Introduction To Agricbusiness Management

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Agriculture needs to expand and include more than production. Industries depend on farmers to produce agricultural commodities. They depend on commodity processors, food manufactures, food manufacturers, food distributors, retailers to purchase their raw agricultural commodities and to process and to process and deliver them to the consumer for final sale. The outputs of these commodities are fibre system and food. These food and farm produce are known as agribusiness. The agribusiness is a part of system that has the agricultural input sector, the production sector and the processing or manufacturing sector. These three sectors of agribusiness are significant systems in which the success of each part relies heavily on one another. Agribusiness needs the management which is the art of getting things done through people. For the farmers to provide industrial inputs, they need people to work on these inputs. The management is a distinct process consisting of planning, organizing, actuating and controlling performance to determine and accomplish the farmers’ objectives by the use of people and resources. It consists of all farm’s activities beginning from business planning to its actual survival. The agribusiness has become extremely difficult and competitive because of changing wants and needs of the industries and consumers. These really occur because of introduction of substitute, cheaper and better competitive farm produce or goods. The farmers’ objectives should be realistic and clearly defined in all their agribusiness efforts in order to achieve the set objectives. Agribusiness planning stands as a proposal that is based on past experience and present trends for future actions. This is an analysis of a problem and finding out the solutions to solve with reference to the objective of the farm. Agribusiness must calculate tis financial requirement adequately that can keep the business wheel on moving. The success of agribusiness depends on proper plant location, layout and size where it is set up. Farmers depend on industries that are concerned with the utilization of natural resources such as fishing, fruit gathering, agro-based industries, forestation, breeding of plants, seeds, cattle breeding farm, and poultry farms. The commerce is another major component of agribusiness that includes the buying and selling of goods and service from the place of their production to the place of their consumption. Agribusiness deals with agricultural sector with the portion of industrial sector which is the major source of farm inputs like fertilizers, pesticides, machines, processing and post-harvest technologies. Agribusiness deals with different components of both agricultural and industrial sector, their interdependence and influence of one sector on other.