Deputy Provost, Federal College of Land Resources Technology, Owerri, Dr Jonah Marcylo Chukwu, has described Agribusiness Entrepreneurship as the only solution to Nigeria’s economic woes. In a lecture he delivered recently, titled “Agribusiness: An Engine for Economic Growth, Development and Stability in Nigerian Economy”, he advised the government to give it a trial and place the country on the path of lasting economic recovery.
CHIDIEBERE IWUOHA reports.
What is Agribusiness?
According to Dr Jonah Marcylo Chukwu, Agribusiness is an aspect of agriculture comprising production, manufacture and distribution of farm inputs, equipment and supplies on one hand and processing, storage and distribution of farm commodities on the other hand. This implies that the entire agricultural production, processing, distribution and consumption spectrum farm input supplies, inclusive of wood producers, furniture manufacturers, food processors, food packers, food transporters and food marketing companies to restaurants and shopping malls.
It covers input industries for agricultural production, post-farm gate industries; including the commodity processing, food manufacturing and distribution industries and third party farms that facilitate agribusiness operations, including bankers, brokers, advertising agencies and marketing information firms.
He further described agribusiness as the sum total of the operations involved in bringing food to the table from the farms. These include all activities involved in the farming operations, input supplies, transportation, assembly and ware housing, processing and manufacturing, insurance, shipping, marketing, financing, consultancy, and restaurants. It is the gamut of activities associated with food production creating value chains so as to create wealth and employment. Its management is the act of managing farm(s) or food production process as a business, using economics, business and farm management tools like budgeting, forecasting, marginal analysis, costs and returns analysis, record keeping, accounting in managing a farm.
Agribusiness entrepreneurship as catalyst for economic growth, development and stability
Jonah disclosed that agribusiness entrepreneurship had been used by United States of America, India, Israel, Ethiopia, South Africa and Malaysia as engine to grow their economies, to cause enormous development and stability. But that it was in 2000 that Nigeria saw the need to encourage agribusiness entrepreneurship development through National Agricultural policies and programmes. This period, he said, witnessed the introduction of agribusiness and entrepreneurship as an academic programme in Nigerian universities. Then, government directed efforts to change agriculture as a way of life to be a business. It established Presidential initiatives for rice, cassava and sorghum, processing zones for major staple foods, revitalization of Bank of Agriculture and N50 billion Central Bank of Nigeria (CBN) agricultural loan.
He noted that although the tempo of government funding for agriculture had been low, there was awakened consciousness in Nigeria that it was only agribusiness entrepreneurship that would grow, develop and stabilize the economy. “This is because our present practice of agriculture as a way of life has failed us to grow the economy to bring about development and stability. In recent years, the Nigerian government has embarked on several development projects to stimulate economic growth and development. These developmental activities have brought about emergence of growing urban populations. This huge urban population has crept in hunger, unemployment, urban slumps, crimes and instability in the nation. These increased urban populations which have huge appetite for good foods has hitherto created demand for all kinds of processed foods. These foods are to be provided by agribusiness entrepreneurs operating agribusiness enterprises scattered all over the nation.”
He insisted that Agribusiness entrepreneurship “is an engine for growth, development and stability in Nigerian economy because it brings about economic growth, development and stability.
He recalled that in 2016 and 2017, there was economic recession. Then the federal government of Nigeria directed efforts to encourage agribusiness entrepreneurship which helped the nation to come out of recession in November, 2017. This was done by massive investments in agriculture through government programmes like Green Alternative policy which has Staple Crops Processing Zones (SCPZ) and Agribusiness Investment Regions(ABIR) as its components, Farmers’ Anchor Borrowers Programme coordinated by Central Bank of Nigeria (CBN). He maintained that the seemingly unsurmountable menace of Fulani herdsmen can be solved holistically with principles and ideals of agribusiness entrepreneurship of innovative livestock herding which involves rearing cattle and other livestock in ranches to curb incessant clashes between Fulani herdsmen and crop farmers because of destructions to their crops by grazing cattle and other livestock.
Important success tips for successful agribusiness entrepreneurship:
Jonah gave important success tips in the business as:
1. Clean Objectives: Meaning that determination of objectives is one of the most essential prerequisites for the success of business. The objectives set forth should be realistic and clearly defined. Then, all the business efforts should be geared towards achieving the set objectives.
2. Planning: Planning is a pre-determined line of action. The accomplishment of objectives set, to a great extent, depends upon planning itself. Planning is a proposal based on past experience and present trends for actions. In other words, it is an analysis of a problem and finding out the solutions to solve them with reference to objective of the farm.
3. Sound Organization: An organization is the art or science of building up systematical whole by a number of but related parts. Just as human frame is built up by various parts like heart, liver, brain, legs etc similarly, organization of business is a harmonious combination of men, machine, material, money management etc so that all these could work jointly as one unit ie “business” “the agribusiness”. Organization is, thus, such a systematic combination of various related parts for achieving a defined objective in an effective manner.
4. Research: As indicated earlier, today the agricultural production philosophy “produce what the consumer want”, “Consumers” behaviour is influenced by variety of factors like cultural, social, personal and psychological factors. The business needs to know and appreciate these factors and then function accordingly. The knowledge of these factors is acquired through market research. Research is a systematic search for new knowledge. Market research enables a business in finding out new methods of production, improving the quality of product and developing new products as per the changing tastes and wants of the consumers.
5. Finance: Finance is said to be the life-blood of business enterprise. It brings together the land, labour, machine and raw materials into production. Agribusiness entrepreneurs should estimate his/her financial requirements adequately so that it may keep the business wheel on moving. Therefore, proper arrangements should be made for securing the required finance for the enterprise.
6. Proper plant location, layout and size: The success of agribusiness depends to a large extent on the location, where it is set up. Location of the business should be convenient from various points of view such as availability of required infrastructural facilities, availability of inputs like raw materials, skilled labour, nearer to market.
Dr Jonah who said he foresaw doom for Nigeria by 2020 if government failed to invest in agribusiness as severe hunger, poverty, malnutrition, crimes and serious social and political crisis causing economic and political instability would take over, called on government to institute a 3 trillion naira Agribusiness Fund to finance agricultural research, agricultural institutions, infrastructure like roads, railways, seaports and jetties, dams and irrigational facilities, market developments in areas of standards and certifications in foods and products for local and export markets and robust agribusiness financing. He also suggested that all the retrieved stolen funds should be channeled to agribusiness fund to finance agribusiness entrepreneurship in Nigeria and that graduates who are interested in becoming agribusiness entrepreneurs should be given a minimum of one million naira as loan without collateral at three percent per annum to be repaid in 18 months with four months moratorium. He urged the federal government to set up a committee of 13 eminent Nigerians to manage the fund with membership drawn from Farm Management Association of Nigeria (FMAN), academia, retired judges, organized private sector, media, civil liberty organizations, labour and Minister of Agriculture and Rural Development representing Mr President. The committee members should be selected from the six geo-political zones of Nigeria and the chairmanship rotated among the zones with single tenure (3) years.
