√ Understanding Agribusiness Management, Systems, Functions, Scope and Examples
Understanding Agribusiness Management, Systems, Functions, Scope and Examples– In this discussion we will review Agribusiness. Which includes the meaning of agribusiness, agribusiness management, agribusiness functions, scope and examples of agribusiness which will be discussed completely and easily understood.
Understanding Agribusiness Management, Systems, Functions, Scope and Examples
For more details, please read the explanation below carefully.
Understanding Agribusiness
Agribusiness is all activities related to agriculture starting from upstream to downstream industry to the production and marketing of products. Meanwhile, according to several experts such as Austin, agribusiness is a business unit that includes farming activities, food processing, facilities and business activities. infrastructure for agricultural production, transportation, trade, food stability and other activities including distribution of food and fiber to consumer.
Meanwhile, the word Agribusiness comes from English, Agri which means agriculture and Business is a commercial business in the world of trade. So in other words, agribusiness is all activities related to agriculture whose orientation is profit or profit.
Understanding Agribusiness Management
If the meaning of agribusiness has been explained above, now we will discuss what is meant by agribusiness management. Agribusiness management is an activity in the agricultural sector that applies management by carrying out planning functions, organizing functions, directing function and controlling function by using the resources that have been provided to produce agricultural products and profits optimal.
Understanding Agribusiness Systems
If viewed from a conceptual point of view, the definition of an agribusiness system is all activities that start from procurement, distribution of production facilities and marketing of related agricultural and agro-industry products other.
Another definition of the agribusiness system is a concept that defines agricultural business as an activity which is complete and comprehensive and as a concept that can examine and answer various problems and challenge.
Agribusiness Function
The functions of agribusiness include:
- Procurement and distribution activities of production facilities
- Primary production or cultivation activities
- Processing (agro-industry) and
- Marketing
From all the functions above, they are then arranged into a system, where these functions will become subsystems of the agribusiness system. Because agribusiness is a system consisting of several subsystems. So the system can function well if there is no interference in one of the subsystems. All subsystems must be developed by developers, because no one subsystem is more important than another subsystem
Scope of Agribusiness Management
Agribusiness is an undivided system starting from the subsystem of providing production facilities and agricultural equipment, farming subsystems, processing/agro-industry subsystems and subsystems marketing. So that this subsystem can work well, it requires the support of an institutional subsystem of facilities and infrastructure accompanied by a coaching subsystem. The success of agribusiness development whose reference is to objectives can be measured by the following indicators:
Improving Farmer Welfare
- For farmers, it will increase the exchange rate
- There is an increase in the productivity of farming businesses or processing businesses from agricultural products
- The quality of agricultural products or processing businesses from agricultural products
- There is an increase in the export value of agricultural commodities
- The number of farmers will decrease, leading to an increase in coparative and competitive advantages
- There was a decline in imports of agricultural commodities
Increasing Job Opportunities
- There is an increase in the number of agribusiness businesses in rural areas
- There is development in upstream industrial businesses and the agricultural product processing industry
- The number of unemployed people in the village has decreased
Increasing Food Security
- Increased availability of food sources
- Food imports have fallen
- The number of people experiencing food insecurity is decreasing
- Diversification of non-rice food consumption is increasing
Improved Services for Farmers
- Development of location-specific agribusiness technology
- There is an agribusiness technology service center
- The existence of a precredit service center and agricultural production facilities
- An agribusiness market center will be formed in each region or region
Example of Agribusiness Management
An example in agribusiness management is when planning agribusiness activities that must be considered are factors seasons, paying attention to the character of the land, anticipating pest and disease attacks, paying attention to natural characteristics commodity.
Thus has been explained about Understanding Agribusiness Management, Systems, Functions, Scope and Examples. Hopefully it can increase your insight and knowledge. Thank you for visiting
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