Get Guardian on GoogleThe Managing Director of Xtralarge Farms and Resorts, Dr. Moji Davids, has urged Nigerians seeking wealth through agriculture to look beyond traditional farming, stressing that greater business opportunities lie in processing, distribution, storage, logistics and other segments of the agricultural value chain.
Davids said owning hectares of farmland and recording bumper harvests did not necessarily translate into financial success, noting that agricultural wealth creation required a broader understanding of markets, value addition, business structures and profitability.
She made this submission as Xtralarge Farms and Resorts prepares to mark its 10th anniversary, while calling on young Nigerians to embrace agribusiness as a viable pathway to enterprise development and wealth creation.
According to her, many people venturing into agriculture focus excessively on production without paying adequate attention to the commercial opportunities surrounding the sector.
“Farming is an activity. Agribusiness is an enterprise. Farming is about producing food. Agribusiness is about understanding the entire business ecosystem that makes food production profitable,” she said.
She explained that farmers could cultivate hectares of land, invest heavily in inputs and labour, and harvest tonnes of produce without building substantial wealth if they lacked access to reliable markets and profitable business models.
Using cassava production as an example, Davids said while conventional farmers might concentrate on cultivating and selling harvested cassava, entrepreneurs with a broader business outlook could explore opportunities in garri production, cassava flour, starch, packaging, distribution and export markets.
“The difference is not necessarily the size of their farms. It is the difference in their business thinking. One is primarily producing a commodity. The other is building an enterprise around an agricultural commodity,” she said.
The Xtralarge Farms boss identified the agricultural value chain as one of the sector’s biggest opportunities, listing agricultural inputs, mechanisation, processing and manufacturing, storage and preservation, aggregation, distribution, packaging, branding, technology, logistics, agricultural infrastructure and agritourism as areas capable of supporting profitable businesses.
She maintained that some of the most attractive opportunities in agriculture could be found outside primary production, particularly in processing and converting raw produce into products with higher commercial value.
According to her, sustainable wealth creation requires efficient business systems, reinvestment of profits, value creation and enterprises capable of expanding beyond the personal involvement of their founders.
Addressing young Nigerians, Davids urged them to see agriculture as an attractive economic sector rather than an occupation of last resort for those unable to secure other employment opportunities.
She noted that young people did not necessarily need to own large expanses of farmland to succeed in agribusiness, pointing to opportunities in food processing, agricultural distribution, logistics, mechanisation services, branding and technology.
“You could build a successful agricultural distribution company without owning a single hectare. You could establish a food-processing business by sourcing from existing farmers. You could build an agricultural logistics company, develop a food brand, provide mechanisation services or create technology solutions for farmers,” she said.
Investors, she added, should understand operational costs, potential risks and the commercial realities of their proposed ventures rather than being swayed by attractive farm pictures or promises of extraordinary returns.
“Invest in agriculture because you understand the opportunity, the risks, the business model and the pathway to profitability,” she advised.
Reflecting on the company’s 10 years of operations, Davids said the anniversary represented more than a celebration of years in business, describing it as an opportunity to renew conversations about agriculture as a platform for enterprise development, investment, food security, tourism, innovation and economic transformation.
She called for stronger collaboration among farmers, processors, financial institutions, government, technology providers, investors and private-sector operators, noting that individual farmers could not transform the agricultural economy in isolation.
According to her, well-organised agricultural enterprises connected through efficient value chains could contribute significantly to economic growth, employment generation and food security.
She said Xtralarge Farms and Resorts remained committed to promoting a broader understanding of agriculture and encouraging Nigerians to become agricultural entrepreneurs, manufacturers, distributors, innovators and investors rather than limiting their ambitions to primary production.
Davids further advised aspiring farmers and investors to understand the business before investing in cultivation, identify buyers before harvesting, understand their financial obligations before borrowing and assess risks before making investment commitments.
She said agricultural success should be measured not merely by the number of hectares cultivated or tonnes harvested, but also by the value created, operational efficiency, profitability, employment generated, markets served and assets built.
Summing up her position, she said: “Farming may feed a nation, but agribusiness can build an economy. Farming produces commodities, but agribusiness creates industries. Farming can provide income, but well-structured agribusinesses can build generational wealth.”
She urged Nigerians to adopt a business-oriented approach to agriculture, stressing that the sector’s future would increasingly depend on entrepreneurs capable of identifying opportunities, connecting markets and creating value across the agricultural ecosystem.
