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Farming and Agribusiness Industry –
A case study for the African Youth

Prior to the concept, development, and emergence of Agribusiness in 1957 by John Davis and Ray Goldberg, the whole of Sub Saharan Africa’s agriculture sector has been suffering from the Guggisberg’s economic syndrome.

The sustenance of the above colonial economic structure came with its own costs including; direct costs such as near-stagnation of export receipts, import dependency, aid dependency and external debt burden as well as indirect costs, including high unemployment, high cost of living, and weak currency. 

It is regrettable that in a 21st century world, where Agriculture has been mechanized in almost all developed countries, Africa is now waking up to the reality of the enormous economic benefits that agribusiness holds for her people.

It is particularly sad that for over 50 years of post-colonization, Africa still fancies, for instance, the exportation of her raw agricultural products, without adding any value whatsoever.

All things being equal, Africa, with its billion acres of good arable lands, is supposed to be the food basket of the world.

The above fact is corroborated by the World Bank Group’s 2013 report, which puts Africa’s current agriculture and agribusiness market size at $313 billion, with a potential to reach $1 Trillion in 2030.

If the above forecast is anything to go by, then Africa’s economy is on the verge of a massive transformation, thus if the continent’s negative tendencies toward agriculture could change.

What is this whole business about Agribusiness?

Well, to make it easier to digest, the term “agribusiness” defines its own self – “agriculture and business”. It is a gradual shift from the colonial peasant and subsistence farming into full exploitation of the entire value chain of agriculture for commercial gains.

By the above value chain, I am referring to agrichemicals, breeding, crop production (farming or contract farming), distribution, farm machinery, processing, and seed supply, as well as marketing and retail sales. All agents of the food and fibre value chain and those institutions that influence it are part of the agribusiness system (Wikipedia).

From the aforesaid definition,  agribusiness is a broad interdisciplinary business, w

Prior to the concept, development, and emergence of Agribusiness in 1957 by John Davis and Ray Goldberg, the whole of Sub Saharan Africa’s agriculture sector has been suffering from the Guggisberg’s economic syndrome.

The sustenance of the above colonial economic structure came with its own costs including; direct costs such as near-stagnation of export receipts, import dependency, aid dependency and external debt burden as well as indirect costs, including high unemployment, high cost of living, and weak currency. 

It is regrettable that in a 21st century world, where Agriculture has been mechanized in almost all developed countries, Africa is now waking up to the reality of the enormous economic benefits that agribusiness holds for her people.

It is particularly sad that for over 50 years of post-colonization, Africa still fancies, for instance, the exportation of her raw agricultural products, without adding any value whatsoever.

All things being equal, Africa, with its billion acres of good arable lands, is supposed to be the food basket of the world.

The above fact is corroborated by the World Bank Group’s 2013 report, which puts Africa’s current agriculture and agribusiness market size at $313 billion, with a potential to reach $1 Trillion in 2030.

If the above forecast is anything to go by, then Africa’s economy is on the verge of a massive transformation, thus if the continent’s negative tendencies toward agriculture could change.

What is this whole business about Agribusiness?

Well, to make it easier to digest, the term “agribusiness” defines its own self – “agriculture and business”. It is a gradual shift from the colonial peasant and subsistence farming into full exploitation of the entire value chain of agriculture for commercial gains.

By the above value chain, I am referring to agrichemicals, breeding, crop production (farming or contract farming), distribution, farm machinery, processing, and seed supply, as well as marketing and retail sales. All agents of the food and fibre value chain and those institutions that influence it are part of the agribusiness system (Wikipedia).

From the aforesaid definition,  agribusiness is a broad interdisciplinary business, which when  exploited well would lead to massive exports dependency and foreign exchange receipts, reduced external debt burden, increased employment, high standards of living and strong local currency.

As the popular saying goes; “the ball is now in the court of Africans” to take advantage of the enormous economic benefits of this industry.

hich when  exploited well would lead to massive exports dependency and foreign exchange receipts, reduced external debt burden, increased employment, high standards of living and strong local currency.

As the popular saying goes; “the ball is now in the court of Africans” to take advantage of the enormous economic benefits of this industry.