1. Livestock Agribusiness

2. Agribusiness
"the way or mode of managing agricultural enterprises at the production, (input/output) distribution and processing levels".
"the production operation of farms, the manufacture and distribution of farm equipment and supplies, and the processing, storage, and distribution of farm commodities."

3. Agribusiness (contd.)
"all market and private business- oriented entities involved in the production, storage, distribution, and processing of agro-based products; in the supply of production inputs; and in the provision of services, such as extension, research etc."

4. Agribusiness sub-systems
(1) Up-Stream Agribusiness,
(2) On-Farm Agribusiness,
(3) Down-Stream Agribusiness,
(4) Supporting Agribusiness,
Exp. Poultry, Beef, Dairy

5. What Is Agribusiness?
Agribusiness involves the production, distribution, and consumption of food, clothing, and even shelter.
It includes all economic activity in the FOOD and FIBER system, which encompasses the input supply industries, agricultural production, and post-harvest, value-added activities such as commodity processing, food manufacturing, and food distribution.

6. AGROINDUSTRY RAW MATERIALS : FOOD & FIBER
SEASONALITY : Cyclical Nature of Production
PERISHABILITY
BULKY
VARIABILITY : Quantity & Quality
PRICE INSTABILITY

7. Agribusiness System

8. Flowchart For Agro-Industry

9. SYSTEM INPUT PROSES OUTPUT suprasystem feedback subsystem
INPUT
PROSES
OUTPUT
feedback
subsystem

10. MANAGEMENT & TECHNOLOGY)
INPUT
5 M NR HR
Man
Money
Material
Method
Machine
MANAGEMENT & TECHNOLOGY)
Market (need & want)
INSTITUTION

11. form, time, possesion & place utilities
PRODUCTION
input
transformation
output
Good & Service
Efficient & Effective
form, time, possesion & place utilities
customer need & want

12. Organizing to Produce Goods & Services
Essential functions:
MARKETING – generates demand
OPERATIONS –creates the product
FINANCE/ACCOUNTING – tracks organizational performance, pays bills, collects money

13. Organizational Functions
Marketing
Gets customers
Operations
creates product or service
Finance/Accounting
Obtains funds
Tracks money

14. Satisfaction Human Need & Want
Production Process
INPUT
PROCESS
OUTPUT
Breeding
Feeding
Management
Value Creation
Value Propositions
Goods & Services
Satisfaction Human Need & Want

15. Agribusiness in Developing Countries
producers
products
-smallscale
-off farm, on farm, non farm
-secondary activities
-price takers
-majority of population
-Seasonality (exp. bekatul/dryer)
-Variability (Quality & Quantity)
-Perishable
-Fragile
-Bulky

16. Exp. Fresmilk marketing system (INA)
Output market
(oligopsony))
Dairy coop.
Dairy farmers
MPF
Conversion from litre to KG
Collective fresmilk test
Credit scheme (3 types)
Price takers
Price makers
Bargaining power
Input market
(olipoly)

17.
Agro Industry
procurement
processing
marketing

18. Organization of procurement system
PROCUREMENT FACTOR
QUANTITY
QUALITY
TIME
COST
ORGANIZATION
output determinants
Acceptance Quality
Reasonable Cost
Organization of procurement system
Appropriate Timing
competing uses
Marketplace requirements (attribute products)
Determinants of quality (inputs, handling & transport, storage)
Quality control
Seasonality
Perishability
Availability
Cost determinants :
S&D
Opportunity Cost
System structures
Logistic services
Government involvement
Pricing mechanism (spot price, multiple sources, support prices, contracting, joint farmer-processor, backward integration)
Structure (number of producers, size, location, crop mix, ownership patterns, produce flows)
Analysis of channel power
Backward vertical integration (control, capital requirements, flexibility, costs)
Producer organizations
On-farm
Fresh vs processed
Animal vs human
Options multiple industrial
Competing processing firms
Losses

19. Spesification of Output
Processing Factor
Spesification of Output
Plant Location
By Product
Product Quality
Degree of Processing
Selecting Packaging
Selecting The Product Mix
Selecting Technology
Dekat Pasar/Bahan Baku
Labor Supply
Infrastructure
Land Cost
Developmental Impact
Economic Value

20. Analysis of The Competitive Environment
Marketing Analysis
to asses external respond to product based on customer characteristic and competition
Consumer Analysis
Analysis of The Competitive Environment
Marketing Plan
Consumer need & want,
Market segmentation,
Purchasing process,
Market research
Market structure,
Competition,
Institutional constraints
product design,
pricing,
distribution,
promotion
(that constitute the firm’s marketing strategy)
Marketing Factor