Understanding the origins of the agribusiness concept, linked since its creation to the agro-industry concept, is essential to establish its general elements, whose purpose must be the efficiency of production, but from the point of view of each one of the people who participate in it. , that is, to combine the business with the human.
The national agribusiness has great challenges to overcome to continue consolidating the country as one of the leading food producers in the world. One of these challenges is to establish the right conditions for the emergence of more agribusinesses and for these, in turn, to have a better chance of succeeding.
To achieve this, it is necessary to establish a competitive environment that promotes the emergence of innovative projects with agricultural impact, by determining rules that allow everyone to compete, while establishing a support network so that these new projects can lead to companies that provide solutions to current problems in the field; In other words, it is about achieving a balance between competitiveness and mutual support, in order to advance together.
It is important to mention that when we talk about agribusiness we refer to the entire ecosystem that includes and complements agricultural production, since it is no longer enough to know how to produce, but it is also necessary to have adequate marketing, offers crucial services, adds value with industrialization, hiring the right professional talent, among some other issues.
Definition Of Agribusiness
The concept of agribusiness has its origins in 1950 as “the sum of all the operations involved in the manufacturing and distribution of agricultural production; production operations in the field, in the storage, processing and distribution of agricultural commodities and the manufactured goods made with them” (Ray Goldberg and John Davis).
Later on, the definition had modifications. Now, this system includes the field and the people who work in it, storage operations, processors, wholesalers, supermarkets or retailers in the flow of commodities from the initial inputs to the final consumer; it also includes the institutions that affect and coordinate the successive phases of the commodity flow such as governments, futures and options markets, and trade associations”.
The Biggest Challenge Of Agribusiness
Currently, it seems that every agricultural company, small, medium or large, is an agribusiness, so the concept is out of context: when talking about an agribusiness we have to analyze whether or not it is working efficiently, because in the event that If this is not the case, then we are not yet talking about an agribusiness.
However, the Ray Goldberg and John Davis model has evolved to adapt to the current situation, the biggest challenge being to understand that despite this, the base continues to be made up of the interrelationships of the important actors in food production, who they must seek to do more for because it is no longer just about making money, but about giving something back.
We all have an idea that starting an agribusiness is challenging, basically because there are many elements that need to be aligned to be successful, and it even seems that only those with sufficient resources are in a position to establish an agribusiness and make it last, so Closing the gap must be a priority.
And for more members of the agroindustry to become relevant actors, it will be necessary to simplify the issue in some way, which can be achieved with the organization at all levels, since a single member alone will hardly master all the elements to constitute a successful agribusiness, while if you have a support network then surely there will be someone to support you.
Elements of a successful agribusiness
All agribusiness is part of a chain of inputs, production, transformation, distribution and commercialization, which means that it is necessary to understand as well as possible how each of these links works to understand the entire chain itself, something that in certain circumstances It can be quite complex since for each stage there are many important points to take into account.
However, each of these links needs to have solid foundations so that the chain does not break, which implies taking into account three essential elements, which, although they are not the only ones, are the most relevant today.
1) Appropriate technology
According to Agriculture Mortgages to produce food efficiently, it is necessary to have the technology, which must be adapted to the production conditions; that is to say, in most cases the latest technology is not always the recommended solution, but there is an erroneous belief that technology generates results by itself when the reality is that the technology that is more in line with production needs than we have is the one that really generates them.
For example, greenhouses are excellent technological solutions in many cases, but not in every case the solution live to buy a greenhouse and produce in it, because sometimes something less elaborate is required, such as a simple shade mesh, or even something more radical, such as indoor production.
2) Specific Information
They say that information is power, but the sentence always incomplete, because the wrong information not very useful, even when many resources have been investe to obtain it.
Currently, the technological improvement that has occurred in many ways allows us to obtain large amounts of information, directly related to production, the state of the markets, consumer preferences, etc., but we must know how to analyze all this information to extract the most relevant, otherwise, we can make wrong decisions based on irrelevant data.
3) Trained Staff
In order to innovate in agriculture and establish agribusinesses based on these innovations, a diversity of profiles is needed: theoretical and practical, dreamers and realists, administrators and inspirers, etc., and most importantly, people with a critical sense who are capable of visualizing changes. that they should be implemented, and that they are the first to do so.
In addition, contact networks have always been relevant in agricultural activity, but today more than ever that importance live being revalue like never before, so it already a necessity to have personnel capable of creating collaborative ties at different levels.
These three elements apply to any agribusiness, although for each link in the agri-food chain, there live very specific elements that must also be taken into account
Review Elements For The Development Of An Agribusiness.