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Unformatted text preview: Chapter 1: The Global Agricultural Food System Learning Objectives • Describe how Agricultural Business firms operate in a global agricultural food system that includes everyone from the suppliers who provide farmers & ranchers with the materials needed to produce a crop to the retailers who put food on our tables. • Explain why agricultural business managers must integrate rapidly changing technology with business management skills in order to succeed in a volatile global market. • Explain why agricultural business is a high-tech industry with a crucial mission that offers a challenging future for those who have the right technical & business management skills. • For over 150 years, U.S. agricultural business firms have led the industry by consistently applying new technology & effective management to the production, processing, manufacturing, distribution, & retailing of food & fiber. • Currently, the global agricultural food system is expanding the world’s food supply at a rate that exceeds population growth. • Agricultural food systems generate about one-sixth of the total gross domestic product (GDP) & one-eighth of all employment. • The Agricultural Food System is made up of a variety of different agricultural business firms & includes more than just farmers & ranchers but also includes: o Input Suppliers – Agricultural business firms that prepare & sell things like feed, seed, fertilizer, & credit to farms & ranches. o Producers – Agricultural Business firms (farms & ranches) that purchase items from input suppliers & produce agricultural commodities such as wheat, corn, raw milk, cattle, fruits, & vegetables. o Commodity Processors – Agricultural business for firms that buy agricultural commodities such as raw milk, wheat, & live cattle from farms & ranches for processing into pasteurized milk, flour, boxed beef, & so on. o Food Manufacturers – Agricultural business firms that purchase the processors’ products to manufacture prepared food products. An example is a bakery that buys flour, processed eggs, & pasteurized milk to make bread & other baked goods. o Food Distributors – Agricultural business firms that transport agricultural commodities as well as processed & manufactured food products between different parts of the agricultural food system. o Food Retailers – Agricultural business firms that sell agricultural commodities such as fresh fruits & vegetables, processed food products such as flour & pasteurized milk, manufactured food products, & prepared foods to consumers. Food stores & restaurants fall into this category. Everyone included in this definition plays an important part in bringing us food. o Agri-Food System is increasingly used to capture the full dimension of interaction between all these parts....
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This note was uploaded on 05/25/2011 for the course ACG 2021 taught by Professor Montgomery during the Summer '08 term at FSU.
- Summer '08
- Financial Accounting