Unit 5 Chapter 13 Flashcards
Where does subsistence agriculture occur?
Places where connections to the global market are limited and farmers have less access to credit and financial capital such as rural Africa and parts of Asia and Latin America.
Where does commercial agriculture take place?
core and semi-peripheral countries with the infrastructure in place to access and supply the global market.
What is a dual agricultural economy?
two agricultural sectors in the same country or region that have different levels of technology and different patterns of demand.
Example of dual agricultural economy
Places such as Zimbabwe and South Africa where subsistence farms and right next to commercial farms.
Agribusiness
large-scale system that includes the production, processing, and distribution of agricultural products and equipments.
What are hybrid plants?
different varieties of plants are bred to enhance desired characteristics and improve disease resistance.
3 ways how governments intervene in agricultural markets
- Payments to farmers for growing certain crops or for not growing others.
- regulations of ag imports/exports.
- establish price supports in the form of crop purchases by the government at a guaranteed price
Another way governments intervene in agricultural markets
control the supply of certain crops by enacting quotas, or the amount farmers can produce and sell.
Preferences in agriculture
Dietary preferences and the kinds of agricultural products consumers choose to purchase ultimately affect agriculture the most
What is commercial dairying
the production of selling of milk and related food products.
Factors that affect the dairy market
price of milk that is determined partly by demand and government pricing regulations. Market for cow milk has declined because of alternatives.
Demand for meat has _____
Increased
Where have ranching operation grown?
in regions where the land is open and plentiful for cattle to graze like the U.S and South America.
Vertical Integration
when a company controls all aspects of their business operations from production to processing to shipping and then to selling.
Benefits of vertical integration
reduce costs, improve efficiencies and increase profits.
Commodity chain
a complex network that connects places of production with distribution to consumers.
First stage of the food supply system
Agricultural inputs.
Inputs are used by farmers to successfully produce agriculture. Ex: seeds, fertilizers, pesticides, etc.
Second stage of the food supply system
Producers.
The producers grow, harvest and raise the agricultural products based on farm size and type. Ex: Farmers, fishers and ranchers
Third stage of the food supply system
Processors.
Agriculture is transformed into ingredients and packaged food after it is sorted, cleaned, milled and prepared. Ex: Manufactures, factories, packages and storage facilities
Fourth stage of the food supply system
Distributers.
Food and ingredients are distributed locally, regionally and globally. Ex: importers, exporters and wholesalers
Fifth stage of the food supply system
Retailers and food services.
Retailers make food available for consumers. Ex: Restaurants, supermarkets, convenience stores and food banks.
Sixth stage of the food supply stage
Consumers.
Consumers cook and/or eat the food. Ex: individuals and families
Farm subsidies
Solution to rising costs of production by the U.S federal government to provide low-cost loans, insurances and payments.
Do farm subsidies work?
Many believe that the subsidies help the agricultural economy of the U.S, even though they are directed to large producers. Others believe that the money is just a bonus to operations that are already successful and don’t need the assistance.
Tariff
a tax or duty to be paid on a particular import or export.
What are tariffs used for
raise government revenue, or income, protect domestic industries against foreign competition
Global supply chains
same as commodity chains but on a global scale, enable the delivery of a product between two different countries.
Cash Crops
peripheral countries struggle with developing and maintaining export economies and end up becoming depending on one crop called cash crop.
Example of cash crop
Vanilla industry in Madagascar.
Advantages and disadvantages of a cash crop
The specialization of one product creates a reputation and demand for production. However, reliance on a single commodity is risky, and it’s unhealthy for an economy.
Fair Trade
a global campaign to fix unfair wage practices and protect the ability of farmers to earn a living.
