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BUSINESS MANAGEMENT FOR SMALL-SCALE AGRO-INDUSTRIES

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BUSINESS MANAGEMENT FOR SMALL-SCALE AGRO-INDUSTRIES

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Blurb

The purpose of this publication is to present leaders of associations with several of the business management techniques. It has the following objectives: To assess the importance of finance management techniques as tools that help us to know if the enterprise is really winning or how profitable a new business can be. To discover the real importance of modern managing staff techniques which perceive people as the most important resource of any business. To understand how buying the right equipment in terms of size, price, availability of spare parts, and plan its maintenance permit the processor to save money. To recognize that exporting is not an easy thing and that many issues have to be considered before initiating this process. To learn that quality assurance has begun to focus not only on safety, which is expected, but also to increasingly higher demands for consistently better quality.

Acknowledgments vi

Acronyms and abbreviations vii

Introduction 1

General study guidelines 3

Managing finance in small-scale agro-industries 5

List of topics 5

Setting the context 6

Case study: Business Management –Situation of

Cassava Starch and Panela Plants in North Cauca,

Colombia 8

Case study analysis 10

Calculating costs 10

Calculating the price for products 12

Record keeping 14

Financial statements 16

Managing working capital 20

Conclusions on the case study 21

Group exercise 22

Summary 23

Unit assessment 24

Managing people in small-scale agro-industries 25

List of topics 25

Setting the context 26

Case study: An Asian food processing firm faces

new challenges in Kenya 28

Case study analysis 29

Recruitment 30

Training and staff motivation 31

Staff management 32

Health and safety 33

Staff records 34

Conclusions on the case study 35

iv

Group exercise 36

Summary 36

Unit assessment 38

Managing equipment in small-scale agro-industries 39

List of topics 39

Setting the context 40

Case study: From Dairy Farming to Manufacturing:

The Osia Ice Cream Company, Denmark 41

Case study analysis 42

Choosing equipment 43

Calculating the correct size of equipment 43

Sources of equipment 46

Equipment maintenance 47

Depreciation for equipment 49

Conclusions on the case study 51

Group exercise 52

Summary 52

Unit assessment 54

Managing exports in small-scale agro-industries 55

List of topics 55

Setting the context 56

Case study: The Haarlem Honeybush Producer

Group, South Africa 57

Case study analysis 59

Researching export markets 60

Export options 60

Finding partners and making legal agreements 63

Pricing, delivery terms, and documentation 65

Getting paid 67

Export insurance 68

Conclusions on the case study 71

Group exercise 72

Summary 72

Unit assessment 74

 

Quality assurance and management in smallscale

agro-industries 75

List of topics 75

Setting the context 76

Case study: Managing Quality in Food Retailing.

Tesco, United Kingdom 78

Case study analysis 79

Total quality management 80

Quality standards and assurance schemes 82

Traceability and due diligence 84

HACCP system 87

Conclusions on the case study 92

Group exercise 93

Summary 93

Unit assessment 95

Glossary 97

Bibliography 101

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