Diversification in agriculture and investment opportunities

One of the areas where diversification is most needed is agriculture.

There are many thousands of plants, some say 10.000, which gives edible and non-edible material to humankind.
And there are also many animals as part of the food chain and which provide by-products.

Examples of non-edible can be cotton, tobacco, wood and roots/bark, animal skins, furs and bones, plant extracts.

And there are many with high selling price: porcini mushrooms, truffles, Siberian kiwi, acerola and kakadu plum (extremely high vitamin C contents), pine nuts, waygu meat, wools(cashmere, alpaca), some flowers, spices (saffron), essential oils and plant extracts(e.g. bergamot), seafood

There are also many very niche products: donkey milk (used in hospitals for new-borns with milk allergies/rejection), ostrich eggs and meat, buffalo milk used for mozzarella, trumpet zucchini which vine vertically and giant onions up to 2 kg which grow on horizontal nets above ground, essential oils of many plants

Each of the thousands niche products of agricultural goods and derived products can be worth millions and provide excellent profitability and jobs for farmers, while staying away from commoditised mainstream products where competition is very high and selling prices low.

Obviously agriculture should provide food security inprimis, both as cheap and easy access to nourishments and as a state security itself.

But there are many opportunities for enterprising people to carve out a niche to thrive. I believe that we are in an era, where often investments are made for "innovative start-ups selling Chihuahua pet food", but too little money flows into agriculture, where there are still many opportunities to be found.

Sovereign Economic Model and Japanese-style economy

One of the ways Japan build its post-war economy was a peculiar method on how they organized both internal competition and exports.

1) In the internal market, Japan applied strong protectionism to impede imports from foreign firms.
2) They selected a number of national champions (usually between 5 and 8) with a similar structure of suppliers
3) National champions competed furiously for market share, without one ever grabbing a too big share
4) As result of this fierce competition, the Japanese companies became competitive in the international market
5) The companies began to export, not individually, but as a syndicate -in a collaborative way- to gain critical mass

Japan had huge success with this stratagem. Also Keiretsu - which is a Japanese term, for a strong relationship, even mutual equity stakes between a group of companies - is a strong bond when working and trading internationally. This system is still in place in the Japanese economy.

I believe a sovereign economy should consider the Japanese method of building up entire industries, it has worked before successfully and can work now.

Стратегии диверсификации продукции и импортозамещения


Это отличная статья о различных типах диверсификации

В среднем рынки меняются каждые 5 лет. Это означает, что каждый год не менее 20% товаров, производимых компанией, должны быть либо полностью новыми, либо улучшенными/обновленными версиями. Из них 20%- четверть, поэтому 5% должны быть совершенно новым продуктом, как минимум сделанным для тестового запуска, чтобы протестировать рынок.

Многие компании, с которыми я общаюсь, не имеют плана расширения или диверсификации своего ассортимента. На базовом уровне они не могут воспользоваться своим текущим положением на рынке(репутацией), производственными возможностями или навыками для создания новых продуктов или услуг.

SOVECOMO может помочь компаниям подготовить сценарии, бизнес - модели и финансовые планы диверсификации своих компаний.