TRADE AND AGRIBUSINESS Flashcards
What is the farm problem
- 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
What are the challenges to agribusiness
- geopolitical
- environmental
- economic
- cultural, ethical
- demographic
what are some trade challenges
- anti-globalists
- rise of protectionism
- weakness of institutions
- disrupted market access (wars)
what are some demographic challenges to farming
- ageing farm-population -> can’t keep staff
- rural-urban migration
- reduced services in rural areas - no hospitals or schools etc
- less volunteers
what are cultural challenges to ag
- rise of PETA and animal activities
- rise of vegenism, vegetarianism
- politicians against GMO’s
- changing consumer preferences
Environmental challenges to ag
- role as contributors to greenhouse gases
- role in reducing greenhouse gases
- weather
- climate change
- biosecurity
- biodiversity
what are market structural challenges to ag
- rise of corporate farms
- rise in agribusiness oligopoly
- restrictions on who can own seeds
Financial challenges to ag
- rising costs of borrowing
- access to insurance
- Cost of transport
What is PESTEL analsyis
Political, economic, social, technological, envrionemental, legal factors
What are the key elements of an ag business plan?
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
market segmentation
- ## dividing large markets into smaller segments or niches
what are the types of market segments
- 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..
what are sources of finance for farmers
- using internal funds (savings)
- debt (mortgages, loans, borrowing
- equity (govt)
what is Ag2030?
need to watch lecture!
what are some trade barriers - protecting against trade confused
- 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)
facts about income from trade:
wheat = $12bn
beef = $9.9bn
animal hair = 3.3bn
meat = $6.1bn
what percentage of agriculture products is exported from aus
72%
what are some economic integration strategies ??
- free trade zones - low level integration, tariff reduction between members
- customs unions = members have common external tariff walls
- common market = free flows of financial capital and services
- Economic union = free movement of labour, capital, goods and services
What is ANCERTA
1983 Australia-New Zealand Closer Economic Relations Trade Agreement
What is CPTPP
- Comprehensive and Progressive Agreement for trans-Pacific Partnership
- 12 countries
What is RCEP
Regional Comprehensive Economic Partnership agreement
- 13 countries
- largest FTA (free trade Agreements) globally
