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.
Engaging in Agribusiness is a risk taking and toughdecision for every men’s way to success. For every man who’s desired is to ventureout in the world of agribusiness enterprise should need to study all thefactors that affect the affluence of their proposed projects, with scrutiny(market study, technical study, financial, socio-economics, management, andenvironmental impact assessment) including systems and concepts who’s probablythe baseline of agribusiness. If the outcome of the study has shown that theproposed project is feasible, then, agribusiness men should never be feared andbe lost in the labyrinth of ignorance. Thus, venturing in an agribusiness enterprisewhich encompasses a conceptualized and systematic analysis of all the factorsthat affect the possibility of success of a proposed undertaking.
Since,Agriculture is said to be the “Backbone of the Economy whereby Philippinesconsidered as one of the agricultural countries across the nation whereinagribusiness dominantly established as the main economic activity of the peoplein the country. Agribusinesses enterprise generate the countries income in theagricultural sector, and other way agribusiness helped boosting the country’seconomy. Examples of these agribusiness are the following: poultry farms,livestock farms, swine farms, feed companies, veterinary productsmanufacturers, hatcheries, etc. Therefore, agribusiness defined as anenterprise or sometimes known as an agricultural business that embodies all themarket and private business-oriented entity involved on the agriculturaltransactions such as farming, management, production, storage, processing, anddistribution of agricultural commodities or agro-based products to thecommunity to suffice human needs, more specifically to alleviate hunger. In order for the agribusiness men, not onlyin the Philippines but across the global scale, to become a major in theindustry they need to follow the five major subsystems in agriculture.
These fivesub-systems are the following: Theinput subsystem. This is the first subsystem from which all other agribusinesssubsystems emanate. The production subsystem, the Inputs are directly used toproduce an agricultural commodity as end-product or as a raw material for theproduction of other products. The Processing Subsystem whereinthe commodities from theproduction subsystem are transformed into various products followed by the MarketingSubsystem. This subsystem is concerned with the transfer of goods from sourceto end-user. Lastly the Support Subsystem which isconsists of all the keyplayers that provide services, however, optional, but crucial to the success ofan agribusiness venture.
Moreover, agribusiness has three sectors Although, these five major sub-systems in agribusinesshad various definitions and functions, yet it interrelates each other’ssignificance in the field of agriculture which had common entities and goals thatpertains good camaraderie to surpass existing challenges that every aspect ofagribusiness 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. Agribusinessis the coordination of all activities that contribute to the production,processing, marketing, distribution, financing and development of agriculturalcommodities and resources. These includes food, fiber, natural resources,horticulture and other plant and animal products and services.
Agribusinesshas undergone rapid transformation as new industries evolve and traditionalfarming operations grew larger and more specialized. Input Sector provides producer with feed,seed, machinery they need to operate. It provides 75% of the input used inproduction agriculture.
Production Sector, in the recent years producers havespecialized into one or a few crops or types of livestock in order to be ableto increase the efficiency of their operations and become production expert.The agricultural production has been the cause of much of change inagribusiness sector. They, in turn, have been changed by development in otherareas of agribusiness, particularly in technology. Processing/ ManufacturingSector employs millions of people in a variety of business ranging from grainelevators from fruit and vegetable, process plants to supermarkets to fast foodrestaurant. The businesses in this sector acquire raw agricultural commoditiesfrom producers and then process them into food products that are sold at times,at places, and in forms that are desired by consumers