CHARACTERISTICS AGROINDUSTRY

Before developing agro selection of agro-is a decision that most determine the success and sustainabilityagro-industry will be developed. The option is determined by thepossibilities that will occur in three basic componentsagro-industry, the raw material procurement, processing and marketing.Marketing is usually the starting point in the analysis of agro-industrial projects.Marketing analysis examines the external environment or the response to the productagro-industry will be determined by the characteristics of the consumer,influence government policy and the international market.Continuity is also determined by the ability of agro-industries inprocurement of raw materials. But the procurement of raw materials should not beThe dominant issue while marketing is seen as the second issue, becauseboth marketing and procurement of raw materials together to determineagro-industry success. But because the agronomic assessment takesand resources are pretty much the identification of market needs oftendone first. Another reason is that the land can be used fora variety of crops or livestock, while marketing assessment can choosevarious alternative crops or livestock.Characteristics of agro-industry is a real standoutinterdependencies between elements agroindustry, namely the procurement of raw materials,processing, and marketing of products. Agro-industry should be viewed as asystem consisting of four linkage as follows:(A) Entanglement production chain, is the linkage between the stagesoperational start of the current agricultural raw materials to processing andthen on to the consumer.(B) macro-micro policy linkages, are the links in the form of influencegovernment's macro policies on the performance of agro-industry.(C) institutional linkages, is the relationship between various types of organizationsthat operate and interact with the agroindustrial production chain.(D) international linkage, is the interrelatedness dependence between marketnational and international markets where agro function.Management of agro-industry is almost unique, because the raw materials arederived from agriculture (crops, animals, fish) has three characteristics, namelySeasonal (seasonality), easily broken (perishabelity), and diverse (variability).Three other characteristics that need attention are: first, becausecomponents in raw material costs are generally the largest component in theagroindustrial operations bring the raw materials is crucial operationagro-industrial companies. Uncertainty can lead to agricultural productionprice volatility of raw materials so that complicates the funding andworking capital management. Second, because a lot of agro productsis a requirement that must be met or an important commodityfor the economy of a country the attention and involvement of governmentagro-industry activities are often too high. Third, because a productagro-industry may be produced by some countries the agroindustrilokallinked to the international market as an alternative market for raw materials, importcompeting and export opportunities. High commodity price fluctuations in the marketincrease international financial uncertainty input and output side.One of the problems that arise due to the characteristic properties of raw materialsagro-industry of agriculture is not kontinyunya supply of raw materials,that it is often a gap between the availability of raw materialsproduction in the agro-industry activities (idle investment). As one examplein 1986 from 6 janis agroindustrial activities happening around idle investment20-60 percent of the agro sequence is marganire, coconut oil,

animal feed and fish processing (Soekartawi, 1991).