Livestock Agribusiness

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 and supplies, and the processing, storage, and distribution of farm commodities."

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

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

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

AGROINDUSTRY RAW MATERIALS : FOOD & FIBER bamalnug@yahoo.com SEASONALITY : Cyclical Nature of Production PERISHABILITY BULKY VARIABILITY : Quantity & Quality PRICE INSTABILITY

Agribusiness System bamalnug@yahoo.com

Flowchart For Agro-Industry bamalnug@yahoo.com

SYSTEM INPUT PROSES OUTPUT suprasystem feedback subsystem bamalnug@yahoo.com INPUT PROSES OUTPUT feedback subsystem

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

form, time, possesion & place utilities PRODUCTION bamalnug@yahoo.com input transformation output Good & Service Efficient & Effective form, time, possesion & place utilities customer need & want

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

Organizational Functions bamalnug@yahoo.com Marketing Gets customers Operations creates product or service Finance/Accounting Obtains funds Tracks money

Satisfaction Human Need & Want Production Process bamalnug@yahoo.com INPUT PROCESS OUTPUT Breeding Feeding Management Value Creation Value Propositions Goods & Services Satisfaction Human Need & Want

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

Exp. Fresmilk marketing system (INA) bamalnug@yahoo.com Output market (oligopsony)) Dairy coop. Dairy farmers MPF Conversion from litre to KG Collective fresmilk test Credit scheme (3 types) Price takers Price makers Bargaining power Input market (olipoly)

bamalnug@yahoo.com Agro Industry procurement processing marketing

Organization of procurement system PROCUREMENT FACTOR bamalnug@yahoo.com QUANTITY QUALITY TIME COST ORGANIZATION output determinants Acceptance Quality Reasonable Cost Organization of procurement system 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

Spesification of Output Processing Factor bamalnug@yahoo.com Spesification of Output Plant Location By Product Product Quality Degree of Processing Selecting Packaging Selecting The Product Mix Selecting Technology Dekat Pasar/Bahan Baku Labor Supply Infrastructure Land Cost Developmental Impact Economic Value

Analysis of The Competitive Environment 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) bamalnug@yahoo.com Marketing Factor