Objectives
  • The “agribusiness system” 
   approach to marketing
  • Size and scope of agribusiness
  • Various sectors
  • Marketing in the economy
  • Functions of marketing
  • Marketing in agribusiness firms
                                 History
        •  What is agriculture to most people?  Farming, 
           ranching, fishing?? 
        •  This was true until the early 1960s when 
           “agribusiness” evolved into a complex system 
           reaching well beyond the farm
        •  The big picture included all things needed to 
           bring food to the consumer.
        •  As it turned out aquaculture shares many 
           similarities to traditional agribusiness.
      Agribusiness History
   • The agribusiness system includes many 
    facets: 
   • Not only production (e.g., farmers, 
    hatchery managers), also
   • Organizations which provide inputs 
    (e.g., fry, chemicals, feed)
     – Processors the output (e.g., processing 
      plants)
     – Manufacturers (e.g., shrimp  microwavable 
      products)
     – Transporters/Sellers/Brokers (e.g., retail 
      grocery stores, seafood wholesalers, etc.)
           Agribusiness:  Evolution
    •  Late 1800’s: self-sufficient farms!
    •  Then wars increased produce prices, stimulating 
       more production (Recall: demand and supply).  War 
       was profitable even back then!
    •  Mechanization was developed largely due to labor 
       shortages.
    •  Crop production became a focus of farmers. (They 
       started purchasing inputs; this is where 
       aquaculture is today!)
    •  Much of the manufacturing and processing was 
       relocated off the farm to become businesses 
       themselves.
    •  Preservation of raw products was also improved.
    •  This made food more convenient to consumers.
       The Agribusiness System
             Aquaculture   Producti     Processing-
                                        Manufactor
             Input Sector     on        ing Sector
                            Sector
                         Agribusiness 
                         System
          Note:  the success of each part depends upon the proper functioning 
          of the other two!