‘Why most Agribusi­nesses fail in Nige­ria’

Sunday Trust - - AGRIC BUSINESS - From Risikat Ra­moni, La­gos

Arenowned Agribusi­ness Con­sul­tant and Di­rec­tor of Mar­ket­ing, Rome Busi­ness School, Nige­ria, Pas­tor Toro­made Fran­cis, has said at­trib­uted the rea­son why most agribusi­nesses fails in Nige­ria to in­abil­ity of farm own­ers to pay at­ten­tion to man­age­rial skills needed for sus­tain­ing such busi­ness.

Rather, he said farm own­ers and in­vestors focus mainly on the tech­ni­cal as­pect of the busi­ness.

Ac­cord­ing to him, sound knowl­edge of agribusi­ness man­age­ment will help an agribusi­ness owner to lower costs of pro­duc­tion, boost prof­its and en­sure that food prod­ucts are grown and dis­trib­uted ef­fec­tively.

He told our cor­re­spon­dent at the just con­cluded Mas­ter’s de­gree stu­dents’ wel­come party, or­gan­ised by Rome Busi­ness School.

Pas­tor Toro­made fur­ther ex­plained that the mis­take most farm­ers in Nige­ria made was ven­tur­ing into agribusi­ness, be­liev­ing that the tech­ni­cal knowl­edge they have is enough to run the busi­ness.

He pointed out that many agribusi­ness own­ers do not pos­sess agribusi­ness man­age­ment skills like hu­man re­source man­age­ment, sup­ply chain man­age­ment, mar­ket­ing and sales of agric prod­ucts, agribusi­ness fi­nance and man­age­ment among oth­ers be­fore ven­tur­ing into agribusi­ness while adding that, all these are what makes the busi­ness in agri­cul­ture sen­si­ble and prof­itable.

“I have dis­cov­ered that many peo­ple just go to school to study agri­cul­tural sci­ence; they learn about how to rare chicken, cat­tle, grow crops etc. but the busi­ness man­age­ment as­pect of agri­cul­ture, there is a gap and this has af­fected many agribusi­nesses in Nige­ria, mak­ing them un­prof­itable and un­sus­tain­able,” he said.

In the op­po­site, he said many farm­ers have man­age­rial skills but lack tech­ni­cal skills. This, he said, calls for train­ing that will make the farm­ing busi­ness sus­tain­able and prof­itable.

Ac­cord­ing to him, “While the cul­ture in agric can keep you in mo­tion, the busi­ness in it will keep you mov­ing. There­fore, there is need for an agribusi­ness owner to have sound knowl­edge of agribusi­ness man­age­ment in or­der to ef­fec­tively run his busi­ness from both the tech­ni­cal and busi­ness sides. That way, he will not be eas­ily bam­boo­zled or cheated by staff, part­ners or as­so­ciates. “

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