In this interview, Yejide Alli, co-founder of agro-processing startup Processo, discusses the structural challenges confronting small and medium agro businesses, particularly the high cost of setting up compliant processing operations. As demand for adding secondary value to primary agricultural produce continues to grow, Alli explains how gaps in access to infrastructure, regulation-ready facilities, and scalable operating models limit the ability of small producers in the agro sector to expand. Drawing from her experience building Processo, she shares insights into the realities of operating in the agro-processing sector and the practical considerations required to support sustainable growth.

What initially drew you to the agro-processing sector?
Processo started as a class project at the Nigerian University of Technology and Management. As part of that project, my co-founders and I were tasked with studying different industries in Nigeria and identifying the underlying challenges limiting growth. I have always been interested in how technology can be applied to improve traditional industries, particularly those that are critical to everyday livelihoods.

As we looked more closely at agriculture, we noticed a recurring pattern. Many small food businesses had strong demand for their products, but they were unable to scale production consistently and in compliance. Many of them operated informally, produced in small batches, and relied on workarounds that made it difficult to scale.

What became clear was that the challenge was not a lack of ambition or market opportunity. It was the difficulty of moving from informal production to structured operations. That gap between demand and production capacity is what drew me more deeply into the agro-processing space.

Why is setting up in agro-processing particularly expensive for small businesses?
Agro-processing is capital-intensive by nature. Even at a small scale, businesses need to invest in equipment, secure suitable premises, meet food safety requirements, and manage logistics and storage. Unlike digital businesses, it is difficult to test ideas cheaply or make quick changes without incurring real costs.

In Nigeria, these challenges are amplified by infrastructure issues. Electricity supply is unreliable, which often forces businesses to rely on generators. Processing equipment is frequently imported, which increases costs and creates delays. There is also a regulatory process that adds time and expense. While compliance is necessary, navigating it without adequate support can be overwhelming for small operators.

For many founders, these combined costs make it difficult to even get started, let alone scale. The initial setup alone can stall progress before the business has a chance to grow.

In practical terms, what does Processo do?
Processo is a digital platform that helps small agro businesses access processing and co-manufacturing facilities without owning expensive equipment. The idea is a digital marketplace that connects small agro processors with existing facilities that already have the necessary infrastructure but are not operating at full capacity.

By allowing businesses to use these facilities on a more flexible basis, the platform aims to reduce upfront investment and make it easier for small operators to process, package, and meet basic standards. This approach allows entrepreneurs to focus on building their products and markets rather than allocating resources to setup costs.

How did these realities influence the idea behind Processo?
The idea behind Processo was shaped by the question of access. While it is expensive for small businesses to establish processing facilities, we observed that there were facilities that remained underutilised. The issue was not always the absence of infrastructure, but how fragmented access to it was.

Processo explored whether improving coordination between producers and processors could make existing resources more accessible. The platform was designed as a marketplace-style solution to help small agro businesses find, book, and use processing facilities more efficiently, rather than having to build everything from scratch.

What challenges did you encounter while building the platform?
One of the main challenges was aligning a digital solution with a highly physical, operational sector. Technology can improve coordination, visibility, and access, but it cannot eliminate constraints such as power supply issues, logistics bottlenecks, or regulatory delays.

Another challenge was adoption. Small businesses operate on tight margins and are cautious about taking on new costs or changing how they work. Any new model has to fit naturally into their existing processes and cash flows. Building trust and ensuring that the solution addressed real day-to-day problems took time.

From your experience, what is most misunderstood about small agro businesses?
There is often an assumption that small agribusinesses lack ambition or innovation. In reality, many founders are highly resourceful and understand their markets well. What they often lack are systems that reduce the cost and complexity of growth.

When formalisation and scaling are too expensive, even well-run businesses struggle to expand sustainably. Addressing this gap requires solutions that reflect how these businesses actually operate, rather than idealised models.

What lessons does your work with Processo highlight for the wider startup ecosystem?
It highlights the importance of understanding sector-specific constraints. In capital-intensive sectors such as agro-processing, growth models must account for infrastructure, regulation, and operating costs from the outset.

Startups often focus heavily on product development, but in sectors like this, execution and operating environment play just as important a role as the idea itself.

What do you think is needed to better support small agro businesses going forward?
Reducing the cost of infrastructure access would make a meaningful difference. This could include shared facilities, better utilisation of existing capacity, and clearer pathways for regulatory compliance.

Technology can support these efforts by improving coordination and transparency, but it needs to be applied with a clear understanding of the realities small businesses face on a daily basis.

How do you see your work evolving from here?
My interest remains in understanding how businesses in complex sectors can grow sustainably. The building process reinforced the importance of grounding business models in operational realities, particularly in emerging markets.

I remain interested in applying technology thoughtfully to improve industries and in working on ideas that can move from concept to market in a practical and sustainable way.