TAFF Nigeria Business Model
TAFF Nigeria business model illustrated in the schematic below is driven by an ordered process of capturing and locking-in opportunity spaces in the Nigerian Agriculture market. TAFF Nigeria business model entails harnessing of opportunities in the various verticals of the agriculture value chain powered by Terra Agric Farm Future Program centres of excellence products and initiatives.
TAFF Nigeria business model is being operated as follows:
Market Demand Identification as well as Aggregation of Agricultural Assets and collaborations necessary to deliver end-to-end value chain play.
Agribusiness demands resources such as land, water, energy, animals, inputs, housing and so on. Money is needed to obtain these resources. Most smallholder farmers have little or no savings and if they ask for a loan then their management capabilities are called into question. Most farmers are not educated and so lack financial capability; hence they have no capacity to improve their income generation.
In order to actualize its superior strategy and value proposition in the Agriculture sector, TAFF Nigeria has curated major strategic alliances and has formed key joint ventures with leading organizations across its operating value chain verticals. TAFF Nigeria investment strategy is anchored on its unique Agriculture Investment Principles and Models based on Geographical and Asset diversification, in order to manage Agricultural Investment risks and deliver superior returns and consistent value to farmers, JV partners, investors and other stakeholders.
TAFF Nigeria Business Model is Geographically-diversified pan Nigeria (with her different Agro-Ecological Zones); Value-Chain based (Upstream-Midstream-Downstream); Asset-diversified along Multi-Crop, Livestock, Processing, Infrastructure, Services; Powered by Technology/Mechanization/Agric Value Chain Finance/Risk Mitigation Products and anchored on Knowledge (Technical/Managerial Know How)
Setting up various value chain entities and management contracts, appropriately suited to harnessing identified value chain opportunities.
TAFF Nigeria has set up a number of subsidiary companies and is also an asset manager of various agricultural assets. This arrangement allows TAFF Nigeria to stay lean as an efficient business operator and strategic manager. As a mono-cultural business group, TAFF Nigeria initiates and leads investment decisions and articulation of strategic intents across its operating value chain verticals, so as to ensure full alignment of subsidiaries and managed entities to the overall strategic objectives of the group.
Operationalizing value chain entities leveraging TAFF Nigeria operating structure + Franchised “Farm Future Program” centres of excellence.
TAFF Nigeria is a holding company with a corporate centre at the heart of its end-to-end value chain play. TAFF Nigeria defines and drives the business and operating models of value chain entities in a manner that ensures congruence of strategic objectives. TAFF Nigeria is leveraging Terra Agric’s “Farm Future Program” model to deliver technical, managerial and operational know how to its subsidiaries and managed companies.