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How is The Future of Agriculture and Agribusiness

Agribusiness in Kenya

The importance of agriculture to the Kenyan economy cannot be underestimated. It is well documented that agriculture is key to economic growth and contributes to socio-economic development of the country. The sector accounts for around 25 percent of the country’s GDP and contributes over 70 percent of the national export earnings.

Agribusiness sector is undergoing sort of a technology revolution period. Many  people are working towards streamlining the process for agricultural business. We need to cap the losses this industry suffers due to poor management and illicit commission agents. Because the future of the Kenyan Agribusiness sector depends on farmers and traders. Seeing as how farmers are ending their lives or succumbing to debts, we need solutions which will ensure the future of the sector. Its worrying seeing our counterparts from north lift always complaining about maize prices. Although we have been telling them to diversify, they need to feel that their land will continue giving them value.

The Future of Farming is  Agribusiness and farming Smart

The area of land available for agriculture in Kenya and the entire world has decreased. If Kenya for example wants to expand or maintain its current food output it needs to increase its productivity – without imposing an additional burden on the environment. More with less, welcome to the world of Smart Farming

What is Smart Farming?

Smart Farming is a farming management concept using modern technology to increase the quantity and quality of agricultural products. Farmers in the 21st century have access to GPS, soil scanning, data management, and Internet of Things technologies. By precisely measuring variations within a field and adapting the strategy accordingly, farmers can greatly increase the effectiveness of pesticides and fertilizers, and use them more selectively. Similarly, using Smart Farming techniques, farmers can better monitor the needs of individual animals and adjust their nutrition correspondingly, thereby preventing disease and enhancing herd health.

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What are the requirements for Smart Farming?

Knowledge and capital are essential for any innovation. New farming technologies require more and more professional skills. A farmer today is not only a person with a passion for agriculture, he or she is also a teacher, a doctor, a politician, a lawyer (to find their way through a growing maze of regulations) and a part-time accountant (making a living from selling agricultural produce requires bookkeeping skills and an in-depth knowledge of market chains and price volatility).

Furthermore, Smart Farming requires capital. Thankfully, there are a wide range of options available. From using low capital investment smart phone applications that track your livestock to a capital-intensive automated combine. In principle, implementing Smart Farming technologies can be easily up scaled.

Blogs and companies such as Oxfarm provides farmers with information and helpful insights that farmers can rely on.

 

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What Is the Difference Between Agriculture And Agribusiness?

Agriculture involves the cultivation of crops and the raising of livestock for food, the most basic of human needs. The first ecologists, farmers, understood the interaction of soil, water, grasses and trees; they understood the need to work with nature to produce sufficiency or abundance, and to try to avert scarcity in times of drought or pestilence. Agriculture dictated the survival and development of societies, and security in food allowed the growth of modern industrial states.

In today’s interdependent and technological world of global markets and distribution systems, agriculture has become an essential element of national and international economies. Food is a commodity for trade, and food security is a matter of global concern. The future security of the world’s food supply has focused international discussion on one over-arching question: Can agricultural systems meet the demands of a rising world population and expanded expectations on the one hand, and deal with the deterioration of land and soil resources on the other?

Read: How youth you can succeed in farming

Many scientists today believe that modern agricultural practices, which have increased efficiency and production to an extent unknown in history, now appear to be exhausting the agricultural ecosystem. A movement towards more sustainable agricultural practices has begun. On the other hand, agribusinesses point to new science and technology based on genetic engineering and other methods that may revolutionize the food industry.

Kenya, rich in resources, has always been a major exporter of food. Kenyans, like other societies, have seen farmlands and farm communities as part of their environmental heritage, national identity and culture. But in today’s world of supermarkets, fast foods and freezer containers, where food is available to all who can afford it, many urbanized Kenyans have lost the connection between the food they eat and the land that produces it, not recognizing the profound changes that agribusiness has brought to farming communities, the farming way of life and the environment.

In recent years, concerns about pesticide use, biotechnology and other issues have focused public attention on the quality and safety of food and industrial farming techniques, and spurred interest in alternatives. Resolving issues regarding the sustainability of Kenyan agriculture will involve a new recognition of the integrity of nature and ecosystems and the wisdom of farming methods in harmony with the local environment, while at the same time utilizing the best national and international science and technology to maintain food security levels and meet the challenge of rising populations and deteriorating land and soil resources.

Read: Should I quit my job and start farming?

Players of Agribusiness in Kenya

From Sugarcane farming in the western region to tea farming in the Western Kenya region, livestock keeping in northern Kenya, maize farming in the north rift and fishing in the Indian Ocean, smallholder producers face more or less the same hurdles to wealth creation. The good news is that opportunities exist to make farming, including the small-scale types, a profitable venture for anyone. One of the ways of bringing shine to the much-neglected sector is by adopting sustainable agribusiness.

Agribusiness is a broad area and covers the entire spectrum of food production with multiple players along the value chain. It includes farming, the supply of various inputs, distribution, processing, wholesale and retail sales, research and development, marketing and financing as well as the end product: the food on the plate of the consumer.

The key players in the value chain include the farmers, co-operatives, regulators, government agencies, research institutions, companies, business associations, financial institutions, multilateral bodies, civil society, and the academia.

Sustainable agriculture is not singularly fixated on the profit motive. It considers the socio-economic, environmental and cultural impacts of various activities along the value chain. It supports the local economy through knowledge transfer, job creation, supporting local enterprises and ensuring food safety and security.

The academia can play a crucial role in promoting sustainable agribusiness through carrying out research on new ways of doing agriculture such as better and eco-friendly ways of increasing the soil fertility, increasing animal produce, among other things.

There are various businesses that do a lot with regard to promoting sustainable and inclusive agriculture. There is also a need for improvement in infrastructure, climate change mitigation and adaptation, research and extension, value addition and skills upgrading.

As long as funding remains limited or is diverted by officials, farming will remain unattractive and farmers will continue to suffer in spite of their toil. Lack of trust across the value chain is another issue with many farmers perceiving middlemen as exploiters. The other key aspect is the imbalance of trade between Kenya and its trading partners. Take for instance, coffee and tea which are grossly under-priced with farmers barely meeting the cost of their investment.

Yet the same commodities fetch better prices once they leave the farmers’ hands. The widespread failure to add value to farmers’ produce denies producers the opportunity to earn the true value of their produce. It also denies local entrepreneurs and budding industrialists the opportunity to grow new lines of business and create jobs for many jobless Kenyans. Value addition requires policy intervention through a favorable tax regime, lower cost of power, improved infrastructure and government commitment to find markets outside its borders.

Read: I don’t have capital to start my agribusiness venture how do I start from scratch?

Kenyan farmers and especially the youths are urged to indulge in farming and more specifically agribusiness. Do it for fun and money!