In recent times, there has been a lot of request about starting an agribusiness, from poultry farming to fish farming, and pig farming among others but one thing I noticed is these people don’t know jack about what they want to get themselves into.
People post success stories about how well they’re doing on their farms without saying the challenges they might have faced during their production cycle/period.
They’ve misled a lot of newbies that want to start an agriculture business. When I consult them they looked shocked and amazed cos what they read/watch online is only a percentage of actual reality.
In this article, I will be talking about the myths about agribusiness and what you should know before you lay the first block on construction.
Before You Construct… Know This About Agribusiness
- Agriculture is not a Get Rich Quick Scheme
Yes, there is money in agriculture, but that does not mean it is a quick way to make money. Depending on the type of agriculture business you decide to venture into.
For this article, I will be talking more about livestock farming and less about crop plantation.
Let’s say you decide to invest in fish farming, the amount you’re going to spend putting up structures, you’ll not make it back in one production cycle. Not even two.
If you’re someone that is looking to double your money in quick time, don’t bother investing in agriculture. This business is not child’s play.
- The Risk is Low and High
Another thing you need to know before investing in the agriculture business is the risk involved in this business.
Everybody shows you the sweet part of the business but let me tell you that it is not always rosy.
For someone that has been in this business for a very long time, I can categorically tell you that you might invest $50,000 in agribusiness and lose it in less than a week.
Are you surprised? YES, it is 100% possible. If you’re not a risk taker, don’t bother coming close to the business.
- You’ll Spend a LOT of MONEY At the Beginning
As a beginner, you are going to spend a lot of money in order to make money.
There are things you will need to buy before getting started that are not always part of the construction cost. Don’t be deceived, you can’t use small money to start an agribusiness.
- Sieve What You Consume
Social Media is full of fake life. Don’t believe everything you see online. Just as said in my opening words, the reality of farming is different from what everybody is showing online.
Have you ever asked yourself, why do farmers not allow people to visit their farms anyhow? Cos there are lots of secrets and padding in this business that farmers don’t want you to know.
Agriculture of 30% learning, and 70% practical. No matter how professional your mentor or consultant is, you’ll still make your own mistake. That is what will call learning on the job.
You can’t learn everything at once. Watch out.
Expenses To Expect
The majority of people who reach out to me that they want to learn about a particular agribusiness, I refer them to get training, but they run. Why? Because they want to be deceived.
When they ask me why they have to pay for training, I use this analogy, why did you pay to get a degree when in actual reality you’ll still need to look for a job?
Paying 0.00001% for training that will possibly make you a millionaire if you’re serious and do the business right is not too much.
There have been people who have done this business before and have made mistakes, getting training and mentorship from them will guide you not to make the same mistake that they made.
Does that mean everything will run smoothly? It will only make your journey faster.
Doing business based on information online is a recipe for disaster. Don’t do it
PS: I don’t offer free training.
When you get the right training and consultation from the right person, and you decide to go ahead with your proposed agribusiness.
Remember, the time a particular construction you saw online is done will be different from when you’ll do yours, so don’t expect to spend the same amount for the same thing especially if you’re going to build in Africa.
Prices change in Africa from time to time.
Beyond construction, 70% of the expenses you’re going to incur in this agribusiness go into operational costs.
What are the operational costs that I’m talking about here? Feeding, power source, treatment, and so on.
If you have money to construct a large capacity of agribusiness, be ready to spend double on operational costs.
Let’s use a catfish farm as a case study. If you spend $8,000 on constructing fish ponds, be ready to splash up to $16,000 on operational costs down to table size. I’m not joking, it is what it is.
So, it’s not enough to have massive structures without having the right fund to back the main business up.
I know people that tell me I want to construct a 50,000-capacity fish pond when I tell them how much it will cost to construct and how much it will cost to run the business, they fly away.
Farming is no child’s play. Ask people that are into this business and want to be genuine with you, they will tell you that it’s not easy.
It is interesting admiring massive ponds from afar and desire to want to have such on your farm, but can you spend to get things right?
Think about it.
Equipment and Materials
Oh, how can I forget the equipment and materials needed to run the business? This is different from the operational costs mentioned above.
When you finish constructing, know that you don’t have anything to run the business, you will just start buying farming equipment to put on the farm. Petty things like buckets, bowls, spoons, sieves, and so on. You can also read these articles on different equipment you need for fish farming and poultry farming.
I know someone is asking in their head do I need it? How much does this cost? They won’t cost a lot.
Well, sorry to disappoint you, but little expenses when calculated go high and become bogus.
This article might seem like a rant, well it is and it is not.
I wrote this article cos there has been a lot of misleading information (written and visual) online recently. I want to clear some doubts about how lucrative agribusiness is without challenges.
Don’t be deceived into believing everything about the agriculture business is fine and you’ll run a smooth business. You will make mistakes, but don’t let these mistakes define you.
You can do it and make money from the business just like I did. Lower your expectations, seek knowledge, and make money.
CHEERS to your SUCCESS.