Introduction to International Agribusiness

The course provides a general overview of the functioning of agribusiness supply chains in different sectors and geographies. Methodology The training consists of interactive classroom based teaching with small group exercises and case studies Attend this intensive and highly practical 3 day training course and you will: Understand the global agribusiness value chain Receive real insights into what the future might hold for International Agribusiness Gain a comprehensive global overview of how agribusiness, the world's biggest industry, works from life sciences and farming to food processing and retailing Learn how to finance and value a agribusiness company Review a number of individual case studies on a range of businesses across the supply chain. Who should attend? Agribusiness managers (in investment, finance, and risk management) and directors Bankers lending to the agribusiness sector Accountants and lawyers to agribusiness Private equity general partners and limited partners Policy makers in the agribusiness space Government: agribusiness ministries and regulators Commodity traders and exchanges Private equity general partners and limited partners The course assumes a general familiarity with financial markets, instruments and investment portfolios. Whilst not based upon a theoretical or pure mathematical approach, does require basic mathematical fluency.
Day 1 Introduction to agribusiness systems Introduction to agribusiness Background to the size and scope of “agribusiness” globally as a concept Drivers of vertical and horizontal integration Overview of sector analysis to include (1) life sciences, fertiliser, agrochemical and feed companies; (2) primary production: land based agriculture; (3) food packing, processing and distribution; (4) food retail; (5) professional services in the sector Drivers of M&A and collaboration Case study: major international life science company Current dynamics and future outlook for commodity markets Supply and demand fundamentals of major global commodities Review of current market dynamics of the major temperate commodities including wheat, corn maize, soy, rice, sugar Discussion / group exercise: Competitive advantage in commodity markets Overview of global agricultural primary production Global distribution of major crop and livestock products Structure of the global agricultural industry and types of farming systems Factors affecting distribution of farming systems – soils, weather, climate, resources Land and land pricing Case study: agricultural primary production in Africa The upstream value chain Characteristics of the upstream value chain Food processing, packing, distribution and retailing Regional trends and issues Value chain analysis Supply chain management in agri-food Case study: Major food processing business Day 2 Agribusiness policy, outlook and investment The agribusiness outlook to 2050 Demand pulls- population growth and dietary shift Supply constraints – land, water and technology Critical industry issues – sustainability, land use competition, climate change adaption/mitigation Agribusiness as an increasingly important provider on non-food products – including its role in bioenergy and industrial products Group discussion/workshop: scenarios for global agribusiness in 2050 Global agribusiness policy Agriculture’s role in WTO Developed country farm policy: EU CAP, US farm bill Agricultural policies in Africa International policies and frameworks for investment in agribusiness e.g. UNPRI Group exercise: developing sustainable agricultural policies – what can we learn from policy failings in the US and EU? Investment in global agribusiness Types of investment – real estate, operations, value chain, integrated opportunities Features of the sector Current investment trends and areas of interest: Eastern Europe and former Soviet Union Latin America Asia, Africa and Australasia Key investment issues Asset selection; deployment and execution; management Appraising agribusiness investment projects Due diligence checklists for appraising agribusiness investment projects Two case studies: appraising agribusiness investment projects Day 3 Agribusiness management, finance, valuation and risk management Agribusiness management in practice Management of large farming business / agribusiness Enterprise planning, farm planning and budgeting and farm organisation Assembling and assessing management teams Farm business structures including full operations, share and contract farming, joint ventures. Land tenure and farming structures Case study: management issues in a large South American farming business Agribusiness finance and valuation Financing agribusiness operations – structuring agribusiness projects including CAPEX Assessing agribusiness performance: common metrics, financial ratios and benchmarking Business valuation techniques: land, leases, operating companies Key major deals in agribusiness Commodity trading and risk management The functioning of a commodity exchange Volatility on crop prices and crop marketing strategies – spot sales, forward sales, futures and options. Import and export parity Key commodity trading businesses; ascendancy of trading companies Weather derivative-based agri insurance. Other insurance. Input procurement. Managing currency and interest rate risk Case study: A major international commodity trading business Future agribusiness issues Future of agribusiness The food security challenge Agri-technology Sustainability Course summary and close