Module 1

Republic of the Philippines
Abra State Institute of Sciences and Technology

COLLEGE OF AGRICULTURE, FORESTRY & COOPERATIVES
Main Campus, Lagangilang, Abra
MODULE 1
INTRODUCTION TO AGRIBUISINESS
MANAGEMENT
BSAB-1
ROMNICK PASCUA TUBO,

R.A. I
INSTRUCTOR
Chapter I: Agribusiness Management
Aim
The aim of this chapter is to:
• Introduce the concept of agribusiness
• Explain the concept of capital in the business
• Explicate the concept of capital management
Objectives
The objectives of this chapter are to:
• Explain management in the context of its nature,
types, tasks and responsibilities
• Elaborate capital management in agri-business
• Define management
WHAT IS AGRI
BUSINESS?
“Agribusiness is the sum total of all operations
involved in the manufacture and distribution of farm supplies,
production activities on the farm, storage, processing and
distribution of farm commodities and items made from them.”
The food and fibre system is increasingly being

referred to as “agribusiness”.
The term agribusiness represents three part system made up

of:
 The agricultural input sector
 The production sector
 The processing-manufacturing sector
To capture the full meaning of the term “agribusiness”, it is important

to visualize these three sectors as interrelated parts of a system in which the
success of each part depends heavily on the proper functioning of the other two.
The Agricultural Input

Sector
The agricultural input sector is a major part of agribusiness. It
provides farmers with the feed, seed, credit, machinery, fil, chemicals, etc.,
that they need to operate. It is generally felt that the improvement in the
quality of these purchased inputs has been a significant source of
productivity guns for the entire system. Input suppliers provide producers
with substantial quantities of purchased inputs.
Production Sector
The middle part of agribusiness is the production sector. The
production sector has been at the core of much of the change in
agribusiness. Some individual producers have grown larger and more
efficient by specializing in the production of agricultural commodities
and letting others supply the inputs and process the outputs. However,
for producers to continue to progress, they must recognize the
changing nature of agricultural markets and improve their marketing
efforts.
The Agricultural Processing-manufacturing

Sector
The processing-manufacturing sector includes all the individuals and
firms that process agricultural commodities (turn wheat into flour), manufacture
food products (Turin flour, eggs, and other inputs into bread), and distribute the
retail food products to the final consumers.
The business in the processing-manufacturing sector acquires raw

agricultural commodities from producers, then processes them into food
products that are sold at times, at a place, and in the desired forms by
consumers.
FACTS/TRIVIA
Many of the better-known agribusiness firms are found in food

manufacturing. They produce heavily advertised consumer food products like
Coca-Cola, Campbell’s Soup. H.J. Heinz, general mills, etc. While most large
agribusiness firms are primarily involved in just one part of the industry, many
have subsidiaries in other parts of the system. These diversified Terms often
do business in a variety of areas., For example, Cargill is a privately owned
firm.
CHAPTER 1-1.2
MANAGEME
NT
There is no single definition of management. The following are
some definitions of management according to various management people:
 Henry Fayol who is considered as the father of principles of management, - “To

manage is to forecast, to plan, to organize, to command coordinate and to control.”
 Freederick Winslow Taylor - “Management is knowing exactly what you want men
to do and then seeing that they do it in the best and cheapest way.”
 Mary parker - “Management is the art of getting things done through people.”
 Per Drucker - “Management is a multi-purpose organ that manages a business,
manages manager and manages worker and work.”
 George Terry - “Management is a distinct process consisting of planning,
organising actuating and controlling performance to determine and accomplish the
objectives by the use of people and resources.”
After going through the above definitions of management, now it can be defined as getting things done
through others/subordinates. In other words, it is a process of various functions like planning,
organizing, leading and controlling the business operations in such a manner as to achieve the
objectives set by the business firm. It consists of all activities beginning from business planning to its
actual survival.
Read and understand the following Questions:
1. Management is:
a. Managing, utilizing, mobilizing each and every available resources
b. Planning future activities for achieving the goals being set
c. All about forecasting, planning, and taking command
d. All of the above
2. Agribusiness is the sum of all operations in the farm.
a. True
b. False
c. Maybe
d. None of the above
3. Food and Fiber industry is often associated with Agribusiness.

a. True
b. False
c. Maybe
d. None of the above
ESSAY:
1. Define management in your own words. (minimum of 300 words)
2. In your own opinion, what is the best business to operate in this era
and why? (business must be associated with Agriculture) (minimum of
300 words)
3. How will you manage future risk in putting up your own business?
(minimum of 300 words)

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Republic of the Philippines

Abra State Institute of Sciences and Technology

ROMNICK PASCUA TUBO,

The aim of this chapter is to:

• Introduce the concept of agribusiness

• Explain the concept of capital in the business

• Explicate the concept of capital management

The objectives of this chapter are to:

• Explain management in the context of its nature,

types, tasks and responsibilities

• Elaborate capital management in agri-business

The food and ﬁbre system is increasingly being

The term agribusiness represents three part system made up

 The production sector

 The processing-manufacturing sector

To capture the full meaning of the term “agribusiness”, it is important

The Agricultural Input

The Agricultural Processing-manufacturing

The business in the processing-manufacturing sector acquires raw

Many of the better-known agribusiness firms are found in food

 Henry Fayol who is considered as the father of principles of management, - “To

through others/subordinates. In other words, it is a process of various functions like planning,

3. Food and Fiber industry is often associated with Agribusiness.

1. Define management in your own words. (minimum of 300 words)

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