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Agricultural Economics 3rd Edition by Evan Drummond, John Goodwin
النسخة 3الرقم المعياري الدولي: 978-0136071921Agricultural Economics 3rd Edition by Evan Drummond, John Goodwin
النسخة 3الرقم المعياري الدولي: 978-0136071921 تمرين 1
Identify the four sectors in the food industry. For firms in each of the four sectors, identify what they buy and what they sell. From what firms do they buy inputs, and to what firms do they sell their outputs?
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Food industry mainly consists of four distinct sectors: the farm service sector, the producers sector, the processors sector and the marketers sector. While the major services performed by each sector is distinct, many firms in the food industry have vertically integrated across sector boundaries.
Farm service sector are the firms that produce and distribute the goods that the farmer requires in order to produce the desired level of output as part of their business activity. Feed, fertilizer, fuel, equipments and chemicals are some of the inputs that is sold by farm service sector to the producers.
Producer sector involves production of the raw food, fiber and the other agricultural activities from food to fiber. Farmers, ranchers, grove owners and nursery owners are some of the examples of producer sector. They buy their inputs from farm service sector namely chemical and fertilizers and sell their produce to processor sector.
Processor sector creates value by converting raw agricultural commodities to what consumer wants, thus creating value in the process. It can be further divided into two groups: commodity processors such as flour mill that turns wheat into flour and food product processors by converting flour to bread for end consumer. Food product processors can be further classified to those who produce for retail food consumers and those who produce for food service distributors.
Marketers are set of firms that distribute food from processors to the end consumer when and where the consumer wants, thus creating value in food industry by changing the time and place of food. The marketers buy their inputs from processors in bulk, stores them and transporting to consumer in convenient quantity. Thus this sector ties the producer and consumer in the marketing system.
Farm service sector are the firms that produce and distribute the goods that the farmer requires in order to produce the desired level of output as part of their business activity. Feed, fertilizer, fuel, equipments and chemicals are some of the inputs that is sold by farm service sector to the producers.
Producer sector involves production of the raw food, fiber and the other agricultural activities from food to fiber. Farmers, ranchers, grove owners and nursery owners are some of the examples of producer sector. They buy their inputs from farm service sector namely chemical and fertilizers and sell their produce to processor sector.
Processor sector creates value by converting raw agricultural commodities to what consumer wants, thus creating value in the process. It can be further divided into two groups: commodity processors such as flour mill that turns wheat into flour and food product processors by converting flour to bread for end consumer. Food product processors can be further classified to those who produce for retail food consumers and those who produce for food service distributors.
Marketers are set of firms that distribute food from processors to the end consumer when and where the consumer wants, thus creating value in food industry by changing the time and place of food. The marketers buy their inputs from processors in bulk, stores them and transporting to consumer in convenient quantity. Thus this sector ties the producer and consumer in the marketing system.
Agricultural Economics 3rd Edition by Evan Drummond, John Goodwin
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