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PHILIPPINE AGRIBUSINESS:
AN INTRODUCTION
Vicky Guieb ABM 103
June 26, 2007
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Contents
Agribusiness as a concept Agribusiness as a field of study
Agribusiness as an economic sector
Agribusiness & Business Agribusiness in the Economy
Agribusiness Sector
Economic Contribution Vertical Structure & Coordinators
Agribusiness System
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What is Agribusiness?
TRADITIONAL DEFINITION:
sum total of all operations involved in the
manufacture of farm supplies, production activitieson the farm, processing, distribution and marketing
of farm commodities and items made from them.
(Davis and Goldberg (1957)
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What is Agribusiness?
REFRAMED DEFINITION : (market-oriented)
a dynamic and systemic endeavor that serves
consumers globally and locally through innovationand management of multiple value chains that
deliver valued goods and services derived from
sustainable orchestration of food, fiber and naturalresources. (Edwards & Shultz II, 2005)
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Agribusiness as a Field of Study
integrative and multi-disciplinary in nature
multidisciplinary areas:
economics : economics of agriculture
agricultural sciences : animal, crops, fishery, forestry
management : finance, production, marketing,
personnel
human behavior: leadership, motivation, rewards
management in orientation
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Agribusiness as an Economic Sector
consisting of on-farm and off-farm business units
selling of inputs (eg. fertilizers, agrochemicals)
on-farm production of crops and livestock, forest trees,
fish
off-farm business activities like leather tanning,
woodworks production
provision of agroservices (financing, market information,technology, education, warehousing)
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Agribusiness & Business
AGRIBUSINESS : if a business enterprise movesnearer to agriculture and mainly uses
AGRICULTURAL raw materials BUSINESS : if a business enterprise moves
farther from agriculture, making use of NON-
AGRICULTURAL raw materials The manufacturing components of agribusiness are
agroindustries
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Agribusiness in the Economy
a vertical slice of the total economy
Source: Bill & Davidson, Agribusiness Disciplines and Dimensions
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Agribusiness Sector
encompasses the whole of the agriculture sector plus a portion
of the industrial & service sectors
AGRICULTUREINDUSTRY
Agroindustries
SERVICES
Agroservices
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Economic Sectors of Agribusiness
Agriculture
Crops
Livestock Fishery
Forestry
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Economic Sectors of Agribusiness
Agriculture: Economic Contribution
food provider of the economy
contributes around 17% to the GDP (2007)
employs around 33% of the total workforce (2002)
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Economic Sectors of Agribusiness
Agroindustries• Food Industries
Processed meat
Milk and dairy products Processed fruits and vegetables
Processed fish
Bakery products
Beverages e.g. chocolate, coffee, tea Condiments and flavoring extracts
Cereals
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Economic Sectors of Agribusiness
Agroindustries
• Non-Food Industries
Leather and leather products
Wood and woodworks and cork products
Tobacco manufactures
Rubber and rubber products
Textile manufactures
Paper and paper products
Fiber products
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Economic Sectors of Agribusiness
Agroservices Financing
Physical distribution services (e.g. transportation,
warehousing) Market research
Market information dissemination
Insurance
Technical Assistance
Market Matching
Research and Development
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Vertical Structure & Coordinators
Consumers
Retailers
Wholesalers
Processors
Farmers
Farm Suppliers
Managers
Government Officers
Educators
Researchers
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Agribusiness System
Subsystems:• Input Subsystem
•
Production Subsystem • Processing Subsystem
• Marketing Subsystem
• Support Subsystem
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Agribusiness Subsystems
Input Subsystem
Fertilizer Industry
Feeds Industry
Seed Industry
Other Agrochemical Industry
Agricultural Machinery & Irrigation
Equipments Veterinary Products
Animal Resources: breeding & hatchery
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Agribusiness Subsystems
Farm/Production Subsystem
into direct on-farm production activities
livestock, crops, fish & forest trees
Processing (Agroindustrial) Subsystem
the primary, intermediate & final processors
the food and non-food agroindustries
prolongs the shelf life of agricultural products – minimizes the adverse effects of seasonality & perishability
opens up more markets –
domestic & foreign
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Marketing Subsystems
for physical distribution & transfer of products
traders, sales agents, brokers, assemblers,
wholesalers, retailers, importers, exporters
other intermediaries
Support Subsystems
providers of agroservices
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That’s all for today!
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