Agribusiness is theindustry,enterprises, and the field of study[1] ofvalue chains inagriculture[2] and in thebio-economy,[3]in which case it is also calledbio-business[4][5] orbio-enterprise. The primary goal of agribusiness is tomaximize profit while satisfying the needs of consumers for products related tonatural resources. Agribusinesses comprisefarms,food andfiber processing,forestry,fisheries,biotechnology andbiofuel enterprises and their input suppliers.
Studies of business growth and performance in farming have found that successful agricultural businesses are cost-efficient internally and operate in favourable economic, political, and physical-organic environments. They are able to expand and make profits, improve the productivity ofland,labor, andcapital, and keep their costs down to ensure market price competitiveness.[6]
Agribusiness is not limited to farming. It encompasses a broaderspectrum through the agribusiness system which includes input supplies,value-addition,marketing,entrepreneurship,microfinancing, andagricultural extension.
In some countries like thePhilippines, creation and management of agribusiness enterprises require consultation withregistered agriculturists above a certain level of operations,capitalization, land area, or number of animals in the farm.
The word "agribusiness" is aportmanteau of the wordsagriculture andbusiness. The earliest known use of the word was in the Volume 155 of theCanadian Almanac & Directory published in 1847.[7] Although most practitioners recognize that it was coined in 1957 by twoHarvard Business School professors, John Davis and Ray Goldberg after they published the book "A Concept of Agribusiness."[8]
"Agribusiness is the sum total of all operations involved in the manufacture and distribution of farm supplies; production operations on the farm; and the storage, processing, and distribution of farm commodities and items made from them." (Davis and Goldberg, 1956)
Their book argued against theNew Deal programs of thenU.S. President Franklin Roosevelt as it led to the increase in agricultural prices. Davis and Goldberg favoredcorporate-driven agriculture or large-scale farming to revolutionize the agriculture sector, lessening the dependency on state power and politics.[9] They explained in the book thatvertically integrated firms within theagricultural value chains have the ability to control prices and where they are distributed.[9] Goldberg then assisted in the establishment of the first undergraduate program in agribusiness in 1966 at theUP College of Agriculture inLos Baños, Philippines asBachelor of Science in Agriculture major in Agribusiness.[10][11][12] The program was initially a joint undertaking with theUP College of Business Administration inDiliman, Quezon City until 1975.[10] Jose D. Drilon of theUniversity of the Philippines then published the book "Agribusiness Management Resource Materials" (1971) which would be the foundation of current agribusiness programs around the world.[11][13] In 1973, Drilon and Goldberg further expanded the concept of agribusiness to include support organizations such asgovernments,research institutions, schools, financial institutions, and cooperatives within the integrated Agribusiness System.[14]
Mark R. Edwards and Clifford J. Shultz II (2005) ofLoyola University Chicago reframed the definition of agribusiness to emphasize its lack of focus onfarm production but towardsmarket centricity andinnovative approach to serve consumers worldwide.[15]
"Agribusiness is a dynamic and systemic endeavor that serves consumers globally and locally through innovation and management of multiple value chains that deliver valued goods and services derived from sustainable orchestration of food, fiber and natural resources." (Edwards and Shultz, 2005)
In 2012, Thomas L. Sporleder and Michael A. Boland defined the unique economic characteristics of agribusiness supply chains from industrial manufacturing and service supply chains.[16] They have identified seven main characteristics:
In 2017, noting the rise ofgenetic engineering andbiotechnology in agriculture, Goldberg further expanded the definition of agribusiness which covers all the interdependent aspects of the food system including medicine, nutrition, and health.[1] He also emphasized the responsibility of agribusiness to be environmentally and socially conscious towardssustainability.[17]
"Agribusiness is the interrelated and interdependent industries in agriculture that supply, process, distribute, and support the products of agriculture." (Goldberg, 2017)
Some agribusinesses have adopted thetriple bottom line framework such as aligning forfair trade,organic,good agricultural practices, andB-corporation certifications towards the concept ofsocial entrepreneurship.
The termvalue chain was first popularized in a book published in 1985 byMichael Porter,[18] who used it to illustrate how companies could achieve what he called “competitive advantage” by adding value within their organization. Subsequently, the term was adopted for agricultural development purposes[19] and has now become very much in vogue among those working in this field, with an increasing number of bilateral and multilateral aid organisations using it to guide their development interventions.
At the heart of the agricultural value chain concept is the idea of actors connected along a chain producing and delivering goods to consumers through a sequence of activities.[20] However, this “vertical” chain cannot function in isolation and an important aspect of the value chain approach is that it also considers “horizontal” impacts on the chain, such as input and finance provision, extension support and the general enabling environment. The approach has been found useful, particularly by donors, in that it has resulted in a consideration of all those factors impacting on the ability of farmers to access markets profitably, leading to a broader range of chain interventions. It is used both for upgrading existing chains and for donors to identify market opportunities for small farmers.[21]An agricultural supply store or agrocenter is anagriculturally-oriented shop where one sells agricultural supplies — inputs required foragricultural production such aspesticides,feed andfertilizers . Sometimes these stores are organized ascooperatives, where store customers aggregate their resources to purchase agricultural inputs. Agricultural supply and the stores that provide it are part of the larger Agribusiness industry.
Afarmworker, farmhand or agricultural worker is someone employed for labor in agriculture. In labor law, the term "farmworker" is sometimes used more narrowly, applying only to a hired worker involved in agricultural production, including harvesting, but not to a worker in other on-farm jobs, such aspicking fruit.
Agricultural work varies widely depending on context,degree of mechanization and crop. In countries like the United States where there is a declining population of American citizens working on farms — temporary or itinerant skilled labor from outside the country is recruited for labor-intensive crops like vegetables and fruits.
Irrigation (also referred to as watering of plants) is the practice of applying controlled amounts ofwater toland to help growcrops,landscape plants, andlawns. Irrigation has been a key aspect ofagriculture for over 5,000 years and has been developed by many cultures around the world. Irrigation helps to grow crops, maintain landscapes, andrevegetate disturbed soils in dry areas and during times of below-average rainfall. In addition to these uses, irrigation is also employed to protect crops fromfrost,[22] suppressweed growth ingrain fields, and preventsoil consolidation. It is also used to coollivestock, reducedust, dispose ofsewage, and supportmining operations.Drainage, which involves the removal of surface and sub-surface water from a given location, is often studied in conjunction with irrigation.
There are several methods of irrigation that differ in how water is supplied to plants.Surface irrigation, also known as gravity irrigation, is the oldest form of irrigation and has been in use for thousands of years. Insprinkler irrigation, water is piped to one or more central locations within the field and distributed by overhead high-pressure water devices.Micro-irrigation is a system that distributes water under low pressure through a piped network and applies it as a small discharge to each plant. Micro-irrigation uses less pressure and water flow than sprinkler irrigation.Drip irrigation delivers water directly to the root zone of plants.Subirrigation has been used in field crops in areas with high water tables for many years. It involves artificially raising the water table to moisten the soil below the root zone of plants.
Irrigation water can come fromgroundwater (extracted fromsprings or by usingwells), from surface water (withdrawn fromrivers,lakes orreservoirs) or from non-conventional sources liketreated wastewater,desalinated water,drainage water, orfog collection. Irrigation can be supplementary torainfall, which is common in many parts of the world asrainfed agriculture, or it can be full irrigation, where crops rarely rely on any contribution from rainfall. Full irrigation is less common and only occurs in arid landscapes with very low rainfall or when crops are grown in semi-arid areas outside of rainy seasons.
The environmental effects of irrigation relate to the changes in quantity and quality ofsoil andwater as a result of irrigation and the subsequent effects on natural and social conditions inriver basins and downstream of anirrigation scheme. The effects stem from the alteredhydrological conditions caused by the installation and operation of the irrigation scheme. Amongst some of these problems is depletion of undergroundaquifers throughoverdrafting. Soil can be over-irrigated due to poordistribution uniformity ormanagementwastes water, chemicals, and may lead towater pollution. Over-irrigation can cause deep drainage from rising water tables that can lead to problems of irrigationsalinity requiringwatertable control by some form ofsubsurface land drainage.
Seed companies produce and sellseeds forflowers,fruits andvegetables to commercial growers and amateurgardeners. The production of seed is a multibillion-dollar global business, which uses growing facilities and growing locations worldwide. While most of the seed is produced by large specialist growers, large amounts are also produced by small growers who produce only one to a few crop types. The larger companies supply seed both to commercial resellers and wholesalers. The resellers and wholesalers sell to vegetable and fruit growers, and to companies who package seed into packets and sell them on to the amateur gardener.
Most seed companies or resellers that sell to retail produce a catalog, for seed to be sown the following spring, that is generally published during early winter. These catalogs are eagerly awaited by the amateur gardener, as during winter months there is little that can be done in the garden so this time can be spent planning the following year’s gardening. The largest collection of nursery and seed trade catalogs in theU.S. is held at theNational Agricultural Library where the earliest catalogs date from the late 18th century, with most published from the 1890s to the present.[23]
Seed companies produce a huge range of seeds from highly developedF1 hybrids to open pollinated wild species. They have extensive research facilities to produce plants with genetic materials that result in improved uniformity and appeal.These qualities might include disease resistance, higher yields, dwarf habit and vibrant or new colors. These improvements are often closely guarded to protect them from being utilized by other producers, thus plant cultivars are often sold under the company's own name and protected by international laws from being grown for seed production by others. Along with the growth in theallotment movement, and the increasing popularity of gardening, there have emerged many small independent seed companies. Many of these are active in seedconservation and encouraging diversity. They often offerorganic and openpollinated varieties of seeds as opposed to hybrids. Many of these varieties are heirloom varieties. The use of old varieties maintains diversity in thehorticulturalgene pool. It may be more appropriate for amateur gardeners to use older (heirloom) varieties as the modern seed types are often the same as those grown by commercial producers, and so characteristics which are useful to them (e.g. vegetables ripening at the same time) may be unsuited to home growing.
Afertilizer or fertiliser is any material of natural or synthetic origin that is applied to soil or to plant tissues to supplyplant nutrients. Fertilizers may be distinct fromliming materials or other non-nutrientsoil amendments. Many sources of fertilizer exist, both natural andindustrially produced.[24] For most modern agricultural practices, fertilization focuses on three main macro nutrients:nitrogen (N),phosphorus (P), andpotassium (K) with occasional addition of supplements likerock flour for micronutrients. Farmers apply these fertilizers in a variety of ways: through dry or pelletized or liquid application processes, using large agricultural equipment, or hand-tool methods.
Historically, fertilization came from natural or organic sources:compost,animal manure,human manure, harvested minerals,crop rotations, and byproducts of human-nature industries (e.g.fish processing waste, orbloodmeal fromanimal slaughter). However, starting in the 19th century, after innovations inplant nutrition, anagricultural industry developed around synthetically createdagrochemical fertilizers. This transition was important in transforming theglobal food system, allowing for larger-scaleindustrial agriculture with large crop yields.
Nitrogen-fixing chemical processes, such as theHaber process invented at the beginning of the 20th century, and amplified by production capacity created during World War II, led to a boom in using nitrogen fertilizers.[25] In the latter half of the 20th century, increased use of nitrogen fertilizers (800% increase between 1961 and 2019) has been a crucial component of the increased productivity ofconventional food systems (more than 30% per capita) as part of the so-called "Green Revolution".[26]
The use of artificial and industrially applied fertilizers has caused environmental consequences such aswater pollution andeutrophication due to nutritional runoff;carbon and other emissions from fertilizer production and mining; andcontamination and pollution of soil. Varioussustainable agriculture practices can be implemented to reduce the adverse environmental effects of fertilizer andpesticide use andenvironmental damage caused byindustrial agriculture.
Afarm (also called an agricultural holding) is an area of land that is devoted primarily to agricultural processes with the primary objective of producing food and other crops; it is the basic facility in food production.[27] The name is used for specialized units such asarable farms, vegetable farms, fruit farms, dairy, pig and poultry farms, and land used for the production ofnatural fiber,biofuel, and other biobasedproducts. It includes ranches,feedlots, orchards, plantations and estates, smallholdings, and hobby farms, and includes the farmhouse and agricultural buildings as well as the land. In modern times, the term has been extended to include such industrial operations aswind farms andfish farms, both of which can operate on land or at sea.
There are about 570 million farms in the world, most of which are small and family-operated. Small farms with a land area of fewer than 2 hectares operate on about 12% of the world's agricultural land, andfamily farms comprise about 75% of the world's agricultural land.[28]
Modern farms in developed countries are highly mechanized. In the United States, livestock may be raised onrangeland and finished infeedlots, and the mechanization of crop production has brought about a great decrease in the number of agricultural workers needed. In Europe, traditional family farms are giving way to larger production units. In Australia, some farms are very large because the land is unable to support a high stocking density of livestock because of climatic conditions. In less developed countries, small farms are the norm, and the majority of rural residents aresubsistence farmers, feeding their families and selling any surplus products in the local market.
Agricultural engineering, also known as agricultural and biosystems engineering, is the field of study and application ofengineering science and designs principles foragriculture purposes, combining the various disciplines ofmechanical,civil,electrical,food science,environmental,software, andchemical engineering to improve the efficiency offarms and agribusiness enterprises[29] as well as to ensure sustainability of natural and renewable resources.[30]
An agricultural engineer is anengineer with anagriculture background. Agricultural engineers make the engineering designs and plans in an agricultural project, usually in partnership with anagriculturist who is more proficient infarming andagricultural science.
Primary food processing turns agricultural products, such as rawwheat kernels or livestock, into something that can eventually be eaten. This category includes ingredients that are produced by ancient processes such asdrying,threshing,winnowing andmilling grain,shelling nuts, andbutchering animals for meat.[31][32] It also includes deboning and cutting meat, freezing and smoking fish and meat, extracting and filtering oils,canning food, preserving food throughfood irradiation, andcandling eggs, as well ashomogenizing andpasteurizing milk.[32][33][34]
Contamination andspoilage problems in primary food processing can lead to significantpublic health threats, as the resulting foods are used so widely.[32] However, many forms of processing contribute to improved food safety and longershelf life before the food spoils.[33] Commercial food processing uses control systems such ashazard analysis and critical control points (HACCP) andfailure mode and effects analysis (FMEA) to reduce the risk of harm.[32]
Afarmers' market (or farmers market according to theAP stylebook,[36][37] also farmer's market in theCambridge Dictionary[38][39]) is a physical retailmarketplace intended to sell foods directly byfarmers to consumers. Farmers' markets may be indoors or outdoors and typically consist of booths, tables or stands where farmers sell their produce, liveanimals andplants, and sometimes prepared foods and beverages. Farmers' markets exist in many countries worldwide and reflect the local culture and economy. The size of the market may be just a few stalls or it may be as large as several city blocks. Due to their nature, they tend to be less rigidly regulated than retail produce shops.[40]
They are distinguished frompublic markets, which are generally housed in permanent structures, open year-round, and offer a variety of non-farmer/non-producer vendors, packaged foods and non-food products.[41][42]Agricultural extension is the application of scientific research and new knowledge toagricultural practices throughfarmereducation. The field of 'extension' now encompasses a wider range of communication and learning activities organized forrural people by educators from different disciplines, includingagriculture,agricultural marketing,health, andbusiness studies.
Extension practitioners can be found throughout the world, usually working for government agencies. They are represented by several professional organizations, networks and extension journals.
Agricultural extension agencies indeveloping countries receive large amounts of support frominternational development organizations such as theWorld Bank and theFood and Agriculture Organization of the United Nations.Anagricultural cooperative, also known as a farmers' co-op, is aproducer cooperative in whichfarmers pool their resources in certain areas of activities.
A broad typology of agricultural cooperatives distinguishes between agricultural service cooperatives, which provide various services to their individually-farming members, and agricultural production cooperatives in which production resources (land, machinery) are pooled and members farm jointly.[43]
Agricultural production cooperatives are relatively rare in the world. They includecollective farms informer socialist countries, thekibbutzim in Israel, collectively-governedcommunity shared agriculture,Longo Maï co-operatives in Costa Rica, France, and some other countries,CPAs in Cuba, and Nicaraguan production cooperatives.[44]
The default meaning of "agricultural cooperative" in English is usually an agricultural service cooperative, the numerically dominant form in the world. There are two primary types of agricultural service cooperatives: supply cooperatives and marketing cooperatives. Supply cooperatives supply their members with inputs for agricultural production, includingseeds,fertilizers,fuel, andmachinery services. Marketing cooperatives are established by farmers to undertake transportation, packaging, pricing, distribution, sales and promotion of farm products (both crop and livestock). Farmers also widely rely oncredit cooperatives as a source of financing for both working capital and investments.
Notable examples of agricultural cooperatives includeDairy Farmers Of America, the largest dairy company in the US,[45]Amul, the largest food product marketing organization in India[46] andZen-Noah, a federation of agricultural cooperatives that handles 70% of the sales of chemical fertilizers in Japan.[47]
TheFood and Agriculture Organization of the United Nations[48] (FAO) is aspecialized agency of theUnited Nations that leads international efforts to defeathunger and improve nutrition andfood security. ItsLatin motto,fiat panis, translates to "let there be bread". It was founded on 16 October 1945.[49]
The FAO comprises 195 members, including 194 countries and theEuropean Union. Its headquarters is inRome, Italy, and it maintains regional and field offices worldwide, operating in over 130 countries.[50] It helps governments and development agencies coordinate their activities to improve and develop agriculture,forestry,fisheries, and land andwater resources. It also conducts research, provides technical assistance to projects, operates educational and training programs, and collects agricultural output, production, and development data.[50]
The FAO is governed by a biennial conference representing each member country and theEuropean Union, which elects a 49-member executive council.[51] The director-general, as of 2019Qu Dongyu of China, serves as the chief administrative officer.[52] Various committees govern matters such as finance, programs, agriculture, and fisheries.[53]
| 100lire (FAO's celebration.) | |
|---|---|
.jpg) | |
| Obverse: Young woman with braid facing left. Surrounded byRepubblica Italiana [Italian Republic]. | Reverse: Cow nursing calf, face value & date. FAO at bottom andNutrire il Mondo [Feed the world] at top. |
| Coin minted by Italy in the 1970s to celebrate and promote theFood and Agriculture Organization. | |
Anagriculturist, agriculturalist, agrologist, or agronomist (abbreviated as agr.) is a professional in thescience, practice, and management ofagriculture and agribusiness.[54] It is a regulated profession in Canada, India, the Philippines, the United States, and the European Union. Other names used to designate the profession include agricultural scientist, agricultural manager, agricultural planner, agriculture researcher, or agriculture policy maker.
The primary role of agriculturists are in leading agricultural projects and programs, usually in agribusiness planning or research for the benefit offarms, food, and agribusiness-related organizations.[55] Agriculturists usually are designated in the government as public agriculturists serving as agriculture policymakers or technical advisors for policy making.[56] Agriculturists can also provide technical advice forfarmers andfarm workers such as in makingcrop calendars andworkflows to optimize farm production, tracingagricultural market channels,[57] prescribingfertilizers andpesticides toavoid misuse,[58] and in aligning fororganic accreditation[59] or the nationalagricultural quality standards.[60]
Preparation oftechnical engineering designs and construction for agriculture meanwhile are reserved foragricultural engineers.[61] Agriculturists may pursueenvironmental planning and focus on agricultural and rural planning.[62]Studies of agribusiness often come from the academic fields ofagricultural economics andmanagement studies, sometimes called agribusiness management.[2] To promote more development of food economies, many government agencies support the research and publication of economic studies and reports exploring agribusiness and agribusiness practices. Some of these studies are on foods produced for export and are derived from agencies focused on food exports. These agencies include theForeign Agricultural Service (FAS) of theU.S. Department of Agriculture,Agriculture and Agri-Food Canada (AAFC),Austrade, andNew Zealand Trade and Enterprise (NZTE).
The Federation of International Trade Associations publishes studies and reports by FAS and AAFC, as well as other non-governmental organizations on its website.[63]
In their bookA Concept of Agribusiness,[8] Ray Goldberg and John Davis provided a rigorous economic framework for the field. They traced a complex value-added chain that begins with the farmer's purchase of seed and livestock and ends with a product fit for the consumer's table. Agribusiness boundary expansion is driven by a variety oftransaction costs.[64]
As concern overglobal warming intensifies,biofuels derived from crops are gaining increased public and scientific attention. This is driven by factors such asoil price spikes, the need for increasedenergy security, concern overgreenhouse gas emissions fromfossil fuels, and support fromgovernment subsidies. In Europe and in the US, increased research and production ofbiofuels have been mandated by law.[65]
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