Business Management for small-scale agro-processors

AGSF

Working

Document

7

Business management for

small-scale

agro-processors

Agricultural Mangement, Marketing and Finance Service (AGSF)

Agricultural Support Systems Division

FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS

Rome, 2005

AGSF

Working

Document

7

Business management for

small-scale

agro-processors

Peter Fellows and Alexandra Rottger

Agricultural Mangement, Marketing and Finance Service (AGSF)

Agricultural Support Systems Division

FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS

Rome, 2005

Business management for small- scale agro-processors

iii

Preface

This booklet addresses micro- and small-scale entrepreneurs who wish to improve their

business operations. It may not require the sophisticated business management techniques

that are used by large-scale manufacturers, but simple procedures to plan, monitor and

control production, finances, inventories, quality and staff matters. Some types of agroprocessing have specific problems or issues that are described in the last chapter. The

booklet aims to provide practical advice and information on management aspects to help

entrepreneurs or potential investors at micro- and small-scales to run a sustainable agroprocessing business. It may be a useful addition to training resources for local and

international NGOs, or staff at government institutions who work with small enterprises.

Policy makers or students on business, agriculture and food-related courses may also find

the booklet useful.

iv

Business management for small scale agro-processors

Contents

Preface

Acknowledgements

Figures

Tables

Glossary

iii

v

vi

vii

viii

1 Introduction

2 Planning production

3 Managing finance

4 Inventory management

5 Managing people

6 Managing equipment

7 Managing quality

8 Sector specific guidelines for business management

Edible oil extraction

Fruit and vegetable processing

Cereal milling

Meat and dairy processing

1

3

23

41

47

53

58

References and further reading

73

63

67

69

71

Acknowledgements

v

Acknowledgements

We would like to thank Fran?ois Mazaud for the original idea of producing a business

management guide for small-scale processors. A special thanks to Tim Chamen for editing

and Peter Roehr-Rouendaal for the illustrations and Carlos da Silva for revising and

commenting on the final draft.

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