| Agribusiness is a concept that denotes
the collective business activities that are performed from
farm to fork. It covers the supply of agricultural inputs,
the production and transformation of agricultural products
and their distribution to final consumers. As an economic
sector, agribusiness is one of the main generators of employment
and income worldwide.
Managing agribusiness firms is a particularly challenging
endeavour. Contrary to the traditional manufacturing industries,
agribusiness is characterized by raw materials that are mostly
perishable, variable in quality and not regularly available
at all times of the year. The sector also tends to be subject
to stringent regulatory controls regarding issues such as
consumer safety, product quality and environmental protection.
In addition, agribusiness is facing unprecedented changes
in its business environment, fuelled by developments in technology,
urbanization, consumer preferences and the globalization of
markets. Traditional production and distribution methods are
being replaced by more closely coordinated and better planned
linkages between agribusiness firms, farmers, retailers and
others in the supply chains.
In this changing environment, agribusiness managers must
not only possess the traditional management skills in areas
such as operations, finance and marketing, but they must also
understand the peculiar nature of their business, anticipate
the changes in their unique business environment and master
the tools and techniques to cope with them. There is an increased
understanding that production-support activities must be linked
to market demand and that farm-level activities must be looked
at within the context of the whole value chain and the linkages
within that chain.
These are the central issues addressed by FAO's Agribusiness
Management Programme, with a strong emphasis on capacity building
and human resources development at different levels. The program
produces training materials, in particular for small farmers
and managers of agro-processing enterprises who need technical
and managerial training: comprehensive of stronger capacity
for business planning. It also advises on policies and strategies
to improve agribusiness competitiveness, including fostering
better coordination and linkages among business partners.
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