Most people think of the agricultural business as those who work on the farm. However, it includes some work in the subtropical and tropical zone, such as fishermen, agricultural engineers, etc. Each has its risks and challenges that need to be considered when working with new and unknown problems. The following are common problems faced by the agricultural business.
1. Poor Infrastructural Facilities
Agricultural business requires a proper infrastructure to be able to run well. This is normally done through the establishment of good rail and road networks.
Infrastructural facilities also include the availability of market information networks, electricity, telecommunication, etc. All these facilities are crucial in starting and running an agricultural network.
However, the agricultural sector suffers from a lack of these facilities, especially for rural farmers. As a result, they have to experience many problems such as poor communication and transportation.
This, in turn, adversely affects the effective use of Agri-Resources available. It also affects efficiency, mobility of labor, and product delivery.
2. Poor Productivity
Productivity is normally measured based on the number of units produced or harvested per labor unit. However, this measure is not always accurate since it depends on many factors, such as the type of crop, season, and other variables.
The main factor that affects agricultural productivity is the quality and quantity of inputs available to farmers. If farmers have sufficient inputs, they can produce more, leading to high productivity. The problem with this system is that if farmers do not have enough inputs, they may not be able to produce enough for their own needs and may have to look for alternative sources.
3. Poor Quality Control
One major problem farmers face in the agricultural business is poor quality control measures during production stages. This is because they are not sure of the quality of the product they are producing.
For instance, you may want to buy a certain kind of potato, but when you go to the market and see other potatoes that look exactly like it. As a result, you may not be able to make a choice. This is because you are not sure which one is better. Similar examples can be given for all kinds of produce.
4. Unresponsive Government Policies
The government has a very important role to play in the agricultural sector. Its main objective is to ensure that the farmers get what they need and the proper price. To do this, the government needs to have a good understanding of the agriculture sector.
This way, it can help farmers improve their production and protect them from unfair competition via the available farm positions. However, this is not always possible because of many factors that affect government policies, such as corruption, lack of awareness, and other bureaucratic issues.
5. Lack of Knowledge of Agricultural Technology
Another major problem affecting agricultural productivity is a lack of knowledge of agricultural technology. This is because farmers do not know how to implement modern techniques on their farms, leading them to produce more with fewer inputs.
6. Lack of Managerial Manpower
It is important to have good management and a skilled workforce in the agricultural sector to improve farmers’ productivity. This is because they can help farmers implement new techniques and be on top of the situation. However, a lack of these two kinds of resources is causing many problems for farmers.
7. Poor Marketing Systems
Another major problem that affects agricultural productivity is the poor marketing systems that many farmers use to sell their products. Many farmers cannot sell their produce due to poor marketing systems when selling their products.
For this reason, the products will get to the market at a high price because of the high costs involved in transporting them from farms to markets. Additionally, the situation might get out of hand when there is a huge demand.
In addition to poor marketing systems, farmers do not have the necessary processing facilities on their farms to process the produce before it is sold to consumers.
Many farms do not have commercial-grade equipment and modern processing facilities that can be used in processing the product before selling it to consumers. This lack of processing facilities affects farmers because they cannot sell their produce at a higher price since there is no way to process it.
As seen above, many factors influence the agricultural business. However, any effort to correct the problems will be a long-term one. The government and the private sector must work together to solve these problems. As a result, the agricultural business will improve, and so will the lives of farmers.
Eric Reyes is a passionate thought leader having been featured in 50 distinguished online and offline platforms. His passion and knowledge in Finance and Business made him a sought-after contributor providing valuable insights to his readers. You can find him reading a book and discussing current events in his spare time.