CC22-AEM2-INTRODUCTION TO AGRICULTURAL COMMODITY AND ENTERPRISE DEVELOPMENT

Republic of the Philippines

LEARNING MODULE 1
Chapter 1: INTRODUCTION TO AGRICULTURAL COMMODITY

Course Code: CC22-AEM2

EDDA CHRYSELLE I. AMI

Bachelor of Science in Agriculture, PSU South Campuses 2nd Semester S.Y 2021-2022
 CC22-AEM2-INTRODUCTION TO AGRICULTURAL COMMODITY AND ENTERPRISE DEVELOPMENT

Overview
This module focuses on Agriculutral commodities it’s categories and importance

Learning Outcomes

After studying this lesson, you should be able to:

 Discuss the definition of agricultural commodity

Bachelor of Science in Agriculture, PSU South Campuses 2nd Semester S.Y 2021-2022
 CC22-AEM2-INTRODUCTION TO AGRICULTURAL COMMODITY AND ENTERPRISE DEVELOPMENT

CHAPTER I

INTRODUCTION TO AGRICULTURAL COMMODITY

Agricultural commodities – are crops and livestock that are raised and harvested to
provide food, animal feeds, and sometimes fuel.

Agricultural commodities - are staple crops and animals produced or raised on farms
or plantations.basic agricultural products that are either in their original form or have
undergone only primary processing. They are primary agricultural product typically
traded globally in bulk with minimal processing.

B. What are the Categories of Agricultural commodities?

Agricultural commodities that are traded globally are classified into 6 categorues.

1. Cereal Grains: A Primary Food Source. Farmers grow these commodities as:
Food source for humans
Food source for animals
Feedstock for fuels (in some cases)

The most common grain commodities include the following:

 Wheat
 Corn
 Oats
 Barley
 Rough Rice

Due to their versatility and demand on the market, cereal grains tend to keep a fair
price. The value of cereal grains is determined by accessing the spread of the price
between the grains.

2. Oilseeds: are grown for their high oil content. After oil is extracted, the seeds are
used for meals and feed for animals.
 Canola –Canola/rapeseed Oil
 Cotton – Cottonseed oil
 Palm Oil –(oil from the mesocarp of palm fruit)
 Soybeans –soybean oil(from soybeans seeds)

Oil seeds in general have strong relationship with cereal grains, due to their versatility
and high demand.

Bachelor of Science in Agriculture, PSU South Campuses 2nd Semester S.Y 2021-2022
 CC22-AEM2-INTRODUCTION TO AGRICULTURAL COMMODITY AND ENTERPRISE DEVELOPMENT

3. Meat: A Food Source

Meat is a market that runs on livestock being raised and sold for their:

 Meat
 Hide - skin of cattle makes leather,
 Organs
 Bones - grounded and used as fertilizer(bone meal), grease from bones can be
used as a lubricant for delicated machineries,clocks, guns. It can also be used for
making glues, gelatin, and boneblack (animal charcoal). The best out of it is that
China dinner and tea sets are from bones of livestovck
 hooves – protein extracted from cow hooves called keratin is used to make fire
extinguisher

Meats are from:

 feeder cattle – are weaned calves that reach a weight of between 600 to 800
pounds. At this point cattle producers feed them a diet of high energy feed to
promote weight gain. When they reach a weight of about 1200 to 1400 pounds,
feeder cattle are slaughtered to produce beef.
 Live cattle – full grown cattle that have reached the necessary weight for
slaughter which is between 1200 and 1400 pounds to produce beef.
 Leaned Hogs – Pig/ Pork.
 Pork Bellies – cuts of meat taken from the pig’s stomach for producing Bacon

Meat is classified into the appropriate category once butchered.

4. Dairy:

The agricultural industry bases dairy on market standards instituted by the Chicago
Butter and Egg Board in 1898. Later in 1919, the organization reformed into the
Chicago Mercantile Exchange.

The products exchanged within this category are:

 Milk
 Butter
 Whey
 Cheese
 Eggs

The traders who formed the Chicago Butter and Egg Board had to keep prices fair and
maintain public safety standards.

Bachelor of Science in Agriculture, PSU South Campuses 2nd Semester S.Y 2021-2022
 CC22-AEM2-INTRODUCTION TO AGRICULTURAL COMMODITY AND ENTERPRISE DEVELOPMENT

5. Soft Commodities

Soft commodities refer to commodities that are farmed rather than mined. However,
most commodity traders classify cereal grains, oilseeds, dairy, and meat separately.
The remaining soft commodities all have developed and liquid global markets:

 Cocoa – Theobroma cacao means “food for gods” in greek. Primarily used to
make Chocolates.
 Coffee - primary source of caffeine.
 Frozen Concentrated Orange Juice (FCOJ) – In many countries specially in
western hemisphere, it is a staple item on breakfast table. 1940’s Cedric Donald
Atkins invented a process for producing concentrated juice that could be frozen,
combined with the expansion of modern home refrigeration FCOJ brought
orange juice to millions of consumers.
 Sugar – carbohydrate that has been used as an ingredient to food for thousand
of years. It can also be used to make ethanol fuel.

6. Miscellaneous Agricultural Commodities

This category contains commodities that are grown and traded globally.

Such commodities create homes, furniture, tapestry, clothes, tires and many more

 Lumber
 Wool
 Rubber(from rubber tree)

C. Why Are Agricultural Commodities Important?

Virtually every living being on the planet depends on the agricultural industry in one way
or another. We eat the grains, fruits, vegetables, and livestock that farmers produce;
build the frames of our houses and furniture from lumber; make clothes from cotton and
wool; and ride in cars with tires made from rubber. Some agricultural commodities serve
as both a source of food and an industrial ingredient. Both humans and animals
consume corn, but the commodity is also an important ingredient in fuel production.
Similarly, humans eat the beef of cows, while a variety of industries use beef hide, fats,
and bones to create products. Also, over 1.3 billion people – nearly 20% of the global
population – work in farming.

Bachelor of Science in Agriculture, PSU South Campuses 2nd Semester S.Y 2021-2022
 CC22-AEM2-INTRODUCTION TO AGRICULTURAL COMMODITY AND ENTERPRISE DEVELOPMENT

ASSESSMENTS/EVALUATIONS
For the assessment for this module:

1. Based on what you have learned from these module list down the agricultural
commodities in the Philippines that are traded globally.

References:

Learn all about Agricultural commodities and Market Trends – https://commodity.com.

Commodity Marketing Food and Agriculture – https://www.fao.org

Bachelor of Science in Agriculture, PSU South Campuses 2nd Semester S.Y 2021-2022