Agriculture is one of the major sectors of most economies in the world, including Nigeria. It is associated with the processes of planting and harvesting of crops, rearing of livestock i.e. animal husbandry.
We have several other activities related to the definitions of agriculture such as forestry, fish farming, lumbering, etc.
Buying and selling Agric produce in Nigeria is a lucrative business, you can sell any agricultural product on any scale, be it as a retailer, wholesaler or distributor.
It shouldn’t sound like there are items you cannot sell. The decision becomes necessary because there are other factors to consider while choosing what agriculture produce to buy/sell.
While deciding what to sell, you need to come up with a plan the sustainability of your business.
First step to do buying and selling Agric produce in Nigeria is to take your plan into consideration such as how much capital you have to start the business with. The amount of money you have will go a long way to decide what you should buy and how/where you sell it.
You can start buying and selling Agric produce in Nigeria with as little as N20,000; N30,000, N40,000, N50,000, N100,000 and above. You can even start with less than that.
Your decision to do buying and selling Agric produce in Nigeria also involves that you should take a hard look at yourself and determine the amount of time you can commit to the business, and which model of this business you are most suited for.
Read Also:
Methods of Buying and Selling Agric Produce In Nigeria.
In a setting where people are looking for opportunities to make a living, everything is worth trying. Below are the Methods of Buying and Selling Agric Produce In Nigeria:
1. Become An Agric Agent
Everyone is an agent, it depends on how you want to apply it. A whole lot of people use this talent in housing, shipping, traveling etc.
One sector that is duly neglected is agriculture. It maybe that people think they wouldn’t pay their bills doing it, or they don’t know how to go about it.
Try it today, especially when it wouldn’t cost you much to try. And this uncommon opportunity for common people will answer your financial questions, if you apply the principles of an agent.
2. Buy/sell small quantities
You can buy the produce you want from the farmers and sell to the market within the same area. This does not require much capital because there is little logistics/transport concerns. Everything is done within the same state so your cost is minimal.
If you establish a trust relationship with the farmers, some of them could even let you sell their produce first and return the money, so you don’t need to pay first.
The drawback to this is that you can expect the Return on investment (ROI) to be minimal. Since the trade is done within the same state, many farmers would figure that they can sell their own produce themselves and make even more profit.
Therefore, if you are targeting a decent Return on investment (ROI), this may not be the way to go. But if you have little or no money to start this business, then you should start with this.
3. Selling In Local Markets
Local markets serve as points of physical contact between buyers and sellers. You can sell your farm produce at any market within your local community.
However, you’ll have to obtain trade permit from your local government authorities before you can sell in any local market in Nigeria.
4. Join Farmers’ Association
The first step to take as a farmer is to join a farmers’ association within your local community. It’s very important to belong to at least one association because they’ll be keeping you up-to-date with trends in the local market.
It will enable to be aware of latest market news, disease outbreaks, new tax regulations, and a lot more. Being part of farm associations is a cheaper way to stay in the middle of the market chain, eliminating middlemen, and subsequently increasing the returns on your sales.
5. Medium/Large scale
Another way you can approach agro-commodity trade is to buy produce from one state of the country and sell in another.
Here’s an example: you can buy tubers of yam from Benue state where they have yams in abundance, and sell in Sokoto state where yams are usually scarce. On your way back, you can buy whatever Sokoto state has in abundance and sell in Benue state.
You can even buy from one African country and sell in another. I know people who would buy dried fish from Mali and sell in Nigeria. This model has the most ROI but it also carries the most risk because one road accident could wipe off your entire capital, especially if you have no insurance.
You will need a lot of time on your hands for this and you should be prepared to travel much. This is not the business you start with N50k; only the transport costs could take more than the N50k you have.
You need a larger capital base to start the business. One thing you shouldn’t worry about is profit; all things being equal, you should make a very decent ROI on your investment.
Read Also:
6. Selling Directly To Customers
One of the best ways of selling farm produce by local farmers is through selling the goods directly to the final consumers.
By doing this, you’ll be able control the whole distribution chain and control the final market price. To sell directly to consumers, you’ll need to set up a small shed in your farm to enable buyers to buy from you directly, thereby increasing your sales. In addition, you have the privilege to build a strong customer relationship with the consumers.
7. Online Selling
Another method of selling or buying your produce at cheaper costs is the use of the internet. With online selling, your products are exposed to a large body of potential customers.
Using internet technology requires you to have an e-commerce platform to showcase your products. You can sign up on Shopify to get a free e-commerce account.
8. Exportation Of Farm Produce
Cash crops like cocoa, cotton, oil palm, etc are goods that have high demand on the international trade market. Every manufacturing nations of the world need these products desperately.
In fact, the level of demand is far greater than the supply; meaning every cash crop from your farm has a ready market.
As a wise farmer, the best avenue to maximize your profit is through the exportation of your farm produce. When you export, you’ll sell at a price higher than the local market price.
9. Store now/sell later
Another way you can approach agro-commodity trade is to buy a particular produce during its peak season when the price is cheap, store the produce, and sell months later during its off season.
Some of the items you can store like this are palm oil, melon seeds (egusi), ogbono, Guinea Corn, dried pepper, etc.
You will need to know when the produce you are interested in is in season. When in season, such produce would be significantly cheaper. So you buy it when it is cheaper and sell when the price increases.
This model of business is best suited for employees or business people who need to invest their money somewhere else instead of keeping them in the bank. It takes a lot of time between buying and selling, you will need to be patient.
