Step By Step Guide On Agribusiness Investment


Agribusiness investment is a lucrative endeavor, it is reported to be a multi-billion dollar industry and a huge source of revenue for many nations across the globe.

Well, this is not surprising because food is a basic need. Every living thing needs food to survive, and agribusiness is the business of food production.

There is a guarantee of success for every agricultural entrepreneur and the agricultural space can never be saturated since the human population will keep growing.

In this article, we are going to focus on certain things to take into consideration when planning to embark on an agricultural venture.

As with every typical business venture, there are strengths, weaknesses, opportunities, and threats (SWOT) you have to look out for in agribusiness.

Failure to put these factors into consideration is more like setting yourself to fail. The fact is; agribusiness is a serious business that can get you plenty of money or make you lose plenty of money.


Have genuine interest

You must have a genuine interest in anything you are doing to succeed. So, you need to have a genuine interest in agribusiness if you want to succeed.

Genuine interest will keep you relentless when challenges arise. Agriculture is broad, whether you are into livestock production or crop production, you must develop a certain level of interest.

Interest will push you into seeking for necessary skills and information with which to succeed in your agricultural endeavour.

This will make it easy for you to seek places or opportunities to learn, by asking experienced individuals questions, attending workshops and seminars, reading books, and watching tutorial videos.

For example, if you developed an interest in poultry farming, you will scour all manner of informational resources to get more knowledge and improve your know-how in the business of running a poultry farm.

Your genuine interest will cause you to acquire experience which in turn will give you more leverage in the agribusiness. Over time, you will be counting records of success.

Land space availability

Land is a major resource in agribusiness, you cannot cultivate a crop or rear an animal without an area of land.

If you are set to engage in mono cropping, animal husbandry, or mixed farming, you will have to determine the scale of production you want to achieve and the area of land that will be suitable.

For example, acres of land are required to cultivate maize on a commercial level while just a plot of land is okay for commercial snail farming.

Have adequate finance

Having a sustainable budget is key to successfully running an agribusiness. Having done your checks and balances regarding land availability, the nature of the market, trusted manpower, and government policies, you will need to be sure that your budget will comfortably fund your agricultural venture till the harvest period.

It will be frustrating to get hooked by inadequate finance.

Be mindful of risks involved

Maize farm

There are risks in agribusiness, but you must be careful so as not to bear too many risks especially for newbies. It is advisable to start small and gradually expand your agribusiness over time.

Avoid areas prone to the prevalence of natural forces such as flooding or high pest infestation.

You should also take the trouble of routinely tending to your crops or livestock.  Meticulously carry out farm management practices such as weed control, application of fertilizer, mulching, thinning, and so on.

In your livestock farms make sure that a high standard of hygiene is maintained and vaccination is carried out regularly.

So, as you are beginning small, try to do all that is required of your agribusiness endeavour to minimize risks.

Market situation

This boils down to doing your research on the prevailing market situation in your country or locality. Rushing into agribusiness without weighing out the forces of demand and supply and government policies on agribusiness may cost you lots of money.

For instance, there are countries where the government heavily subsidizes agricultural produce that it will be a foolish move to establish private agribusiness.

It is important to know and understand the market in your locality. Know the crops that are in high demand and focus on producing them.

Be mindful of the seasons

It is important to be mindful of the seasons, especially for a beginner in the business of agriculture. It is safer or less risky to depend on rain to cultivate your crops. Certain crops, such as maize are best cultivated in the rainy season.

Being mindful of seasons is also vital in livestock production. For example, it is advised not to raise birds or run a poultry farm during harmattan.

According to research, birds are more susceptible to flu during the harmattan season. This can lead to a high rate of poultry mortality which is bad for business.

Natural forces

Every business has risks, and when it comes to agribusiness, the risks are tied to the forces of nature. These can cause an investor to lose a fortune. However, these natural factors can be foreseen and avoided.

Natural factors such as flooding, drought, hurricane, pest infestation can negatively affect your agribusiness.

The effect can be so great that it can put you out of business. For example, a single hurricane event can wipe out your crops. However, measures can be taken to avoid these natural factors.

For example, it will be foolhardy to plant your crops in areas prone to flood. Areas prone to flood should be avoided. Also, you can carry out pest control by carrying out measures to scare or kill off pests.

Be mindful of environmental laws

Being environmentally conscious will save you from embarrassment and unwanted expenses. There are environmental laws that are applicable to the location of your agribusiness and failure to obey the laws can put you in serious issues.

Therefore, make sure that the operation of your agribusiness does not contravene applicable rules and regulations.

Moreover, you should make sure that your agribusiness does not disturb the peace or pose a hazard to others.

For example, you should not situate your pigsty near residences because the grunts and odour from the sty may be bothersome to some people.

Reliable manpower


This is very important as it will determine the success of your agribusiness. Having the right team of workers will help propel your business further. Distrustful manpower will drive you into bankruptcy.

A distrustful team of employees will steal from you, carelessly take care of your farm, or even sabotage your farm. For example, distrustful staff members can steal eggs from your poultry or sell your fish without your knowledge.


Agribusiness is one of the most lucrative businesses in the world today. Countries are spending billions importing food from countries that are focused on agribusiness. This means that as some counties are spending lots of money on food, others are making lots of money from food.

Irrespective of how you start, you can still make lots of profits, so starting small in your locality can serve as a springboard to reaching the nations of the world.


Therefore, take note of all these factors and put them into serious consideration when setting out to start agribusiness, it will guide you into safely investing your time, money, and effort.

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