Fundamentals of Agribusiness

This course takes you to the heart of an industry that feeds seven billion people and growing. Agribusiness comprises all the industries 'from farm to fork'. It covers the supply of agricultural inputs, the production and transformation of agricultural products and their distribution to final consumers. Agribusiness is one of the main generators of employment and income worldwide. Traditional production and distribution methods are giving way to more closely coordinated and better planned linkages between agribusiness firms, farmers, retailers and others in the supply chains. During this highly practical 3-day training session you will: Learn how the world's biggest industry works. Investigate the opportunities that will be created in feeding the world in the next twenty years. Understand how crops and livestock integrate into the global value chain. Research individual case studies into agricultural lending and investment. Value agribusinesses. Who should attend Agribusiness managers (in investment, finance, and risk management) and directors Bankers lending to the agribusiness sector Accountants and lawyers to agribusiness Government (very important) Contract farmers Private equity general partners and limited partners Methodology This course takes a practical approach to teaching by using case studies to emphasise the key learning points. You will have the opportunity to apply the skills acquired during the programme in practical sessions which will ensure you have a complete understanding of the topics before leaving the course.
Day 1 Introduction to global agriculture, food and agricultural commodities Why does agriculture matter so much? Land and pricing. Demography and food production. Environmental aspects of agricultural production. Case Study - African agriculture and its contribution to GDP. The Green Revolution and its aftermath Food technologies. Yield growth. Varietal improvements. Agricultural technologies. Case Study - The Institute for Rice Research in the Philippines – does cassava need an equivalent? Agricultural Commodities and markets The food chain. The international Food Trade. Case Study - Importing and exporting wheat. The State of Global Agriculture in 2012 Production and consumption of major agricultural commodities. Agriculture and Public Policy. Food, Agriculture, and Natural Resource Policy. Government agricultural support programmes (eg EU CAP,USDA). International programmes and organizations. Group discussion: agriculture and politics in Africa – the crucial interface. Day 2 Agriculture in Practice Managing a Farm Subsistence farming and its survival algorithms. The family farm. Production functions and profitability. Farm Business Organization. Whole Farm Planning. Farm lending and financing. Group exercises: evaluating lending proposals and financial models in agribusinesses made to lenders in Africa. Farm and Agribusiness Management in the Future. Case Study - Modelling farm economics and decisionmaking examining farm models. Marketing and Selling Agricultural Commodities Marketing agricultural commodities. Agricultural Marketing and Price Analysis. Case Study - agricultural marketing outreach initiatives. Handling Agricultural Risk Contract farming – how it works. Agricultural commodity volatility – history, underlying determinants and management (forwards, swaps, options and futures, exotics). Modelling risk – sensitivity analysis, scenarios and Monte Carlo. Case Study – The SAFEX exchange & commodity derivatives in Africa. Day 3 International Agribusiness The Industry worldwide Size and scope. Exporters and importers. Case Study: Tilda Rice. Vertical and horizontal integration. Major commodity companies. Case Study: Monsanto – industry giant. Smaller commodity trading companies and brokers. Case Study - Jacksons, rice brokers. Collaboration and M&A in global agribusiness. Case Study - Cargill’s global strategy. Investment appraisal and trading in agribusiness Project economics. How to forecast agricultural cash flows. Decision-making criteria (NPV, IRR, MIRR, etc). Accounting issues. Environmental caveats. Risk management issues. Case Study - Examples of discounted cash flow and real options models for agriculture/agribusiness. Course Conclusion: The future of agribusiness Course summary and close