”. Thus an important aspect of planning is inculcating a CULTURE of involving those that you EMPLOY or FAMILY (if your farm is run as a family business) and communicate your plan/vision. You will be surprised how a spirit of ownership will rise. Try it.

A well thought out plan allows farm owners and managers communicate with the outside world. If one has a good business idea, people will only consider investing in the proposed or existing business, after looking at the strategic plan. Even if you do not need external investors, strategic planning remains a critical process, because it allows the owner or manager to state the GOALS of the business on paper. Goals that are stated on paper can more easily be pursued than those that are solely in the mind.

Before I will continue, I first want to give you some general tips and guidelines for successful planning.

Don’t be afraid of dreaming big.
Use planning to think of different options
Generous time should be allocated to the planning process. (Considering we are in dry season, the time to start is now)
Get advice and options from people you know well and trust
Ask questions if you are not sure about something
Use planning to break things down and think through them
Use planning to think about the support you have and might need in future

The process of writing a great strategic plan for your farming business is asking and answering the right questions.

Where is the business going to be at the end of the season, in 2- 5, or 10 years from now?
How much money is required for investment?
What return is expected from this investment?
How does this investment compare with other alternatives (in terms of risk and return)?
Is there a market for the product? (the strategic plan will consider market availability of both required inputs and outputs, price stability, competition, etc)
What are the possible risks to the investment (pest, diseases, drought, perishability, etc)?
How is the business going to reach its customers?

VERY IMPORTANT TO NOTE: planning is not an event with a clear beginning and end, but is an ongoing process that reflects and adapts to changes in the environment.

I will end here today. In tomorrow Rethink conversation, I will provide you with all the relevant steps in the planning process.

In my previous three RETHINK posts, I compared the difference in mind-set between that of a subsistence versus a commercial farmer. Now that we have established that a mind-set alteration is required on the part of the farmers in our country. Well not only farmers, but every one of us!

So what now? Well now we need to start looking at the business principles and practices that helps farmers become successful Agripreneurs. (Agripreneur is an individual who starts, organises and manages a business venture focusing on the Agricultural sector)

So what are these business principles that an Agripreneur employs in their business?

1. You should Invest any business resources with a motive to make profit. Always ask yourself this as farming season approaches, How is what I am going to plant help me increase my profit margins? If it helps, you then need to decide whether the increase of profit is worth the investment.

2. You should choose a farming product or render a service that is of value in order to satisfy a market demand in exchange for a monetary return.

3. You should PLAN the farming business and continuously check what happens within and outside of the FARM and stay alert to uncertain events, and work to reduce potential loss.

4. You should ensure to keep comprehensive RECORDS of everything you do in and outside the farm as concerns the farming.

5. You should have a good Financial management system to ensure that every resources spent is accounted for.

6. You should have a clear understanding of potential risks you could encounter and how to manage it

7. You should know that your network will determine your net-worth. You must try to develop long-term relationships with other stakeholders along the value chain and your business will continue to operate even beyond the life of the founder.

These principles can be used no matter what size of farming operation you have. In fact, it is even better for a small farmer to practice these principles on their current scale and perfect them. When applied consistently it will ensure growth.

In my next post, I will continue with The Business of farm by looking at how one goes about on the planning a farm business. I will explain why it is important, what it entails. Additionally, I will provide a series of practical steps and provide a list of various questions that will assist you in compiling your Farm plan.

HOW A NIGERIAN IT PROFESSIONAL GREW HIS AGRI-BUSINESS TO EXPORT CAPABILITY

In our GREAT AGRICULTURAL RETHINK conversation today , as promised. In order to demonstrate a practical example of all I have been saying about the difference between Subsistence Farming and Commercial Farming MIND-SET, I will share a recent experience we had with a Nigerian Plantain chips manufacturer, who was referred to us.

He required our assistance in gaining access to retail stores in South Africa such as Pick 'N' Pay, Spar, ShopRite,Woolworths etc. I share his story, as it not only illustrates the difference in MIND-SET of a subsistence versus a commercial farmer but also shows the transition in mind-set, when applying BUSINESS PRINCIPLES to Farming.

When asked how he wanted us to assist him, he said this; I have grown my agri-business and wish to expand my market, through EXPORTS and EARN much sort after FOREIGN EXCHANGE. Once we sat down to discussed, he shared his agricultural journey, one I happily share with you today.

This Plantain Chips Manufacturer has an IT Company, he only ventured into agriculture as he was concerned with the fast rate at which technological innovation occurs within his industry. He realised that innovation, though good, will in the very near future make his services obsolete. Agriculture seemed like an obvious choice for him because, as he explained, “I realised people will always need food to eat. That food production is a business that will never run the risk of becoming obsolete”.

He decided to plant plantain because he did this as a child in the village. (NOTE mistake one of a subsistence farmer mind-set. He solely based his decision to plant plantain, as it was what he knew how to and not for an already secured market that would ensure him profit)

Since he knew how to grow plantain, the production process was fairly easy. His plan was to go and sell at the local market and work with an agent. When harvest time came, he had not spent much time on marketing nor approached hawkers nor wholesalers that might sell his produce at the market. Secondly the agent offered him a ridiculous price which was (too late to start shopping around for better pricing). He did not want to sell at the price, but after a week he had no alternative but to sell.
Because the risk of post-harvest loss, was too high. The agent ended up offering him even less. He basically sold all of them at a LOSS. (Note, the second characteristic of a substance farmer. They are more often than not, PRICE TAKERS versus fair priced supply contract negotiators)

He noted, that if it was not for his IT business, He would not have been able to recover from the losses incurred from his first production cycle.

(Now observe the birth of a commercial farmer.)
Armed with experience of a full production cycle and the painful loss of profit. He considered what he could do to prevent the same from happening.

He started researching the Plantain industry. After completing a feasibility and profitability study of the various options. He decided that it is better to process plantain chips than sit with produce quantity that he either sell at loss or produce that spoils over a short period (NOTE, he invested time for research, a characteristic of a commercial farmer. Like the Singer FLAVOUR'S song says, if you know, you know. If you don’t know you don’t.)

Fortunately, He had a well-established IT business, from which he could get capital to purchase chip manufacturing equipment.

To cut a long story short. He took the lessons learnt from only one production cycle and improved his business, so much so, that he has built capacity that enables him to start exporting his product. I will pick up on the export part of his story in another post, which will extensively cover the subject of exportation.

I close todays post with this thought.
This man, farmed Plantain for one production cycle. He took the lessons learnt, applied and not only performed better but will soon export to a formal retail market in another country.

So I ask you dear farmer that have been farming for a longer time: why are you repeating your mistakes. My personal opinion is this. The majority of our farmers are characterised with those that intentionally depend on substandard inputs such as seedlings, etc. Thus when they don’t succeed, they have lost everything. Creating a perpetual cycle of stagnation and regression.

In my next Great Agricultural Rethink conversation post, I will continue with the Business of Farming series. Stay tuned and don’t miss out.

In today's GREAT AGRICULTURAL RETHINK CONVERSATION, we continue with the comparison of mind-set between that of a Subsistence farmer and that of a Commercial farmer.

There is something I wish to deal with before we have a look into the mind of a Commercial farmer.

A question I always get asked is: “Why do we speak to Subsistence farmer about Commercial farming, if the idea itself, is so farfetched for a typical Subsistence farmer?”

I often tell people “that he who is faithful in little, will be faithful in much” as with the story with the 5 talents, it is the servant that multiplied the little he was given, that received more. Furthermore, it is our experience that it is much easier for a Subsistence farmer to apply and perfect Commercial farmer principles on a smaller scale versus farmers that have already scaled.
Like the saying goes, “its easier to build strong children, than repair weak men”.

We have found that when a Subsistence farmer intentionally apply the principles learnt from the Business of farming, they scale and grow.

So what happens in the mind of a Commercial farmer?

The first thing they consider is not what they are going to plant, just like a Subsistence farmer does. Nor do they start with soil preparation, none of these.

See a Commercial farmer does not farm for self-sufficiency or for the sake of putting food on the table. THEY FARM FOR PROFIT!!!

Before they decide what commodity to plant or venture into, they CONDUCT RESEARCH on MARKET DEMAND with a strong focus on generating PROFITS.

Once they have COMPLETED their research and decided on what to plant, for which MARKET and at what profit MARGIN, they continue with the EVALUATION of inputs from various SUPPLIERS.

Something I want to highlight here, is this, to a Commercial farmer, their decision for inputs are not entirely dependent on the COST of an input. Instead, the question they ask themselves is this;
A. “How much is my yield going to increase?
B. Will this input help them achieve the quality standards that the market requires?

The ANSWER to these questions will then help them DETERMINE whether or not it is FEASIBLE/PROFITABLE to invest into a specific input or livestock.

I am sure by just these two points, you notice that Commercial farmers have a PROACTIVE approach, and like the servants with 5 and 2 talents. Their job is to bring profit to their masters (which in this case, themselves).

I will end with my last two point, as we will be sharing various Business of farming principles with you, which will give extensive knowledge throughout this series.

My last point is this, a Commercial farmer, howbeit crop or livestock, bases their decisions and actions on this one fact. THAT THEIR BUSINESS IS THAT OF FOOD PRODUCTION!

Their decisions, planning and systems are all geared towards producing a product for a pre-secured market, at the most efficient and cost effective way.
Lastly they reinvest their profits back into their business for the purpose of growth.

Tomorrow I will be sharing an experience we had with a Nigerian farmer and processor, who wanted us to assist him in gaining access into the formal South African retail market. There will be many lessons to glean from it.

Don’t miss out on the series, as I will be sharing planning, production, management and financial systems that will surely be beneficial not only to farmers but to any entrepreneur who wish to scale their business.