Market research vital in agribusiness ventures
23 December 2020 | Agriculture
Namibia has numerous established farmers who own and operate successful agribusiness ventures that are involved in the primary production of crops, livestock and poultry.
According to Agribank's technical advisor for crops and poultry, Hanks Saisai, sometimes these ventures become specialised in the processing or semi-processing of agricultural commodities because of having many years of experience and always being informed about the industry's condition.
Saisai says that for any aspiring agribusiness owner, there are always plenty opportunities that can be turned into a successful business venture.
“For one to be a successful owner of an agribusiness venture, it is of great importance to carry out market research to get an informed view of what to expect when venturing into agricultural businesses.”
According to Saisai, market research has proven to be a key aspect that each aspiring business owner must undertake before setting up the actual business.
It has several informative guidelines that will help to sustain a business.
“Firstly, market research advises the farmer about what product he or she must focus on producing and know who the consumer of that specific product will be.”
Market research further helps a farmer determine how much to charge for the product and how much of the product must be produced. Lastly, market research assists farmers to develop a production plan that will always ensure that customers' demands are satisfied. He says a good example would be that of a farmer who has conducted market research in Windhoek and discovers that there is a demand for fresh table eggs for households in Hochland Park and then focuses on rearing, for example, Loham brown hens that produce eggs.
Market research will also assist the farmer to understand who the current producers of eggs are, how much they are charging and where they buy their inputs such as feeds and vaccines from.
It further helps the farmer identify the gaps that current producers are not filling or catering for. “For example, the delivery of eggs to clients could give you an edge over other producers when you charge the same price but go the extra mile by delivering the product to the doorstep of your customer,” says Saisai.
He adds that market research addresses the issue of ensuring that customer needs are met by delivering the product in its desired form.
“Always ensure you do thorough market research when thinking of setting up an agribusiness venture as this has a major role to play when you as a farmer wants to have a sustainable income generating enterprise.”