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Nairaland Forum / Nairaland / General / Business / Trading Perishables Agricultural Produce Can Be Risky And Profitable. (781 Views)
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Trading Perishables Agricultural Produce Can Be Risky And Profitable. by SehgateTeam(m): 7:31pm On Apr 18, 2017 |
Remember nobody wishes to buy rotten fruits or bad perishables farm produce. Monetary value of a fruit depend largely on its state of freshness. Heat, bacteria infections among many other factors that affect fruits while transporting it through long distance. Most farmers producing perishables harvest and sell very fast and cheap to avoid spoilage, and largest percentage of risk within the perishable goods value chain system is taken by traders. Trading perishables can be so profitable because the farmers wish to sell out on time after harvest and make little gain while the traders takes the risk upon him/her self to transport these goods from farm to most populated part of the country where people don’t have access to fresh farm produce and they depend on this traders for fruits. Perishable agricultural farm produce-traders tend to make 100% profit on every trade/ investment at the same time, when the business goes toward negative direction, they tend to lose 60% of invested fund on the business. We shall discuss briefly on 3 major factors that affect perishables agricultural farm produce business and as a young agropreneur, you must work on these factors to see your business successful or grow with time. Hint* as a young agropreneur, never venture into this type of business if you don’t have market for it. Do not procrastinate on how profitable the business is before buying from farm. Work effectively on your supply and prospective buyers or agent before going to buy from the farmers. This alone is one of the key ways to avoid lost or bad business. Transportation: These factors play the most important role in perishables business. Except you have your own logistics department in place, it’s going to be a bit difficult in most especially when you wanted to start little and your load can not full one truck at a time, in this cases, consolidation of goods become only option which causes delay, lost of goods and spoilage of goods. Moving perishables farm produce in some advance countries can be done effectively by Train (refrigerated containers) but in the case of Nigeria, we depend largely on road transport system. Bad road network, long distance and unforeseen mechanical problems of the truck is undisputed. So if you are going into tomatoes or banana business, work so much on the effective mode of transportation. Note: Travelling a long distance within a short period of time is important. Nobody buys rotten fruits or goods at a good or premium price. Heat/ High Temperature: Most fruits or perishables agricultural produce of high economic value keep up its freshness at a lower temperature. High temperature encourages the ripening process which speed up the rate at which the fruit ripe and probably gives a favorable condition for bacteria growth on the outer-most part or skin of the fruit. The higher the temperature, the higher the rate of spoilage. As a young agropreneur, check carefully the type of truck that will favor the transportation of your goods from the farm to your preferred market location, open body truck, cover body truck, flat-bed or cold room. continue https://sehgatehub./2017/04/01/trading-perishables-agricultural-produce-can-be-so-risky-and-profitable/ |
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