1975, two man namely John Davis and Ray Goldberg coined the term ‘Agribusiness’, both man
finish as economist on the most well-known school Harvard University. They believe that 150 years ago the concept of
agriculture as an industry already existed. When a classic family do not grow
crops and livestock for consumption but grow it to earn money. At that time agribusiness
comprises everything that is related to bring farm product to the consumer from
the farms. According to them agribusiness doesn’t only stop on bringing farm
product to the market but includes processes such as purchase of farm inputs
and use of farm product for other purposes through processing in order to sell
the products in much higher price and faster time.
And thus in 1957 Goldberg and Davis
defined agribusiness as “the sum total of all operations involved in the
manufacture and distribution of farm supplies; production operations on the
farm; and the storage, processing and distribution of farm commodities and
items made from them.”
are also define and are related to other fields such as an art which it is
defines as using the skills of an individual/organization to create a
productive enterprise to be able to play along to the up and down economic
enviroment. It also play a role on the risk taking ability of an indivual to
engage in a enterprise. As a science it is defined as risk taking backup with a
business plan having the containing objective, data and information on market
trends, and management practices.
Shown on the figure above,
agbribusiness comprises 3 sectors and
these are food production sector or where the food is being produce or simply the source of food, second is
consumers or the people needing the food and in betweeen is marketing when the exchange of food to a specific corresponding value. Agriculture deals with
products that are perishable this means that manufacturing and proccesing
sector plays a vital role in marketing to extend the shelter life of the
product. Proccesed product may be also use as farm inputs on other production
commodities like corn being use as a feed for chickens.
Agribusiness is a system of
closely related stages that are knit together, as stated by custodio
agribusiness emvompasses all actions involving the procces of production from
input utilization to different procces that the product undergoes up to the
readily available product for consumers.
For this system to be apply in a agricultural business, a series of
supporting services should be provided for organization of the different
works that would result in syncing action for the succes of the business.
Under the three main sector are 5
subsystem these are as follows:
Input subsystem: this is the first subsytem which all raw
material or farm inputs (seeds, feeds, fertilizer and etc.) are allocated
Production subsytem: in this part inputs are being
manufucture to be a product or as mention erlier to be use as inputs for other
Proccesing sub-system: this portion completely or not
completely changes a product into a new form. It is consider as proccesing
eventhough an input stay on the same form since washing and grading the input
is considered proccessing.
Marketing Subsystem: this portion focuses on
trnasportation of the product to the consumers. This involves any form of
movement from the source of the product to one that will be using it.
Support subsytem: this maybe optional for an enterprise
but it plays a vital role in the succes of an agribusiness venture
Agribusiness is helpful the philippines since the country
is already counted as an agriculturl country and this will help raise the
economy of the country since according to the coutry stat (2015), agriculture
contributed about 16 billion on GNI (gross national income) and about 13
billion on GDP(gross domestic product)