Agribusiness combines the words « agriculture » and « business ». It refers to any business related to agricultural production or agriculture-related activities. In brief, agribusiness involves all the steps required to send an agricultural good to the marketplace/consumers: production, processing and distribution. Companies involved in agribusiness cover all aspects of food production and there are alot of benefits of investing in this industry.
Agribusiness is a very important component of the economy in most countries since with population increase, the demand for agricultural products keeps rising. For this reason, investing in agribusiness means supporting an industry that provides a lot of value to the community.
Benefits of investing in Agribusiness
Increase demand in Agri-products
With continues increase in global population, agricultural products have a guaranteed market demand. To add, one of the last things people are willing to cut from their budgets is food. It is projected that, by 2050 the world’s population will likely increase by more than 35%. Consequently, to feed that population, crop production will need to double and Africa is ideally said become a premium food supplier.
We need to help the food sector scale-up and make the most of growth opportunities hence investing in agribusiness is the most profitable thing to do. Your investment provides capital for agricultural entrepreneurs to maximize their productivity and yields and you help fund farmers access to inputs or the equipment they need to scale their produce as bountiful as possible.
All this to say investing in Agribusiness is investing in something tangible that produces community/worldwide benefits.
High yield returns
Agriculture when done the right way has the ability to yield a plentiful harvest even with just little investing done. Farm returns have an average annual return of 11.5% with low risk involved. Thus, agribusiness is a low volatility investment with high yield potential.
To conclude, investing in agribusiness is a strong and fruitful venture. It yields physical results that benefits the investor more than just financial gains. By investing in an agribusiness, you are investing in the success of a community.
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