Interesting Facts You Didn’t Know About Agribusiness
- Category: Agro Business
- Date 23-03-2021
Agribusiness is regarded as a business in agriculture, specifically for a modern national economy devoted to the production, processing, and distribution of fiber products and food. In highly industrialized countries, many activities that are important to agriculture are progressed separately from the farm; these include the development and production of fertilizers and equipment and seeds. The processing, storage, preservation, and product delivery have been separated from basic farming in some countries. Agriculture has primarily become specialized and businesslike. Some business farms use extensive mechanization and computer technology to increase the production of crops.
Recently, conglomerate companies involved in nonagricultural businesses have begun agribusiness through buying and operating large farms. Some of the farms processing foods have started to market fresh produce with their brand names. The image of poor and overworked farmers with crude tools on rural farms comes readily into many people’s minds when they think of agriculture in Africa. Many Africans still have a notion that agribusiness is a poor man’s occupation. Many people today want white-collar office jobs in towns with no thought about agribusiness.
Africa sits on agribusiness minding of gold, but most people are not aware of it. To mention but a few facts about this, Aliko Dangote, Africa richest man, recently invested $ 1 billion in rice production, did you know? Each year, Africa uses billions of dollars to import rice, and Dangote surely needs a better part of the market.
Another important fact you should know is that Foreign Direct Investment in African agribusiness was $ 10 billion in the year 2010 and it is purposed to be $ 20 billion by this year. Agriculture is becoming a leader in Africa, and investors want to be part of these actions. By 2030, Africa’s agribusiness industry will be the ‘new oil’ in Africa.
There are some of the reasons why agriculture is the most significant business opportunity currently in Africa. To begin with, agribusiness is a huge job creator. It is one of the most appropriate ways to create job opportunities and empower many Africans. The value agribusiness companies offer people from food production, processing, and marketing give them a higher chance for employment and entrepreneurs.
Agribusiness is also very scalable in that one can begin with any amount he has. The chance to start small implies that individuals with little capital have an opportunity to be part of Africa’s multibillion-dollar industry. Agriculture is also the most prominent business opportunity in Africa because Africa has a ready market and high demand for cultural production. Africa spends billions of money on importation of grains and flours, which can be locally produced. An excellent opportunity for entrepreneurs who can provide cheaper and locally grown foods that Africa imports are here. In conclusion, agribusiness has a high impact on every African today. Many world top business people are investing in agribusiness for many reasons; for instance, Africa has abundant cheap agricultural land. It already has market and demand for agricultural produce; Africa has improved varieties and farm practices by changing the game in Africa, among others. Africans should delete the perception about agribusiness being meant for poor people because it’s among the topmost-paying businesses in Africa.