What factors should an agribusiness manager/owner consider in input management?

Relate these
factors with the issue of competitiveness.

Answer
QUANTITY OF INPUTS. In any factory, whether one is dealing with inert or “living productive
units," there is an optimal quantity of inputs required to produce a product. Too little will affect
not only yield or efficiency but also product quality. Too much will entail unnecessary costs. For
living productive units such as plants and animals, the level of inputs must be measured according
to their specific requirements for optimal growth as well as the total environment.

QUALITY OF INPUTS. The quality of inputs impacts productivity or efficiency. Poor quality of
inputs will lead to slow growth, poor product quality, and even high mortality. For instance, poor
quality feeds will lead to poor weight gain or a low feed conversion ratio for animals.

TIMELINESS OF APPLICATION. Crops and animals have growth cycles. There are specific
input requirements in every stage of the cycle. Failure to observe this will eventually affect
productivity, product quality, and product costs. Delays in the application will reduce its
effectiveness, or could make it altogether useless.

COST OF INPUTS. The choice of inputs affects farm profitability. Some inputs can be "ideal" for
productivity and quality criteria. However, their usage may not be cost-effective. The high cost of
inputs would reduce farm profits.

COMBINATION OF VARIOUS INPUTS. The appropriate combination of input use and timely
application is an important consideration in attaining plant or animal growth and quality. This is
the primordial role of the manager or entrepreneur. To maximize yield, farmers must aid their
harvest with agricultural inputs, especially smallholder farmers. The input subsystem involves the
supply of various combinations of inputs for farm production. It involves many products-and firms.
Its delivery system has similarities to other commodity systems in production, marketing, and
distribution. There are many players in the supply chain. Inputs are produced from a mixture of
other inputs. Finished products are either packed (e.g., fertilizers) or undergo a proper handling
system. Some inputs require special handling because of their perishability (e.g., day-old chicks)
or possible toxicity (e.g., farm chemicals).

Developing countries are almost always not sufficient in many farm inputs. Many inputs or their
ingredients are imported. Inputs are either imported as finished products or packaged locally. Some
companies or final users mix the imported ingredients with local materials. Undoubtedly, the
supply and cost of foreign exchange influence the availability and costs of inputs. Because of this
factor, there is scope for research and development for the production of inputs from locally
available materials.