Theagribusiness is one of the large-scale sector in the world economy. Due to rapidgrowth of the world population, efficient development and progress is the openingof the huge untapped potential for agribusiness industry in the countryincluding the import and export. Agribusiness has undergone rapid transformationas new industries evolve and traditional farming operations grew larger andmore specialized.
Engaging in Agribusiness is a risk taking and tough decisionfor every men’s way to success. For every man who’s desired is to venture out inthe world of agribusiness enterprise should need to study all the factors thataffect the affluence of Agribusiness with coordination of all activities thatcontribute to the production, processing, marketing, distribution, financingand development of agricultural commodities and resources. These includes food,fiber, natural resources, horticulture and other plant and animal products andservices including systems and concepts who’s probably the baseline ofagribusiness. Thus, venturing in an agribusiness enterprise which encompasses aconceptualized and systematic analysis of all the factors that affect thepossibility of success of a proposed undertaking. Since, Agriculture is said tobe the “Backbone of the Economy whereby Philippines considered as one of theagricultural countries across the nation wherein agribusiness dominantlyestablished as the main economic activity of the people in the country. Agribusinessesenterprise generate the countries income in the agricultural sector, and otherway agribusiness helped boosting the country’s economy. Examples of theseagribusiness are the following: poultry farms, livestock farms, swine farms,feed companies, veterinary products manufacturers, hatcheries, etc.
Therefore,agribusiness defined as an enterprise or sometimes known as an agriculturalbusiness that embodies all the market and private business-oriented entityinvolved on the agricultural transactions such as farming, management,production, storage, processing, and distribution of agricultural commoditiesor agro-based products to the community to suffice human needs, morespecifically to alleviate hunger. Inorder for the agribusiness men, not only in the Philippines but across the globalscale, to become efficient in the industry they need to internalize and studythe three major agribusiness sectors namely the Input Sector, Production Sectorand Processing and Manufacturing Sector. The input sector provides producerwith feed, seed, machinery in which intent necessarily to operate their farmregularly.
It provides 75% of the input used in production agriculture. ProductionSector, in the recent years producers have specialized into one or a few cropsor types of livestock in order to be able to increase the efficiency of theiroperations and become production expert. The agricultural production has been thecause of much of change in agribusiness sector. They, in turn, have beenchanged by development in other areas of agribusiness, particularly intechnology. Processing/ Manufacturing Sector in the other hand employs millionsof people in a variety of business ranging from grain elevators from fruit andvegetable, process plants to supermarkets to fast food restaurant. The businessesin this sector acquire raw agricultural commodities from producers and thenprocess them into food products that are sold at times, at places, and in formsthat are desired by consumers. Moreover,as part on the agricultural system a man should also necessary to tackle the fivemajor subsystems of agribusiness.
These five sub-systems are the following: The input subsystem. This is the first subsystem fromwhich all other agribusiness subsystems emanate. The production subsystem, the Inputsare directly used to produce an agricultural commodity as end-product or as araw material for the production of other products. The Processing Subsystemwherein the commodities from the production subsystem are transformed intovarious products followed by the Marketing Subsystem. This subsystem isconcerned with the transfer of goods from source to end-user. Lastlythe Support Subsystemwhich is consists of all the key players that provide services, however,optional, but crucial to the success of an agribusiness venture. Although, thesefive major sub-systems in agribusiness had various differences and functions,yet it interrelates each other’s significance in the field of agriculture whichhad common entities and goals that pertains good camaraderie to surpassexisting challenges that every aspect of agribusiness is facing over time.
In summary, these five major sub-systems ofagribusiness are the key factors that will operate jointly as a chain with relentlessprocess. “One cannot exist without the others” in other means if one specific componentof certain system cannot be able to operate, then a business might be subjectedto failure causing tremendous losses to the business enterprise. AgribusinessConcepts in the other hand will lead every man to analyze situation improvingactivities within the circle of agribusiness. Systems and Concepts ofAgribusiness are two dissimilar terms, but with the same motive and principlesto help agribusiness sector in the country to suffice human needs,more specifically to alleviate hunger.