Running a successful farm for this case an Enterprise takes more than just hard work – you need to recognize where you are today and anticipate what’s up ahead. While every farm’s unique, there are some key things that separate the successful ones from those that aren’t. These tips will help keep your agribusiness succeeding today, and in the long term.
Work Hard and Smart
It sounds obvious but the first and most important factor in running a successful Agribusiness of any kind is putting in the hours. Set the bar high, commit to achieving your goals and go for it. Without effort you are unlikely to reap rewards. New ideas bring new opportunities, so don’t hesitate to pursue them. Learn as much as you can about how other farmers might be doing things differently. You could stumble onto something that makes you more money and saves you precious time. Embracing innovation and being adaptable can really set your Agribusiness apart. Access the venture and cost of production to avoid careless expenses, this way you could increase on the profits or returns. Smart Farming begins with market research; find out the nature of the market so you can produce something suitable for the market and reduce resource waste that could come from market ignorance.
Collaborate and Learn
While at times, as an Agribusiness owner it may seem like it’s you against the world, one of the most important things I have learned during my years as a farmer and a change agent is collaborating with others can help to achieve your goals. What you know can take you a long way in the farming world, but the people you know will also be a big asset. Staying connected can help you stay on top of market trends. That might mean building relationships with other farmers, groups and committees, but it could also be connecting with experts over social media.
Technology’s opening the door to a lot of possibilities. So it’s important to get yourself familiar with your smart phone, apps, websites and other online tools. They can simplify your life and even streamline your operations. Ag-specific apps can help with sprayer calibration, fertilizer application and a long list of other things. Facebook, Twitter, Skype and others can let you keep in touch with customers close to home and across the globe. Do not shut yourself from the world, remember the world is the market. Stay Connected! There’s a long list of places you could learn more about your customers, their needs and other exciting Agribusiness trends. Make sure you’re there to learn those things.
Sometimes you’ll have competing priorities. It can be tempting to partner with another farm to allow yourself more free time, but you may feel uncomfortable giving up some control over your Agribusiness. Like so many Agribusiness decisions, there’s no right or wrong answer here, just what works for you. Whatever you’re working towards with your farm, it’s great to have specific goals in mind so you can make the right Agribusiness decisions to get you there.
Stay on top of your financials
Money may not be everything, but it’s a big part of your Agribusiness. Knowing your cash flow is one thing, but thinking and rethinking your financial strategy is also a critical piece in ensuring success. Staying up to date on forecasts, financial trends and interest rates will help steer your decisions, whether you’re buying land, renting equipment, or selling part of your Agribusiness. Become an expert on your cost of production if you aren’t already. It’s always a good thing to know how much you can sell your products for and still make a profit! This calls for proper record keeping and accountability too.
Own the Chain and Innovate
Yes, own it from Production. Well, this comes with the cost but it is Something I have seen done brilliantly by some peers in the farming sector, but can also be applied to other industries, is the vertical integration of an Agribusiness; essentially adapting your Agribusiness model to take ownership of your own supply chain.
Also, having an understanding of what others are doing successfully in your area will give you direction. But unless you can be creative and at times summon the bravery to try something completely different you’ll fail when it comes to setting yourself apart from the crowd. It takes bravery to step outside your comfort zone. Be informed by what others are doing but don’t be afraid to lead when it counts.
Today they are producers of grain cattle and feed lot cattle. They’ve got a processing system in a retail outlet which not only sells their meat, but other feed lot’s meat too. Also, they’ve introduced pork, chicken and cured meats through their retail outlets. They’ve added value to every area of the Agribusiness and avoid the fees and supply chain hold ups that we so costly in the past.
Case: Maize Production. The figures below are isolated cases you could try out case by case as per your locality. I USDollar is around 3,500UgShs.
| Form | Average Quantity from an Acre | Average Price | Income |
| Dry Grains | 900kgs | 800 per kilo | 720,000 UgShs |
| Roasted Cobs/Fruits | 15000 pcs | 300 each | 4,500,000UgShs |
| Flour | 400kgs | 3000 per kilo | 1,200,000 UgShs |
Mitigate risk
Managing risk is imperative to success and farming is no different. Climate change is a big one. It can cause floods, drought and other threats to the crop over which we have no control. We can’t fight climate change but we can put measures in place to protect the crop. For example drainage systems, water storage, scheduling equipment for irrigation programs. My advice to any small Agribusiness owner would be understand what the risks are to the Agribusiness and put measure in place to mitigate that risk as far a possible. But don’t lose sleep over the factors you can’t control.
Love what you do
Running any Agribusiness can be entirely consuming at times. You’ve got to be 100 per cent, well at least 75% passionate about what you do come through the challenging times. Otherwise you may as well just hang up your hat.
Share with us your experience as a farmer in the comment section.
