Friday, September 30, 2022

Management in agribusiness: the challenges of cattle and how to overcome them

The last decades have marked a moment of many transformations in the job market as a whole. Agribusiness, one of the oldest economic sectors in history, has also been affected by these changes and, currently, the sector of bovine animals has been through great challenges. But some management techniques in agribusiness can help!

Brazil has the largest commercial herd in the world, besides being the second largest producer of beef, behind only the USA. This makes the sector, besides generating jobs and income for numerous families, also responsible for one of the most noble products for people: meat.

But, with the development of new technologies, the market has become more and more competitive and, so, keeping a business functioning in a sustainable way is also harder. Today, there is no more room for professionals without technical knowledge and outdated companies.

Because of this, we talked about this subject with Thiago Carvalho, professor of the MBA USP/Esalq. He talks about the challenges that the sector of bovine animals has been through and why management in agribusiness is the key to the future. Check it out!

The challenges

Rural worker milks a cow in a farm which uses techniques of management in agribusiness.
Management in agribusiness is the future of the sector.

According to the professor, the sector has been through a great transformation throughout the entire production chain. “Today, producers have the need to increase their production, without increasing the areas of pasture. So, the objective should be to increase productivity, using the new technologies developed”, he says.

However, professionals in the area have been through difficulties in accessing these new technologies, one of the reasons being the high price of materials. Besides, those who have access, often fail to make an efficient use, wasting large investments in acquisition.

These two aspects of the difficulties by which livestock workers go through also demonstrate an even greater problem in the sector: the difficulty of a large part of the professionals in the area in leaving already outdated processes and adapting to this new reality.

Management in agribusiness

According to Carvalho, the importance of the use of management techniques in agribusiness is justified by helping livestock, as well as the entire production chain, to identify the openings existing in the productive process. “These openings, still unknown, can be in the processes of production, marketing, financial and, even, people”, explains the professor.

Besides, the use of these techniques helps these professionals to make a more efficient use of production factors in all stages of the chain. “This way, they manage to have a significant improvement of the margin and profitability of their activities”, he says.

The future of cattle

Group of cattle in a farm which uses techniques of management in agribusiness.
The sector has been through great challenges in the past years but techniques of management in agribusiness are the key to survive them.

The professor believes that the sector will continue to transform and, in the next years, will go through drastic changes, with a process of technification that will go from the inputs industry to the distribution sector. For him, there will be no room for amateurism and speculation of lands. A greater business vision and greater use of planning will be necessary.

“The farms that don’t invest in productivity and technology will leave the activity or change the segment, and the ones that persist should follow the path of the input, refrigerators and retail industries, that is, adopting a large-scale production and with increased concentration”, ends Carvalho.

Have you also been through difficulties in the sector of cattle? Did you like to know more about the importance of management in agribusiness for the future? So, don’t waste time and register for the MBA USP/Esalq in Agribusiness to learn in details how to make use of these techniques and more!

Author

Caio Roberto
Caio Roberto
Jornalista e amante de história, línguas estrangeiras, cinema, literatura e videogames. Utilizo minha curiosidade natural e minha facilidade de me comunicar para descobrir mais sobre o mundo e tentar passar isso adiante. Acredito que nasci para contar histórias, independente da história, da mídia em que ela será contada e do meu papel nela.