Nepal being called to be an agro-based country as agriculture consists of a large portion of our GDP and also it creats jobs to large portion of our population density. However, the scenario is changing day by day as the young generation is being attracted towards the service related jobs at offices, hotels and resturants, supermarkets, banks and so on. The new generation is gradually diverting from the traditional occupation of agriculture. This diversion have alot of disadvantages to entire nation however it generates alots of oppurtinities for any entreprenuer and definately a predictable success.
Although, agriculture is supposed to be unprofitable business as of now but it really isn’t. The nonprofitable issue arises based upon how we tackle onto it.
Agricultural production is closely associated with anybodys basic need. The food we eat and the clothes we wear are our most rudimentary needs which we fullfill only from agriculture. However, the people associated with agricultural production are decreasing day by day.
On one hand the population is rapidly increasing day by day and on the other hand, the manpower is leaving the traditional occupation of farming to get better jobs in the service sector. Hence, for any businesses which can produce agro-products will have no problem at selling its product.
The rising cost of agro products in the market somehow attracting entrepreneurs to invest on it. Due to the increasing demand, the prices of agro-based products like cereals, vegetables, meat, eggs, and milk are contineously and persistantly rising making the field profitable for business.
The biggest problem of this field is that the producers are less remunerated than traders for the products of producer. We can see in the market that consumers are paying excessive rupees for same goods like vegetable, fruits, cerals etc which costs alot less for the traders. However, the problem is due to the lack of good trading practice and due to production of goods in a small scale. Producing the goods in a significantly larger scale can make the producers capable to retail their products themselves and can significantly benefit by selling their own products.
Here is my analysis on agro-business in the context of Nepal.
Plus Points:
*Large population is unemployed so it is easy to get labors for work.
*Free Fertile land is available in abundance.
*The Unbearable load shedding might have little effect on agriculture.
*Also, the political disbalance have considerably low impact upon this field. However, its marketing sector is significantly affected as there may have chances for wastage of products because degradation of food may take place with elapse of time.
*Nepal’s climate and land topography is suitable for the production of various types of agricultural products. Terai is good for cereals; the hilly region is good for livestock farming (goats, buffaloes, cows), horticulture, apiculture and so on; and mountain area is good for livestock farming (yaks, sheep, chyangras and so on), horticulture (apples) and so on.
Minus Points:
*Farmers unaware about modern agricultural technology
*Lack of the genetically modified seeds
*Lack of adequate resource centers providing consultation towards agriculture
*Lack of government support and subsidy
*Insufficient irrigation facility in many places especially terai regions
*Lack of skilled manpower (labors, engineers, researchers, entrepreneurs etc)
Opportunities:
*Increasing population, thus higher number of consumers
*Decreasing manpower in agriculture, thus rise in potential number of buyers
*No problem of market to sell a significant portion of agricultural production as we have to import a lot of agricultural products from India in present situation
Threats:
*The goods produced within nepal will have very tough time competing with the products that are imported from India, because of the subsidy provided in agriculture by the Indian government
*The lack of good technology to control the diseases in agricultural crops, fowls and animals could pose unexpected threats to related business (e.g. Bird flu in chickens)
*The unstable political environment of the country could pose serious threats because for any fair business there need to have regular observation in related field and volatility of political condition may have sever effects on regular observation
Despite of minus points and threats, entreprenuers are running their business to the field of agriculture. It will be really embarrassing if i say about unsupportive nepali goverment and really a way to thank for all the entreprenuers for their patience and devotion to agiculture field. What i m going to say about unemployment problem of nepal is all about we can generate enormous jobs just by preserving our ago-based tradition what our ancestor did and in the way what the world is now doing. Everything is going to be okay if we do it together just not for us but for entire nation.
Hey guys this is aakash ghimire. I write things in my own way hence, if you get any confusion and complementation reguard this post, plz mention that into comment.
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