Jc – Mar L.

Gloria (MBA-1) Agribusiness

A. Agribusiness is different from other industries like merchandising, retailing, and

manufacturing.
Here are the reasons:

1. Agribusiness is closely tied to nature, dealing with things like weather, soil quality, and
pests. It's like trying to balance a delicate equation!
2. The supply chain is longer and more complex, involving multiple steps from farm to
table.
3. There's more unpredictability in agribusiness due to factors like weather and market
fluctuations.
4. Agribusiness is about feeding people and families, so there's a personal connection that's
different from other industries.

In short, agribusiness is unique because it's deeply connected to the natural world, has a
complex supply chain, is unpredictable, and has a strong emotional connection with people.

B. Here are the benefits and disadvantages of having an agribusiness venture;

Benefits:
Job creation: Agribusiness creates jobs not only on farms but also in related industries like
processing, transportation, and marketing.
Advantage: Provides employment opportunities for many people.

Food security: Agribusiness ensures a steady supply of food for local communities and the
global market.
Advantage: Ensures people have access to nutritious food.

Economic growth: Agribusiness contributes to local and national economies through exports
and domestic sales.
Advantage: Boosts economic development and revenue.

Sustainability: Many agribusinesses focus on sustainable practices, reducing environmental

impact and promoting eco-friendliness.
Advantage: Helps protect the environment and preserve natural resources.
Community engagement: Agribusiness often involves local communities, promoting social
connections and cultural heritage.
Advantage: Fosters community relationships and cultural preservation.
 C. Disadvantages of Agribusiness;

Unpredictability: Weather, pests, and diseases can affect crop yields or livestock health, leading
to losses.
Disadvantage: Unforeseen events can impact profitability and productivity.

High capital investment: Starting and maintaining an agribusiness often requires significant
upfront investment in land, equipment, and infrastructure.
Disadvantage: Requires substantial financial resources.

Seasonal fluctuations: Agribusinesses face seasonal fluctuations in demand, production, and

profits.
Disadvantage: Can lead to cash flow issues and volatility.

Regulatory challenges: Agribusiness is subject to various regulations, permits, and

certifications, which can be time-consuming and costly to navigate.
Disadvantage: Requires compliance with multiple rules and regulations.

Environmental concerns: Agribusiness can have negative environmental impacts, such as soil
degradation, water pollution, or habitat destruction.
Disadvantage: Can harm the environment and affect public health.

By understanding these benefits and disadvantages, entrepreneurs can better prepare themselves
for the challenges and opportunities in the agribusiness sector.