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Livestock Agribusiness

Livestock Agribusiness. Agribusiness. "the way or mode of managing agricultural enterprises at the production, (input/output) distribution and processing levels".

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Livestock Agribusiness

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  1. Livestock Agribusiness

  2. Agribusiness • "the way or mode of managing agricultural enterprises at the production, (input/output) distribution and processing levels". • "the production operation of farms, the manufacture and distribution of farm equipment andsupplies, and the processing, storage, and distribution of farm commodities."

  3. Agribusiness (contd.) • "all market and private business-oriented entities involved in the production, storage, distribution, andprocessing of agro-based products; in the supply of production inputs; and in the provision ofservices, such as extension, research etc."

  4. Agribusiness sub-systems • (1) Up-Stream Agribusiness, • (2) On-Farm Agribusiness, • (3) Down-Stream Agribusiness, • (4) Supporting Agribusiness, • Exp. Poultry, Beef, Dairy

  5. What Is Agribusiness? • Agribusiness involves the production, distribution,and consumption of food, clothing, and even shelter. • It includes all economic activity in the FOOD andFIBERsystem, which encompasses the input supplyindustries, agricultural production, and post-harvest,value-added activities such as commodity processing,food manufacturing, and food distribution.

  6. AGROINDUSTRY RAW MATERIALS : FOOD & FIBER • SEASONALITY : Cyclical Nature of Production • PERISHABILITY • BULKY • VARIABILITY : Quantity & Quality • PRICE INSTABILITY

  7. Agribusiness System

  8. Flowchart For Agro-Industry

  9. suprasystem subsystem SYSTEM INPUT PROSES OUTPUT feedback

  10. 5 M HR NR INPUT Man Money Material Method Machine MANAGEMENT & TECHNOLOGY) Market (need & want) INSTITUTION

  11. input output transformation PRODUCTION Good & Service Efficient & Effective form, time, possesion & place utilities customer need & want

  12. Organizing to Produce Goods & Services • Essential functions: • MARKETING – generates demand • OPERATIONS –creates the product • FINANCE/ACCOUNTING – tracks organizational performance, pays bills, collects money

  13. Organizational Functions • Marketing • Gets customers • Operations • creates product or service • Finance/Accounting • Obtains funds • Tracks money

  14. Production Process OUTPUT INPUT PROCESS Goods & Services Value Creation Breeding Feeding Management Satisfaction Human Need & Want Value Propositions

  15. products Agribusiness in Developing Countries producers -smallscale -off farm, on farm, non farm -secondary activities -price takers -majority of population -Seasonality (exp. bekatul/dryer) -Variability (Quality & Quantity) -Perishable -Fragile -Bulky

  16. Dairy coop. Input market (olipoly) Output market (oligopsony)) Exp. Fresmilk marketing system (INA) Dairy farmers MPF Conversion from litretoKG Collective fresmilk test Credit scheme (3 types) Price takers Price makers Bargaining power

  17. Agro Industry procurement processing marketing

  18. PROCUREMENT FACTOR QUANTITY QUALITY ORGANIZATION TIME COST Organization of procurement system Acceptance Quality output determinants Reasonable Cost Appropriate Timing competing uses Marketplace requirements (attribute products) Determinants of quality (inputs, handling & transport, storage) Quality control Seasonality Perishability Availability Cost determinants : S&D Opportunity Cost System structures Logistic services Government involvement Pricing mechanism (spot price, multiple sources, support prices, contracting, joint farmer-processor, backward integration) Structure (number of producers, size, location, crop mix, ownership patterns, produce flows) Analysis of channel power Backward vertical integration (control, capital requirements, flexibility, costs) Producer organizations On-farm Fresh vs processed Animal vs human Options multiple industrial Competing processing firms Losses

  19. Plant Location Spesification ofOutput By Product • Product Quality • Degree of Processing • Selecting Packaging • Selecting The Product Mix • Selecting Technology • DekatPasar/Bahan Baku • Labor Supply • Infrastructure • Land Cost • Developmental Impact Economic Value Processing Factor

  20. Marketing Analysis to asses external respond to product based on customer characteristic and competition Consumer Analysis Analysis of The Competitive Environment Marketing Plan Consumer need & want, Market segmentation, Purchasing process, Market research Market structure, Competition, Institutional constraints product design, pricing, distribution, promotion (that constitute the firm’s marketing strategy) Marketing Factor

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