Introduction to agribusiness questions.

Negotiation is an art and skill, the key to effective negotiation is playing the game to win.

Leadership is an art of getting others to get the job done. A leader decides on a particular style to use, but the choice of leadership style is dependent on the type , behavior, knowledge and motivation levels of the people to be led.

Adding value to agricultural products beyond the farm gate usually has several times the economic impact of the agricultural production alone i.e agricultural producers receive a much smaller portion of the consumers` shillings than do food processors , especially processors who produce brand name items. Creating customer value is thus critical in builiding a profitable and substantial business. However , one must bear in mind that it is the customers` perception of value , not the procuders`, that is critical. Different customers have different perceptions of the added value; these perceptions correspond to their expectations of quality, service, convenience and selection . Using five elaboration points, give a brief account of what creates added value in agricultural products.

Agricultural products are unique . Which of the following is not a unique characteristic making the supply of farm products different than most products?

1. The products are often perishable
2. The producers have a lot of market power because the buyers  need the food
3. There is usually one crop per year
4. The time it takes to change production levels are long , making decisions especially uncertain

Consumers of agricultural products

1. Would gladly pay more if they understood the troubles of the farmer
2. Are the ultimate driver of the food system
3. Are extremely knowledgeable about prices in the supermarkets
4. Are always looking for the lowest prices

Food companies in the country are trying to sell more products overseas because.

1. The growth potential of the domestic market is small
2. Overseas customers aren`t getting what they need from their local suppliers
3. Other countries are encouraging the food companies to enter their market
4. They want to take advantage  of the niche markets abroad.

What happens in one part of the value chain has implication on other parts of the chain , which of the following would cause a change in the demand for maize.

1. A large harvest of maize
2. A reduction in the price of fertilizer
3. A change in the price of maize
4. A change in per capita income
5. All of the above

The incidences of salmonella contamination in the fish from East Africa have greatly increased inspections of the fish we export to Europe and America. The additional costs of inspecting and testing fish for food safety should.

1. Make fish prices fall in Tanzania
2. Cause food retailers to absorb the extra expense
3. Make consumer fish prices abroad fall
4. Increase the consumer fish prices abroad
5. Increase the consumer fish prices in the domestic market
6. Not affect the market  equilibrium
7. None of the above

Without value addition , most of agricultural products remains undifferentiated and thus faces stiff competition; undifferentiated products

1. Are difficult to substitute
2. Can compete only on the basis of price and availability
3. Can easily enter new markets because they are well known
4. Can easily be sustituted  by products from other suppliers

The agribusiness subsector has been stagnant for the past decades in Tanzania; due to its performance there emerges a need for private sector intervention into the development of the sector. The private sector includes firms/corporation that has been established inside as well as outside the country. Give examples of such private corporations and discuss at least five of its roles in improving the agribusiness subsector.