Note: This article was first published on LinkedIn, in Sept 2021.

Changes in economic parameters are often cracks that lead to goldmine. But the thing is, they most time appear as faultline, problem, failure, incongruity and it takes a discerning mind to see opportunity lurking. Even, the opportunity often requires innovative thinking to yield.

63% of the 200 million Nigerian population below 24yrs of age means a compounding burden for a nation (with a largely under-developed agri-food system) having more than 26 million people undernourished, where food need isn’t about and rising food demand isn’t led only by consumption/need for calorific food but mainly of specifics as nourishing nutrients -protein for the growing demographic.

While this presents a problem, it also presents opportunities for entrepreneurs who are into food and agriculture business to offer solutions to meet the protein demand.

Government policies and measures, with focus on boosting local food production, have complemented the aforementioned, negatively and positively.

Forex stifling for milk importation telling of a technical ban since directed people’s protein demand to other readily available and affordable sources as fish and poultry.

But a border closure affecting maize importation (constituting chief input in poultry and fish feeds), drought, low domestic maize supply have sent maize price up affecting production cost for fish and poultry.

While this poses a challenge to entrepreneurs (and sure a problem for consumers), attending high retail prices of fish/poultry -as feed is costly not scarce and still is available to keep production going -makes it attractive for the bold.

However, while entrepreneurs balance risk and reward, another problem is of major concern, requiring innovative thinking to address.

Purchasing power of the potential targets is dwindling. Of the 40 million youth eligible to work 13.1 million (1 in 3 youths) is unemployed.

They are less likely able to feed themselves. Even a minimum wage less than the extreme poverty threshold ($60 on count of $2/day for a month) doesn’t hold any good for the employed ones.

And the young people depending on their guardians is no equaliser when 1 in 2 Nigerians live below extreme poverty level.

There lies the incongruity: a young demographic forming bulk of a growing population increasingly demanding food protein informing demand explosion in poultry/fish sector but that their dwindling purchasing power won’t be able to afford rising price of poultry/fish stemming from hiked maize price.

Now, as an entrepreneur what do you do in this case -where there’s a goldmine but neither you nor the target audience can afford the cost of digging for it?

A friend of mine doing farming big in Ibadan perfectly worked out this opportunity. With DOB (Day Old Broiler) price rising more than 100% and feed being more cost, he restragised the whole production process and determined what value meant to the consumer.

He instead switched to selling cooked broiler at his restaurant other than selling live broiler at farm gate. Since 60% of income of Nigerians is spent on food (and more for those that earn below minimum wage at 95%, reports the NBS), spending on seasoning and other ingredients to prepare broiler meat would be a strain on scarce resource.

Offering cooked broiler not only saves money and time on the part of the final consumer, but also delivers value in the ready-to-eat form sought.

Then comes raising broilers himself for his restaurant as against buying them, to cut cost. He capitalised on established relationship with long term input suppliers, buying DOB and feed at best prices below market price. Also was growing in his farm some maize under already installed irrigation, serving as feed buffer in drought period and against costly feed.

The result: a substantially lowered production cost yielding affordable chicken in finished form met by massive demand. Importantly, him raising the chickens for 3 weeks ensured a even more lowered incured cost and a shorter and frequent production cycle ensuring multiple turnovers yielding enough revenue and profit to keep the business going and diversifying into other things.

But exploiting opportunity as this demands knowing what the problem is, understanding the opportunity and what it demands.

It also requires one to be already engaged in the sector presented with opportunity, to swiftly stategise plan and mobilise resources -as seen with the leveraging on already installed irrigation facility & input suppliers’ network by my friend.

We have to be observant and critical of changes in economic indicators, social phenomena, consumers behaviour, how consumers are choosing to spend their money and things competing with their disposable income.