Agribusiness Support System

Government Agencies

• Promotion and regulatory

• Formulate and implement laws and policies

• Laws implemented to ensuring public welfare

• Structural dualism and scarcity of resources – government as active agent in

promoting agribusiness investment while promoting the weaker sectors

Industry associations/Private institutions

– Consists of companies within a specific industry which have common

objectives and share the same sentiments for industry protection

Goal: Provide unity of action and facilitate the pursuit of common

goals among members of a certain industry

Liaison

means of communication between members to

clarify roles and coordinate efforts; provide channels for

the efficient handling of government and private services

and as a link to research institutions

Lobbyist

lobby before the congress or parliament to

advance the group’s interest

Communication center

among industry players

Integrator

pool the members’ resources or products to

gain competitive advantage

Facilitator in getting financial aid

better

accommodated at better terms by financial institutions

Control mechanism

provides a sense of direction and

disciplinary action to members who engage in acts that

jeopardize the interests and reputation of the sector

Planner and decision-maker

facilitate discussion and

consensual decision-making on matters that affect the

industry in particular

Non-government organizations (NGO)

– Organizations initiated by the private sector

– Voluntary organizations committed primarily for

service

– assist the marginal sectors of the society

– Services rendered to target groups are either free

of charge or charged according to their capacity

to pay

– Largely involves the participation of the

constituents to beneficiaries in decision-making

Educational/research institutions

–Universities and colleges

–Research Stations and training firms

–Major Roles:

• Universities – human resource providers

• Research agencies – developer of

technologies

Financing Institutions

– Commercial/Rural banks, credit cooperatives,

microfinancing institutions, venture capitalists, etc

–Major Roles

• Credit allocation

• Savings mobilization

• Education of businessmen on financial responsibility

Financing

-Farm development and maintenance for farmers

-Establishment of warehouse, milling facilities and

other processing facilities for processors

-Market facilities acquisition and operating capital

for traders

Technical and Management Services

-Provided by technical experts

-Provided by management experts

-Provision of agribusiness managers

-Business function consultation

-Business proposal preparation

Market Research and Market Information Dissemination

-One of the neglected areas in agricultural production

-Market research is largely a private sector undertaking

-Government institutions play a key role in market information

dissemination

Breeding

- Done by government institutions to upgrade breeding stocks

-Also done by agribusinessmen who own several postharvest

facilities

-A good entry point in the agricultural machinery industry

Custom Renting of Agricultural Machineries

-Done by farmers who have enough capital to purchase agricultural equipment

-Also done by agribusinessmen who own several postharvest facilities

-A good entry point in the agricultural machinery industry

Transportation and Warehousing

-Current trending is for processing companies to decentralize operations by contracting

services of trucking and warehousing facilities

-Advantages

-No need for investment in these facilities

-Eases the processors of the burden in raw material sourcing and distribution of finished

products

Raw Material Supply Sourcing

-Farming out raw material sourcing activities to other

entities

-Advantage:

Producer bears less risk in transporting raw materials

Processors bears less risk in transporting raw materials

Trade and Investment Opportunity Identification

Concerned government agencies and private institutions

publish a list of opportunities to encourage local and foreign

investors

Crop Protection and Insurance

-These serve to cushion farmers against 100% risk due to calamities

-Crop protection insurance is provided by concerned government institutions

Research and Development

-Done for the continuous improvement of the production and processing sectors

-Conducted by government and private institutions mainly for the purpose of technical

innovation

Food Production Programs

-Increased production

-Self-sufficiency

-Exportation and import substitution

Marketing Support Programs

-Provision of marketing assistance in the forms of:

-Market matching

-Promotion, Transportation, Market infrastructure provision

Research and Technology Transfer

To induce and continuously spur agricultural development

Integrated Development Programs

Comprehensive programs which seek to target the needs of the whole agribusiness system