what changes are possible in world agriculture in the 21 st century
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What Changes Are Possible in World Agriculture in the 21 st Century?. Agriculture’s New Era. A new era in agriculture created by drivers . These drivers are revolutionizing the industry and permanently altering traditional relationships.

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agriculture s new era
Agriculture’s New Era

A new era in agriculture

created by drivers.

These drivers are revolutionizingthe industry

and permanently altering traditional relationships.

Farm businesses that recognize, understand and

pro-actively adapt to the WORLD’S needs will

growand prosper.

drivers of change
Drivers of Change
  • Globalization of Markets and Resources
  • Consumers’ Evolving Preferences
  • A More Demanding Food Industry
  • Government Interaction/Regulation
  • The Pivotal Role of Technology
world population growth
World Population Growth

Populations continue to rise …

End of the Cold War has allowed countries to reallocate resources and increase standards of living.

Growing incomes allow people to buy more and better quality food (changing preferences).

drivers the farm business
Drivers & The Farm Business

Globalization Consumers Food Industry

Technology Government

The Farm Business

Environment ??

the new agriculture farm business environment
The New Agriculture …Farm Business Environment
  • International Markets
  • Commercialization/Biological Manufacturing
  • Ecological Agriculture
  • Differentiated Products
  • Food Supply Chains
  • Information/Precision
  • Risk
  • Diversity
international markets
International Markets
  • New Markets in Old Places
  • More Liberal Trade Environment

Competitive Pressure !

  • Global Access to Technology
  • Increased World Wide Production Capacity
  • Global Sourcing and Selling
commercialization
Commercialization

Commercial (Industrialized) Mentality

  • Full Utilization of Resources
  • Managing Inventories
  • Specification Buying
  • Outsourcing
  • Process Control Technology
process control technology
Process Control Technology
  • Monitoring/Measuring and Information Technology
    • attribute traceability throughout the chain
  • Biotechnology/Nutritional Technology
    • manipulation of attribute development and deterioration
  • Intervention Technology
    • anytime intervention if attribute development deviates from potential (gap resolution)
ecological agriculture
Ecological Agriculture
  • Total Biological Systems
  • Recycling Nutrients
  • Capturing Value from Byproducts
  • New Revenue Streams
    • Carbon sequestering
    • Environmental amenities
    • Wildlife/wildlands
differentiated products
Differentiated Products
  • More Differentiated, Less Commodity
  • More Attribute Driven/Value
  • More Traceability/Identity Preserved
  • Types of Products
    • Generic commodities
    • Enhanced component commodities
    • Specific attribute raw materials
the food supply chain
The Food Supply Chain
  • More End-User Responsive
  • Better Flow Scheduling
  • Improved Quality Control
  • Food Safety-Traceback
  • Competitive Advantage? Sustainability?
  • Who Will Control?
information precision
Information/Precision
  • Monitoring/Measuring Technology
  • Smarter Machines
  • Process Control/Quality
  • Span of Control
slide15
Risk
  • Operating/Tactical Risk
    • More volatility
    • Short peaks, long troughs
  • Strategic Risk
    • Relationships
    • Environmental
    • Policy changes
diversity
Diversity
  • More Differences Between Farms (no typical farm!)
  • More Market Segments
  • Customized Solutions
  • More Conflict/Confrontation
business models
Business Models
  • Independent Producers
  • Multiple Plant Entrepreneurs
    • General managers
    • Plant managers
    • Workers
  • Franchise Growers
  • Network Qualified Suppliers
  • Piece Work Contractors
management skills areas
Management Skills Areas
  • Strategy
  • Production
  • Finance
  • Procurement/Merchandising
  • Personnel
  • Leadership
successful strategies
Successful Strategies?
  • Develop a Strategic Direction
  • Adopt New Technology Appropriately
  • Control Cost
  • Evaluate Networks/Alliances/Linkages
  • Manage Risk
  • Expand Carefully
  • Think like a CEO/general manager
key challenges in agriculture s future
Key Challenges in Agriculture’s Future
  • Adapting to change
  • Evaluating technology
  • Achieving profitability
    • Cost cutting
    • Growth
  • Defining organizational capabilities
  • Achieving organizational transformation
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