Chinyere Anyanwu, neveralonewitu@gmail. com

To get good return on investment (RoI) in agricultural business, as well as ensure sustainable farming programmes, adequate attention has to be paid to farm inputs and the most costeffective and convenient ways of sourcing them.

Farm inputs come in two categories, namely, consumables and capital inputs. Consumable inputs include seeds (high yield varieties); fertilisers (manures and chemical fertilisers); veterinary medicines; packing materials (gunnies, ropes, twine); agrochemicals; oil and lubricants; feeds, while capital inputs are tractors, agricultural machineries (thrasher, harvester); agricultural implements and tools (cultivators, levellers, irrigation, pump sets, motors, sheds, bullock carts, jeeps, etc). For the purpose of this write-up, attention will be focused on consumable inputs.

As with most things in farming, there’s no one-size-fits-all solution. Farmers buy their inputs in several different ways and from different places but it is important to seek out places where subsidised agro-inputs can be purchased. That reduces cost of production and will in effect impact produce cost positively.

When sourcing agro-inputs, a farmer can opt for a preferred supplier, which will necessitate building a meaningful, well established relationship with the single supplier. There are some benefits derivable from this option, which include having to manage one relationship, making one call when ordering and having only one van making deliveries, which saves time.

Also, in the unlikely event that there is a short supply of a single product, a preferred supplier with a closer re- lationship may be more inclined to help you access the product.

However, on the downside, relying solely on a preferred supplier will make it difficult to meaningfully bench- mark prices and you might not be too sure that your supplier is al- ways giving you the best deal. Working with a single supplier also makes the farmer heavily reliant on that supplier in the event of a product shortage and you’re restricted to the limited product set they supply.

There is also the competitive purchasing mode of sourcing inputs. Here, multiple suppliers are approached for quotes and prices are compared. Shopping around enables you to check out prices avail- able in the market, giving you the confidence that you are getting the best deal for your business at any given time. This also allows for tracking and respond- ing to input price fluctuations, ensuring you’re purchasing at the right time.

This purchasing method provides full access to all products on the mar- ket and gives an opportunity to find cheaper or higher performing alter- natives to the brands you might usually order.

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The major setback of this approach is how time-consuming it can be. In the thick of the buying season, it might turn into a full-time job, endlessly calling suppliers, manually comparing several different quotes and coordinating multiple deliveries from different suppliers.

If products are running short, not having a single supplier relation- ship could also be a dis- advantage.

There is also the for- ward buying approach, which implies purchasing or committing to inputs for the season in advance. Purchasing or committing to products at the beginning of the season is a great way to secure products and as well secure a good bar- gain.

Once commercial agreements are in place, work load through- out the season will be reduced as ordering becomes as simple as calling down from commitments that have al- ready been made. Know-

ing prices upfront also makes accounting and monitoring cash flow easier.

This approach also comes with its disadvantages among which are the possibility of pay- ing above market rate if prices drop throughout the season. It also means more work at the start of the season having to predict as accurately as possible the volume of products required.

Grouping is another inputs sourcing approach. With this method, small farms, especially those within the same vicinity, or farm cooperative societies, join forces to aggregate demand. This can save the individual farms time and increase a farm’s buying power.

The group approach of sourcing inputs has some challenges. Groups will generally charge a membership or commis- sion fee. The individual farm might end up losing control over what products are ordered. The possibility of receiving different brands of inputs from those actually requested is usually a common complaint. If there is need for a specific brand, you may have to go outside the group or settle for an alternative product.

Timely sourcing of inputs as well as access to finance to purchase them is very crucial to bumper yields, which will in turn boost the nation’s food security.