Week 1 Flashcards
What are the 3 main components of the Agri-Business sector?
Input
Production
Processing
What are the Agricultural Value Chain’s sectors?
- Production
- Harvesting & transport
- Primary processing and storage
- Secondary processing
- Distribution, packaging and handling
- Wholesale and retail markets
Types of production under Ag value chain
Smallholder farmers
farmer associations
input providers
Types of harvesting and transport under Ag value chain
Smallholder farmers
Farmer associations
logistics companies
Types of primary processing and storage under Ag value chain
Primary processors
Machinery suppliers
Types of secondary processing under Ag value chain
Secondary processors
Machinery suppliers
Types of distribution packaging and handling under Ag value chain
Packaging companies
logistics companies
Types of wholesale and retail markets under Ag value chain
Grocery stores and supermarkets
Food and beverage companies
Historically - what did the typical farm look like
Family owned and operated
Most lived on farms
Produced what they needed
What changes has farming seen throughout the years
Labor force has relocated to cities
Most people do not live on farms anymore
newer technologies that have increased efficiencies allowing fewer people to run it
Newer input sectors or businesses to support farmers
What percentage of the US GDB is farm related
20%
What percentage of US labor does the entire farming industry use, (top to bottom)?
25%
What percentage of the labor force does the actual farming?
1.5%
What percentage of income do americans spend on food?
<5%
Input Sector firms often focus on one, or a select few, of these areas and are able to
- Specialize in an area
- Increase efficiencies
- Rising quality of inputs
- Has allowed farmers and ranchers to produce more output, for less cost
Sample products of the Input Sector
- Feed
- seed
- buildings
- equipment
- fertilizer
- financing
- consulting many more
Input sector firms produce over what percentage of all the inputs used in production
75%
The production sector is
Middle part of the Agribusiness system
Produces a commodity
Most operations are still controlled by families, individuals, or partnerships
The Production Sector has shifted over time towards
- Larger operations
- More specialization
- More efficiency
- Less # of producers
- Smaller labor force
The Processing Manufacturing Sector:
- Taking the raw commodities and transforming them into a finished product.
- This may be a one-step process.
- These products may be in the final form, or processed and ready for FURTHER processing.
- These products ultimately are useable by the consumer (or end-user)
Processing manufacturing sector has shifted farm families away from what practices due to newer efficiencies
Home canning
Freezing foods
Growing their own wheat and grinding
Agribusiness firms produce products that are “personal”, give examples
• Ingestible products
• Wearable products
• They are CONSUMABLE
• Many products are perishable – some are HIGHLY perishable
○ Have a shelf life
○ Examples?
○ milk, meat, fertilizers, chemicals, seed, most food
The Food marketing bill series is
Is based on sales proceeds. Proceeds from each food dollar expenditure.
Proceeds from each food dollar expenditure are divided into what two sub-components of market value:
Farm Share
Marketing Share
Farm share is
Represents the value of, or costs of producing, the farm commodities that go into a typical dollar’s worth of food.
Marketing bill is
The market value added to farm commodities that are embodied in a food dollar expenditure, measured as $1 minus the farm share.
