Part 2 Agribusiness in Retrospect

Land Extensive
Intensive

(2) Types of On-Farm Agribusiness

Land Extensive

large area of land used for production. LOW inputs used and yield low outputs

• annual crops

• perennial crops

Land Intensive

maximizing yield from available land. HIGH inputs and yields from available land

• Flower crops

• Floriculture

• Seed nursery

• High valuable crops

• Livestock

Cleaning and grading

Milling

Crushing / Extraction

Mixing

Dehydration

Cooking and Canning

(6) type of agro-industries

Seasonality
Perishability
Variability

Characteristics of Agrobusiness

Seasonality

raw materials are usually available only during one or two within a year

Perishability

raw materials supply are perishable and fragile and it require greater speed and care in handling and storage

Variability

inconsistency in quantity or quality of raw materials

Mango
soaking
washing
picking
waxing
grading
packaged mangos

examples of Cleaning and grading

Simple
Integrated

(2) Categories of Agroindustri’s

Selective Market Orientation
Presence of Government Intervention
Existence of other Institution and Mechanisms
Interrelated and Interdependent Nature

(4) Characteristics of Agribusiness System

Selective Market Orientation

• it depends on the commodity that satisfy the needs, wants and the demand of the consumer

Selective Market Orientation

• it believed to be the focus of agribusiness systems at all times

• start from the end product that the consumer purchase

Presence of Government Intervention

• Price Control

• Market Channel Inefficiencies

Price control

• Price ceiling for consumers

• Price floor for producers

Market Channel Inefficiencies

• Market information and facilities are provided

• Import controls are applied to protect local produce

Existence of other Institution and Mechanisms

• usually relies on key participants from both private and government sectors for its capability

Interrelated Nature

• 2 or more elements strongly influence each other or are closely linked to each other

Interdependent Nature

Consisting of groups that depend on each other

• ex: Business dependent on suppliers for raw materials

1 - 9

Less than 3M

Micro

10 - 99

Greater than 3M to 15M

Small

100 - 199
Greater than 15M to 100M

Medium

200 and above
Greater than 100M

Large

• Creates job

• help alleviate the economic challenges of our country

Role of Agribusiness Sector towards Economic Growth and Development