Sistem Agribisnis

Matrikulasi MMA-IPB Angkatan R-34, Tahun 2005

Staf Pengajar:

� Prof. Dr. Ir. E. Gumbira-Said, MA.Dev.� Prof. Dr. Ir. Bunasor Sanim, M.Sc.� Dr. Ir. Arief Daryanto, M.Ec.(Koordinator)

Sinopsis Matakuliah:

� Topik-topik yang dibahas antara lain adalahdefinisi dan ruang lingkup agribisnis, agribisnissebagai suatu sistem dan keterkaitan antarakomponen-komponen sistem, deskripsi statitistiksektor agribisnis, isyu-isyu pokok (key issues) yang dihadapi perusahaan agribisnis dan analisismendalam (in-depth look) tentang produksi, pengolahan dan pemasaran produk-produkagribisnis terpilih.

Definition of Agribusiness (1):

� Davis and Goldberg (1957):Agribusiness is the sum total of all operations involved in the manufacture and distribution of farm supplies; production activities on the farm; and storage, processing and distribution of farm commodities and items made from them.

Definition of Agribusiness (2):

� Beierlein and Woolverton (1991):Agribusiness includes not only those that farm the land but also the people and firms that provide inputs (e.g., seed, chemicals, credit), process the outputs (e.g., milk, grain, meat), manufacture the food products (e.g., ice cream, bread, breakfast cereals), and transport and sell the food products to consumers (e.g., restaurants, supermarkets).

Definition of Agribusiness (3):

� The food and fiber system is increasingly being referred to as agribusiness.

� Schaffner, Schroder and Earle (1998):The food system includes suppliers of farm inputs, agricultural producers, suppliers of fish and game, producers of fermentation products, packaging suppliers, processors and manufacturers, commodity merchants, wholesalers, food retailers, restaurants, institutions, and facilitating industries, such as transport, finance and future markets.

The Agribusiness System (1):

� To capture the full meaning of the term agribusiness it is important to visualize some sectors as interrelated parts of a system in which the success of each part depends heavily on the proper functioning of the other sectors.

The Agribusiness System (2):

The Agribusiness System (3):

The Agribusiness System (4):

The Agribusiness System (5):

Organization of the Agribusiness System:

� The agribusiness system has both a horizontal and a vertical dimension.

� Coordination can be at one of two extremes: administrative control or open market.

Vertical and horizontal relationship in the agribusiness system:

Means of Influence:

� PowerIt can be simply defined as the ability to influence (or to resist being influenced by) the behavior of another individual or company

� CooperationThe basic prerequisite for cooperation is the possibility of mutual gain

Power:

� Power relationships can be analyzed at an industry level, between companies, and within organizations.

� The Five Forces Model developed by Porter can be used as a framework for analyzing power relationships in the agribusiness system.

Five Forces Model of Porter:

The potential for the exercise of power is greatest when there is:

• little rivalry among existing companies• no threat of new entrants (high barriers to

entry)• low bargaining power of suppliers• low bargaining power of buyers• no threat of substitute products

Structure and Power Relationships in the Agribusiness System:

Conditions for Exercising Power:

� As a general rule, the power held by companies at any level in the agribusiness system is positively related to industry concentration.

Companies may choose not to exercise power for three reasons:

� It may result in consumers paying more and farmers receiving less. Response: BULOG, Statutory Marketing Authority (Boards).

� It may result in the other party using countervailing power.

� The more powerful party in the relationship may wish to encourage cooperative behavior from the less powerful.

Individual company power:

� At the level of an individual company or collective bargaining group, power derives either from having power yourself or from facing buyer or seller who lacks power.

� The key variables are: having alternatives, switching costs, the financial importance of the deal, financial structure, potential for vertical integration.

Cooperation:

� Power and cooperation are not mutually exclusive: opponent pain and opponent gain.

� The main factors affecting a cooperative relationship:(1) Both parties have about the same amount to lose if the relationship collapses.(2) The relationship has the capacity to continually provide new benefits.(3) Reciprocity.(4) Flexibility.(5) The development of trust.

The Size and Scope of Agribusiness:� Agribusiness is the single most important

contributors of the world’s economy.� Agribusiness worldwide represents approximately

one-fourth of total world economic production and provides employment for nearly half the population on the planet.

� Agribusiness also plays an important role in the economic development of most countries.

� Generally, before economic growth can occur, a country must be able to generate productivity gains in production agriculture.