Agribusiness is one sure economic activity that can stabilise the sustainable existence of man in all parts of the world. This is to say the least as it is a known fact that all economic indices support food production, distribution and acquisition, being the most vital need that sustains life. Among the three basic needs of man (food, shelter and clothing), life obviously is dependent on food availability and sufficiency; which is scientifically and practically possible only through engaging in a full agribusiness value chain in the global market. Already, the predicted rise in the world population to 9.7 billion people by 2050 is more than enough economic pointer for players in the food sector of the world economy to brace up and come up with both short term (for contingency actions that might be required for any immediate eventuality on any food supply gap already created), and most importantly, long term business plans, that would engage every stakeholder along the agribusiness value chain, to essentially accommodate already anticipated future challenges in food production from now, due to the ever rising world population. Such arrangements would go a long way, not only to avert future food crises but, to also augment the present hiccups the world is experiencing from tighter monetary policy with uncertainty in the world’s financial markets, high inflation, the fall-out of Russian military invasion of Ukraine, a significant food supplier to the world food market.
From the Global Trade Outlook, there is already a forecast that in general global trade will grow at below-average pace in 2023; whereas the expected volume of world’s merchandize trade is expected to grow by 1.7 percent this 2023 (after it rose by 2.7 percent in the preceding year, according to the most recent forecast by the World Trade Organisation, WTO). This prediction will not favourably flow along with the kind of expectations and aspirations that can place global food production on a comfortable pedestal, being below the average growth of 2.6 percent over a period of 12 years. This, especially when the food sector of the world economy is considered to actively take a lead position in the global productivity profiling (growing below 2.7% average, at 2.4%) that ought to assure a future food sufficiency in the light of the ever increasing world population (as essential as food is to life). It is, however, expected that the coming year should see a trade growth globally, at 3.2 percent (though with uncertainty of downside risks in world trade; which appears to remain under pressure from external factors).
A nation like Nigeria, with fantastic farming weather conditions, that is also greatly endowed with very rich expanse of arable land for farming cultivation, needs to seriously key into agribusiness and tap from the abundance of agricultural resources therein (but not limited to cash crops only), as a low hanging fruit. This, the agricultural investors should focus on, by exploiting every bit of all the stages along the value chain for gains and benefits in its ancillary services it can afford, with comparative advantages, for the nation’s food economy, in particular. Now that the continental free trade multilateral agreement is going to take full effect amongst the fifty four nations of Africa under the African Continental Free Trade Agreement (AfCFTA), competitive pricing and quality products and services are likely to assume centre stage in international trade among African countries. One sure attraction is that nations would be motivated to grow more foods for exports (basically as agrarian economies) with an aim to keep improving in their annual international trade balances.
Attention should be shifted to food production and strategies that would, through a long term business plan for the global economy, sustain a progressive growth in global food supply, as the world population is continuously on the increase. This certainly shifts the attention of the operators and the investors in the agricultural sector, to deepen interests in innovative ways of developing trendy and modern food formulations that should be in high demand for the younger generations all over the world. This makes it very compelling for inventive methods of newer food formulas through research and development (R&D).
Food sufficiency for the various economies of the world is the roadmap to global food security, where famine, hunger, poverty and poor health are kept far away. Nigeria needs to utilise all her available resources (material, human and financial) to concentrate on growing foods and improving in all aspects of developing the modern age food formulas because of its demographic population of more youths than older citizens in its economy. Another aspect of the kind of agribusiness that should be made to trend in the country is to view food development from the export dimension, as a non-oil export that can significantly contribute its quota to both GDP growth and foreign exchange earnings for the economy. With the great potential that it has, value addition should be integrated in the food production supply chain for agribusiness in the country.
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