Agroindustry subsystem

(source: Bungaran Saragih ,Former Minister of Agriculture of the Republic of Indonesia ;

Professor of the Department of Social Economy, Faculty of Agriculture, IPB)

According Bungaran Saragih, there are 4 sub-systems in the world of Agroindustry. 4 sub-systems are:

(1) Sub-system of agri-upstream (up-stream Agroindustry),

ie industries that produce capital goods for agriculture, such as industry Germination / seedlings, plants, animals, fish, agrochemical industry (fertilizer, pesticides, medicines, vaccines ternak. / fish), industrial equipment and agricultural machinery (agro-automotive );

(2) Sub-primary agricultural systems (on-farm Agroindustry),

ie cultivation activities that produce primary agricultural commodities (crops farming, horticultural farming, farming medicinal plants (bio), plantation, animal husbandry, fisheries, and forestry business);

(3) Sub-system downstream Agroindustry (down-stream Agroindustry),

the industries that process agricultural primary commodities into processed products such as industrial makanan. / beverage, food industries, industrial goods of natural fibers, the pharmaceutical industry, bio-energy industry etc. and

(4) Sub-system provider of Agroindustry (services for Agroindustry) such as credit,

transportation and warehousing, R & D, human resource education, and economic policy

With the scope of the Agroindustry system development, the construction industry, agriculture and services reinforce each other and converging at the production of agri products the market needs.

In the Agroindustry system perpetrator is the Agroindustry enterprises (firm) of farming families, business groups, small business, medium business, business cooperatives and corporations, both in the sub-systems downstream Agroindustry, sub-systems on farm, Agroindustry sub-system upstream and the sub-systems for Agroindustry service providers. Therefore, the government is going to grow and develop and strengthen Agroindustry enterprises through a variety of policy instruments owned. The government is no longer the executor, but act as a facilitator, regulator and promoter of development and Agroindustry systems.