Introduction to Agribusiness (Chapter 1)

Agriculture ?•Plowing a field, planting seed, harvesting a crop, milking cows, feeding live stock….

•Business?•An organization or economic system where goods and services are exchanged for one another or for money. Every business requires some form of investment and enough customers to whom its output can be sold on a consistent basis in order to make a profit. Businesses can be privately owned, not-for-profit or state owned.

Agribusiness?• Farming the land• Providing inputs, seeds, chemicals, credit etc• Process the output, milk, grain, meat etc• Manufactures the food products, ice cream,

bread etc• Sell the food products to the consumers.

• Technologically based products are 75% (approx)

• The term was used 1st time by Davis and Goldberg in 1957

• It represent three parts• 1st Agricultural inputs sector• 2nd The production sector• 3rd Processing-manufacturing sector

Management

• Henry Fayol : To manage, to forecast, to plan, to organize, to command coordinate and to control.

• Mary Parker: Management is the art of getting things done through peoples.

• Peter Drucker: Management is a multi-purpose organ that manages a business, manages managers and manages worker and work.

Nature and Scope of Agribusiness

1. Clean Objectives2. Planning3. Sound Organization4. Research5. Finance6. Proper Plant location and lay out.7. Efficient Management8. Harmonious Relationships with the workers.

Types of Industries

1. Extractive Industries2. Genetic Industries3. Manufacturing Industries

Analytical industry Processing industry Synthetic Industry Service Industry Assembly Industry

Responsibilities of a Manager

Providing purposeful direction to the firmManaging survival and growthMarinating farm’s efficiencyMeeting the challenge of increasing competitionManaging for innovationCoping with growing technological sophisticationMaintaining relation with various society

segments etc.

Agribusiness to Pakistan. (Chapter 2)

• Threats to Agriculture / causes of Fluctuation in Agriculture

WeatherPest attacks on cropsTraditional methods of farmingShortage of Key inputsAdulterated pesticidesNatural disasters.

Opportunities (Australian exports to Pakistan)

Wheat Oils seed, Cotton, canola, sunflower, soybean Pulses, chickpea, lentil, mung bean, Black gram High yielding dairy livestock. Halal beef and goat meat Animal forage, potato and corn seed Modern abattoir Dairy Products Tree nuts.

1 Wheat2 Cotton

1 Chickpea2 Soybean3 Oil seeds

1 Black gram2 Lentil3 Mung bean

1 Canola 2 Sunflower 3 Tree nut

1 Modern abattoir2 Corn Seeds3 Live stock

Pakistan import Pulses from

• Turkey• Syria• Hungary• Netherlands• Canada• Australia

Controlling Prices and supply of the Products

• Pakistan Agricultural Storage and Supply Corporation (PASSCO)It has ability to control the supply and price of the

pulses

• Tariffs• Regulations• Customs

Links and Industry contacts

• Board of investment www.pakboi.gov.pl

• Government of Pakistan www.pakistan.gov.pk

• Federal Board of Revenue www.fbr.gov.pk

• Ministry of Finance www.finance.gov.pk

The Business of Agribusiness (Chapter 3)

• Management Role in Agribusiness

• Marketing , Financial, Supply chain and Human Resource Management

• Marketing Management It involves understanding customer needs and effectively positioning

and selling products and services in the marketplace.

• Financial Management It involves generating the data needed to make good decisions using

the tools of finance to make effective decisions and managing the assets, liabilities and owner’s investment in the firm.

• Supply chain management It focuses on these areas and provides the tools managers

need to meet these operations and logistical challenges.• It further classified into• Operations management

It focuses on the direction and the control of the processes used to produce the goods and services that we buy and use each day.

• Logistic management It involves the set of activities around storing and transporting

goods and services.• Human Resource management

It involves in two areas, 1st in the mechanics of the personnel administration and 2ndly motivating the peoples to offer and contribute their maximum potential.