Agribusiness Management Training Manual for Feed Ppt
Introduction to Agribusiness Management - PowerPoint PPT Presentation
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Introduction to Agribusiness Management
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Introduction to Agribusiness Management Chapter1 Introduction to Agribusiness Management Management is the sole responsibility for decision making, and most likely ... – PowerPoint PPT presentation
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Title: Introduction to Agribusiness Management
1
Introduction to Agribusiness Management
- Chapter1
2
Introduction to Agribusiness Management
- Management is the sole responsibility for
decision making, and most likely will always be
this. - Managers use economic principles, budgets, record
summaries, investment analyses, financial
statements. - Electronic innovations will most likely alter the
types of information available to the manager.
3
Types of Farming Operations
- Low Volume, High Value Producers Cant expand
so they produce higher valued products. Promotion
and marketing become critical. - High Volume, Low Margin Producers generic feed
and food grain producers, oil seed. Expand their
production to increase profitability. - Specialty Product and Service Providers
specialize in one or two skills and become the
best at performing those services. - Part-time (Hobby) Operators One half of
operations, produce 15 percent of total ag sales
4
The Information Age
- In the past decision making principles and
budgeting tools have been underutilized. Data
collection, analysis and interpretation will be
rapidly changing in coming years. GPS IPPM - The amount of information will be overwhelming in
the next few decades, then decisions will need to
be made on what information to look at and what
not.
5
Financial Management
- Outside capital will be needed to finance
large-scale operations. Funds are starting to
come from national markets due to the vertical
integrations of rural banks. - Credit is becoming available from non-traditional
sources such as input suppliers and processors. - Ag producers will continually have to compete for
access to capital with non-farm businesses. This
competition necessitates more detailed
documentation of financial performance and credit
needs and more conformity to GAAP. - Controlling assets is becoming more important
than owning them.
6
Human Resources
- Working with other people will become a more
important factor in the success of the operation. - Will have to offer competitive wages, benefits
and working conditions
7
Producing to meet consumer demands
- Old CW produce homogeneous products
- New CW to offer more highly specialized and
processed food products to the consumer. Buyers
are beginning to implement stricter product
standards for producers.
8
Producing to meet consumer demands
- Examples animals size, leanness, why? Improved
measuring devices and data processing will make
it easier to pay differentials. In crop
production protein and oil content of grain and
forages will make pricing differentials possible. - The niche market will also become important.
- Foreign markets will become more important as
trade barriers fall.
9
Environmental and health concerns
- Food Quality, Food Safety and the present
condition of our soil water and air will continue
to see high priority from the non-farm
population.
10
New technology
- Why do farmers adopt? What is involved in that
decision making process?
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