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

Business management for small-scale agro-processors

AGSF Working Document

7

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

iii

Acknowledgements

v

Figures

vi

Tables

vii

Glossary

viii

1 Introduction

1

2 Planning production

3

3 Managing finance

23

4 Inventory management

41

5 Managing people

47

6 Managing equipment

53

7 Managing quality

58

8 Sector specific guidelines for business management

Edible oil extraction

63

Fruit and vegetable processing

67

Cereal milling

69

Meat and dairy processing

71

References and further reading

73

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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