Chapter 2
The Industry
Products
The agricultural cycle is the annual cycle of activities related to the growth and
harvest of a crop (Plant.) These activities include loosening the soil, seeding, special
watering, moving plants when they grow bigger, and harvesting, among others.
Agricultural supply store which is an agriculturally-oriented shop where one
sells agricultural supplies -- inputs required for agricultural production. The common
products found in agricultural supply store are agrichemicals, fungicide, herbicide,
insecticide, molluscicide, feeds, fertilizer, seed type, sprayer types and veterinary
medicines.
Market
The world needs agricultural efficiency more than ever before. According to
the2018 Global Agricultural Productivity (GAP) Index, put together by the Global
Harvest Initiative, food production is not growing fast enough to sustainably feed the
world in 2050. The report shows that if this trend doesn’t change, the world may not be
able to provide the necessary food, livestock feed, fiber and biofuels to sustain our
growing global population.
For as long as there are people, there’s a demand for food, which is why
the agriculture business continues to thrive year over year. Entering the business of
ranching or farming is a lifestyle not fit for every entrepreneur. It can present some
significant challenges, including livestock and land management, intensive year-round
labor, and so forth. But, the agricultural supply business is vital to ensuring food
production prospers, so it can be an exciting and lucrative option for the right person.
Major Players in the Industry
Three agricultural supply businesses operating in the City of Koronadal provides
farm supply in the locale of South Cotabato, namely; Abigail Farm Supply, Marbel
Quality Farm Supply and LSB Agrivet Supply.
Abigail Farm Supply
History
Cuenca Agricultural Supply was established by Engr. Edwin Gonzales
Cuenca in January 03, 1990 at Brgy, Lamian, Surallah, South Cotabato. With an
intense desire to succeed, he faced his challenges with faith and courage.
Engr. Edwin Cuenca’s struggles and pressures started as he personally
managed the business which includes the promotion, delivery and planning. With
patience and support from his wife Ms. Ruth P. Cuenca, the business continued
to grow and survived during lean months. The fruit of these obstacles turned out
to be great opportunity as more branches were added every year in the
neighboring towns of South Cotabato.
Early in the year 2012, this company started to operate under the name of
Abigail Farm Supply, Incorporated. Abigail Farm Supply Incorporated started from
a single branch in Surallah, South Cotabato. Mr. and Mrs. Ruth Cuenca’s faith
and ingenuity propelled the business to new heights that brought them to where
they are today.
Currently, its main office is located at Tomas Claudio Street, Surallah,
South Cotabato with fourteen (14) other branches covering the areas of South
Cotabato, Sultan Kudarat, Maguindanao, General Santos City and Digos City,
Davao del Sur.
Organizational
The proprietors personally engaged in the business operations and
transactions exemplifying the core values of teamwork, commitment, competence,
customer-oriented, honesty, integrity, and most importantly fear in God. The
company practices a weekly general assembly for all employees providing
spiritual enrichment, trainings, business meetings, team building activities and
wellness program. These activities promote unity and harmony within the
organization. All branches are given sales targets and in return an awarding
program is organized to recognize performing dealers and customers. In addition,
a yearly trip abroad as an incentive is given by the company to dealers who were
able to achieve the sales target
Operational
Desiring for good inventory control, the management decided to start a
computerized system in partnership with a computer consultancy firm. A
monitoring team led my Ms. Ruth P. Cuenca was organized to conduct inventory
count, audit of sales reports and accounts in each branch. The first -in, first-out
policy of products is also practiced in the warehouses. The viability of the
company is the result of constant monitoring, inventory control, account handling
and collection.
Marketing
As branches were also added in provinces of Sultan Kudarat, South
Cotabato, and Maguindanao, the expansion in these areas strengthens the ties
with distribution partners in serving their needs. The competition in distribution
level soon became tough as new players in the agribusiness started to penetrate
the territory. Hence, the management led the people in consistent price
monitoring, frequent visit to customers and branches to address issues and
concerns immediately. These all proved that the customers’ satisfaction is the
company’s top priority.
Financial
Marbel Quality Farm Supply
Marbel Quality Farm Supply located in Zulueta Street, City of Koronadal, South
Cotabato.
Organizational
Operational
Marketing
Financial
LSB Agrivet Supply
LSB Agrivet Supply located in Brgy Zone III, City of Koronadal, South Cotabato.
Porter’s Five Forces
Threats on New Entrants