The 3 Biggest Challenges Facing the Agribusiness Investor

Like every other industry with tremendous value creating opportunities, the Agribusiness industry in Nigeria also has its fair share of challenges. Some are everyday rough edges that are more easily smoothened by tact and wit. While a few problems exist that required the skills of experts to solve. These are the three biggest challenges facing the agribusiness investor.

1. Perishable raw materials

Most farm produce are perishable. Fruits like mango, oranges, apples or banana need to be properly stored to last a few weeks in top condition. Vegetables look ugly when kept dry after a couple of days. And yams don’t do well in moist areas.

Many of these perishable raw materials therefore needs to quickly processed or transported to customers while they are still in top condition. If not, their market values fall and consumers no longer find them appealing.

2. Variability in Quality

Sharp farming practices, handling, transporting, weather conditions and a few other human and natural factors continue to contrive to affect the quality of food made available to consumers. Some people believe beans grown with fertilizers don’t taste so well when cooked and some studies have even gone as far as to suggest that fertilizer-induced crops might have a hand in the growing cases of cancer.

Weather conditions make some food crops change colour and texture while improper handling and transporting could rob some agricultural products of their freshness and sweetness. These elements may determine why two different deliveries from the same farm may have different quality.

3. Irregular availability

Many food crops and fruits are seasonal and are almost impossible to be made available all year round. When out of season, their supply diminishes.

Tomatoes, pepper, maize, fruits are in surplus for only a couple of months every year. Then the remaining months of the year, it becomes the challenge of astute agro farmers to make them available for sale in the market.

Well, in the business world, challenges are perceived as opportunities to meet an existing need.