AGRIBUSINESS COMPANIES INVOLVED IN THE PRODUCTION OF

PIZZA

Submitted By

NOMORE NKHOMA

Student Number (491701545)

JILIN AGRICULTURAL UNIVERSITY

Agricultural Economics and Management

Course name: Agribusiness Seminar

PIZZA PRODUCTION

Introduction

Pizza is a savory dish of Italian origin consisting of a usually round, flattened base of leavened
wheat-based dough topped with tomatoes, cheese, and often various other ingredients (such as
anchovies, mushrooms, onions, olives, pineapple, meat, etc.) which is then baked at a high
temperature, traditionally in a wood-fired oven.

Pizza is an end product resulting from processing of several raw materials ready for consumption.
This article will highlight some of the important actors in the pizza value chain including their
roles.

Pizza production, like any other business, follows/fits into the big picture of agribusiness which
includes, input supply, production of raw materials, processing and distribution.

Pizza value chain analysis

The diagram above can be adopted to illustrate the pizza production cycle.
Production Agriculturalist (farmers)

Production agriculturalists raw material required for the pizza production. These farmers are
engaged in different types of agriculture ranging from dairy, livestock, crop, and horticulture. The
term raw materials means products extracted from nature in their raw state and that often require
transformation before being used. Agricultural products such as wheat, rice and corn are examples
of raw materials.

Three main raw materials used in pizza production include: wheat, tomatoes and milk. These raw
materials had been transformed into flour, tomato puree and mozzarella. Each raw material
followed its own route to become part of these ingredients, from the farm to the shops, via factories
or manufacturing plants.

Other agribusiness companies providing raw materials for pizza production include, poultry
farmers, mushroom farmers

Aggregators/processors

The agribusiness companies in this category are involved in the processing of raw materials into
usable products. These raw materials can be processed into final or intermediate products. Value
addition is involved in this category. For pizza; Grain and Milling companies process wheat into
flour which is one of the ingredients in pizza making.

Dairy companies buy raw unprocessed milk from production agriculturalists and transform the
milk into different milk by-products such as, powdered milk, cheese, and ice-creams. A special
kind of cheese called mozzarella is required in the production of pizza.

Pizza factories are also included in this category of agribusiness companies. Pizza companies such
as Pizza Hut and Domino’s pizza combines the 3 main ingredients for making pizza in addition to
other ingredients such as mushrooms, onions and pepper to make a wide variety of pizzas.
Agribusiness output companies

Pizza companies makes pizza, but then due to competition and rivalry the companies rely on the
expertise of marketing agencies in order to reach consumers. Marketing is another important
agribusiness component which helps companies make sales and gain profit. Marketing companies
can be involved in research and development of the pizza production. They can conduct studies on
consumer preferences and help market the different pizza varieties.

Once the pizzas have been made, they need to be transported to various destinations such as
restaurants, supermarkets and other food retail outlets. Several companies across the world are
involved in the distribution of processed foods from factories to restaurants.

Other companies involved include those which make boxes, paper

Restaurants, supermarkets, food outlets

All over the world, agribusiness companies are involved in the retail services for final food
products. Restaurants and supermarkets can procure and sell pizzas to consumers. Pizza is sold
fresh or frozen, and whole or as portion-size slices or pieces. Methods have been developed to
overcome challenges such as preventing the sauce from combining with the dough and producing
a crust that can be frozen and reheated without becoming rigid. There are frozen pizzas with raw
ingredients and self-rising crusts.

Another form of uncooked pizza is available from take and bake pizzerias. This pizza is assembled
in the store, then sold to customers to bake in their own ovens. Some grocery stores sell fresh
dough along with sauce and basic ingredients, to complete at home before baking in an oven.

Input supply companies

Input supply companies in the pizza production include those companies which provide inputs to
the farmers. Farmers may access inputs such as seeds, animal feed, farm machinery, fertilizers and
credit/loans. Therefore Banks, seed and fertilizer processing companies and agricultural research
institutions play a vital role in the pizza production.
Consumers

A consumer is a person who pays money for the pizza. Consumers all over the world have
preferences and choice on which type of pizza to buy and from which shop to buy from.
Understanding consumer behavior helps in making sure that the pizza production process flows
smoothly. Consumers may be individuals, households or a specific group of people.

References

Ricketts, C. & Rawlins, O. (2001). Introduction to Agribusiness. Chapter 1: Agriculture and

Agribusiness

Diamond, A. & Barham J. (2012). Moving Food along the value chain: Innovations in Regional
Food Distribution.

https://blochoestergaard.com/tool-the-pizza-model/ accessed on June 9th 2020.