Chapter 2

The Industry

Products

The agricultural cycle is the annual cycle of activities related to the growth and

harvest of a crop (Plant.) These activities include loosening the soil, seeding, special

watering, moving plants when they grow bigger, and harvesting, among others.

Agricultural supply store which is an agriculturally-oriented shop where one

sells agricultural supplies -- inputs required for agricultural production. The common

products found in agricultural supply store are agrichemicals, fungicide, herbicide,

insecticide, molluscicide, feeds, fertilizer, seed type, sprayer types and veterinary

medicines.

Market

The world needs agricultural efficiency more than ever before. According to

the2018 Global Agricultural Productivity (GAP) Index, put together by the Global

Harvest Initiative, food production is not growing fast enough to sustainably feed the

world in 2050. The report shows that if this trend doesn’t change, the world may not be

able to provide the necessary food, livestock feed, fiber and biofuels to sustain our

growing global population.

For as long as there are people, there’s a demand for food, which is why

the agriculture business continues to thrive year over year. Entering the business of

ranching or farming is a lifestyle not fit for every entrepreneur. It can present some
significant challenges, including livestock and land management, intensive year-round

labor, and so forth. But, the agricultural supply business is vital to ensuring food

production prospers, so it can be an exciting and lucrative option for the right person.

Major Players in the Industry

Three agricultural supply businesses operating in the City of Koronadal provides

farm supply in the locale of South Cotabato, namely; Abigail Farm Supply, Marbel

Quality Farm Supply and LSB Agrivet Supply.

Abigail Farm Supply

History

Cuenca Agricultural Supply was established by Engr. Edwin Gonzales

Cuenca in January 03, 1990 at Brgy, Lamian, Surallah, South Cotabato. With an

intense desire to succeed, he faced his challenges with faith and courage.
 Engr. Edwin Cuenca’s struggles and pressures started as he personally

managed the business which includes the promotion, delivery and planning. With

patience and support from his wife Ms. Ruth P. Cuenca, the business continued

to grow and survived during lean months. The fruit of these obstacles turned out

to be great opportunity as more branches were added every year in the

neighboring towns of South Cotabato.

Early in the year 2012, this company started to operate under the name of

Abigail Farm Supply, Incorporated. Abigail Farm Supply Incorporated started from

a single branch in Surallah, South Cotabato. Mr. and Mrs. Ruth Cuenca’s faith

and ingenuity propelled the business to new heights that brought them to where

they are today.

Currently, its main office is located at Tomas Claudio Street, Surallah,

South Cotabato with fourteen (14) other branches covering the areas of South

Cotabato, Sultan Kudarat, Maguindanao, General Santos City and Digos City,

Davao del Sur.

Organizational

The proprietors personally engaged in the business operations and

transactions exemplifying the core values of teamwork, commitment, competence,

customer-oriented, honesty, integrity, and most importantly fear in God. The

company practices a weekly general assembly for all employees providing

spiritual enrichment, trainings, business meetings, team building activities and

wellness program. These activities promote unity and harmony within the
organization. All branches are given sales targets and in return an awarding

program is organized to recognize performing dealers and customers. In addition,

a yearly trip abroad as an incentive is given by the company to dealers who were

able to achieve the sales target

Operational

Desiring for good inventory control, the management decided to start a

computerized system in partnership with a computer consultancy firm. A

monitoring team led my Ms. Ruth P. Cuenca was organized to conduct inventory

count, audit of sales reports and accounts in each branch. The first -in, first-out

policy of products is also practiced in the warehouses. The viability of the

company is the result of constant monitoring, inventory control, account handling

and collection.

Marketing

As branches were also added in provinces of Sultan Kudarat, South

Cotabato, and Maguindanao, the expansion in these areas strengthens the ties

with distribution partners in serving their needs. The competition in distribution

level soon became tough as new players in the agribusiness started to penetrate

the territory. Hence, the management led the people in consistent price

monitoring, frequent visit to customers and branches to address issues and

concerns immediately. These all proved that the customers’ satisfaction is the

company’s top priority.

 Financial

Marbel Quality Farm Supply

Marbel Quality Farm Supply located in Zulueta Street, City of Koronadal, South

Cotabato.

Organizational

Operational

Marketing

Financial

LSB Agrivet Supply

LSB Agrivet Supply located in Brgy Zone III, City of Koronadal, South Cotabato.
Porter’s Five Forces

Threats on New Entrants