Franchising In Agribusiness :Leveraging on this model to create wealth.

  Franchising, in lay terms means jumping on the success train of an established brand to start a profitable business. Franchising works in various types of business ventures with the common goal of expansion and wealth creation.

 A wise man once said "if you want to go fast, go alone but if you want to go far, go with people."  How does this relate to franchising? lets see.. You are an entrepreneur,you are starting your business : brand creation, awareness and customer segmentation is no small feat. It will take time, lots of money and hours of twigging the strategy. 

   The result you desire will surely come but at what speed? at what cost? how about man power? im so sure you get the drift. Franchising on the other hand shortens this curve, you know the niche you are interested in, study the profile of the key players and then jump on the train.

  This model or the cloned version of  franchising is used by big organisations to grow their brands while creating wealth for those involved. Why is Dstv or Gotv big? yes! franchising and the cloned version of franchising is the agent close to you. This is a win-win situation.,how about KFC? same story.

 

 Franchising in agribusiness:  opportunities abound to jump on the train and forget about overcoming inertia issues. #Join the moving train.

 Lets look at the poultry industry: your dream is to sell processed chicken but dont have funds to start and reach your goal?  How about red meat value chain? 

Look at the giants in the industry, check the group with the widest coverage, check the brands that are on popular demand, visit stores/ malls/do market survey then join the moving train. Start out as a franchise to your chosen brand,and grow the business..

    

 Dr.Henrietta Ojuri, Value chain strategist.

 You still have the dream to start your own brand? it gets better. Learn the ropes while selling another brand, accumulate wealth and come up with a new product also in the poultry value chain that popped up as a business idea from feedback from customers. The time to use the network you have created to increase your net worth is here. 

 Franchising in agribusiness : 1) reduce start up cost. 2) Labor is reduced. 3) cost of production is zero. 4) Cost advertisement is reduced. The company already has web presence, usually your shop address will just be included in the... available at following outlets. You will just link that to your own page and in comes customers with cash.

 Franchising in agribusiness is profitable but the franchisee must be innovative to ride on the brand's success.

 

How can investors in agribusiness use this model to empower youths while expanding the brand?  join me next time.

Nigeria woos foreign investors to bridge tomato production gap.

Stakeholders in the Nigeria tomato industry have agreed to hold annual tomato investment roundtable, as part of the initiative to build –up more investment required to stimulate production active along value- chain in country. Scaling –up investment in the sector, is believed would go a long way in generating activities that will address the current trend in which over 45 percent of tomato cultivated in the country are lost due to poor post-harvest management.Nigeria woos foreign investors to bridge tomato production gap. The stakeholders made this submission at a maiden edition of the Nigeria Tomato Investment Roundtable, held during the week, in the Dutse, capital of Jigawa State.Nigeria woos foreign investors to bridge tomato production gap. The roundtable which drew participants from within and outside the country, was declared opened by Muhammad Badaru Abubakar, governor of Jigawa state, and also had in attendance, Hafiz Abubakar deputy-governor of Kano state, among others.

FOOD SUMMIT.

A food summit is underway and investors are expected to storm the event,and contribute to the food security scheme. A large number of value chains are on the platform,but my area is the poultry value chain. 

This discussion will be elaborate with various dimensions and most of all exciting interviews with key players in the industry and prospective investors,so hop in ,the train has left the station. 

 AN EXPOSE ON THE POULTRY VALUE CHAIN. Its my duty to break the myth about the poultry value chain, this is an industry where you can profit on various level if you harness the opportunities. 

 

Welcome to the poultry business:look at the diagram, it shows several areas for investment.to  make profit. These stages also have subsets,giving opportunities for investment based on various financial capacity and target market.

FOOD SECURITY :THE ROAD MAP.

What is food security? In lay terms,it refers to accessibility, availability ,affordability of nutritious food in quantities required ,when needed. The issue of food security is a global challenge with different countries facing different constraints.


The African countries are worst-hit "with 30% of the population severely and chronically undernourished"(Maputo declaration,July 2003).There is a need for Africa to utilize its full potential in agriculture by increasing food production through investment in livestock,aquaculture,crop farming and forestry.

   The Agricultural sector can be a major driver of economic growth,if all necessary support is provided for the growth and development.The support will include policies that are favorable,funding and education to encourage investors and urban farmers to increase and expand agricultural investments.

POULTRY VALUE CHAIN: LESSONS FROM INDIA.

Broiler production in India is projected to increase by approximately 8% to 4.2 million tonnes in 2016 on rising demand from the growing middle class.Local estimates believe that demand for processed chicken meat is growing between 15-20% per year, according to a recent USDA GAINS report.The organised sector produces an estimated 80% of total chicken meat production, and is mainly concentrated in Tamil Nadu, Andhra Pradesh, Maharashtra, Karnataka, and West Bengal. The live poultry market constitutes 90 to 95% of total sales since most consumers prefer freshly culled chicken meat. Within the last ten years, many broiler enterprises have vertically integrated their operations, especially in southern and western India. Approximately 60-70% of all operations use the integrator model, while the remaining are smaller backyard operations. Integrator' s own all the hatcheries, feed mills, and slaughter facilities, and contract with multiple smaller farmers who raise the chicks to slaughter weight primarily in open air sheds. One integrator may have as many as 20,000 contracted farms, however, in a few cases integrator's may sell chicks or feed without requiring a contract. Some integrator's also provide credit, extension services, and veterinary medicine. At the end of the production cycle, the live birds either are purchased by the integrator's for slaughter and further processing, or by a middle man/wholesaler, eventually arriving at a live bird wet market for local sale. For 2016, egg production is forecast at 80 billion eggs, up 5% from last year. In order to mitigate rising transportation costs and better maintain quality control, poultry companies are reportedly establishing more layer farms near highly urbanised areas. The processed chicken meat sector is growing at a rate between 15-20% per year due to the growing middle class, which reportedly has positively affected sales not only in retail, but quick service restaurants and the hotel, restaurant, and institutional sector. A few major poultry companies have started expanding their slaughtering and processing facilities, and are beginning to offer a wider range of processed chicken meat products for the retail sector like frozen chicken burgers, salamis, nuggets, sausages, and tikkas. India's per capital consumption of poultry meat is estimated at around 3.1 kg per year, which is low compared to the world average of around 17 kg per year. India's per capital consumption of eggs is estimated at about 62 eggs per year. More and more people are shifting to poultry and poultry by-products,as a means of livelihood, employment opportunities and providing more protein for the nation.The sector provide various points of investment opportunities,which are very profitable. portions of story from world poultry.

POULTRY VALUE CHAIN

 POULTRY VALUE CHAIN.  PROVIDING MORE PROTEIN FOR THE NATION.  OBJECTIVE .  Provision of animal protein which is essential for growth and development.  Source of revenue generation.  Promote entrepreneurship.  Employment opportunities.  JUSTIFICATION OF PROJECT.  The dietary intake of protein according to nutritionist is 0.8g/kg body weight.  56g/day is required for men and 46g/day for women but there is a deficit.  According to the FAO the average intake is below recommendation, so more protein(animal sources) should be incorporated in diet. Eggs and chicken will makeup for the deficit.  An egg a day, keeps the doctor away.  POULTRY PRODUCTION.  Birds reared for meat and eggs are referred to as poultry.  These include cockerels, broilers, layers and turkey.  Ducks, guinea fowls and quails  Birds to be reared are raised within a time line so that profit can be realized from the venture .  PRODUCTION OVERVIEW.  The scale of project could be small, medium or large, depending on the number of birds and space.  Adequate housing is paramount to success of the venture. This could be temporary or permanent structures, but which must be well ventilated and rodent proof.  PRODUCTION OVERVIEW( 2)  Feeders, drinkers and lighting equipment are provided.  Healthy birds sourced from reputable hatcheries.  Birds are properly housed and good quality feed and adequate quantity are provided.  Essential vaccination and medication are provided.  Strict bio security measures enforced.   METHODOLOGY.  The project will encompass production(rearing) ,processing and packaging.  It will be a year long project, divided into phases so as to make money at specific periods in the year.  Broilers reared and marketed at 42 days,this phase is the 42-dayturn over. Investors with limited funds can access this chain at this level.  METHODOLOGY (2)  Layers reared for eggs starts at about 21 weeks of age, and some breeds can lay up to 300 eggs in a year. The layers could be sold out after a production cycle.  Cockerels mature at 5 months,this can be reared towards a festive period to increase revenue.  Turkeys can also be reared twice in a year ,and also targeted towards festive season.  PRODUCTS. Eggs and chicken are sold for profit.  Feathers from the birds are processed and used as accessories, home décor, mats and fashion accessories. This will also generate revenue.  The waste generated from the birds can be channeled to a digester, to produce electricity.  The blood waste and gut waste can be processed and incorporated into animal feed.  PROJECT COST AND ESTIMATE.  Land depends on size and location.  Laying pens..7.6mx7.6m @# 900,000.  Cages units @#70,000  Farm implements such as wheel barrow, shovel, bucket and water drums. @ #35,000.  Day old chicks ranging from #180-250.  Feed; this accounts for 70% of production hence it will be advisable to have a feed mill that will cater for the birds.  REARING COST . Brooding @25# per chick.  Vaccination/medication @ #40 per chick.  Labour…#7,500 .  Feeders/drinker depending on type and model. Polythene sheets and cardboards@ # 3000.  Broiler..0-3 weeks requires 100g of feed/chick/day.  REARING COST( 2)  Broiler at 4-7weeks require..180g of feed/chick/day.  Layers----o-8weeks requires 60g of feed/day/chick.  9-20 weeks require..90g of feed/day/chick.  Then from 21 weeks require 120g of feed/day/chick.  Water is made available at all times.  PROCESSING AND PACKAGING.  RECOMMENDATIONS.  Healthy birds must be procured.  Bio security measures instituted.  Employment of interested workers.  Good working conditions for workers.  Advertisement of processing plant to expand market.  Good water source and proper waste disposal methods.  A mini processing plant can be attached to live bird markets to process birds. This is another investment opportunity.  Conclusion.  The poultry value chain is a very lucrative venture with rapid return of investment.  Investors could actually invest in short term aspect such as broiler production.  The long term investors will go for layers/egg production.  The seasonal investors will look into cockerels and turkeys.

INVESTING IN POULTRY VALUE CHAIN.

Production overview of the poultry-value chain. The value chain encompasses the following poultry species; cockerel, layers , turkeys and broilers. The emphasis of this project is on intensive broiler production because of the rapid return on investment. The advantages of this venture are as follows; 1) Production span is 42-days. 2) Low capital investment. 3) Large market. 4) High turn-over of investment. The broiler production is a profitable venture that is not labour intensive; also the cost of medication is limited because of the length of production. This is also an added advantage as it will further reduce overhead costs and the benefits of this venture are tapped faster than in other poultry species. The processing aspect will involve machines that work at high capacity to process birds in large numbers within a short time. The venture will also promote partnership with other producers, who can use the facility at a fee. This will also be another point of wealth generation, as the cost of the machines will be recovered within a short time. Investors in this value-chain have the rapid return on investment as an advantage because financial institutions have short-term loans that will benefit them.