Although agriculture was affected by the 2020 pandemic, BPS data shows that the Agricultural Exchange Rate rebounded in 2021—proving that this sector remains promising, including its sub-sectors like agricultural support products.
As one of the sub-sectors within agriculture, the agricultural support product business is still relatively underdeveloped—making it a valuable business opportunity.
Three Types of Agricultural Businesses
To understand agricultural support opportunities, it’s helpful to know the three main categories of agribusiness:
1. Agricultural Production Business
This is the most common type—focusing on the cultivation and breeding of plants or livestock to produce food.
2. Agricultural Product Marketing
Although not directly involved in production, marketing is critical. Without effective marketing, even the best agricultural yields can be unprofitable.
3. Agricultural Support Products (Saprodi)
This involves tools, equipment, fertilizers, and other supplies essential for agricultural operations. Without adequate support products, cultivation activities may be hindered.
Modern Agricultural Business
With today’s technological advancements, agriculture is no longer confined to fields or farms. Even agricultural businesses can be managed through smartphones.
While production still requires land, marketing and support product businesses can run without it. These businesses are more flexible and accessible.
Tips for Success in Agricultural Support Products Business
1. Product Knowledge
Understanding your product is essential. Even though most support products aren’t perishable, many require specific handling.
For instance, some fertilizers degrade under moisture—affecting storage and delivery.
2. Distribution Planning
Analyzing distribution is key. You must consider how products are sourced and delivered—not just to your store, but to end consumers.
3. Inventory Management
Effective inventory control helps track stock levels accurately.
You can use digital tools like TCI Plug and Play, a warehouse and inventory management system by Transcon Indonesia, suitable for distributors and manufacturers alike.
With TCI Plug and Play, your inventory is managed accurately, transparently, and efficiently.
Agriculture holds vast business potential in Indonesia, especially given its agrarian roots and essential role in food supply.
The agricultural support product business is still relatively small—meaning there’s room for growth. With proper preparation and the use of digital technology, it can become a highly profitable business.
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