commodity chain + economies of scale Flashcards
Agribusiness
large-scale system that includes the production, processing, and distribution of agricultural products and equipment
**Farmers are just a small part of the process of getting the food from the field to the consumer. They are just one part of the commodity chain.
Economies of Scale
cost reductions that occur when production rises
When Choosing the Best Site for Agriculture
(physical factors)
Soil quality
Topography (sloped/flat lands)
Climate
Access to water
When Choosing the Best Site for Agriculture
(cultural factors)
Food taboos
But Von Thunen Argued: the most important factor is…
distance to market
Global Supply Chain
same as commodity chains, but on the global scale. Allows for the delivery of product between two different countries.
WHY Global Supply Chains Exist
Climate
Cost (land, labor, capital)
Transnational corporations
Neocolonialism
Comparative Advantage
…because core countries don’t HAVE to grow if they don’t want to
Commodity Dependence
when more than 60 percent of a country’s exports and economic health are tied to one or two resources such as oil, timber, or plantation crops
commodity dependence positives
become well-known for it, becomes very specialized
commodity dependence negatives
subject to supply and demand, what if disaster strikes
how to help global supply chains flow
(infrastructure)
foundation:
Roadways
Water lines
Electric lines
Seaports
Airports
Train stations
Factories
Communication systems
**Sometimes core countries help to sponsor these infrastructural projects (mutually beneficial), but sometimes projects fail
how to help global supply chains flow
(political relationships)
Some supranational organizations are trading blocs, and allows for the supply chain to operate easier, more efficiently, and cheaper across multiple countries
Terracing
Process of carving parts of a hill or mountainside into small, level growing plots
*Common in subsistence farming
*Common for rice cultivation in mountainous
areas
*Terraces flood as rainfall goes down hillside
terracing positives
able to cultivate land that was otherwise unproductive, maintains soil fertility and slows down rainfall
terracing negatives
labor intensive, constant maintenance to prevent runoff and mudslides
Irrigation
bringing in water from natural sources to farm fields through canals and other means to help supplement rainfall
**Common in all forms of agriculture
irrigation positives
has expanded agriculture to places previously too dry to support crop growth
irrigation negatives
consequences of dams, water levels dropping and increased salinity in natural sources, increased agriculture has put a growing demand on water sources
Examples: lakes, rivers, aquifers, reservoirs
draining wetland (the practice)
draining swamplands and bogs to convert them into agricultural lands
**Common in: The Netherlands, and areas converted to wet rice