TRADE AND AGRIBUSINESS Flashcards
1
Q
What is the farm problem
A
- as global incomes rise, farmer’s income rises much slower - need income support
- start developing niche markets for higher income
- role needed for innovation
- improve tech and decrease costs
2
Q
What are the challenges to agribusiness
A
- geopolitical
- environmental
- economic
- cultural, ethical
- demographic
3
Q
what are some trade challenges
A
- anti-globalists
- rise of protectionism
- weakness of institutions
- disrupted market access (wars)
4
Q
what are some demographic challenges to farming
A
- ageing farm-population -> can’t keep staff
- rural-urban migration
- reduced services in rural areas - no hospitals or schools etc
- less volunteers
5
Q
what are cultural challenges to ag
A
- rise of PETA and animal activities
- rise of vegenism, vegetarianism
- politicians against GMO’s
- changing consumer preferences
6
Q
Environmental challenges to ag
A
- role as contributors to greenhouse gases
- role in reducing greenhouse gases
- weather
- climate change
- biosecurity
- biodiversity
7
Q
what are market structural challenges to ag
A
- rise of corporate farms
- rise in agribusiness oligopoly
- restrictions on who can own seeds
8
Q
Financial challenges to ag
A
- rising costs of borrowing
- access to insurance
- Cost of transport
9
Q
What is PESTEL analsyis
A
Political, economic, social, technological, envrionemental, legal factors
10
Q
What are the key elements of an ag business plan?
A
DEF: A document which outlines the objectives of business
- executive summary
- products/services to be produced
- marketing analysis
- marketing strategy
- financial plan - budget
- mission statement
11
Q
market segmentation
A
- ## dividing large markets into smaller segments or niches
12
Q
what are the types of market segments
A
- demographic/population niche -> segments of population based on age, gender etc
- geographic/location niche -> urban, regional, international
- behavioural niches - consumer behaviours, loyalty, preferences etc
- psychographic niches - subgroups based on lifestyles, values, religion etc..
13
Q
what are sources of finance for farmers
A
- using internal funds (savings)
- debt (mortgages, loans, borrowing
- equity (govt)
14
Q
what is Ag2030?
A
need to watch lecture!
15
Q
what are some trade barriers - protecting against trade confused
A
- tariffs (added tax) on imports -> gives govt income, and allows smaller firms to expand
- subsidies (govt payments) to import competing producers
- quotas (direct quantitative restrictions on imports)
