Process and Relationships of Agribusiness

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Process and Relationships of Agribusiness

may encompass a more expansive scope depending on the perceived parameters.

agribusiness entails the input setup, production, process, transport, finance, marketing, and even the
storage for agricultural materials and consumer products.

agribusiness is the application of concepts and practices of business administration to organizations and
groups inclined in agricultural products and services.

large-scale complex system of farm input supply, agricultural production, processing, manufacturing, and
distribution to the consumers.

agribusiness plays an imperative role in the country’s economy as it also absorbs agriculture surpluses
and meets the needs of urban and rural communities.

subsystems of agribusiness are classified into Input, Production, Processing, Marketing, and Support
Subsystems.

The Input Subsystem provides input to the farm producers, whereas Input Manufacturers give raw
materials to auxiliary plants and tooling partners of the farms.

The Production Subsystem is inclined to the actual agricultural production and supplies raw materials to
the Input Manufacturers.

The Processing Subsystem processes the acquired products from the Production Subsystem to be sold
directly to the consumers or other agricultural processors. They may also produce their raw materials for
their processing for their inputs on other farm growers.

The Marketing Subsystem buys the products of farm producers and sells them whether or not it is
transformed into other products.

Support Subsystems assist the farm producers in terms of research, extension, training, development,
technology, information, and financing for their respective operations.

An Input Manufacturer needs an established connection with an Input Distributor to market its products.
In turn, an Input Distributor depends on an Input Manufacturer for products they can sell.

An Input Manufacturer also needs a Tooling Partner to aid in its processing activities because it is
expensive to maintain and own processing plants. Meanwhile, the Tooling Partner depends on the Input
Producer to maximize the use of its processing equipment and facilities.

Although the Production Subsystem may have its farms, it may still need Contract Growers to meet the
targeted production demands. In turn, the Contract Growers also need the producers to ensure the market
for their respective products.

The Farm Producers will also need to establish a connection with Contract Buyers such as exporters and
retailers to be assured of markets for their products while the Processors required to be assured of raw
materials to be processed need to establish relationships with contract growers aside from having their
farms.
the Support Subsystem is needed by the Farm Producers for research, extension, training, development,
information, logistics, and financing assistance. Meanwhile, the Support Subsystem players are also
dependent on the Farm Producers to serve as beneficiaries of their extension services, training, and
achieving their established purpose.

 reported related problems and challenges encountered by the agribusiness industry.

production, marketing, personnel and human resource, finance, administration, and extension.

issues were enumerated as;

lack of technological and information dissemination

legal formalities and regulations

availability of resources

quality control

low skill level among farmers

remedy is the provision and offering of training facilities where the people can partake in skill
development necessary to operate an agribusiness.

presents that agribusiness is a network of subsystems working interdependently to market agricultural


products that provide the community with the commodities they may need.

this supports the objective of the study to focus on the promotion of the agribusiness sector and its
potential products with the integration of training and assisting efforts for the community.

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