Agribusiness

The level of pesticide residues found in chilli coming from Uganda will cause a import ban by the EU food authorities. A banned chemical called Rocket stays in the chilli after spraying. Banned cheamicals are cheap and flooded the market in Uganda as the farmers buy them based on the price and availability instead of knowing what is best for their crop. The EU food authority has now informed other European ports about chilli from Uganda and as a result they will not be let within their borders.

After this ban it will be very difficult to re-enter th european market. This will have a great impact on the Ugandan fruit export as chilli accounts for 35% of it.
Still the absence of a market regulator for agro-products will cause traders to produce products irrespective of whether they conform to the EU market conditions.

Comments Off

The Murcia region in spain making the citrus fruit prices increase by declining the citrus fruit production. The agricultural organization ASAJA-Murcia points out that by doing so supply and demand are being balanced and that the forecasts made the Ministry of Agriculture of Region of Murcia are being confirmed: a reduction of up to 22 percent in output was expected over the previous campaign.

The secretary general of ASAJA-Murcia, Alfonso Galvez, also stressed the fact that even the fruits’ high quality is contributing to the great initial results of the current campaign, compared to past seasons. However, “we’re still at the beginning and it is too early to crow, it is better to be prudent though recognizing that the prospects are very good”, he said.

Also the opening of new markets and the increasing exports contributed to this positive beginning, and are driving the sector by “keeping hope alive despite the crisis,” Galvez added.

Forecasts by product
According to Murcia’s Ministry of Agriculture, the orange crop should decrease by 18 percent, with 151,225 tons. While mandarins’ production was expected to amount 51,200 tons, 10 percent less than in last campaign.

The lemon crop was estimated at 284,000 tonnes, representing a decline by 27 percent. While grapefruit should register a similar harvest to last season, with a slight drop by 2 percent for 22,400 tons.

source Greenmed

Comments Off

1. Introduction 

The advice of the Minister of LNV the opportunities and threats of changes in commodity production and consumer market for the Dutch agribusiness, and government commitment to an attractive country for international agribusiness establishment to continue. 
The agricultural sector consists of a primary (agriculture), secondary (industry) and tertiary sector (services). Last two are the ‘agribusiness’. The sector is no more closed Column and agribusiness must not be approached from the nature of the raw materials but from the activities for this opinion, in particular: (1) manufacture of food and tobacco, (2) auction, wholesale and trade mediation and (3) agri-logistics. 

2. The agribusiness and its surroundings 
The agribusiness as a whole 
SITUATION. The added value of agribusiness is growing, especially from foreign materials. The share of the national economy is declining (8.5%, including primary production 11.5%). The added value based on foreign agricultural raw materials is 23.9 billion, based on domestic raw materials 29.1 billion (1997). 
DEVELOPMENT. The development of a network economy is visible. Companies spend but will also work on new business combinations. Industry Boundaries blurred and businesses work together. Permanent structured cooperation will be replaced by looser, short-term projects. Entrepreneurship is more important than the type of product: ‘business’ more important than’ agricultural ‘. Individual companies crossing industry borders. Unilever makes nutri-ceutica, Nutreco is salmon farming and in agriculture is a widening underway. LTO and SMEs cooperation under the growing similarity between the connected entrepreneurs. 
Companies loom tradition accept the responsibility to contribute to societal goals. The ambition of this’ social enterprise rises along with the development in society. What may be legal, is not always accepted. The debate will focus on the ethical aspects of biotechnology, working conditions in foreign locations, transport distance and the quality of the rural area. 
The need for certainty about the food grows. The combination of globalization and engineering food ‘leads to exponential growth in the number of elements in our food and the rsico programs. ‘Affaires have made the consumer alert. Thanks to the media, everyone knows that new technological developments and existing techniques are not without objections. Confidence in the ‘expert systems’ that have the quality and safety, it is rather than to increase. On the whole chain high demands: transparency, full traceability and strict quality standards and monitoring. Partly against this background is’ local for local ‘emerging: production and consumption as close as possible to each other. 

The food and stimulants industry 
SITUATION. The food and stimulants industry has a high added value. In Europe, the Netherlands with a share of 7% the sixth producer. Listed multinational companies are significantly larger than the total medium-sized enterprises, and also much larger than cooperatives. The multinationals continue 46% of their turnover abroad, 33% medium-sized companies and small businesses 15%. Of the total turnover is 42% exported. The number of companies drops, particularly through mergers and concentrations, as well as employment. The slaughterhouses and meat processing industries provide most of the work, the bread and confectionery industry is a good second. 
Strong sectors are cut flowers, fish, potatoes and vegetable material. The weak are meat, dairy and vegetables. Lack of martkgerichtheid, quality and innovation that lead to a poor competitive position in a saturated market. The causes are possible in the predominantly cooperative marketing structures and the high monopoli tion rate. 
DEVELOPMENT. The meat processing industry will shrink as the local supply of raw material decreases due to declining primary production in the Netherlands. Growth in the manufacturing sector is mainly from acquisitions. Growth and shrinkage can also occur by the establishment and exit of firms, or realignment of growth abroad. There seems no trend of starting businesses, but there are few new branches. In the field of biotechnology in this regard in recent years lost much ground. 
Location Pros and cons are stronger by working at large (re) investment. This can lead to color changes in (location) behavior. The first operation is closer to the commodity markets to be further ‘reprocessing’ closer to the market. Competitive advantages and know-how and skill will decrease due to diffusion of knowledge. 
Further liberalization of world trade can lead to more imports from outside Europe. Europe will not continue to serve as home. At the same time, the sustainability efforts lead to closed material flows and reducing the use of fossil fuels, and so is the regional economy. Transport products profitably, the European market, others will be more locally produced. 

Auction, wholesale and trade mediation 
SITUATION. Trade in agricultural raw materials and finished products is extensive and scope, especially SMEs. More than 10,000 companies are active in the wholesale distribution of materials and supplies (75,200 employees, turnover 99.2 billion). The wholesale end products is growing and there are over 7000 active companies (74,600 employees, turnover 82.4 billion). Some functions of the trade is under pressure, whether or not the ICT. Larger companies are even buying and quality control of raw materials and make itself more and more quality through labels. 
DEVELOPMENT. Physical flows were needed to supply and demand together and quality to perform. This gave the possibility to combine them into new products with higher value. Around Auction develop ‘assembly’. Now this physical system is less necessary (ICT) and the assembly can only persist if the costs outweigh the benefits. Material flows are increasingly determine the geographic location of commercial mediation and quality control. The skills to trade are decisive. This offers opportunities for the Netherlands, but because movement is becoming easier, there are as many threats. The development of trade in the Netherlands is therefore less obvious. 

Agro-logistics 
SITUATION. The agribusiness includes transportation, storage, transshipment and warehousing. The distribution phase is an important part of the agricultural productiekolom, although the decline in employment (61,000 work years). The agricultural share in total freight transport is over 20% and growing. Importance of supply to agriculture and horticulture (feed, fertilizers) and domestic transport of agricultural products, fresh vegetables and fruit are the most important. The Netherlands also plays an important role in the transit of agricultural products and foodstuffs, in particular to the European hinterland. Of all the transit is over 14% agrofood products. The agricultural sector is strongly oriented on road: 52% vs. 22% for all goods. One out of three trucks carrying agrofood products. 
DEVELOPMENT. Speed and security are crucial. The accessibility of sites is a problem (especially in the last link) and the traffic congestion problem at home and abroad. The need for speed also increased demands on the speed of testing and cooperation between inspectorates and logistics companies. 
Competition within Europe is growing and the logistics sector will gain a clear need. This requires new concepts such as Fresh Centers with suppliers and logistics companies to join forces and multi-modal transport systems. For agri-logistics, however, ‘logistics’ is more important than’ agro ‘. For example, spare parts is important and fast delivery to break the trade limits opportunities for new logistics concepts wider application. 

3. Street Conditions 

Good business conditions are no guarantee of business, but bad for the absence or leave of companies. The general business conditions are good, clear weaknesses missing. The site requirements for headquarters, manufacturing plants, distribution centers and research departments – are increasingly located separately – varies. For the agribusiness establishment requires a number of special attention. 
EZ focuses on improving general business conditions, stimulating innovation and attracting businesses. LNV focuses on the processes within the industry by improving the structure and market access, support for product development, promotion of innovation and improvement of specific site conditions. 

GENERAL SITE CONDITIONS 
• industrial c.a. 
• key personnel 
• wages and working conditions and environmental requirements 
• social environment 
• business environment 
• accessibility and mobility 
• ICT infrastructure 
• critical home 
• international image of the Netherlands 

MORE SPECIFIC ISSUES 
a) primary production (local raw material supply) 
b) innovation and cluster formation 
c) fiscal environment 
d) local government 
e) quality of the environment 

a) binding to the primary production 
The agribusiness is partly so, partly not ‘tied’ to the primary production in the Netherlands. Slaughtering, meat, dairy, sugar and eiverwerkende industry get their materials almost entirely from the Netherlands, the fruit and vegetable processing industry for three quarters. In other industries Dutch play little or no raw materials and imports of materials and supplies continues to increase. 
The Dutch-based commodities employment in manufacturing employment is 62,000 years (to 75,000 for external input). The distribution and supply, the importance of the Dutch commodities higher. Employment on the basis of Dutch materials is 194,000 working years (64% of the total). Reduction of primary production in the Netherlands will work in parts of these sectors. 
The meat is the most related to local raw materials. A decline in livestock leads to a reduced supply of raw materials and movement of these activities, because supply of live animals will have no alternative. For milk and eggs is likely to reduce the primary production lower. The Dutch farmers through cooperatives often the owner of the processing industries, will in any event headquarters in the Netherlands remain. 
The processing industry, which relies on local products, is by definition bound to the Netherlands. Since 1999, there is a label ‘regulated area product’ criteria for the area of production and processing and the mode of production. The market for regional products is limited, but growing. The ex-farm sales amounts to approximately 500 million guilders, but not just “local”. 
The emerging organic farming to agribusiness not bind to the Netherlands more than the regular. The number of users is small, the nature of the operation light. Trade and distribution are too small and fragmented. For expansion, the volume increase. 

b) innovation and cluster formation 
A good innovation environment requires the presence of stimulating communication between relevant parties, research and cross-cutting networks. There is clustering if a geographical concentration of companies do. Innovation develops increasingly focuses on promoting cluster formation. 
In the agribusiness innovation is particularly strong in the power plant sectors (potatoes, cut flowers, starting material) and in trade and logistics. The Netherlands has more innovative than the European average for small companies with an often low turnover in new products. The available public resources, in comparison to the budgets of multinationals are small, can mean many smaller companies. 
For innovation, research and development is essential. In the Netherlands, the total expenditure by 2.1% of GDP (1996) between the averages of the EU (1.8%) and OECD (2.2%). Netherlands is not first, but the position of the molecular sciences and information and communication technology is good. The networks (agricultural and non-agro-research, researchers and users) are highly developed. There is also a gap between the agro technology and basic scientific research. 
In the long term are also fundamental research and education, more financial attention. Public expenditure on education are now among the lowest in the OECD countries. 

c) fiscal environment 
The Dutch tax climate is relatively favorable for international companies, not by tariffs but by dealing with the charges. The corporation is in a European perspective of average height, both nominal (35%) and effective (31.8%). 
The EU aims to tax harmonization. After the VAT it looks on ‘harmful tax competition. ” The Netherlands is mainly used cooperative agreements and ‘ruling’ agreements with the tax inspector. The EU’s intervention may have negative unpacking but also an opportunity for companies to inform the actual positive situation. 
Reduction of tax rates for the international competition clashes with the financing of public goods in the Netherlands. This includes the international business and use these facilities even co-determine the location. 

d) local government 
The streamlining of the EU economies offers an ever-wider choice in establish. Small differences and non-economic aspects, often local in nature, are important. Competition in Europe takes place between regions and municipalities from different countries. The large cities have a large acquisition capacity and a global network. Smaller municipalities are so limited. Brand is important. Sometimes the regional or provincial cooperation. Sometimes there is specialization, which only certain farm are allowed, which encourages the clustering. 
The acquisition efforts are increasing, often due to the development of large industrial sites. Such land is often – with the exception of locations in the west – below cost to businesses sold. There are few incentives to use space efficiently. Moreover, the land for companies not decisive. Country is no shortage of space for companies, but there may be regional shortages. 
It is also to local custom, such as streamlining administrative procedures and mediation of problems, but many local companies are faced with an opaque organization, limited service and communication, and shortages of suitable business premises. The availability of relevant, timely information is essential and that municipalities are dependent on other governments. 

e) quality of the environment 
If the ‘hard’ factors is met, the quality of the environment an important role. These are in order of decreasing importance: housing (especially quantity and quality), cultural and sports facilities, education facilities and landscape. The quality of housing is still, for example in terms of detail and craftsmanship. And by increasing inbreiding, severance, fragmentation and border blurring the Netherlands to live as (too) full and pressure experienced. For offices, the environment, the amount of green, the ratio of cultivated / uncultivated important. 

4.1. Conclusions 

GENERAL ECONOMIC DEVELOPMENT 
Sector Limits fade, but work still 
Agribusiness is now more business than agricultural and takes no particular position anymore. The government, the Ministries of LNV and EZ and their surroundings, the blurred boundaries sector is still on. 
Market puts companies and government on edge 
The market movements will lead to increased competition in what is now home and to increase efficiency in the agribusiness, including the location for businesses. At the same time increases the pressure on quality sites. 

DEVELOPMENT WITHIN THE Agribusiness 
Shrinkage primary threat of the agribusiness 
The meat processing, animal feed and residue processing industry are threatened by a shrinking farming in the Netherlands. That chance is lower in the dairy industry as raw materials related to Dutch. Other agribusiness offsets a decline in production, where raw materials from the Netherlands are concerned, by additional imports. 

EU enlargement will not lead to growth of agribusiness in the Netherlands 
Eastern Europe is an incentive for agribusiness. But business growth in that environment rather than in our place, as 400 to 600 km is usually the limit for efficient production and distribution. 
Part of traditional marketing functions deleted
The physical raising of demand and supply is increasingly unnecessary. The control function is an alternative, but sensitive and little local competition. Before Program is essential – for example, also function as commercial quality – but success formulas quickly accepted. 
In particular, smaller companies can use a boost 
Stimulation of multinationals is not useful and available public funds virtually impossible. For smaller companies this is different. Growth and new businesses will be limited, but interesting by adding new network relationships, practices and insights. 
Focus on brain functions has risks 
The economy is becoming less raw material. Virtual functions have a higher added value, but are also easier to move. Basic Material components stabilizing work. 

DEVELOPMENT OF THE SITE CONDITIONS 

The “details” are becoming increasingly important 
The harmonization in the EU countries, the main establishment aligned. Small differences and non-economic aspects are increasingly important, especially local factors. 
New competitive advantages must be quickly identified 
Competitive advantages are not (more) and not to late to come, it is therefore necessary to create new advantages in time to recognize and encourage and use. 
The human factor is central 
The human factor is decisive, given the importance of research, innovation, training and environmental quality. The importance of links between training, research fields and policy areas is increasing. 

RESPONSIBILITIES OF GOVERNMENT AND Agribusiness
The agribusiness: social entrepreneurship 
Companies should be accountable to their social responsibility, beyond compliance with laws. Factors are food safety and quality and the quality of the rural area. 

The government: creating conditions for businesses 
The government should create conditions in which Dutch companies can best operate and grow in the Netherlands and abroad are able to establish. The ‘thinking’ with companies should restrict themselves to anticipate the future. 

The Government also set conditions on companies
The government should also ensure the social integration of agribusiness (space, environment, working conditions), and monitoring of employment, income and food security. This establishment in the meaning of ‘under what conditions one may draw. “ 

4.2. Recommendations for government 

Breaking SECTOR LIMITS 
Help the business sector to break boundaries 
Initiate platforms thematic or spatial relationships between the parties may submit, because the benefits of cross-sectoral initiatives for individual promoters are not always obvious. 
Breaking especially sectoral boundaries within government 
Light organizations systematically by remnants of sectoral structures and processes and determine whether – and if so how – change or cooperation is needed and possible. To explain structures: (1) departmental organizations LNV and EZ (incl. Rural Representation Abroad and the Commissioner for Foreign Investment), (2) implementing Syntens and Agro-Innovation and (3) educational and research institutions within and outside the agro domain. By tales practice: rules, definitions and standards and formats used in the collection of statistical data. 

STRENGTHENING THE ESTABLISHMENT OF CONDITIONS 
Tighter conditions for innovation 
Put the research environment for a system of social agenda and discussion on ethical limits and risks, for a periodic review and updating of codes of conduct. Encourage education and research to help NETWORKS AND CLUSTER FORMATION platforms and so on with companies contribute to flow of knowledge and technologies and mobilize creativity from daily practice. Support AGRO LOGISTIC INNOVATION through innovative distribution concepts (such as Fresh Centers) and other collaborative projects (such as Effort) and spatial policy to position. 
Create a wide innovation fund, with a national and regional segment 
Choose to fund innovation and widening opportunity as starting point, not the direct economic profitability and solving problems. Put the fund in both national and regional scale, in a pre-determined ratio and with separate national and regional procedures and criteria for assessing projects. 
Enhance the quality of the environment 
Enter the strengthening of quality of life an extra boost from increased cooperation between and within EZ and LNV. 
Prevent erosion of the social foundation 
Make sure the foundation for competitiveness, the general provisions such as education, health and social security, not afkalft. See also from an international tax race to the bottom. 

PROMOTION OF INTERNATIONAL COMPANIES 
Use the ‘agro network for the recruitment of companies 
Code current favorable business climate. In a non-sectoral approach is the access to specific networks and important agricultural attachés contribute to the recruiting companies. 
Support the international activities of regions
Support local authorities in international acquisitions, especially with adequate information. This is local custom requires, from the interest of companies to the concrete support and consent. 

COOPERATION 

Enter strategic discussions on major societal issues 
Contribute actively to strategic discussions on trends, opportunities and threats in a complex environment, especially by the relevant themes to identify relationships with other social and economic actors to explain. 
Voting public and business to each other 
Streamline the licensing and conduct of inspections in the agro supply chain, with a view to the necessary speed and efficiency, and be alert to international laws and regulations.
Continue along defend interests abroad 
Keep common trade missions abroad and other strategic activities.

Comments Off

Business climate and market 
The climate for international operating companies is now favorable. The agribusiness can benefit but will also face a reduced primary production in the Netherlands and changes in trade and distribution functions. The enlargement of the European Union will lead to strengthening the agribusiness outside the Netherlands. Investing in ‘brain’ and control functions leads to activities with high added value, which is easy to move elsewhere or by others can be acquired. 

Breaking sector boundaries 
In today’s networked economy is agribusiness growing business and less and less agricultural. It is a breach of (remnants of) key sectoral work within the industry and especially within the government. Questions in particular cooperation between organizations, regulations, definitions and standards and statistical research to critical attention. 

The human factor 
The human and social factors play in the establishment and development of businesses an increasingly important role, while the original physico-geographic-oriented business benefits of our country – including the local agricultural production – in importance. The climate is mainly served by investing in education, innovation and environmental quality. 

The importance of local issues 
The harmonization in the EU countries leads to equalization of the financial establishment. The local situation, cluster formation and non-economic aspects are important and the support of local authorities in international acquisition and (h) recognition of new competitive advantages. 

The government commitment 
A major shift in government action is required. However, it should focus on to continue – and intensify or adjust parts – of the existing efforts. Now details are becoming increasingly important, is an ongoing fine tuning of the policy commitment to changing circumstances required.

Comments Off

Do you want the opportunities and market opportunities in Asia and China in particular to investigate? Then you can use the help of English-speaking Chinese students Agribusiness and International Trade. They are accompanied by Market Fresh and Hogeschool Van Hall Larenstein.

Hogeschool Van Hall Larenstein leads (international) students to the English course International Agribusiness and Trade. Some Chinese students start their 3rd learned skills into practice. This offers the possibility to have a very low-cost English-speaking Chinese students (e) an internship contract to run your business.

These may include:

The implementation of an export market.

Writing a marketing plan.

Performing an import research.

The expansion of your network / select trading.

Obviously, having your specific question may also be implemented. That also depends on the curriculum and the experience and background of a student (e). In addition to an internship / research task, it is desirable that the students involved in all facets of your company. The students during the execution of your internship contract from the College and accompanied by Market Fresh.

No Comments »

Driving through Europe it is hard to find a farm where different crops and animals fill the land. Things have radically changed and the days of the local farm that provides the village with food seems to be over. Accept for the biological farm that let nature take its course and meet a special demand on the market most of the farms could not compete with the large scale agriusiness aproach to agriculture.

Agribusiness is a generic term for all businesses involved in food production, including machinery, wholesale and distribution, farming processing, marketing and retail sales Agribusiness is used as the businessess that take part in modern food production. Within the agriculture industry the term agribusiness is synonymous with food industry.

In the past all related agricultural companies were all family businesses. By now the whole industry got more and more the image of a large corporate company as efficiency became the keyword with relative distances to the consumer getting smaller. The demand for a constant supply of food for the lowest price let to large monocropping farms and specialised verticals. The enourmous expansion of food supplies does have a down sides; large scale farms are putting smaller farmers out of business and with the increasing intensivity of using the land there is a bigger environmental damage. With growing awareness and demand from the consumer for cleaner production there is a new challenge for agribusinesses to be innovative at the lowest costs for the consumer does not want to pay more than nessesary. Investments are made through the whole agribusiness sector with a growing need of a specialised agribank

Comments Off