Why Agribusiness Remains The Best Bet For Investment

Agribusiness is one of the rare businesses that have the poten­tial to give you high return on in­vestment on a sustainable basis.

Come to think of it. If you invest in palm, cashew, plantain, cocoa, rubber, co­conut plantations and the likes, for exam­ple, you will continue to reap the fruit of your labour year year in year out so long as they are not destroyed.

The beauty of it is that there are many aspects of agriculture from crop and live­stock productions, aquaculture, process­ing to distribution of agro-products along the value chain that will create fabulous wealth.

Last year, insecurity, trade disruptions, inflationary pressures, and currency vol­atility pushed up demand for food items and other agricultural products beyond the reach of many.

The number of deaths recoded in Ibadan, Okija and Abuja during stampede and scramble for rice and other palliatives clearly showed that there is acute hunger in the land.

Those who ventured into agribusiness­es, will testify that in spite of all odds, 2024 was a good business year.

Ask those who invested in poultry business last year; they will tell you how they were selling one bird for N25,000 and above, just as one goat was going for as much as N150 to N200,000 while a cow sold at between N400,000 to N800000. Many farmers were smiling to the bank.

The year 2025 could be your turn to pros­per financially.

All you need to do is to identify a need and strategise on how to satisfy it.

There is urgent need for massive invest­ment in agriculture to bridge the wide gap between demand and supply for food items in the country.

The trend of scarce food items will like­ly continue in this year if care is not taken.

Leverage Technology

Leverage technology to boost your in­come. Experts believe that agribusiness in 2025 has the potential to post high return on investment if driven by factors such as technological advancements, sustainable practices, and shifting consumer prefer­ences.

In this respect, consider agribusiness investment in the area of regenerative agriculture which focuses on soil health, biodiversity, and efficient water use.

Experts believe that integration of ag­ricultural technology will transform the industry to be able to feed the ever teeming population and our agro-industries.

Investors should leverage technolo­gy solutions such as drones, Internet of things (IoT), robotics and Artificial Intel­ligence to enhance efficiency, reduce costs, and promote sustainability.

Alternative Proteins

Investors should consider investment in plant-based proteins like mycelium and mushroom-based ingredients which are gaining acceptance with a projected com­pound annual growth rate of 9.4% from 2024 to 2030, according to experts.

Sustainable Agriculture

Consumers are increasingly willing to pay a premium for sustainably sourced produce, organic food crops, livestock and other eco-friendly agricultural practices.

Challenges

However, despite encouraging outlook for agribusinesses this year, there are risk factors to contend with. They include in­put costs. Cost of feeds, fertilizer, fuel and others have gone up astronomically.

These have the potential to exert pres­sures on return on investment.

Therefore, investors must look for adaptive measures to minimise costs and sustain livestock health and crop yields.

Investors must watch out for red flags. The growing weather risks in terms of flooding, drought, storms and high winds also pose significant challenges for agri­businesses and impact negatively on their profitability.

Farmers must invest in drought- resis­tant crops, avoid flood plains and areas of extreme weather conditions to avoid loses Market volatility is another risk factor.

Commodity prices and farm income are expected to decline, impacting on the profitability of agribusiness investments. Investors are expected to devise innovative farming methods such as vertical farming and regenerative agriculture to maximize output and profitablity.

Investment Opportunities

Despite challenges, agribusiness invest­ments can get attractive returns, particu­larly in areas like regenerative agricul­ture.

Experts suggest that investors should strive to mitigate risk factors by:

Diversification: Spread investments across various agribusiness sectors to minimise risks.

Invest In Research:

Research investment opportunities, taking into consideration factors such as market demand, competition, and regula­tory environments.

Partnerships and Collaborations:

Embrace partnerships with industry ex­perts, researchers, and other stakeholders to stay informed and adapt to changing market conditions.

Understanding these trends, opportuni­ties and challenges will surely help you to make informed decisions and capitalise on the growth potential of agribusiness to set your feet firmly on sustainable income and contribute to food security and the econo­my of the country.