Experts in the food supply chain system are afraid. The world is facing food insecurity today due to the novel coronavirus pandemic, the business of food production now is seen to be the most lucrative and money-printing venture that needs to be milked out.
Billions of dollars will be injected into food production so as to eradicate food hunger which is highly commendable, but I want to write this letter to all potential farmers worldwide. I am here to publicly answer the question, “I want to invest in Pig Business, how much money do I need?”
Now, read it below,
Dear, I wanna be a farmer, Agriculture is not a static business venture.
One hectare of farmland in Lagos might not really be 1 hectare in Benue state, cost of labour differs too. Let’s see it this way,
So many things are to be considered before you cultivate that farmland, sit down and do your money calculation first. Don’t come to Social media with unnecessary questions because they advise you will receive here won’t actually reflect what you need to hear.
I want to highlight a few tips here today, jot them down.
You want to cultivate 2 hectares of farmland in Lagos, right?
Ask yourself, the following questions.
Which crop do you want to cultivate and why?
Cultivate crops or rear animals that you have an already existing market for not what you think will sell.
Don’t gamble with your money.
Do you have farmland already or you have to buy one?
The cost of buying farmland will give you a picture of how much money you need.
Security for the farm
If you do not want to be Father/Mother Christmas to some lazy youths, build a tall fence around your farmland or better employ of security personnel to watch over your crops or livestock. Calculate the cost of employing a security officer too.
Let’s assume you want to cultivate cucumber in the dry season, the amount of money you’ll spend now will be different from the amount of money you will spend cultivating it in raining seasons.
Cost of inputs
The cost of building a fence around a 200×200 plot in Lagos might not be the same as the same farm size in Makurdi. Contact a builder for a proper guide here, know these vital things first, the cost of cement and how many bags you need to build that land.
The cost of wood needed.
The cost of zinc
The cost of nails
Let’s assume you are cultivating cucumber in an open field not a greenhouse, below are things you should take into consideration.
Know the farm size
Know the seeds(hybrid or OPV) you need and why.
Cost of cultivating 2 hectares using tractors or human hands.
The cost of chemicals should be clearly highlighted too, don’t assume.
MOST IMPORTANT PART: What is the expected return?
A lot of people who come to me for consultation always testify that “I am hard to work with” and the reason is simple, I feed them with the essential information they NEED to know not necessary their WANTS. As a farmer who have done zillions of avoidable mistakes in my early days, I make sure my clients capital is protected and injected in the right Agribusiness venture.
Please, forget those blogs title “How to make N3.5m within 3 months of planting cucumber“. Those bloggers are attention seekers and content marketers not practising farmers, therefore implementing those unproven data is as same as gambling.
Brother/sister, here in agriculture, expected return written on paper by an expert who is just a business plan writer won’t work if a non-expert farmer is managing the farm. Some people will expect an answer like, “Cultivating 2 hectares of maize you’ll harvest 15 tonnes”
All things are possible, but there are Good Agronomic Practices (GAP) needed to enjoy that harvest. As a beginner, you don’t have either your business plan writer who collected a huge amount of money simply because of his excellent writing skills.
For example; I have been into poultry business for over 5 years now, all things being equal, I can rear 10,000 birds and the mortality rate will be less than 2%. It is not magic, I know the mathematics through consistent rearing of birds over time.
You are a starter, your result might not match mine. We have bajillions of unwritten codes in Agriculture that is yet to upload on the internet, sit down and do your money calculations carefully, don’t rush because you want to make 1.5m Naira rearing pigs in less than 9 months.
Finally, how much it will cost you to set up your farm will be determined by the location and access to a hungry market of your farm output. Your expected return will be determined by your market size and purchasing power of your consumers.
Agriculture is not a Ponzi scheme. Delete that mentality of investing 10 million Naira in broilers production and expecting 100% return on investment within 8 weeks. Is possible to hit those figures when you know the A-Z of the business.
I know you have the millions of Naira needed to start with 3000 pigs, build sophisticated pens, hire skilled labour to manage your investment; but I still advise you to start small. Study your market purchasing power first, if positive, then expand.
Market survey is what you should do before investing in any business venture. If you want to invest in agriculture and you are too busy to conduct a survey, employ the service of a practising farmer, do not gamble with your resources.