Entrp 130 - Agribusiness Unit 1 Quiz

Mariano Marcos State University

• Ranked 2nd in the Philippines
• Ranked 101-200 in the world (WUR)
• Ranked 401-600 in the world (The Impact Rankings 2021)
• Ranked 356 in the world (Green Metric)

Entrp 130 - Agribusiness

• Course Instructor: Krystel Jane D. Antonio and Remalyn D. dela Rosa
• Instructor email: [email protected]

Unit 1: Introduction to Agribusiness

• Learning Outcome: Explained at least 85% of the introduction to agribusiness concepts
• Course Content:
  • What is Agribusiness?
  • Agribusiness as an Opportunity
  • Nature of Successful Agribusiness
  • Importance of Agribusiness
  • Capital Management in Agribusiness

Agriculture

• The cultivation of various categories of crops
  • Animal husbandry (livestock)
  • Forestry
  • Fishery
  • Other related activities

Business

• An organization or enterprising entity
• Involved in commercial, industrial or professional activities
• With the aim of gaining profit

Agribusiness

• Agriculturally-related businesses (Warehouses, wholesalers, processors, retailers)
• Dynamic and systematic endeavor
• Serves consumers globally and locally
• Through innovation and management
• of multiple value chains
• Delivers valued goods and services
• derived from sustainable orchestration
• of food, fiber, and natural resources

Agribusiness (Definitions)

• Sum total of all operations involved in
  • manufacture, production
  • distribution; on farm, storage
  • processing, and distribution of farm commodities (Goldberg and Davis, 1957)
• Businesses actively involved in commercial agricultural processes.
  • From production, processing and marketing to distribution
• Integrating small-scale farmers to meet growing consumer demands in emerging countries

Agricultural production

• Stages include seeding, breeding, and agrichemical application
• Using farm machinery
• Economic viability of farming is driving companies to develop new technologies to capitalize on existing opportunities, leading to large-scale operations

Agribusiness Types

• Farm Equipment Manufacturers
• Pesticide and Fertilizer Suppliers
• Research and Development (R&D)
• Seed Suppliers

Agribusiness Technology

- Robots: For tasks like harvesting and watering
- Sensors: For monitoring humidity, moisture control
- Drones: For aerial views, spraying pesticides
- GPS: For data gathering, automated steering for tractors

Input Sector

• Deals with the supply of inputs for farmers (seeds, fertilizers, chemicals, machinery, fuel)

Farm Sector

• Aimed at producing crops, livestock and other products

Production Sector

• Handles various aspects including storage, processing, and marketing

Objectives of Agribusiness

• Develop competitive and sustainable private sectors leading by agribusiness.
• Increase productivity
• Reduce yield gaps
• Commercialization of agribusiness
• Value addition
• Reduction in cost for production

Agribusiness Challenges

• Agribusiness Sustainability
• Failed or Non-existent Biosecurity
• Limited access to innovation and technology.
• Natural/Man-made disasters
• Unfavorable Government Policies
• Low or No Financial Support
• Unfavorable Market Conditions and Competition

Opportunities and Challenges

• Opportunities: Businesses working together to innovate and improve efficiency
  • Leading to cheaper food prices, better planning, and execution
• Challenges in Agribusiness
  • Competition
  • Changes in consumer demand
  • Depletion of soil and resources
  • Farmland reduction
  • Prices of agricultural products
  • Changes in climate
  • Population growth

Components of Agribusiness System

- Input sector 
- Output sector
- Agriservices sector
- Agribusiness includes all economic activities in food production

Scope of Agribusiness

• Increasing agricultural demand, especially for inputs
• Biotechnology applications
• Exporting to improve economic growth
• Fisheries production
• Dairy & poultry production
• Mushroom production
• Organic farming

Nature of a Successful Agribusiness

• Clear objectives
• Sound organization
• Planning
• Research
• Finance
• Proper location, layout & size
• Efficient management
• Good relationships with people

Importance of Agribusiness

• Contributing to local economies
• Being one of the largest industries in the world
• Producing various exports and imports
• Dealing with the agricultural sector and a part of the industrial sector
• Suggesting changes for the development of sub-sectors

Components of Agribusiness

• To improve efficiency, businesses use strategies like vertical integration and the usage of value chains.
• Farm equipment manufacturing
• Pesticide and fertilizer supply
• Agricultural research and development
• Seed supply
• Crop and food storage
• Farm production/processing
• Agricultural financing
• Food delivery and marketing

Types of Agribusiness Companies

• Farm Equipment Manufacturers
  • Deere and Company (John Deere)
• Pesticide and Fertilizer Suppliers
  • Syngenta
• Research and Development
• Seed Suppliers