The Problem of most of the Rural Areas

As background, there are common elements in agribusinesses that constitute the problem of most of the rural areas of our country. Today we will talk about the success factors of agribusiness.

The lack of knowledge of business management tools, the low real returns of agribusiness, the low adoption of technology, the existence of abusive intermediaries, the disorganization of supply caused by the disunity of producers, low competitiveness, are some examples of the situation of the producers.

The lack of business focus causes low quality of the products, poor business partner organization, without market orientation, etc.

Overcoming these shortcomings leads to successful cases of rural agribusinesses that, in turn, present several common success factors.

One of them is the organization of producers in associations, cooperatives, associations, etc. It has the advantage of centralizing decisions, increasing and organizing supply, decreasing administration costs and facilitating management.

Another key factor is the control of the quality of the products through proper management and monitoring at predefined standards. The price increases as quality increases and sustains.

The knowledge and access to external markets with or without state support is another very important factor, since the varied options of markets, direct the production towards the best prices.

Equally the positioning in a market is strategic. The tendency is towards natural, organic, clean, ethnic, peasant, origin products, etc.

As a growth strategy, there are successful agribusinesses that explore new markets without neglecting the current ones, expanding markets ie expanding sales of the company’s products, new products either by modifying the traditional ones or proposing new ones and diversifying both products and customers.

Good level of self-management, community organization, sense of belonging and business vision summarize the success factors of agribusiness.

Two concluding observations For some municipalities the measures to be adopted will be very hard. For this reason, the first thing that requires the municipal government is to be convinced that you want to solve the financial problem, whatever the cost. On the other hand, although the Generalitat has its own financial problems to solve, it must be aware that both the Department of Government and the Economy have to be involved much more, with imagination and courage, with all kinds of short and long-term measures. The challenge is for everyone, including citizens.

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