Module 1
INTRODUCTION TO AGRIBUSINESS
At the end of the module, you are expected to:
1. define what is agribusiness;
2. describe the relationship of agribusiness to agriculture;
3. define agribusiness value chain;
4. identify the importance of agribusiness; and
5. identify the prospect of agriculture amidst covid-19 pandemic.
The Rise of Agribusiness
Agribusiness is now half-a-century old. In 1957, two Harvard professors,
Ray A. Goldberg and John H. Davis, coined the word agribusiness. Their
pioneering work traced a chain that begins with the farmer’s purchase of seed
and livestock and ends with a product for the consumer’s table. More than a
decade later, Goldberg followed with a volume on agribusiness coordination.
Goldberg and Davis defined agribusiness as “the sum total of all
operations involved in the manufacture and distribution of farm supplies;
production operations on the farm; and the storage, processing and distribution
of farm commodities and the products made from them.”
Agribusiness and Agriculture
Agribusiness is the off-farm link in agrofood value chains. It provides
inputs to the farm sector, and it links the farm sector to the consumers through
the handling, processing, transportation, marketing, and distribution of food and
other agricultural products. While, agriculture is the art and science of cultivating
the soil, growing crops and raising livestock. It includes the preparation of plant
and animal products for people to use and their distribution to markets. Thus,
there are strong synergies between agriculture and the performance of
agriculture for development. Dynamic and efficient agribusiness spurs
agricultural growth. And a strong link between agribusiness and smallholders can
reduce rural poverty.
, Performance of Philippine Agriculture
Although performing marginally better than 2018, Philippine agriculture in
2019 continued to be a drag on an otherwise robust economy. In the last quarter
of 2019, agricultural production grew just 0.4 percent, bringing the full-year
average to 0.7 percent. Crop production expanded 1.0 percent during the final
quarter of 2019 with paddy rice growing 4.7 percent and corn declining 8.2
percent. During the same period, livestock decreased by 8.5 percent, primarily
from African Swine Fever driving hog production down by 9.8 percent. On the
other hand, poultry production grew by 5.4 percent in the last quarter, as
consumers swapped pork for chicken. For the entire 2019, the crops and
livestock subsectors contracted 0.8 percent and 1.0 percent, respectively, while
poultry gained 5.8 percent and fisheries added 1.9 percent.
In the fourth quarter of
2019, agriculture inched up by 0.4
percent. Crops, poultry and
fisheries posted increases in
production while livestock
production contracted.
Crop production grew by
1.0 percent during the quarter. It
shared 50.6 percent in the total
agricultural output. Palay
production went up by 4.7
percent. Corn recorded an 8.2
percent decline in production.
Livestock which accounted for 16.2 percent of the total agricultural
production decreased by 8.5 percent. Hog production dropped by 9.8 percent
during the quarter.
Production of poultry expanded by 5.4 percent this quarter. It shared 17.0
percent to the total agricultural production. Except for duck, all poultry
commodities posted higher production.
Fisheries production which increased by 3.4 percent contributed 16.2
percent to the total agricultural output during the fourth quarter of 2019. All the
major species registered output increases.
At current prices, the value of agricultural production at PhP 492.0 billion
was down by 5.3 percent this quarter.
INTRODUCTION TO AGRIBUSINESS
At the end of the module, you are expected to:
1. define what is agribusiness;
2. describe the relationship of agribusiness to agriculture;
3. define agribusiness value chain;
4. identify the importance of agribusiness; and
5. identify the prospect of agriculture amidst covid-19 pandemic.
The Rise of Agribusiness
Agribusiness is now half-a-century old. In 1957, two Harvard professors,
Ray A. Goldberg and John H. Davis, coined the word agribusiness. Their
pioneering work traced a chain that begins with the farmer’s purchase of seed
and livestock and ends with a product for the consumer’s table. More than a
decade later, Goldberg followed with a volume on agribusiness coordination.
Goldberg and Davis defined agribusiness as “the sum total of all
operations involved in the manufacture and distribution of farm supplies;
production operations on the farm; and the storage, processing and distribution
of farm commodities and the products made from them.”
Agribusiness and Agriculture
Agribusiness is the off-farm link in agrofood value chains. It provides
inputs to the farm sector, and it links the farm sector to the consumers through
the handling, processing, transportation, marketing, and distribution of food and
other agricultural products. While, agriculture is the art and science of cultivating
the soil, growing crops and raising livestock. It includes the preparation of plant
and animal products for people to use and their distribution to markets. Thus,
there are strong synergies between agriculture and the performance of
agriculture for development. Dynamic and efficient agribusiness spurs
agricultural growth. And a strong link between agribusiness and smallholders can
reduce rural poverty.
, Performance of Philippine Agriculture
Although performing marginally better than 2018, Philippine agriculture in
2019 continued to be a drag on an otherwise robust economy. In the last quarter
of 2019, agricultural production grew just 0.4 percent, bringing the full-year
average to 0.7 percent. Crop production expanded 1.0 percent during the final
quarter of 2019 with paddy rice growing 4.7 percent and corn declining 8.2
percent. During the same period, livestock decreased by 8.5 percent, primarily
from African Swine Fever driving hog production down by 9.8 percent. On the
other hand, poultry production grew by 5.4 percent in the last quarter, as
consumers swapped pork for chicken. For the entire 2019, the crops and
livestock subsectors contracted 0.8 percent and 1.0 percent, respectively, while
poultry gained 5.8 percent and fisheries added 1.9 percent.
In the fourth quarter of
2019, agriculture inched up by 0.4
percent. Crops, poultry and
fisheries posted increases in
production while livestock
production contracted.
Crop production grew by
1.0 percent during the quarter. It
shared 50.6 percent in the total
agricultural output. Palay
production went up by 4.7
percent. Corn recorded an 8.2
percent decline in production.
Livestock which accounted for 16.2 percent of the total agricultural
production decreased by 8.5 percent. Hog production dropped by 9.8 percent
during the quarter.
Production of poultry expanded by 5.4 percent this quarter. It shared 17.0
percent to the total agricultural production. Except for duck, all poultry
commodities posted higher production.
Fisheries production which increased by 3.4 percent contributed 16.2
percent to the total agricultural output during the fourth quarter of 2019. All the
major species registered output increases.
At current prices, the value of agricultural production at PhP 492.0 billion
was down by 5.3 percent this quarter.
