6/01/2015

Investment options in Agribusiness

There are various investment opportunities in Agribusiness just like any other business. This is why you should invest in Agribusiness.
Money



The Agriculture and food industry make up 10 % of the global Gross Domestic Product as estimated by world bank( Forbes , 2007)
There is much money in value addition no wonder Starbucks made a gross income of $3.12B in 2014  alone (marketwatch).
It is a path to financial freedom.

These are the various investment opportunities to look into:
See also Sources of finance for Agribusiness

Share acquisition through stock exchange.

There are Agricultural companies which are quoted in the stock exchange for you to buy shares from. In Kenya shares are traded through the Nairobi Stock Exchange in which the following Agricultural firms are listed; Sasini tea ltd, Williamson tea ltd, Kakuzi ltd and ReaVipingo Ltd.

Leasing of farm machinery.

Since the cost of purchasing machines is too costly especially in less developed countries you can purchase a farm machine which you then out to farmers. In Kenya , county governments can look into these as a way of generating income for the county as well as increasing Agricultural productivity.

Land leasing.

If you have an underutilised piece of land or even a lot of acres, why not lend it out? This is a good way of generating income all year round. Also by leasing out you will enable farmers with little capital to set-up their Agribusiness.

Franchise / dealerships.
Franchising

There are numerous franchises in the world such as Kentucky Food Court and McDonald's and dealerships such as John Deere. In Kenya there are a number of them such as  the Nairobi Java House and ArtCaffe.

REITS.

Real Estate Investment Trusts are a way of acquiring ownership of land in form of stock or shares. It is most applicable where it is too expensive to buy land individually.  In Kenya  SACCOS such as SIC offer a similar options. Also there is Uhifadhi Ltd  in which an individual gets to buy shares of land  which is used in animal rearing and crop cultivation and the dividends given to the members.

Mobile Apps Technology.

 One of the biggest innovation in mobile use yet is the use of money transfer services such as M-pesa.
A farmer can simply use a mobile app to manage his or her farm without necessarily stepping foot on the farm. Mobile apps are more accessible to mobile users and have become integrated with everyday life activities.

know any other forms of investment? Share your ideas!

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