Transcript Agribusiness

 Agribusiness:
an agricultural business that
includes growing, storing, processing, and
distribution.
 There
1.
2.
are two types of marketing:
Administered (controlled)
Open Market (free choice)
 Who?
A marketing board determines the
price for a particular crop or livestock
product (ex. Canadian Wheat Board).
 How?
The price is set through supply and
demand. If the board predicts high value,
they will charge more for the product. If the
board predicts low value, they will charge
less.
 What’s


the deal?
Good: Steady income is guaranteed. When the
price changes on world markets, farmers income
remains constant. The price remains what the
board determines. Ex) If wheat prices drop
during the year, farmers still receive a higher
revenue than other countries
Bad: Potential profit can be lost. If market
prices increase (so that the farmers could make
more money) the board takes the profit. This
makes it difficult for new producers to enter
farming or for old producers to expand.
Canadian products marketed under administered
pricing are more expensive around the world.
 Who?
The farmer sells their product at the
best price they can find.
 How?
Prices are set through supply and
demand. However, unlike administered
pricing , cost can change daily. There is no
steady control.
 What’s


the deal?
Good: If prices increase the farmer can expect
to make a larger profit. Anyone, can enter the
market at anytime.
Bad: If the price drops dramatically, the farmer
will have to assume the loss of profit. If too
many farmers produce the same product, there
will be a greater supply than demand and the
prices will drop.
 Many
products we purchase on a regular
basis are made by workers receiving
extremely low wages or come from countries
where the producers receive very little for
their produce.
 Approximately,
50 years ago, international
aid organizations together with farmers in
Africa and Asia, began what is known as Fair
Trade.
 The
fair trade system is designed on the
following goals for the farmers and workers
in developing countries:

Fair compensation for their products and labour

Sustainable environmental practices

Improved social services

Investment in local economic infrastructure
 Fair
traders pay fair prices to small
producers. These prices recognize the true
cost of labour and production
 This makes it possible for the people
producing these products to keep a decent
roof over their heads, feed their families,
and send their children to school.
 Customers are encouraged to think about the
person behind the product.
 Continual
improvements in technology have a
huge impact on agriculture:

Tractors are equipped with GPS and autosteer technology. This makes it possible for
less fuel to be used when crops are planted
and sprayed – there is no overlap.

Databases keep track of animal weights,
milk production, vitamin and mineral
deficiencies and can help farmers deliver
specified feed for the various animals.

Genetically modified organisms (GMO’s) are
being developed for a variety of reasons.
Genetically engineering the seed means
that farmers can produce a higher yield.

Crops can be engineered to withstand
certain herbicides, allowing the farmer to
more efficiently spray for weeds.

Crops can become more hardy to various
climates and have an increased resistance
to insects and diseases.
1.
Conventional/Traditional

This type of farming includes tillage. Farmers
are moving to minimal tillage where they till
only in the fall to prepare for spring seeding.

Keeping a field black for an entire growing
season is not as common as it once used to be.
A major concern for this type of farming
practice is soil erosion especially due to wind.
To address this problem, farmers plant trees
along the field to create windbreaks. This
reduces the amount of wind on the field and
traps snow in the winter for added moisture.
 Chemicals
are used to allow farmers to
produce crops more efficiently with a greater
yield. They are also used to control pests.
Zero Tillage Farming
Zero tillage means that the farmer does not till
the soil at all. There are three reasons farmers
choose to use this type of farming practice:
2.

Conservation of soil moisture that helps germination
and yield.

Erosion protection.

Maintain a good seedbed quality.
This farming practice does not require extra amounts of
chemicals but the farmer often spends more money.
The concerns with this practice are minimal in that the
chemicals used are more modern and have been
tested for residue and other negative side effects.

3.


Organic Farming
Organic farming uses no synthetic chemicals or
fertilizers. The farmer relies on crop rotation
and tillage to maintain weeds and build up
organic matter.
The soil may take on a physical difference after
several years of organic farming. It has more
organic matter in it and particles adhere more.
As a result, there is less silt and erosion is
minimal. Farmers also claim that the profit
margin is quite good.
 Aquaculture
is the cultivation and harvesting
(farming) of finfish, shellfish and aquatic
plants.
 Fish are bred for maximum size and rate of
growth.
 Oysters, for example, are grown in such a
way that the shell is more appealing and can
be used as a dish or cup.
 Salmon that are grown in fish farms are fed
specific types of food that will encourage
quick growth.
 Aquaculture
is one of the fastest growing
industries in the world. Seafood is becoming
more and more appealing.
 Fish can often be grown in areas with low
employment rates and lower standards of
living.
 Aquaculture provides jobs and a food source
that contains a high amount of vitamins and
minerals.