Beyond the Farm: Why Agricultural Business Training is Crucial By H.E. Dean Jonas
A picture is worth a thousand words, and this picture perfectly illustrates the critical need for farmers to understand not just how to grow crops, but how to thrive in a competitive market. The image depicts two side-by-side stalls selling watermelons. On the left, a farmer, depicted in a traditional straw hat, sells whole watermelons, each priced at $4. On the right, another seller, with a more modern appearance, offers watermelon slices and freshly made watermelon juice, also priced at $4 each.
The Tale of Two Sellers
The first vendor is likely a farmer who is mainly focused on production, the traditional image of agriculture. He has grown his watermelons and brought them to market, hoping to sell them as is. The second vendor, however, has gone a step further. He has recognized that he can add value to his product by processing it. By cutting the watermelon into slices and also creating juice, he caters to different customer needs – those looking for the whole fruit, a quick snack, a refreshing drink, or the convenience of pre-cut fruit.
The Price of Value Addition
It’s important to note that both vendors have priced their offerings at $4, but the value proposition is vastly different. The first vendor offers a whole watermelon for $4, while the second offers a single slice or a cup of juice for the same $4! This is a clever tactic. The second vendor is selling “convenience” and a different experience and has greatly increased his profit margin.
The Lesson for Farmers
This image highlights a crucial gap in Antigua and Barbuda’s agricultural sector: the need for business acumen alongside farming skills. Many farmers are experts in cultivation but lack the knowledge to maximize their profits through marketing, value addition, and understanding consumer demand.
Why Business Training Matters
1. Value Addition: Learning how to process their produce, like the watermelon vendor, can significantly increase a farmer’s income. Turning raw materials such as pork, fish, chicken or fruits into processed goods opens up new markets and allows for higher pricing.
2. Market Understanding: Business training teaches farmers how to research market trends, identify customer preferences, and tailor their products accordingly. This could involve diversifying crops, targeting niche markets, or adapting to seasonal demands such as occurs within the hotel sector.
3. Negotiation and Marketing: Farmers need to know how to effectively market their products, negotiate fair prices, and build relationships with buyers and supermarkets. This is especially crucial when dealing with intermediaries or large retailers.
4. Financial Literacy: Managing finances is vital for any business, including farming. Training in budgeting, record-keeping, and accessing credit can help farmers make informed decisions and ensure long-term sustainability.
5. Adapting to Change: The agricultural landscape is constantly evolving, with climate change, technological advancements, and shifting consumer preferences presenting new challenges. Business training equips farmers with the skills to adapt and innovate, ensuring their businesses remain relevant and profitable.
Bridging the Gap
The Government of China will join hands with the Ministry of Agriculture, the Ministry of Education and all agricultural organizations to drive business agricultural training down to the secondary and primary schools in the next phase of Agriculture development in Antigua and Barbuda. They will first undertake a feasibility study of the sector to identify the challenges. All stakeholders have a crucial role to play in providing new and existing farmers with access to business training. This could involve workshops, mentorship programs, laboratory installations and access to market information. By empowering farmers with business knowledge, we can transform them from simple producers into successful entrepreneurs, strengthening rural economies and ensuring food security for the future.
The image of the two watermelon vendors serves as a powerful reminder that success in agriculture is no longer just about what you grow, but also about how you sell it. It’s time to invest in the business side of farming or the “business of agriculture” and empower farmers to reap the full rewards of their hard work.
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The locals do not really have that big view or exceptional ability in marketing or maximizing of profit. It is why at this moment that ABLP should do what I have done for years when I help clients to be millionaires in their business, you guide and sometimes you hold their hands until they are able to do it. You can hold their hands as ABLP making making hotels seek certain requirements locally before they can go abroad for it. They should have requirement contracts with local farmers for at least 10% or 20% or what the reasonable amount is from local farmers and producers. This should be law, as a lot of locals do not have the competency and innovation yet, remember our country is not really intelligent yet, sadly speaking. So we must help them think bigger, logically, and innovatively. That I believe is also a duty of a government. Protecting the interest of the public and motivating them to strive bigger by also providing opportunities in which the government can easily provide. Make it mandatory to purchase a percentage locally. Just like the government makes law to put you in prison for basic things, make laws to put demands on local farmers’ produce. Help them.
True farmers could perhaps help themselves more, if that is a need for them, by learning more about business. But, the needs of the average citizen should also be considered by farmers and the government. For healthy food security, the type of processing should be carefully considered and regulated to prevent harmful products from entering the market in the name of business. Also, availability and affordability for the average citizen should be considered. It’s good to serve our international guests at the hotels with local produce, but we should also be increasing access to healthy whole foods in various villages around the island.