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A farmer wants to expand his/her existing production enterprise by adding a processing plant - NSC Agricultural Management Practices - Question 2 - 2022 - Paper 1
Question 2
A farmer wants to expand his/her existing production enterprise by adding a processing plant. The farmer will start this as a small business and if it is successful,... show full transcript
Worked Solution & Example Answer:A farmer wants to expand his/her existing production enterprise by adding a processing plant - NSC Agricultural Management Practices - Question 2 - 2022 - Paper 1
Step 1
Suggest what the farmer can do to acquire practical experience that would give the project a better chance of succeeding.
Answer
The farmer can acquire practical experience by:
- Working at a farm that produces the product: Gaining hands-on experience in the daily operations and challenges.
- Volunteering at a farm that produces the product: Engaging with the process while networking with experienced individuals in the field.
- Attending training courses: Enhancing skills and learning best practices in processing.
- Using consultants to help on time first bases: Leveraging expert advice to avoid common pitfalls.
Step 2
Name TWO sources of finance a farmer can consider to start a project and grow it into a large business. Also give ONE disadvantage of EACH of the sources.
Answer
| SOURCE OF FINANCE | DISADVANTAGE |
|---|---|
| Personal funds/investments | Limited availability; reduces future options. |
| Loan from relatives/friends | If investment is used, future value decreases. |
Step 3
State THREE advantages of combining the marketing of a value-added product with agritourism.
Answer
Three advantages are:
- Offers higher marketing value for the farmer's products: This enhances visibility and market reach.
- Improves cash flow / Higher income: Additional revenue from tourism can boost overall profits.
- Provides diversification on the farm: This reduces risk by not relying solely on one type of income or product.