MATSEC SEC Agribusiness flashcards
MATSEC SEC Agribusiness · Build recall with a focused review session.
32 cards. Read the term and the definition here. The deck at the top of this page is optional.
- Agribusiness
- The whole system of activities linked to agriculture, from input supply and farming through processing, distribution and retail to the consumer.
- Upstream and downstream
- Upstream means activities before the farm such as seed, fertiliser and credit supply; downstream means activities after the farm such as processing, transport and retail.
- Opportunity cost
- The value of the next best alternative given up when a resource is used for one purpose rather than another, such as growing one crop instead of another.
- Gross margin
- Enterprise revenue from output minus the variable costs of that enterprise. It excludes fixed costs and is used to compare enterprises of different sizes.
- Break-even output
- The quantity at which total revenue equals total cost. It is calculated as fixed costs divided by the difference between unit price and unit variable cost.
- Vertical integration
- A situation where one business controls more than one stage of the supply chain, for example a feed mill that also owns poultry production and processing.
- Diminishing returns
- The principle that adding more of one variable input while others stay fixed eventually produces smaller increases in output per extra unit applied.
- Fixed and variable costs
- Fixed costs do not change with output in the short run, such as rent and depreciation. Variable costs change with output, such as seed, feed and casual labour.
- Crop rotation
- Growing different crops in sequence on the same land to maintain fertility, break pest and disease cycles and reduce reliance on chemical inputs.
- Feed conversion ratio
- Feed consumed divided by liveweight gain. A lower ratio means the animal converts feed into body weight more efficiently, reducing cost per kilogram gained.
- Daily liveweight gain
- Final weight minus initial weight, divided by the number of days between weighings. It measures growth rate and helps plan time to market weight.
- Stocking rate
- The number of animals grazed per hectare. Too high causes overgrazing and parasite build-up; too low wastes pasture growth.
- Integrated pest management
- A control hierarchy using resistant varieties, sanitation, monitoring and thresholds, biological control, and chemicals only as a last resort.
- Soil pH
- A measure of soil acidity or alkalinity. Most arable crops grow best around pH 6 to 7; lime raises pH and acidifying fertilisers lower it.
- Field capacity calculation
- Working width in metres multiplied by speed in kilometres per hour, divided by ten, gives the theoretical area covered per hour in hectares.
- Economic threshold
- The pest or disease level at which the expected value of crop loss exceeds the cost of control, making treatment worthwhile.
- Post-harvest loss
- Reduction in quantity or quality of produce between harvest and sale, caused by bruising, poor storage, delayed cooling or inadequate packaging.
- Marketing mix
- The four Ps of marketing: product quality and specification, price, place or distribution channel, and promotion. All four must fit the target market.
- Market segmentation
- Dividing potential buyers into groups with similar needs or characteristics, such as retailers wanting uniform graded produce versus households wanting freshness.
- Value added
- The increase in product value created by processing, packaging, grading or branding, calculated as the higher selling price minus the added cost.
- Cash flow versus profit
- Profit is revenue minus costs over a period; cash flow is the timing of money in and out. A profitable farm can still fail if cash arrives late.
- Price elasticity of demand
- A measure of how much quantity demanded responds to a price change. Staple foods are inelastic, so a larger harvest may reduce total revenue.
- Contract farming
- An agreement fixing price and quantity in advance between producer and buyer. It reduces price risk but limits the farmer's gain if prices rise.
- Contribution per unit
- Selling price minus variable cost per unit. It shows how much each sale contributes towards covering the fixed costs of the business.
- Current ratio
- Current assets divided by current liabilities. It indicates the business's ability to pay short-term debts, with roughly two to one often considered comfortable.
- Co-operative
- A business owned and controlled by its members on a one-member-one-vote basis, used to pool purchasing, marketing or machinery and strengthen bargaining power.
- Three pillars of sustainability
- Economic viability, environmental protection and social equity. A practice is sustainable only if it can satisfy all three over the long term.
- Eutrophication
- Nutrient enrichment of water by nitrate and phosphate runoff, causing algal blooms, oxygen depletion and harm to fish and other aquatic life.
- SWOT analysis
- A planning tool that maps internal strengths and weaknesses against external opportunities and threats, used before choosing a new farm enterprise.
- Carbon footprint
- Total greenhouse gas emissions from a product or activity, expressed as carbon dioxide equivalent, covering inputs, production, processing and transport.
- SMART objectives
- Objectives that are specific, measurable, achievable, relevant and time-bound, allowing progress to be reviewed against a clear standard.
- Partial budget
- A decision tool listing extra revenue and saved costs against extra costs and lost revenue, to show the net effect of a proposed change.