Agroindustrial project analysi

24 AGROINDUSTRIAL PROJECT ANALYSISvelopment plans. For example, the government's rural developmentor trade strategies and policies could directly impinge on projectviability. The role a government wishes foreign investors to playin its national development strategy can also be significant foragroindustries. Transnational corporations have considerable investmentsin agroindustrial operations in developing countries. Forexample, approximately one-fourth of the foreign investments offood and beverage companies in the more developed nations arein the developing countries, and these corporations account forone-eighth of the output of the developing countries' food processingindustries. 29 In the larger and more affluent markets-such asMexico, Brazil, Argentina, and Venezuela-the transnationals accountfor over one-fourth of the local industries.Organizationof the ChaptersThe systems method of analysis is applied in chapters 2, 3, and 4to the three main areas of agroindustrial activity. The marketingfactor is investigated in chapter 2, and the issues of consumer preference,market segmentation, demand forecasting, product pricing,distribution channels, and competitive forces are addressed. Theprocurement factor is discussed in chapter 3, and the relations betweenthe production and processing stages and methods of managingthe flow of raw material from the farm to the factory areexamined. A discussion of the processing factor and the relatedissues of technology selection, plant location, inventory management,processing inputs, and operational considerations follows inchapter 4.Although each of these chapters explores a particular operationalactivity of agroindustries, systems analysis presupposes an underlyingrecognition of the close interdependence of agricultural operations.Consequently, each separate analysis considers oneactivity's effect on the remaining two. The systems method implies29. United Nations Centre on Transnational Corporations, "TransnationalCorporations," pp. 17, 20; also see chapter 4 of the report for a discussionof government policies toward transnational corporations operating in thefood industry.