MODULE 2

The Agribusiness Plan

Lesson 1 The Business Model Canvass

Lesson 2 The Contents of an Agribusiness Plan

Lesson 3 Investment Potentials and Opportunities in
Agribusiness

Lesson 4 Starting an Agribusiness

 INTRODUCTION

This module presents the strategies on Agribusiness Plan . It is hoped

that you will learn, comprehend and appreciate the concept of a agribusiness
management. You will also learn in this module the concept of starting an
agribusiness enterprise.

OBJECTIVES

After studying the module, you should be able to:

1. Explain the Concept of a business Model canvass
2. Explain the different contents of an Agri business plan
3. Identify the different Investment potentials and opportunities in
Agribusiness
4. Discuss the concept of starting an Agribusiness

DIRECTIONS/ MODULE ORGANIZER

There are four lessons in the module. Read each lesson carefully then answer
the exercises, activities and case studies to find out how much you have benefited
from it. Work on these exercises carefully and submit your output to your subject
Professor .
In case you encounter difficulty, discuss this with your subject Professor during
the class meeting. If not contact your Professor at the Institute of Agribusiness
Management.

Good luck and happy reading!!!

Lesson 1

The Business Model Canvass

The Business Model Canvas is a  one sheet strategic management and lean

startup template for developing new or documenting existing business models
that can be applied and used to set up an agricultural enterprise . It is a
visual chart with elements describing the components integrated within the
business focusing on the value proposition, marketing and finances. It assists
the proposed agribusiness firm in aligning their activities by illustrating
potential trade-offs that could help in setting its desired goals and objectives.

The nine "building blocks" of the business model design template that came to
be called the Business Model Canvas were initially proposed in 2005
by Alexander Osterwalder based on his earlier work on business
model ontology. Since the release of Osterwalder's work around 2008, new
canvases for specific niches have appeared. This building blocks will guide the
user on the what is the big picture of the set.

Here is a detailed list of components that are found in most business models:

1.Unique Value Proposition:

Why the customer is willing to buy the solution.

2. Key Partners:
Partners and suppliers essential to the business.

3.Key Activities:
What are the activities in the business operations. The Key Activities of
your business/product are the actions that your business undertakes to
achieve the value proposition for your customers.

4. Key Resources:
Physical, intellectual, human, and financial assets at the company

5. Customer Relationship:
How does the customer interact with you through the sales and product
lifecycle? Do they have a dedicated personal contact they see? Call?
6.Channels:
How the company will reach customers
7. Customer Segments:
Who are the target customers

8.Cost Structure:
What are the company’s costs and how should that affect pricing

9. Revenue Streams. :
How the company generates income Revenue Model: framework for how
the company will be profitable

Why we use it

 To quickly draw a picture of what the idea entails.

 It allows us to get an understanding of your business and to go through the
process of making connections between what your idea is and how to make
it into a business.
 It looks at what kinds of customer decisions influence the use of your
systems.
 It allows everyone to get a clear idea of what the business will likely be.
 Easy to understand the general structure
 Helps to focus on the value proposition for the customer instead of the
product and its features
 LEARNING ACTIVITY

Identify a possible agribusiness venture that you are interested to and

prepare your Business Model Canvas using the above matrix.
 REFERENCES
https://en.wikipedia.org/wiki/Business_Model_Canvas#Description
https://medium.com/seed-digital/how-to-business-model-canvas-explained-
ad3676b6fe4a
https://eship.ox.ac.uk/business-model-canvas-explained/
https://www.businessmodelsinc.com/about-bmi/tools/business-model-canvas/
https://bmtoolbox.net/tools/business-model-canvas/
https://www.bizshakalaka.com/home/business-model-canvas/bmc-01-
framework-2/
https://www.eqengineered.com/insights/why-use-lean-vs-business-model-
canvas
https://www.youtube.com/watch?v=QoAOzMTLP5s
https://www.youtube.com/watch?v=pvIN9STpzCQ
https://www.youtube.com/watch?v=IP0cUBWTgpY&t=161s

SUMMATIVE TEST

1. Define what it Business Model Canvas.

2. What is the importance of having a business model canvas?
3. Do we need to have a business model canvas in putting up an
agribusiness enterprise? Why?
Lesson 2

The Concepts of an Agribusiness Plan

The Detailed Agribusiness Plan

Agribusiness Plan is a written description of your business’s future. That’s all

there is to it—a document that describes what you plan to do and how you plan
to do it. If you jot down a paragraph on the back of an envelope describing
your business strategy, you’ve written a plan, or at least the germ of a plan.
Business plans can help perform a number of tasks for those who write and
read them. They’re used by investment-seeking agripreneurs and
entrepreneurs to convey their vision to potential investors. They may also be
used by firms that are trying to attract key employees, prospects for new
business, deal with suppliers or simply to understand how to manage their
companies better. So what’s included in a business plan, and how do you put
one together? Simply stated, a business plan conveys your business goals, the
strategies you’ll use to meet them, potential problems that may confront your
business and ways to solve them, the organizational structure of your business
(including titles and responsibilities), and finally, the amount of capital
required to finance your venture and keep it going until it breaks even.

Entrepreneurship Development and Agri-Business Plan

If put together properly a good agribusiness plan follows generally
accepted guidelines for both form and content. There are five primary parts to
an agribusiness plan:
The first is the executive summary or the business concept where you
discuss the industry, your business structure, your particular product or
service, and how you plan to make your business a success.
The second is the production plan, in here the agripreneur will discuss
focusing on the product, plant, process, program and people which entails the
totally of the production process.
The third is the marketing section, in which you describe and analyze
potential customers: who and where they are, what makes them buy and so on.
Here, you also describe the competition and how you’ll position yourself to
beat it.
 Fourth will be the human resource plan taking into consideration from
hiring to deployment of people including their compensation and benefits.

Finally, the financial section contains your income and cash flow
statement, balance sheet and other financial ratios, such as break-even
analyses. This part may require help from your accountant and a good
spreadsheet software program. So herewith is the Agribusiness Content
1.Executive summary
2. Production Plan
3. Marketing Plan
4. Human Resource Plan
5. Financial plan

The Executive Summary

The foundation of your business plan is your research or ground work. Every
idea or concept should be challenged to determine whether or not it has a
reasonable chance of success.
Consider these questions as you challenge your idea:
1. (a) Are there global or international issues that will affect my agribusiness
venture?
(b) Are there national or interprovincial issues that should be focused on?
2. Are there regulations or restrictions that can positively or negatively impact
on my chosen agribusiness project?
3. Identify major trends affecting the industry.

An agribusiness plan is the written guide to your business's success. You

can have others prepare your business plan, but you really should be the one
developing the plan using others only for assistance. The plan reflects your
image and views of your business. The process of developing the plan may be
much more valuable as a learning experience than the plan itself. When
completed, you should have your plan reviewed by someone objective but
knowledgeable in your business operations. Business Overview is the first in a
series of five sections that will help you prepare a business plan for your
proposed agri-business operation.
 Business / Industry Overview
 Production Plan
 Market Plan
  Financial Plan
 Human Resources Plan

In addition to these sections, a business plan should also have a cover,

title page and table of contents.

Production Plan
The production plan provides the details of how production will take
place. It will specify the capital resources required for production and all of
the implications related to acquiring the resources including costs, regulations,
construction schedules and environmental consequences. This is followed by
details of how these resources will be used in the production process along
with the production schedules
A. The Product /Service
 Present a detailed description of your intended product/service with
the following:

Products:
a. Dimension
b. Composition ( mechanical, chemical and or physical properties)
c. Quality Specification

Agribusiness Projects:
a. Common & Scientific Name
b. Specie (breed)
c. Color, Size, Weight

Service:
What you intend to do.

 Present some photo documentation of the intended product/service

 Product/ Service Segmentation Proposal
 Product / Service Modification
 Economic Use of the Product.

B.Production Process
 State here the most suitable and practical type of operation process in
the manufacture(implementation) of your intended product or service.
 Present your Flow Diagram indicating material & energy requirement at
each step & duration of the process
C. Technological Assistance

 Enumerate a list of offices and specialists whom you will coordinate

with or hire on a retainers basis who will help you with external techno-
managerial assistance during your operation period.

D.Agribusiness Site
 Describe your Business strategic location in detail.
 For plant/production location, state the reason why it is located in that
particular place.
 Draw a sketch where to find the business site

E.Plant Lay-out

 Present your lay out in a detailed drawing drawn to scale

F. Plant Size & Capacity

 Describe the factors that will affect your plant’s productivity capacity.
 State your full plant capacity. Present it by section with a specific
timeline

G. Building & Facilities

 List down your business engineering requirements for both building &
non building facilities
 Present a detailed drawing of each of your structure

H. Machineries & Equipment

 Present a detailed list of machineries & equipment you will need for
your business.
a. Plant/Process Equipment & Machineries
b. Mechanical Machineries & Equipment
c. Electrical Equipment
d. Process instrumentation& transport machineries &equipment
e. Process Conveying & transport machineries & equipment
f. Auxiliary machineries & equipment
g. Tools & spare parts

I. Raw Material Requirement

 Present a detailed breakdown of raw materials you will need for your
business.
J.Production Schedule

 Determine the expected production volume for a period of time to come

up with your expected production schedule

Market Plan

A major aspect of any business plan is the section dealing with

marketing. Marketing is the process of understanding the customer’s needs,
producing a product to meet those particular needs, and making a profit for
the business. If you are planning to start a new business or expand an existing
one, it is essential to prepare a "marketing strategy". Your target market must
be well defined before any action is taken on production. There is little sense
in going through the steps of producing a product only to find out after the fact
that there is a limited or no market for that product or service.

Know Your Customer! Know Your Market!

Since it is very difficult to be everything to everyone, individual businesses

should focus on a specific segment or niche of the intended market. Quality,
service, and price are the factors underlying customer satisfaction. It is not a
choice of the best two out of three, you must excel in all three areas. Focusing
on your particular customer's wants and then delivering the goods will be the
key to the successful marketing of your products and your subsequent business
profitability.

No Customers! = No Business!
Marketing goes well beyond selling and is often described in terms of the
4 P's. The 4 P's affect every decision made within a business from production to
the final product delivery.

Product - What you make!

Pricing - What you charge for it!
Promotion - How you let people know about it!
Place - Where and how you distribute it!

Where are we now? Where do we want to go? How do we get there?

 As mentioned earlier, every business big or small should have a
marketing plan. A plan reminds you and informs your staff of your business
vision and the goals to be achieved. Everyone knows where the business is
headed. A marketing strategy will help you be competitive with other
producers that have their own individual marketing strategies. The following
examples will give you an idea of the kind of information you need to gather
and put down on paper to develop your own path to marketing success.

What Products or Services do you Intend to Sell?

You must be very clear on exactly what you are producing and the advantages
and disadvantages of each product. Describe the benefits of your products and
why someone should buy them.

Who are Your Existing and Potential Customers and What are Their Profiles?
Customers are the reason you are in business. They buy your products! (To
fully understand your customers you need to survey them and study the
demographics of their particular population base. Demographic information is
available from Statistics Canada as well as other sources). You will need to
profile your existing customers (if you have them) as well as your potential
customers. What is the total existing and potential market available to your
business for the products you are selling? You must look at tailoring your
product mix to the customer base you have chosen to target. Otherwise, you
risk producing a product no one wants to buy.

Who is Your Competition and What are They up to?

Why should customers buy from you when the market is already being serviced
by other producers? How will you obtain market share? What advantages do
they have? Can you determine any weaknesses they may have? Assess the
competition.

How will you Advertise Your Products and get the Message to Your Customers?
People do not shop at businesses or buy products they do not know about. How
will you tell your customers about your products? What are your advertising and
promotional plans?
A marketing plan outlines what you will produce, who you will produce for,
how you will get customers to buy your product, and how you will get the
product to them when they want it. Marketing lays the foundation for all other
business planning.
Human Resource Plan
Depending on your area of production, labor expense may be among the
highest costs your business will incur in any given year. Labor is usually the
most difficult cost item to manage. At the same time, a good job of managing
your labor force can reward you with improved productivity, higher profits, and
more job satisfaction than is possible from any other cost item. Therefore,
some time spent preparing a plan outlining your labor requirements, wage
scales, and incentive and discipline policies will help relieve some of the
inherent stress. It will provide a clear understanding of everyone's position,
responsibilities, and contributions to the benefit of your business and all
concerned.
1.Organizational Chart Develop an organizational chart to illustrate how your
employees are organized and to whom they are responsible. (The chain of
command.)

2. Labor Requirements Staff need to be matched to or trained for certain skills.

Labor may consist of your own personal labor, family labor, or you may end up
hiring others to work for you.
i. What functions must be performed in my operation?
ii. What skills are required for each job?
iii. Which skills are available, which skills must be hired, and which skills
must be trained or developed?
iv. How many labor hours will be required to run my business per year
and when are they needed?
3. Job Descriptions Once you have determined the various job functions which
must be carried out for your business, you will know when you will have to hire
and how many people will be required. Job descriptions of each particular
position are very useful. The employee will know clearly what you expect and
you will know what they should be doing. Much of the difficulty in the labor-
management relationship comes from poor communication both on the part of
the employer and employee. Establishing the organizational structure and
communicating it to your employees goes a long way to opening communication
links.
4. Training Managers and workers can always improve their job performance
with training. At the same time, training can improve job satisfaction of
employees by showing support for their personal growth within the business.
Training does not just mean "sending an individual away to a short course". You
will very likely have to do much of the training yourself. How will you approach
the training of the individuals hired for your operation? Make a list of the skills
required, who will require those skills, and how you will insure the necessary
skills are developed.
5. Compensation and Benefits Some thought should be given to the method of
payment. How will it be managed? How is worker performance likely to be
impacted by the method of payment? Will you be implementing some sort of
incentive program? All of these concerns will have an impact upon costs and
productivity.
6. Labor Management and Control
Your employees' goals and your goals are very likely not the same. Working
together to help each other satisfy your respective goals will build strong
communication and mutual support. The people you hire can either make you
money or lose you money. Every person will perform their job to their
individual ability and there may be considerable variation. How long it should
take someone to do the job and how long it takes may be very different. Every
business needs to implement a method of monitoring labor hours worked, both
paid and unpaid. Unpaid labor must be accounted for since you would have to
hire someone else if you did not do the work. This control is usually most
effective when tied to time cards filled out by all employees. If your business
has the same staff working in multiple enterprises, it is important to know as
accurately as feasible how long who took to do what. This is the only accurate
way to determine your cost of production.
7.Employer Responsibility. As an employer, you are responsible for offering
your employees the following:
1. A safe work environment and proper training for employee job
functions.
2. Your need to be registered with the Workers Compensation Board.
3. Deduct and submit from employee’s wages, and Income Tax along
with the employer contributions as applicable.
Labor is usually one of the largest expenses a company will have and also the
hardest to control. Human resource planning allows you to manage this variable
resource.
Financial Plan
In most cases, a new business or major changes to an existing business will
require financing. Lenders are essentially making an investment in your
business with the expectation of a return on their investment, i.e., the interest
paid. It should be recognized that these lenders are not only investing in your
business, but also that they are investing in your ability to carry out your
business plan. It is well worth viewing your business plan as if you were the
creditor. Your creditor does not know you nearly as well as you know yourself.
He or she will require good quality information in order to make a sound
decision regarding the credit worthiness of your business proposal. If you are
not clear in presenting your plans and expectations, then the creditor will look
upon your proposal with apprehension. You are investing a great deal of time,
effort, and money in a business venture which always has its inherent risks. If
you considerthat over one-third of all new businesses fail within the first three
years of operation, then you will also recognize that a thorough business plan is
a must. If you are not thorough in your planning and preparation, then you will
very likely become part of that statistic.
“Over one-third of all new businesses fail within the first 3 years of operation”
“Be thorough in your planning effort!!!”
The financial plan will help you plan the financial needs of your
business, the capital required to start the business, as well as the cash flow
needs and operating credit required for daily business activities. It should
define the current financial position of your business along with proposed
changes, established targets, and a means of measuring success so that the
business plan can be evaluated and re-assessed.

The process for developing a thorough financial plan is outlined below.

Each step contributes to the development of the heart of the business
proposal, the income projections. To assist in preparing the necessary
information for the financial plan, a series of forms are included with this
package. These are the Actual Cashflow form and the Projected Cashflow form.

1) Overhead and Cropping Budget In order to prepare reasonable

financial projections, you must prepare fairly detailed budgets for the
individual crops to be grown and products to be marketed. The first step is to
prepare individual budgets for each crop to be grown. This provides a format
for estimating the direct costs required for each crop from which totals can be
obtained for the Projected Income
Secondly, the overhead costs must be estimated. This lists the overhead
cost items which, when added to the direct cost components of these cost
categories, arrives at the total projected cost. Preparing the budgets in this
manner also provides the opportunity to examine the profitability of each crop
more closely. You should identify the total greenhouse time-space
requirements, given your production plans. The overhead cost can then be
allocated to each unit of production space-time used up during the production
period then you separate the overhead cost from the direct costs. The total of
the overhead costs is then divided by the total square foot weeks of
greenhouse space-time. Comparing this to the expected sales of individual
crops provides a measure of the profitability of the individual crops. By
examining each crop closely, you are in a better position to decide which crops
should be dropped, which should be expanded, or which specific costs should
be re-examined.

2. Income Statement Prepare projected income statements for the next three
to five years. The most important question here is, "what will the income be in
the year when you have reached stable, full production"? The income
statement sets out your expectations for revenues and expenses in each year.
Your projections should be well supported. This, of course, is much easier for a
business which is already in operation since there is some history upon which
your projections can be based. However, if you are developing a plan for a new
business, a great deal can still be done to support your projections. The greater
the support you have for your financial projections the less likely are the
chances of overlooking serious problems. As long as you can obtain an accurate
measure of the capital costs, and the level of credit required, these expense
items can be determined fairly accurately. Direct expenses are much more
difficult to determine. These are much more dependent upon the operation of
the business, the selection of inputs, and marketing decisions.
3) Projected Balance Sheet and Net Worth Statement It should be noted that
the Balance Sheet and Net Worth Statements are not the same. Each present a
summarization of the assets and liabilities of the business but differ in the way
assets are valued. The balance sheet presents assets at original cost less
depreciation while the net worth statement provides a list of assets at current
fair market values. Each statement has an important and different function in
appraising the operation. Equity growth on the Balance Sheet reflects growth
earned through operations whereas the Net Worth Statement includes equity
growth resulting from appreciation in the value of assets. These changes in
asset values may reflect inflation and/or changes in market demand.
Depending upon the age of the business, the differences between the market
value, and the original cost value may differ very substantially. Since Net
Worth is based upon market value, it provides the most accurate measure of
security against any debts. The Balance Sheet along with the Income Statement
is used to appraise earned income relative to investment.
The financial plan provides some level of assurance that the business is
financially feasible. The marketing, production and human resources plans
provide the supporting information for the financial plan. Although the
financial plan is the last of the four main components of the business plan to be
completed, the financial planning process is involved throughout the business
planning process to evaluate the feasibility of marketing, production, and
human resource decisions.

Length of the Agribusiness Plan

Depending on what you’re using it for, a useful business plan can be any
length, from a few pages to, in the case of an especially detailed plan
describing a complex enterprise, more than 100 pages. A typical business plan
runs 15 to 25 pages, but there’s room for wide variation from that norm. Much
will depend on the nature of your business. If you have a simple concept, you
may be able to express it in very few words. On the other hand, if you’re
proposing a new kind of business or even a new industry, it may require quite a
bit of explanation to get the message across. Or it also depends on the funding
agency to whom it will be submitted for possible funding.
The purpose of your plan also determines its length. If you want to use
your plan to seek millions in seed capital to start a risky venture, you may have
to do a lot of explaining and convincing. If you’re just going to use your plan or
internal purposes to manage an ongoing business, a much more abbreviated
version should be fine.

Updating your Agribusiness Plan: a checklist

Here are seven reasons to think about updating your business plan. If
even just one applies to you, it’s time for an update.
1. A new financial period is about to begin. You may update your plan
annually, quarterly or even monthly if your industry is a fast changing
one.
2. You need financing, or additional financing. Lenders and other
financiers need an updated plan to help them make financing decisions.
3. There’s been a significant market change. Shifting client tastes,
consolidation trends among customers and altered regulatory climates
can trigger a need for plan updates.
4. Your firm develops or is about to develop a new product, technology,
service or skill. If your business has changed a lot since you wrote your
plan the first time around, it’s time for an update.
 5. You have had a change in management, new managers should get fresh
information about your business and your goals.
6. Your agribusiness venture has crossed a threshold, such as moving out of
your home office, crossing the 1 million sales mark or increasing the
manpower.
7. Your old plan doesn’t seem to reflect reality any more. May be you did a
poor job last time; may be things have just changed faster than you
expected.

But if your plan seems irrelevant, redo it. Business plans tend to have a
lot of elements in common, like cash flow projections and marketing plans.
And many of them share certain objectives as well, such as raising money or
persuading a partner to join the firm. But business plans are not all the same
any more than all businesses are. Depending on your business and what you
intend to use your plan for, you may need a very different type of business
plan from another entrepreneur. Plans differ widely in their length, their
appearance, the detail of their contents, and the varying emphasis they place
on different aspects of the business.
The reason that plan selection is so important is that it has a powerful
effect on the overall impact of your plan. You want your plan to present you
and your business in the best, most accurate light. That’s true no matter
what you intend to use your plan for, whether it’s destined for presentation
at a venture capital conference, or will never leave your own office or be
seen outside internal strategy sessions.

Business plans can be divided roughly into separate types.

Mini plan
A mini plan may consist of one to 10 pages and should include at least cursory
attention to such key matters as business concept, financing needs, marketing
plan and financial statements, especially cash flow, income projection and
balance sheet. It’s a great way to quickly test a business concept or measure
the interest of a potential partner or minor investor. It can also serve as a
valuable prelude to a full-length plan later on. Mini plan is not intended to
substitute for a full-length plan. Do not send a mini plan to an investor who’s
looking for a comprehensive one.

Working Plan
 A working plan is a tool to be used to operate your business. It has to be long
on detail but may be short on presentation. As with a mini plan, you can
probably afford a somewhat higher degree of candor and informality when
preparing a working plan .A plan intended strictly for internal use may also
omit some elements that would be important in one aimed at someone outside
the firm. You probably don’t need to include an appendix with resumes of key
executives, for example. Nor would a working plan especially benefit from,
say, product photos. Internal consistency of facts and figures is just as crucial
with a working plan as with one aimed at outsiders. You don’t have to be as
careful, however, about such things as typos in the text, perfectly conforming
to business style, being consistent with date formats and so on.

Presentation Plan
If you take a working plan, with its low stress on cosmetics and impression,
and twist the knob to boost the amount of attention paid to its looks, you’ll
wind up with a presentation plan. This plan is suitable for showing to bankers,
investors and others outside the company.

LEARNING ACTIVITY

Prepare a Full Blown Agribusiness Plan

 REFERENCES

https://www.slideshare.net/9922a290614/agri-business-venture-business-plan
https://www.slideshare.net/9922a290614/agri-business-venture-business-plan
https://www.daff.gov.za/doaDev/AgricDevFinance/
BusinessPlanGuidelines(VIS).pdf
https://www.bplans.com/agriculture_farm_business_plan/
executive_summary_fc.php
http://publications.dyson.cornell.edu/outreach/extensionpdf/2010/
Cornell_AEM_eb1002.pdf
https://www.fastbusinessplans.com/sample-business-plans/organic-farm-
business-plan.html
https://www.nation.co.ke/business/seedsofgold/Seeds-of-Gold-Agribusiness-
Plan-/2301238-2364078-c76mjjz/index.html
https://www.saskatchewan.ca/business/agriculture-natural-resources-and-
industry/agribusiness-farmers-and-ranchers/farm-business-management/
business-plan-and-development-guides
https://unctad.org/en/docs/iteiia5_en.pdf
https://www.slideshare.net/debbieanhall/farm-business-plan

SUMMATIVE TEST
1. Define the following:
a. Production Plan
b. Marketing Plan
c. Human Resource Plan
d. Financial Plan
2. Discuss the significance of having an agribusiness plan.
3. What is the importance of having an executive summary in the
formulation of an agribusiness plan?
4. Why do we need to consider global and national issues in the
formulation of an agribusiness venture?
Lesson 3
Investment Potentials and Opportunities in
Agribusiness

Investing in agriculture is one of the most effective ways of reducing

hunger and poverty, promoting agricultural productivity and enhancing
environmental sustainability. However, for any investment to have a positive
impact on agricultural production and productivity, it must contribute to
capital formation at the farm level. In this respect, investments made by the
farmers themselves are indispensable. Their investments constitute the
foundation and the engine for sustainable development.
Investment in agriculture must be viewed in the wider economic context
in which agricultural development occurs. In designing policies and programs
for promoting investment in agriculture it should be recognized that
agricultural development depends on the simultaneous growth of agricultural
production.
Promoting investment in agriculture for increased production and productivity
and the value chains to which it is linked. These value chains include a wide
range of small- and large-scale activities that involve supplying farm inputs,
processing, storing, distributing, wholesaling, retailing and exporting farm
products. All these activities can be referred to collectively as ‘agro-industry’.
When considering agricultural investment, it should also be recognized that
there are different types of investors operating in agriculture and its value
chains. These investors have different objectives and roles. In addition, there
is a variety of sources of financing for investment and all the sources are not
equally accessible to all investors.

Towards Agribusiness
The Philippines is a country rich in natural resources. Because of that,
agriculture plays a significant role in its economic, cultural, and business
landscape. There’s a wide range of agricultural businesses that exist in the
Philippines today—from the numerous farms in various provinces to the more
modern SMEs growing their own produce and selling it with the help of
technology . If you’re thinking of starting an agricultural business Then you
have to:
 1.Know your produce.

Agriculture is comprised of a broad range of business types, so there are many

opportunities for you as long as you’re willing to work hard. You can grow fruits
and vegetables and sell them at a farmers’ market. You can start a beekeeping
enterprise. You can even grow herbs and medicinal plants and sell them right
from your garden. If you have the space to do so, you can also breed animals.
In every case, make sure you understand your produce. Some products are
generally more delicate or high-maintenance than others, so make sure you
have a conducive environment for the best possible quality.

2. Know your market.

There’s a high demand for agricultural products in the Philippines, but you
need to know the following:
 Where is your market?
 What exactly is the market need?
 How are you going to get your products to them?

Remember that if you’re selling organic products like herbs or foods, you’ll
have to consider things like shelf life. So living too far away from your chosen
market might become an issue. Also, make sure your market is big enough that
it can sustain your business and that your products are good enough to retain
your customers.

3.Find your “farm”.

Agricultural businesses don’t always have to be based on an actual farm. If

you’re a micro or small business catering to a niche market, there’s nothing
wrong with growing your produce from a backyard or garden, as long as you
make sure the quality is good. And of course, each agriculture business has its
own space and location needs.
For example, if you’re thinking of raising chickens to sell eggs, you need to
know the optimal living conditions for these chickens. Generally speaking, for
any agribusiness, there needs to be a lot of space and usually, this space is
outdoors. So if you don’t have that, maybe you should consider renting out a
place or sticking with something that needs less room.

4.Register your business.

Starting an agribusiness may sound much easier now than it was before, but
don’t forget that there are still laws governing every business venture. Like any
enterprise, it will have to be registered, and you will have to comply with the
laws of the Department of Agriculture as well as the agency directly
responsible for your industry. For example, the National Dairy Authority is
responsible if you’re producing milk and cheese to sell at farmers’ markets.

5.Commit yourself to quality.

Finally, the most important thing you have to keep in mind, not just when
starting your business but all throughout the journey, is to commit yourself to
the product. Be extra careful about the consistency and quality of what you’re
putting out into the market. Know that your market is trusting you with their
health, which is a big responsibility. So take the necessary precautions, always
put your best into growing and harvesting your products, and make sure you
aim for high quality at every step of the process, from growth to delivery.
Starting an agricultural business may be challenging, but it can also be
rewarding and helpful. Not only will you be making the world a healthier place,
but you’ll also be part of the movement toward empowering the country’s
agricultural sector and improving our economy. As the Philippine market
becomes increasingly aware of the benefits of organic living, there is scope for
growth in this sector too.

Potential Agribusiness Projects

A. Poultry Raising
Chicken (meat & egg)-free range chicken, broiler contract growing )
Duck (meat & egg)
Quail
B. Livestock Raising
Hog, goat and cattle
C. Honeybee Production
D. Production of High Value Crops
a.Fruits -Mango, Banana, Papaya, Strawberry, Calamansi,Pineapple, Jackfruits,
Durian, Mangosteen, etc
b.Vegetables -tomato, cucumber, lettuce, celery, mushrooms, etc.), squash,
herbs,
c. Other Crops- peanut, mongo, corn, (yellow & white),lanzones, Moringa
(malungay)

E. Ornamental Plants
cutflowers, cutfolliage, potted plants, asthers etc.
 Advantages:
start as hobby
requires small area
highly profitable
big market

F. Industrial Crops
Rubber, Oil Palm, Cassava, Abaca

G. Beverages
Coffee, Cacao

H. Aquaculture
Tilapia,Aquarium fish, Seaweeds ,Milkfish, Shrimps etc.

List of Top 100  Most Profitable Agribusiness Ideas to Invest

#1. Organic crop farming

#2. Agro/ecotourism business
#3. Herb and spices farming
#4. Vegetable cultivation
#5. Fruit trees cultivation
#6. Organic produce retailing/ farmer’s market vending
#7. Organic cafe/restaurant
#8. Pig breeding and farming
#9. Fish farming
#10. Multi plant seedling nursery
#11. Herb store
#12. Gardening/ landscaping tools and equipment shop
#13. Livestock feed production
#14. Organic fertilizer production
#15. Poultry farming
#16. Flour milling
#17. Fruit juice, jam and jelly production
#18. Landscaping and maintenance services
#19. Poultry and livestock meat production
#20. Dairy farming
#21. Agricultural brokerage and consulting services
#22. Egg hatchery production
#23. Florist/ flower arranging business
#24. Bee keeping and honey production
#24. Nuts cultivation and processing
#25. Rice cultivation and farming
#26. Grains farming
#27. Tea and coffee cultivation
#28. Lawn care and yard maintenance
#29. Insecticide, herbicide and pesticide production
#30. Air fresheners and perfumes production
#31. Fumigation and pest control services
#32. Rubber mill and production
#33. Coconut and palm oil farming
#34. Sugarcane farming and production
#35. Vermiculture and Vermicomposting
#36. Agricultural products and supply shops
#37. Dried and fresh flower shops
#38. Flower cultivation and farming
#39. Hydroponics retail store
#40. Farming, gardening and landscaping tutorial services
#41. Fruits and vegetable exporting business
#42. Corn cultivation and farming
#43. Greenhouse farming
#44. Organic cosmetics production
#45. Mobile organic food shops
#46. Medicinal herb and root drink production
#47. Organic food processing
#48. Chicken egg production
#49. Quail egg production
#50. Mushroom farming
#51. Garden arbors, pergola and trellis manufacturing services
#52. Cactus farming
#53. Solar power installation for farms
#54. Beans production and farming
#55. Local drinks production like homemade wines
#56. Snail farming
#57. Frog farming
#58. Sheep and goat farming
#59. Fruit, vegetable and herb candy production
#60. Online shops for farmers and buyers
#61. Online forum/ site for farmers and other agribusiness entrepreneurs
#62. Frozen chicken meat production
#63. Fruit, vegetable and herb preserve production
#64. Organic bio-diesel production
#65. Soil testing laboratory
#66. Local food/ native delicacy shops
#67. Pet bird breeding and farming
#68. Cattle farming
#69. Agricultural loan center for small scale farmers
#70. Chicken coop / poultry house production
#71. Soya bean drink production
#72. Wheat grass cultivation
#73. Spirulina farming – used as food supplement
#74. Quality seed plant shop
#75. Aquarium fish and aquatic plants farming
#76. Farm machinery/ equipment repair and maintenance
#77. Creative artworks and crafts production
#78. Ornamental bamboo farming
#79. Ornamental pet fish breeding
#80. Bonsai farming
#81. Orchid cultivation and farming
#82. Eco tour travel agency
#83. Animal feeds, vitamins, and other animal supply shop
#84. Animal pet clinic
#85. Pet grooming and cafe business
#86. Rare and unusual plants cultivation and farming
#87. Vineyard farming
#88. Pet shop
#89. Game fowl breeding and specialty shop
#90. Pond installation and maintenance service
#91. Pet wearables and fashion clothing shop
#92. Shellfish farming
#93. Farm equipments and supply shop
#94. Oil extraction from coconut, palm oil and other seed nuts
#95. Agri trade fairs, expo and event organizing business
#96. Tree trimming and removal services
#97. Bakery business
#98. Cotton farming
#99. Butterfly farming
#100. Fly maggot farming – breeding fly maggots as a free source of high-
quality protein for chicken farms and aquaculture plants.

Product Investment Opportunity: An Example

GARLIC  BULB PRODUCTION

Peak Harvest Season: February‐March 

Off Season: June‐October 
Maturity Days: 150 days 
Local Name: Bawang 
Scientific Name: Allium sativum 
Market:  Local Consumers, Processor
Benefits:
 Reduced blood pressure 
 Improves cholesterol level 
 Lowers the risk of heart disease 
 Helps detoxify heavy metals in the body 
 May improve bone  health 

Nutritional Value: By Products:

 Manganese   Pickled 
 Vitamin B6   Powder 
 Vitamin C   Flakes 
 Selenium   Chips 
 Copper   Oil 

Major Producing Municipalities by Province

ILOCOS SUR ILOCOS NORTE

Sinait  Pasuquin 
Narvacan Vintar
Magsingal    Paoay 
Sto. Domingo  Sarrat 
Burgos 

Cost and Return Analysis  for One Hectare Garlic Bulb Production

Cultivated Zero Tillage

Production (kgs)    = 4,000      = 4,000
Price per kilogram    = 120.00    = 120.00 
Gross Sales      = 480,000.00    = 480,000.00 
Production Cost  = 153,720.07  = 175,308.66 
Net Income      = 326,279.93    = 304,691.34 
Break‐Even Price = 38.43    = 43.83
Break‐Even Volume = 1,281.00  = 1,460.91 
Benefit‐Cost Ratio    = 2.12      = 1.74 
 Production Cost of One Hectare
Garlic Bulb Production (Cultivated)

Activity Measurement Quantity Unit Cost Amount

LABOR COST
42,230.00
Seed Preparation and Treatment MD 10 245.00 2,450.00
Spraying (herbicide) MD 2 245.00 490.00
Land Preparation (Plowing) sqm 10,000 0.45 4,500.00

Planting & Mulching with rice hay MD 35 245.00 8,575.00

Fertlizer Application MD 10 245.00 2,450.00
Irrigation Management MD 32 245.00 7,840.00
Weeding MD 10 245.00 2,450.00
Spraying (pesticide) MD 6 245.00 1,470.00
Spraying (GA3) MD 4 245.00 980.00
Harvesting MD 15 245.00 3,675.00
Drying/sorting/cleaning MD 15 245.00 3,675.00
Root trimming/sorting/bundling MD 15 245.00 3,675.00
MATERIAL COST 102,838.64
Herbicide liter 8 1,200.00 9,600.00
Seeds (large size) kgs 400 150.00 60,000.00
Seed Inoculant (VAM) kgs 6 50.00 300.00
Rice Hay bundle 4,000 3.75 15,000.00

Fertilizers 12,257.32
Complete (14‐14‐14) bag 4 1,044.33 4,177.32
Ammonium Sulfate (21‐0‐0) bag 6 475.00 2,850.00
Ammonium Phosphate (16‐20‐0) bag 4 960.00 3,840.00

Muriate of Potash bag 1 1,390.00 1,390.00

Insecticides liter 4 507.33 2,029.32
Fungicides (250 ml) bot 1 610.00 610.00
Growth Hormone (GA3) tablet 2 200.00 400.00
Fuel and Oil 2,342.00
Oil liter 1 150.00 150.00
Diesel liter 80 27.40 2,192.00
Bamboo for bundling pcs 3 100.00 300.00
Depreciation Cost 1,398.00
Contingencies 7,253.43
TOTAL 153,720.07
 Production Cost of One Hectare
Garlic Bulb Production (Zero Tillage)

Activity Measurement Quantity Unit Cost Amount

LABOR COST 54,600.00
Land Preparation 2,800.00
Irrigation (before planting) MD 8 280.00 2,240.00
Spraying (herbicide) MD 2 280.00 560.00
Seed Preparation and Treatment MD 10 280.00 2,800.00
Planting & Mulching with rice hay MD 40 280.00 11,200.00
Fertlizer Application MD 12 280.00 3,360.00
Irrigation Management MD 32 280.00 8,960.00
Weeding MD 15 280.00 4,200.00
Spraying (pesticide) MD 12 280.00 3,360.00
Spraying (GA3) MD 4 280.00 1,120.00
Harvesting MD 25 280.00 7,000.00
Drying MD 20 280.00 5,600.00
Root trimming/sorting/bundling MD 15 280.00 4,200.00
MATERIAL COST 111,029.20
Herbicide liter 8 1,200.00 9,600.00
Seeds (large size) kgs 400 100.00 40,000.00
Seed Inoculant (VAM) kgs 6 50.00 300.00
Rice Hay bundle 4,000 9.75 39,000.00
Fertilizers 11,940.00
Complete (14‐14‐14) bag 4 1,100.00 4,400.00
Ammonium Sulfate (21‐0‐0) bag 4 550.00 2,200.00
Ammonium Phosphate (16‐20‐0) bag 4 960.00 3,840.00
Muriate of Potash bag 1 1,500.00 1,500.00
Insecticides liter 8 595.00 4,760.00
Fungicides (250ml) bot 2 698.00 1,396.00
Growth Hormone (GA3) tablet 2 200.00 400.00
Fuel and Oil 3,333.20
Oil liter 1 150.00 150.00
Diesel liter 92 34.60 3,183.20
Bamboo for bundling pcs 3 100.00 300.00
Depreciation Cost 1,398.00
Contingencies 8,281.46
TOTAL 175,308.66
 LEARNING ACTIVITY

A. Make a compilation of at least ten successful stories of

agripreneurs in the Philippines.
B. Select an agricultural product and prepare a product
investment opportunity.

REFERENCES
https://www.angelinvestmentnetwork.com.ph/business-proposal/industry-
agriculture-5
https://www.youtube.com/watch?v=l91a3SEvSDg
https://www.youtube.com/watch?v=3Qse56lJJ_w
https://businessdiary.com.ph/13978/top-100-most-profitable-agribusiness-
ideas/
https://www.slideshare.net/rexcris/investing-in-agribusiness-pamumuhunan-
sa-agribusiness
http://www.catif.org/wp-content/uploads/2013/10/PhilAgribusiness_Final-
Report_July2012_IFC.pdf
https://www.ikot.ph/8818-2/
https://www.plugandplaytechcenter.com/resources/new-agriculture-
technology-modern-farming/
https://www.youtube.com/watch?v=fkQpRI3ii20
https://www.ikot.ph/8818-2/
SUMMATIVE TEST
1. What are the things to consider in putting up an agribusiness enterprise?
2. If you are going to choose an agribusiness enterprise what would it be
and why?
3. What is your possible basis in deciding for an agribusiness investment?
Lesson 4

Starting an Agribusiness

Applying Agribusiness Fundamentals

Entrepreneurs/ Agripreneurs must learn some business basics if they are to be

successful in beginning and growing an agribusiness. Regardless of the size of
the new agribusiness, the following fundamentals will prove useful when
getting started:

 Keep the size of the business consistent with the capital resources
available and with progress in developing management capability.
 Select a business that is labor intensive rather than capital intensive.
 Devote adequate time to the development of management capability.
 Keep all employees fully employed, either in the business or elsewhere.
 Study and improve the business continually.
 Maintain an inventory level that allows quick response to customer
requests.
 Use as much of the profits as possible to expand the business.
 Use the physical facilities of your home to the fullest extent possible.
 Set the prices charged for products and services at a level that will
result in a reasonable profit while still being lower than or equal to the
prices charged by the competitors.
 Buy good-quality materials and necessary supplies at the lowest price
possible.
 Treat customers and potential customers courteously and fairly.
 Treat employees fairly.

Conducting a Business Survey

Some people go into business based on a “feeling” or “intuition” that the

business be successful. A business founded on this basis may, with good luck,
be successful. However, the risk is extremely high, and most businesspeople
prefer a more solid foundation on which to start. The procedures to follow in
investigating the economic potential of a new business vary with the specific
type of business under consideration. However, certain basic information on
income, expenses, and market potential should be collected and analyzed
regardless of the type of business. Regardless of the type of business survey
you choose to do, some basic questions should be answered:
  What resources are needed?
 Are these resources available?
 What are the costs of these resources?
 What level of management is required?
 Does the prospective owner have the experience necessary to operate
the business?

Furthermore, the economic feasibility of marketing the products or services

should be analyzed. Some of the questions that should be answered include:

 Are there one or more markets for the products or services?

 At what prices can the products or services be sold?
 Are the prices sufficient to cover the costs and give the seller a
satisfactory profit?
 How reliable are the potential markets?
 What is the potential for future growth?

The answers to these and other questions should be collected and analyzed to
determine the market potential for the products or services.

Business
A business (also known as enterprise or firm) is an organization engage in trade
of goods, services or both to consumers.
An organization or economic system where goods and services are exchanged
for one another or for money. Every business requires
some form of investment and enough customers to whom its output can be sold
on a consistent basis in order to make a profit. Businesses can be privately
owned, not-for-profit or state-owned.
 The etymology of "business" relates to the state of being busy either as an
individual or society as a whole, doing commercially viable and profitable
work. The term "business" has at least three usages, depending on the scope —
the singular usage to mean a particular organization; the generalized usage to
refer to a particular market sector, "the music business" and compound forms
such as agribusiness; and the broadest meaning, which encompasses all activity
by the community of suppliers of goods and services.

Forms of Ownership
Although forms of business ownership vary by jurisdiction, several common
forms exist:

Sole proprietorship: A sole proprietorship is a business owned by one person

for-profit. The owner may operate the business alone or may employ others.
The owner of the business has unlimited liability for the debts incurred by the
business.

Partnership: A partnership is a business owned by two or more people. In most

forms of partnerships, each partner has unlimited liability for the debts
incurred by the business. The three typical classifications of for-profit
partnerships are general partnerships, limited partnerships, and limited
liability partnerships.

Corporation: A corporation is a limited liability business that has a

separate legal personality from its members. Corporations can be
either government-owned or privately owned, and corporations can organize
either for-profit or not-for-profit. A privately owned, for-profit corporation is
owned by shareholders who elect a board of directors to direct the corporation
and hire its managerial staff. A privately owned, for-profit corporation can be
either privately held or publicly held.

Cooperative: Often referred to as a "co-op", a cooperative is a limited liability

business that can organize for-profit or not-for-profit. A cooperative differs
from a for-profit corporation in that it has members, as opposed to
shareholders, who share decision-making authority. Cooperatives are typically
classified as either consumer cooperatives or worker cooperatives.
Cooperatives are fundamental to the ideology of economic democracy.

Classifications

Agriculture and mining businesses are concerned with the production of raw

material, such as plants or minerals.

Financial businesses include banks and other companies that generate profit

through investment and management of capital.

Information businesses generate profits primarily from the resale

of intellectual property and include movie studios, publishers and
packaged software companies.

Manufacturers produce products, from raw materials or component parts,

which they then sell at a profit. Companies that make physical goods, such
as cars or pipes, are considered manufacturers.

Real estate businesses generate profit from the selling, renting, and

development of properties comprising land, residential homes, and other kinds
of buildings.

Retailers and distributors act as middle-men in getting goods produced by

manufacturers to the intended consumer, generating a profit as a result of
providing sales or distribution services. Most consumer-oriented stores and
catalog companies are distributors or retailers.

Service businesses offer intangible goods or services and typically generate a

profit by charging for labor or other services provided to government, other
businesses, or consumers. Organizations ranging from house decorators to
consulting firms, restaurants, and even entertainers are types of service
businesses.

Transportation businesses deliver goods and individuals from location to

location, generating a profit on the transportation costs.

Utilities produce public services such as electricity or sewage treatment,

usually under a government charter.

The 5 C’s of Agribusiness

Clearly, businesses are important to us all, but only the better managed
businesses succeed. In a business, effective management means properly
balancing five factors: 

 Customers
 Cash flow
 Credit
 Credibility
 Capital
These are referred to as the five "C"s. Let's take a look at these
requirements to see how they affect business success.

Customers
The acquisition and retention of customers are prime concerns of every small
business owner because they are the lifeblood of the business, and produce the
revenues that make the business run. The old saying that "nothing happens
until somebody sells something" is certainly true for every small business.
Customer acquisition & retention can be addressed in a number of ways that
are often industry, market or geographically dependent. They include but are
not limited to the following:

1. Advertising: Small businesses, depending on their target markets and the

goods or services offered, use various media to access potential customers:

These includes:
 Direct mail
 Local Newspaper
  Spot TV or Radio ads
 Websites
 Internet listings
 Trade Publications
 Directory ads
 Event or charity sponsorships
 Co-op ads with suppliers

2. Promotions and Premiums. Many small businesses, particularly those

offering services, use discount coupon and offer gifts for various levels of
purchases. Discount effectiveness are promotional gifts at sponsored charity
events are popular. Their effectiveness depends on the targeted audience at
the event and what is given away.

3. Direct Mail to Targeted Customer: Direct mail can be very effective and
low cost means to reach potential customer in a limited geographical area such
as by zip code, or with a purchase list with specific demographics, such as
affluence, education level, etc.

4.Referral Discounts. This technique rewards existing customers for providing

sales lead from their family and friends. In this case, the lead itself may
command a modest discount and a lead that results in additional business may
produce a substantial discount for referring party.

5. Branding. A non product specific form of advertising designed to enhance

the awareness and reputation of the company in the marketplace. It is widely
used by large corporations but can also be effective for small businesses. It
tends to be an ongoing and potentially expensive process.

6.Customer Service. Providing excellent customer service is essential for every

small business because they depend on a small population based in local or
regional markets. A business must be fair pleasant and responsive to the needs
of the customer.

7. Networking. At industry and chamber of commerce events can develop new

customers for some small businesses. Those businesses providing business to
business services tend to benefit most from this type of networking as their
offerings can be used by a broad spectrum of the businesses attending.

8. Telemarketing. It is widely used by businesses offering residential services

(drive away sealing, basement waterproofing, etc) It is a number game relying
on the premise that if enough calls are made, some business.

9. Signage. Most businesses use signage to identify their location, it can also
attract business if it is readable and attractive, especially if it incorporates
branding.
Cash flow

For a particular business, cash flow can be more important over the short term
than profitability. A small business owner should protect cash income and
outflow, and take the necessary actions to ensure continuing, positive cash
flow by doing the following:
 Adjusting expenses
 Accelerating receivable collections
 Extending the payable schedule
 Adjusting inventory levels
 Obtaining a bridge loan to fill a short term cash gap
An unmanaged cash position can cause unwelcome surprises in the form of
unmet payroll, late fees and payables and unpaid taxes. Any one of these
surprises can scuttle a small business quickly.

It is a good idea to do a six to eight week cash flow plan which can provide
time to act to ensure a positive cash flow result at the end of each week. Cash
flow projection is simply looking ahead at when what revenues are coming in,
comparing them to when expenses and payments are due and making
arrangements so the balance remains positive.

Credit

Credit availability and management is part of the small business owners tool kit
for number of reasons:

1. Obtaining Payment Terms: With good credit, a business can obtain more
favorable payment terms, allowing it to use its money longer and to
have a longer inventory before payment.
2. Taking Advantage of Payment Term Discounts: Taking advantage of
payment term discounts allows a business with good credit and cash
flow to actually pay less for the goods received from its vendors. For
example, payment terms maybe net 30 days, but discounted by 2% for
payment made with in 10 days.
3. Managing Cash Flow: Having good credit makes access to credit
available when it is needed to bridge a short term gap between
receivables and payables due to seasonality, inventory enlargement or
business growth.
4. Avoiding COD Hassles on deliveries: Without established credit, new
suppliers will often ship cash on delivery (COD) only on initial orders.
This reduces the payables float and pulls staff away from duties to
handle COD arrivals.
5. Getting Set Up with New Vendors: Without goods established credit, new
vendors maybe reluctant to allow a new business to handle their
product lines and represent them in the marketplace.
 6. Providing a Payables Float: As indicated above, having a payables float
provides available money to the business over the float period, which
enhances profitability.

Credibility

One of the biggest disadvantages a small business has to overcome when

expanding into a new niche or geographic market is lack of credibility. In as
much as it is a small business, it is not well branded or well known as compared
to other competitors.

Potential customers of small businesses may have reservations concerning the

size and competence of the staff and the sustainability of the business or the
lack of national branding. A professional presentation, testimonials,
certifications, references and existing customer word of mouth
recommendations all help. The prospect of dealing with the owner and
receiving more personal service can also help business credibility.

Capital

Access to capital is important to all business when it needs to finance a

building, buy new equipment or vehicle, enlarge inventories or make an
acquisition. The establishment of a good banking relationship and a track
record of competence, trust and good judgment with the bank will go along
way toward assuring sources of capital for the business before the specific need
arises

GUIDELINES FOR STARTING FARM ENTERPRISES

A broad guideline is given here to start farm enterprises. The frame

work prescribed here will serve as a blue print to any entrepreneur. An
intensive effort to answer the items will give clarity to entrepreneur as well to
financial institutions.

SELF ASSESSMENT:
Self assessment is very imperative to start an enterprise. A separate SWOT
analysis is required to evaluate oneself to know how far we have to deal the
favorable and unfavorable items.
Personal interests and resources

• Whether you have adequate and full fledged interest on the enterprises going
to start?

• Whether your interest and attitude match with the nature of enterprise?
• Do you have required skill and competencies to hold the enterprise?

• Do you need to attend any capacity building training to upgrade the skills
required?

• What kind of resources do you have? Human resources, financial resources

etc.,

• How much financial resources you are propose to invest? - Whether it is

adequate?

• Is there a need to approach any financial investors for the project.

WHAT SHOULD I PRODUCE OR SELL?

What should I Produce?

• Assess land capabilities- soil type, topography, irrigation, drainage,
environmental constraints

Match the land capabilities with production requirements

• Regulatory measures available

• Production information: technology related to production and post
production, equipment and machinery availability, consultancy
services etc.,
• Source of production information: Book, e-sources, journals
• Alternative/ competitive products available
• What should I sell?
• Kind of product to sell?
• Quantity to sell?
• Type of marketing the produce
• Market channels to be used
• Competitive advantage of the product
• Where to sell?
• Who are al the target market segment?
• How to sell your product?
• On what price, you propose to sell the product?

Buying or leasing farm land

Buying farm land
• Whether soil is suitable?
• Irrigation/ drainage facility
• Proximity to the market centre
• Other infrastructure availability: Road, electricity, communication,
supporting institutions
Leasing farm land
• Lease arrangements
• Lease amount
Lease periods and terms & conditions

LEARNING ACTIVITY

A. How are you going to start you prospect agribusiness venture?

What are the things to consider?

REFERENCES
https://international-agriculture.com/starting-an-agribusiness-a-step-by-step-
procedure/
https://portal.edukasyon.ph/blog/heres-how-to-start-an-agribusiness
https://smallbusiness.chron.com/start-agribusiness-17598.html
https://www.youtube.com/watch?v=l91a3SEvSDg
https://www.youtube.com/watch?v=rJxQB7chJLc
https://articles.bplans.com/how-to-start-a-farm-and-how-to-start-farming/

SUMMATIVE TEST
1. What are the guidelines in starting an agribusiness venture?
2. Discuss and give insights on the 5c’s of agribusiness.
3. If you will start an agribusiness venture what is your considered form of
ownership? Why?