Production

Production is the coordinating process that combines capital and labour in its various forms - raw materials, processed goods and equipment of al kinds, plant, technology, the workforce and management – in order to create a commodity. (Giles and Stansfield).

The production of Agricultural commodities is subjected to various internal production factors such as:

• International economic factors such as the fluctuation between the rand value against the dollar or pound.
• The international fuel price has an effect on the transportation and thus the production costs as a whole. • Diseases such as bird flu or Foot and Mouth affects the export of meat to other countries.

The production process is also influenced by external factors which the farmer\producer cannot control:

• Various climatic conditions according to the agri-ecological region the production takes place.
• The relative non-elasticity of the demand for the agricultural projects.
• The difficulty of agricultural production to adapt to changes in demand.
• Structural production changes require time.
• The importance of natural resources in the production process and the fact that land is the most important capital asset.
• Movable assets and agricultural products are non-durable and dispersed.
• The seasonal nature of agricultural production.

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External Factors Influencing Production of Agricultural Commodities

In order to produce a product that is of value and will full fill the needs of the market, the producer/ farmer/manager must take into account the external and internal factors. There are three essential ingredients in the production process to achieve the above:

• Building a production plan, one must have consider the marketing opportunities, availability of fixed resources and the production facilities available
• Obtain the necessary resources or a combination there-of and use it in the proper way
• Implement these plans and concentrate on the required levels of production and performance with appropriate supervision

The task of the farmer or the farm manager is to manage the production activities in such a way that the natural resources are used effectively; high production is attained; production costs at an acceptable ratio, that production systems are adapted to suit the climatic and economic environment. The productive use of these resources is one of the key areas to success. Natural resources include soil, water, climate, vegetation and topography.