Agroindustrial project analysi

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Figure 8. Peach and Apple Orchard Yields, Valle de Majes, Peru252; / g\ a --- ~~~~~~~~~~~~~Peaches20 ~ - ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ __ _ _Apples10155II_0 5 10 15 20 25YearsSource: World Bank, "Projecto Agro-industrial de Fruticultura para el Valle de Majes" ["AgroindustrialFruiticulture Project for the Majes Valley"], Agricultural Projects Course Field Report, Arequipa, Peru(Washington, D.C., May 1976; a restricted-circulation document).
THE PROCUREMENT FACTOR 95A crop's availability can be jeopardized when suppliers switchto other crops. This risk is especially acute when the raw material isa by-product of another crop, as is cottonseed oil (see the subsection"Competing processing firms" in "Adequate Quantity,"above). The supply of cottonseed depends on the demand forcotton; when cotton prices fall, farmers shift to other crops andseeds are less available. Because cottonseed represents a negligibleportion of cotton farmers' revenues, a cottonseed-oil processor'sincreasing seed prices would not be an effective stimulant to increasecotton production. This lack of control again suggests theadvantages of a firm's diversifying its sources of raw material: thefirm processing cottonseed oil could, for example, explore the useof peanuts, soybeans, or palm kernels as supplementary oil sources.Diversification of this kind frequently requires adaptations in theprocessing equipment, and the analyst should compare the costs ofmodifying equipment with the benefits of having multiple sourcesof raw material, bearing in mind that multiple sources also reducethe risks of crop failure in one raw material or particular geographicalarea.Salient points for project analysisThe following questions are important to the analyst examiningthe timing of the procurement system.What is the seasonal harvesting pattern?* Period of harvest (or time of slaughter)?* Effect of seed (or livestock breed) on timing?* Effect of planting (or feeding) on timing?* Costs and benefits of changing the harvesting pattern?What facilities are required by the seasonal pattern?* Drying (or corral) capacity?* Storage capacity for peak inventory?* Availability of rentable storage space?How perishable is the raw material?* Timing of harvest (or slaughter) to prevent deterioration?* Period after harvest (or slaughter) to avoid deterioration?
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AgroindustrialProjectAnalysis James
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AgroindustrialProject AnalysisJames
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ContentsForeword by Ajit MozoomdarP
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ForewordAGROINDUSTRY-that is, indus
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XPREFACEThe following colleagues ga
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IAn OverviewTHE PURPOSE OF THIS BOO
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AN OVERVIEW 5ing factory must conte
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AN OVERVIEW 7trialization occurs ca
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AN OVERVIEW 9Table 1-2. Contributio
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AN OVERVIEW 11cent; this far exceed
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AN OVERVIEW 13By broadening its agr
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AN OVERVIEW 15agroindustries from i
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AN OVERVIEW 17focus than indicated
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AN OVERVIEW 19be interested in cost
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AN OVERVIEW 21that warrant further
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AN OVERVIEW 23prises of different s
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AN OVERVIEW 25an interactive proces
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2The Marketing FactorTHE VIABILITY
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THE MARKETING FACTOR 29testing cons
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THE MARKETING FACTOR 31product to t
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Figure 4. Illustrative Segmentation
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THE MARKETING FACTOR 35ucts are pur
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THE MARKETING FACTOR 37decisionmaki
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THE MARKETING FACTOR 39gional, nati
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Figure 5. Product Life Cycle (PLC)M
Page 55 and 56: THE MARKETING FACTOR 43Institutiona
Page 57 and 58: THE MARKETING FACTOR 45How do insti
Page 59 and 60: THE MARKETING FACTOR 47ssl's may ne
Page 61 and 62: THE MARKETING FACTOR 49the governme
Page 63 and 64: THE MARKETING FACTOR 51consciousnes
Page 65 and 66: THE MARKETING FACTOR 53FUNCTIONS. M
Page 67 and 68: THE MARKETING FACTOR 55the processo
Page 69 and 70: THE MARKETING FACTOR 57Responses by
Page 71 and 72: THE MARKETING FACTOR 59* Likely com
Page 73 and 74: THE MARKETING FACTOR 61Table 2-3. T
Page 75 and 76: THE MARKETING FACTOR 63TIME-SERIES
Page 77 and 78: THE MARKETING FACTOR 65ence of appr
Page 79 and 80: THE MARKETING FACTOR 67Are the data
Page 81 and 82: THE MARKETING FACTOR 69ect's market
Page 83 and 84: THE PROCUREMENT FACTOR 71* Cost. Th
Page 85 and 86: THE PROCUREMENT FACTOR 73the declin
Page 87 and 88: TIIE PROCUREMENT FACTOR 75termine t
Page 89 and 90: THE PROCUREMENT FACTOR 77C- cost pe
Page 91 and 92: THE PROCUREMENT FACTOR 79Figure 7.
Page 93 and 94: TBE PROCUREMENT FACTOR8itomato crop
Page 95 and 96: THE PROCUREMENT FACTOR 83Storage an
Page 97 and 98: THE PROCUREMENT FACTOR 85Is there c
Page 99 and 100: THE PROCUREMENT FACTOR 87desired re
Page 101 and 102: THE PROCUREMENT FACTOR 89of the qua
Page 103 and 104: THE PROCUREMENT FACTOR 91Even with
Page 105: THE PROCUREMENT FACTOR 93The firm s
Page 109 and 110: THE PROCUREMENT FACTOR 97Table 3-4.
Page 111 and 112: THE PROCUREMENT FACTOR 99the transp
Page 113 and 114: THE PROCUREMENT FACTOR 101credit or
Page 115 and 116: THE PROCUREMENT FACTOR 103firm's pr
Page 117 and 118: THE PROCUREMENT FACTOR 105Are multi
Page 119 and 120: THE PROCUREMENT FACTOR 107Seeds and
Page 121 and 122: THE PROCUREMENT FACTOR 109tion. Inc
Page 123 and 124: THE PROCUREMENT FACTOR 111size; emp
Page 125 and 126: THE PROCUREMENT FACTOR 113Salient p
Page 127 and 128: THE PROCUREMENT FACTOR 115storage a
Page 129 and 130: 4The Processing FactorTHis STUDY HA
Page 131 and 132: THE PROCESSING FACTOR 119In milling
Page 133 and 134: THE PROCESSING FACTOR 121tion that
Page 135 and 136: n.a., Not applicable.Source: C. Pet
Page 137 and 138: THE PROCESSING FACTOR 125labor perm
Page 139 and 140: THE PROCESSING FACTOR 127tions have
Page 141 and 142: THE PROCESSING FACTOR 129season. Fi
Page 143 and 144: THE PROCESSING FACTOR 131sensitive
Page 145 and 146: THE PROCESSING FACTOR 133Table 4-4.
Page 147 and 148: THE PROCESSING FACTOR 135soluble nu
Page 149 and 150: THE PROCESSING FACTOR 137Food Produ
Page 151 and 152: THE PROCESSING FACTOR 139* Fragile
Page 153 and 154: THE PROCESSING FACTOR 141* Availabi
Page 155 and 156: THE PROCESSING FACTOR 143the cost o
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THE PROCESSING FACTOR 145cessor in
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THE PROCESSING FACTOR 14715 percent
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THE PROCESSING FACTOR 149and A. The
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THE PROCESSING FACTOR 151example, i
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THE PROCESSING FACTOR 153primary in
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THE PROCESSING FACTOR 155For more c
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THE PROCESSING FACTOR 157farmer's a
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THE PROCESSING FACTOR 159failed to
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THE PROCESSING FACTOR 16rbecause of
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COSTS OF ALTERNATIVE TECHNOLOGY 163
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COSTS OF ALTERNATIVE TECHNOLOGY 165
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can process almost any eration); $0
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Pneumatic Batch or continuous $120,
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of previously driedproducts; best f
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Fluidized Continuous operation $372
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Plate Batch operation for $372,000
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system cookers (probably simi- to t
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CHECKLIST OF CRITICAL QUESTIONS 179
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CHECKLIST OF CRITICAL QUESTIONS 18I
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BibliographyTHE FOLLOWING WORKS AUG
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BiBLIOGRAPHY 201Scott, M., J. D. Ma
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BIBLIOGRAPHY 203Forecasting methods
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BIBLIOGRAPHY 205UNIDO. UNIDO Guides
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BIBLIOGRAPHY 207tional Affairs, no.
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IndexAdvertising, 42, 128; promotio
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INDEX 211development planning and,
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INDEX 213Social costs and benefits:
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The World BankEconomic Development
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