Development of Agribusiness Enterprises - Asian Productivity ...

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and to provide price support for agricultural products. Rural food-processing enterprises in particular have a positive impact on unemployed labor in the rural areas by providing offfarm income sources. However, the liberalization of international markets, including those for agricultural products, has weaken the relationship between rural food-processing enterprises and agricultural production. This negative impact has created a need for developing rural foodprocessing enterprises that provide price-competitive agricultural products, in order to support farm income and stabilize prices of agricultural products. These are both reasons for the government to support rural food-processing enterprises. Between 1989 and 1998, the government provided subsidies totaling US$156 million (W= 121,700 million) and loans totaling US$243 million (W= 189,800 million) to 1,395 enterprises. This development program is being extended to a total of 2,000 enterprises. The present situation among government-supported rural food-processing enterprises and the management problems associated with insolvent firms have been examined in this paper. In addition, development programs have been examined, based on the current business environment of the local food-processing industry. Each stage of rural food-processing enterprises has been examined, including start-up, production and marketing. The establishment of local processing factories implies the stimulation of the local economy. This requires local governments or related institutions to provide the appropriate functions. Local governments should proceed with comprehensive plans in accordance with local development, rather than following uniform and rigid central government plans. That is, responsibility for supervising rural food-processing enterprises should be given to local government. The central government should then focus on subsidizing other areas of general business. BIBLIOGRAPHY Agricultural and Fishery Marketing Corporation, 1994. Report on the Imported Agricultural/Marine Products and Processed Food Marketing, Seoul. ----------, 1996. “Report on the Business Status of Agricultural and Marine Products Processing Enterprises”, Seoul (unpublished). Bank of Korea, 1998. 1995 Input-Output Table, Seoul. Choi, T. D. et al., 1994. Food Industry Statistics, Korea Food Research Institute. Heo, K. H. et al., 1997. Report on Improving Marketing Strategies for Agricultural and Marine Products for the 21 st Century – Marketing and Processing Sectors, C97-5-4, Korea Rural Economic Institute. Jang, J. K., 1997. “The Status and Policy Assignment for the Food Processing Industry”, monthly seminar report, Forum for Agricultural and Rural Policy. Jeong, Y. I. et al., 1998. The Status and Developing Course for Rural Food Processing Industry, Forum for Agricultural and Rural Policy. - 102 -
Kang, S. K., 1994. “The State and Assignment of the Food Processing Industry in Korea”, monthly seminar report, Forum for Agricultural and Rural Policy. Kang, S. K. et al., 1991. The Developing Plans for Food Processing Industry for Rural Area, Korea Food Research Center. ----------, 1994. The State and Improvement Plans for the Rural Food Processing Business under Government Support, Korea Food Research Center. Kim, D. H., 1997. Diagnosis and Development Course for Supporting Agricultural Marketing, Diagnosis and Development Course for Agricultural Financing and Investment, Symposium Series IV, Forum for Agricultural and Rural Policy. Kim, M. H. et al., 1996. Development Course for Agricultural Cooperatives Economic Projects – Sales and Processing Business, C96-9, Korea Rural Economic Institute. Lee, D. P. et al., 1993. Developing Plans for Processing Traditional Food, Research Report 291, Korea Rural Economic Institute. Ministry of Agriculture and Forests. Annual Statistics, selected issues. ----------, 1996. A Guide to Agricultural and Marine Products Processing Plans. ----------, 1997. Developing of Agricultural Food Product Processing and Product Quality Management Act. ----------, 1998. Details of Marketing Innovation on Agricultural and Marine Products. Ministry of Agriculture and Forests, and Agricultural and Fishery Marketing Corporation, 1997. The Status of Agricultural and Marine Products Processing Industry. National Agricultural Cooperative Federation, 1995. Operation Status and Development Course for Agricultural Cooperatives – Beverage Business, Survey Research Report, No. 95-11. ----------, 1996. Handbook of Processed Food by Agricultural Cooperative, Survey Department. ----------, 1996. Agricultural Processing Factories, 1996, Survey Department. ----------, 1996. Evaluation Report on Food Processing Business. ----------, 1996. Operation Status and Development Course for Agricultural Cooperative’s Food Stores, Survey Research Report, No. 96-14. National Statistical Office. Survey Report on Mining Industry Statistics, selected issues. - 103 -
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From: Development of Agribusiness E
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Report of the APO Seminar on Develo
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FOREWORD Modern agricultural techno
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SUMMARY OF FINDINGS INTRODUCTION Th
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Policies and Programs for Promoting
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Governments should not be undertaki
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crops (i.e., non-traditional crops/
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Financing/Credit Inadequacy of fina
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the State Industrial Bank of Indone
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1. AGRIBUSINESS DEVELOPMENT IN ASIA
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US$ million 8,000 Percent 100 7,000
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Introduction of high-yielding varie
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2. Agriculture and Agro-industry Th
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60 50 40 30 20 10 0 60 50 40 30 20
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(27,213) (119,378) Japan U.S.A. (57
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supply balance, conserve resources,
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2. POLICIES AND PROGRAMS FOR PROMOT
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Table 1. World Markets for Agricult
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Japan requires that imported agricu
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High Transportation Costs Shipping
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competitive markets, improving and
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terminals in some cities, which wil
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3. REQUISITES FOR INITIATING AGRIBU
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Diversification of production will
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Those manufacturers who use substan
Page 51 and 52: STRATEGY FOR AGRIBUSINESS VENTURES
Page 53 and 54: 4. MARKETING PROMOTION OF AGRIBUSIN
Page 55 and 56: of inefficiency. Coordinating the f
Page 57 and 58: such an undertaken can be a very us
Page 59 and 60: Improving Productivity/Management o
Page 61 and 62: Tools for a Purpose Simplistically
Page 63 and 64: 4. Know Who You Are and Who You are
Page 65 and 66: 5. Falling in Love with Technology
Page 67 and 68: ensure a pool of leaders for future
Page 69 and 70: 1. BANGLADESH INTRODUCTION - 69 - A
Page 71 and 72: sector before any imports are allow
Page 73 and 74: C An inadequacy of appropriate tech
Page 75 and 76: now constitute 88 percent of frozen
Page 77 and 78: Second, the contribution of agricul
Page 79 and 80: During 1995-99, some commodities in
Page 81 and 82: Indonesia imported only a few commo
Page 83 and 84: Product Quality This issue has beco
Page 85 and 86: agribusiness sector attempts to rec
Page 87 and 88: 3. ISLAMIC REPUBLIC OF IRAN INTRODU
Page 89 and 90: Food Processing Plants Food process
Page 91 and 92: denied. That creates economic imbal
Page 93 and 94: construction (11.6 percent), and th
Page 95 and 96: 2. Operational Conditions This sect
Page 97 and 98: - 97 - Table 5. Present Situation o
Page 99 and 100: (b) When recommended by manufacture
Page 101: 2. Supporting Production Automation
Page 105 and 106: 5. MALAYSIA INTRODUCTION - 105 - Ab
Page 107 and 108: ROLES OF THE FARMERS’ ORGANIZATIO
Page 109 and 110: (e) warehousing facilities to assis
Page 111 and 112: land leased out by farmers to FOs.
Page 113 and 114: Cooperation between the government
Page 115 and 116: Department of Agriculture, 1994. Cr
Page 117 and 118: 6. MONGOLIA INTRODUCTION - 117 - En
Page 119 and 120: Agricultural extension differs from
Page 121 and 122: C streamline the mechanism of long-
Page 123 and 124: 7. NEPAL INTRODUCTION - 123 - Arjun
Page 125 and 126: usiness orientation to the agricult
Page 127 and 128: * First eight months only. AGRIBUSI
Page 129 and 130: C directly to wholesale markets or
Page 131 and 132: dalmoth/chips, ketchup/squash/jam,
Page 133 and 134: Inadequate Infrastructure Storage f
Page 135 and 136: Technical and credit support is bei
Page 137 and 138: 8. PAKISTAN INTRODUCTION - 137 - Ma
Page 139 and 140: C sugar industry - 78 sugar mills C
Page 141 and 142: - 141 - Table 1. Ongoing Agreements
Page 143 and 144: 9. PHILIPPINES INTRODUCTION - 143 -
Page 145 and 146: Continuation Item 1995 1996 1997 19
Page 147 and 148: Seventh was seaweed and carrageenan
Page 149 and 150: Development of Irrigation Systems O
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Executive Order 133 (Tariff Exempti
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Table 1. Contribution of Difference
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Table 5. Overall Export Performance
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The number of registered agro-indus
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extrusion cooked products. This typ
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technical transfer loans to enable
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C The formation of an organization
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Table 1. Cultivated Area, Yield, Pr
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substitution, export requirements a
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and prepare for global climate chan
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Major Factors Contributing to the S
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12. VIETNAM - 175 - Nguyen Thi Thuy
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The equipment used in processing te
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percent of the raw materials are su
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Strategic Solutions for Achieving S
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APO Seminar on Development of Agrib
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Vietnam Ms. Nguyen Thi Thuy Senior
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Asian Productivity Organization Hir
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