STA 422.

1 AGRIBUSINESS MANAGEMENT
TUTORIAL 1: 8/10/24
Model Answers to Tutorial Questions

1. How would you overcome ever increasing input costs in

agribusiness?

Overcoming increasing input costs in agribusiness can be challenging, but there are several
strategies you can implement to manage and mitigate these costs effectively:

1. Precision Agriculture: Utilize data-driven technologies like satellite imagery, drones,

and sensors to optimize input use. This can help minimize waste and reduce costs by
applying inputs more efficiently.
2. Soil Health Management: Implement practices such as crop rotation, cover cropping,
and reduced tillage to improve soil health. Healthy soil can reduce the need for
expensive fertilizers and pesticides.
3. Integrated Pest Management (IPM): Use a combination of biological, cultural,
physical, and chemical tools to manage pests. This approach can reduce reliance on
chemical pesticides, lowering costs and environmental impact.
4. Efficient Water Management: Invest in irrigation technologies that optimize water
use, such as drip irrigation or soil moisture sensors. Efficient water use can reduce
costs and improve crop yields.
5. Energy Efficiency: Upgrade to energy-efficient machinery and equipment. Regular
maintenance can also ensure that machinery operates efficiently, reducing fuel and
repair costs.
6. Crop Selection and Diversification: Choose crops that are well-suited to your local
conditions and market demand. Diversifying crops can spread risk and potentially
increase profitability.
7. Financial Management: Regularly review and adjust your financial plans. Consider
restructuring debt to improve cash flow and working capital.
8. Bulk Purchasing and Cooperative Buying: Join or form cooperatives to purchase
inputs in bulk. This can lead to significant cost savings through economies of scale.
9. Government Programs and Subsidies: Take advantage of government programs
and subsidies designed to support farmers. These can provide financial relief and help
offset some of the input costs.
10. Market Planning: Develop a pre-harvest marketing plan to lock in prices when they
are favorable. This can help ensure you get the best possible return on your crops.
By implementing these strategies, you can better manage rising input costs and maintain the
profitability of your agribusiness.
2. What are some measures taken to meet ever increasing input costs in
agribusiness farms?

To address the challenge of rising input costs in agribusiness, farmers and agribusiness
managers can implement several measures:

1. Adopting Precision Agriculture: Utilizing technologies like GPS, drones, and

sensors to optimize the use of inputs such as fertilizers, water, and pesticides. This can
lead to significant cost savings by reducing waste and improving efficiency.
2. Improving Soil Health: Practices like crop rotation, cover cropping, and reduced
tillage can enhance soil fertility and structure, reducing the need for expensive
chemical inputs.
3. Integrated Pest Management (IPM): Combining biological, cultural, mechanical,
and chemical methods to manage pests in an economically and ecologically sound
manner. This reduces reliance on costly chemical pesticides.
4. Efficient Water Management: Implementing advanced irrigation systems such as
drip or sprinkler irrigation to use water more efficiently and reduce costs.
5. Energy Efficiency: Upgrading to energy-efficient equipment and machinery, and
maintaining them regularly to ensure optimal performance and lower fuel and repair
costs.
6. Bulk Purchasing and Cooperative Buying: Joining cooperatives or forming buying
groups to purchase inputs in bulk, which can lead to significant cost savings through
economies of scale.
7. Government Programs and Subsidies: Leveraging government support programs
and subsidies designed to help farmers manage input costs. These can provide
financial relief and support sustainable farming practices.
8. Financial Management: Regularly reviewing and adjusting financial plans,
restructuring debt, and improving cash flow management to better handle rising costs.
9. Market Planning: Developing pre-harvest marketing plans to lock in favorable prices
for crops, ensuring better returns and managing financial risks.
10. Diversification: Diversifying crops and income streams to spread risk and potentially
increase profitability.
Implementing these strategies can help mitigate the impact of rising input costs and maintain
the profitability of agribusiness operations.

3. How can we overcome agribusiness farm labour shortages in developing

countries like Papua New Guinea?

Overcoming labor shortages in agribusiness farms in developing countries like Papua New
Guinea involves a multifaceted approach. Here are some effective strategies:

1. Skill Development and Training: Invest in vocational training programs to equip the
local workforce with the necessary skills for modern agribusiness practices. This can
include partnerships with educational institutions and industry-specific training.
 2. Mechanization and Technology: Introduce mechanization and modern agricultural
technologies to reduce dependency on manual labor. This can increase productivity
and efficiency.
3. Improving Working Conditions: Enhance working conditions to attract and retain
workers. This includes offering fair wages, safe working environments, and benefits
such as healthcare and housing.
4. Youth Engagement: Create opportunities for youth employment and
entrepreneurship in agriculture. This can be achieved through targeted programs and
incentives to make agriculture more appealing to younger generations.
5. Labor Mobility Programs: Participate in regional labor mobility programs like the
Pacific Australia Labour Mobility (PALM) scheme, which allows workers to gain
experience and income abroad while addressing labor shortages.
6. Government Policies and Incentives: Implement policies that support labor force
participation, such as tax incentives for businesses that hire locally, and subsidies for
training programs.
7. Public-Private Partnerships: Foster collaborations between the government, private
sector, and non-governmental organizations to create job opportunities and improve
workforce skills.
8. Community-Based Initiatives: Encourage community-based initiatives that promote
local employment and skill development. This can include cooperatives and local
business support programs.
9. Migration Policies: Develop policies that facilitate the movement of labor within the
country and from neighboring regions to areas with labor shortages.
By implementing these strategies, Papua New Guinea can better address labor shortages in
agribusiness and build a more resilient and skilled workforce.

4. How can we minimise the negative impacts of climate change in

agribusiness farms in Papua New Guinea?

Minimizing the negative impacts of climate change on agribusiness farms in Papua New
Guinea involves adopting a range of strategies to enhance resilience and sustainability. Here
are some effective measures:

1. Climate-Smart Agriculture (CSA): Implement CSA practices that increase

productivity, enhance resilience, and reduce greenhouse gas emissions. This includes
using drought-resistant crop varieties, improving soil health, and optimizing water
use.
2. Diversification: Diversify crops and livestock to spread risk and reduce vulnerability
to climate-related shocks. This can include integrating agroforestry, which combines
trees with crops and livestock.
3. Improved Irrigation Systems: Invest in efficient irrigation systems such as drip or
sprinkler irrigation to conserve water and ensure crops receive adequate moisture
even during dry periods.
4. Soil Conservation Techniques: Use techniques like contour farming, terracing, and
cover cropping to prevent soil erosion and maintain soil fertility.
 5. Early Warning Systems: Develop and utilize early warning systems for extreme
weather events. This can help farmers prepare and take necessary actions to protect
their crops and livestock.
6. Community-Based Adaptation: Engage local communities in planning and
implementing adaptation strategies. This ensures that measures are culturally
appropriate and widely accepted.
7. Sustainable Land Management: Promote sustainable land management practices
that protect natural resources and biodiversity. This includes reforestation,
conservation agriculture, and protecting wetlands.
8. Access to Climate Information: Provide farmers with access to reliable climate
information and forecasts. This can help them make informed decisions about
planting and harvesting times.
9. Financial Mechanisms: Develop financial mechanisms such as crop insurance and
disaster relief funds to support farmers in times of climate-related losses.
10. Government and Policy Support: Advocate for supportive government policies and
programs that promote climate resilience in agriculture. This includes subsidies for
climate-smart technologies and investments in agricultural research.
By implementing these strategies, agribusiness farms in Papua New Guinea can better
withstand the impacts of climate change and continue to thrive.

5. How can we overcome sustainability pressures in agribusiness farms in

PNG?

Overcoming sustainability pressures in agribusiness farms in Papua New Guinea involves

adopting practices that enhance environmental, economic, and social sustainability. Here are
some strategies to consider:
1. Climate-Smart Agriculture (CSA): Implement CSA practices that increase
productivity, enhance resilience, and reduce greenhouse gas emissions. This includes
using drought-resistant crop varieties, improving soil health, and optimizing water
use.
2. Agroforestry: Integrate trees and shrubs into farming systems. Agroforestry can
improve biodiversity, enhance soil fertility, and provide additional income sources
through timber, fruits, and nuts.
3. Sustainable Land Management: Use techniques such as contour farming, terracing,
and cover cropping to prevent soil erosion and maintain soil fertility. These practices
help sustain long-term agricultural productivity.
4. Efficient Water Management: Invest in efficient irrigation systems like drip or
sprinkler irrigation to conserve water and ensure crops receive adequate moisture
even during dry periods.
5. Renewable Energy: Utilize renewable energy sources such as solar or wind power to
reduce reliance on fossil fuels. This can lower energy costs and reduce the carbon
footprint of your farm.
6. Integrated Pest Management (IPM): Combine biological, cultural, mechanical, and
chemical methods to manage pests in an economically and ecologically sound
manner. This reduces reliance on chemical pesticides.
 7. Community-Based Adaptation: Engage local communities in planning and
implementing adaptation strategies. This ensures that measures are culturally
appropriate and widely accepted.
8. Access to Climate Information: Provide farmers with access to reliable climate
information and forecasts. This can help them make informed decisions about
planting and harvesting times.
9. Financial Mechanisms: Develop financial mechanisms such as crop insurance and
disaster relief funds to support farmers in times of climate-related losses.
10. Government and Policy Support: Advocate for supportive government policies and
programs that promote climate resilience in agriculture. This includes subsidies for
climate-smart technologies and investments in agricultural research.
By implementing these strategies, agribusiness farms in Papua New Guinea can better
withstand sustainability pressures and continue to thrive.

6. How can we overcome agribusiness products' market volatility in PNG?

Overcoming market volatility for agribusiness products in Papua New Guinea involves
implementing strategies that enhance stability and resilience. Here are some effective
measures:
1. Diversification: Diversify your product range to spread risk. This can include
growing different types of crops or raising various livestock. Diversification helps
mitigate the impact of price fluctuations in any single market.
2. Value Addition: Process raw agricultural products into value-added goods. For
example, turning cocoa into chocolate or coffee beans into roasted coffee. This can
help stabilize income by reducing dependency on raw commodity prices.
3. Market Access and Expansion: Explore new markets and expand existing ones. This
can involve exporting to different countries or targeting niche markets that may offer
higher prices and more stability.
4. Contract Farming: Engage in contract farming agreements with buyers. These
contracts can provide guaranteed prices and markets for your products, reducing the
uncertainty associated with market volatility.
5. Financial Instruments: Utilize financial instruments such as futures contracts and
options to hedge against price volatility. These tools can help lock in prices and
protect against adverse market movements.
6. Improved Storage and Handling: Invest in better storage and handling facilities to
reduce post-harvest losses. This ensures that more of your product reaches the market
in good condition, potentially fetching better prices.
7. Government Support and Policies: Advocate for supportive government policies
that stabilize agricultural markets. This can include subsidies, price supports, and
investment in infrastructure.
8. Cooperatives and Associations: Join or form cooperatives to pool resources and
market products collectively. Cooperatives can provide better bargaining power and
access to larger markets.
9. Market Information Systems: Use market information systems to stay informed
about price trends and market conditions. This can help you make better decisions
about when and where to sell your products.
10. Sustainable Practices: Implement sustainable farming practices that improve
resilience to climate change and other environmental factors. This can help ensure
consistent production levels and reduce the impact of market volatility.
By adopting these strategies, agribusinesses in Papua New Guinea can better manage market
volatility and maintain stable incomes.

7.How can we address pests and diseases on agribusiness farms in PNG?

Addressing pests and diseases on agribusiness farms in Papua New Guinea involves a
combination of proactive and reactive strategies. Here are some effective measures:
1. Integrated Pest Management (IPM): Implement IPM practices that combine
biological, cultural, mechanical, and chemical methods to manage pests and diseases
in an economically and ecologically sound manner.
2. Biological Control: Use natural predators, parasites, or pathogens to control pest
populations. For example, introducing beneficial insects that prey on harmful pests.
3. Crop Rotation and Diversification: Rotate crops and diversify plantings to disrupt
pest and disease cycles. This can reduce the buildup of pests and diseases that thrive
on specific crops.
4. Agroforestry: Integrate trees and shrubs into farming systems. Agroforestry can
improve biodiversity, enhance soil health, and provide habitats for natural pest
predators.
5. Improved Sanitation: Maintain good farm hygiene by removing plant debris, weeds,
and other potential pest habitats. This can help reduce pest and disease pressure.
6. Resistant Varieties: Plant crop varieties that are resistant or tolerant to specific pests
and diseases. This can significantly reduce the need for chemical controls.
7. Monitoring and Early Detection: Regularly monitor crops for signs of pests and
diseases. Early detection allows for timely intervention before problems become
severe.
8. Proper Use of Pesticides: When chemical controls are necessary, use pesticides
judiciously and according to recommended guidelines to minimize environmental
impact and resistance development.
9. Community-Based Approaches: Engage local communities in pest and disease
management efforts. Community-based approaches can enhance the effectiveness of
control measures and ensure widespread adoption.
10. Government and Extension Services: Utilize government and extension services for
support and guidance on best practices for pest and disease management. These
services can provide valuable resources and training.
By implementing these strategies, agribusiness farms in Papua New Guinea can effectively
manage pests and diseases, ensuring healthier crops and improved productivity.