Agribusiness is more than farming — it’s building a chain that reliably moves raw output to value and to buyers. The most investable agribusinesses lock in supply, manage risk and secure offtake.
1. Secure supply and quality
- Work with farmer groups and provide inputs/training to secure consistent quality.
- Draft simple outgrower agreements to stabilise volumes and traceability.
2. Add value through processing
- Processing reduces price volatility and extends shelf life.
- Start with modular processing so you can scale as demand grows.
3. De-risk with offtake and pre-sales
- Anchor off-take agreements with reputable buyers or exporters.
- Use them as evidence of demand for financiers.
4. Workable logistics & storage
- Cold chain and storage reduce post-harvest losses.
- Map transport costs and seasonality — they materially affect margins.
5. Practical finance options
- Mix working capital facilities, input financing for farmers, and debt for capex.
- Structured finance, like receivables financing against confirmed offtake, works well.
6. Simple farm-level record-keeping
- Train partners to keep records — yields, inputs and payments. These data increase bankability.
