Product Code Database
Agribusiness is the industry, Business, and the field of study of value chains in agriculture and in the Bioeconomy, in which case it is also called bio-business or bio-enterprise. The primary goal of agribusiness is to maximize profit while satisfying the needs of consumers for products related to natural resources. Agribusinesses comprise , Food security and fiber processing, forestry, Fishery, biotechnology and biofuel 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 farming environments. They are able to expand and make profits, improve the productivity of land, labor, and capital, and keep their costs down to ensure market price competitiveness."Agricultural businesses: Key influences on growth and performance", in Agricultural Businesses: Their Growth & Performance, ISR/Google Books, 2022. ISBN 9780906321782
Agribusiness is not limited to farming. It encompasses a broader spectrum through the agribusiness system which includes input supplies, value-addition, marketing, entrepreneurship, Microfinance, and agricultural extension.
In some countries like the Philippines, creation and management of agribusiness enterprises require consultation with Agriculturist above a certain level of operations, capitalization, land area, or number of animals in the farm.
Their book argued against the New Deal of then U.S. President Franklin Roosevelt as it led to the increase in agricultural prices. Davis and Goldberg favored corporate-driven agriculture or large-scale farming to revolutionize the agriculture sector, lessening the dependency on state power and politics. They explained in the book that vertically integrated firms within the agricultural value chains have the ability to control prices and where they are distributed. Goldberg then assisted in the establishment of the first undergraduate program in agribusiness in 1966 at the UP College of Agriculture in Los Baños, Philippines as Bachelor of Science in Agriculture major in Agribusiness. The program was initially a joint undertaking with the UP College of Business Administration in Quezon City until 1975. Jose D. Drilon of the University of the Philippines then published the book " Agribusiness Management Resource Materials" (1971) which would be the foundation of current agribusiness programs around the world. In 1973, Drilon and Goldberg further expanded the concept of agribusiness to include support organizations such as governments, research institutions, schools, financial institutions, and cooperatives within the integrated Agribusiness System.
Mark R. Edwards and Clifford J. Shultz II (2005) of Loyola University Chicago reframed the definition of agribusiness to emphasize its lack of focus on Farm but towards Market driven and Innovation to serve consumers worldwide. 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. They have identified seven main characteristics:
In 2017, noting the rise of genetic engineering and biotechnology in agriculture, Goldberg further expanded the definition of agribusiness which covers all the interdependent aspects of the food system including medicine, nutrition, and health. He also emphasized the responsibility of agribusiness to be environmentally and socially conscious towards sustainability.
Some agribusinesses have adopted the triple bottom line framework such as aligning for fair trade, organic, good agricultural practices, and B-corporation certifications towards the concept of social entrepreneurship.
The Federation of International Trade Associations publishes studies and reports by FAS and AAFC, as well as other non-governmental organizations on its website.
In their book A Concept of Agribusiness, 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 of .
As concern over global warming intensifies, biofuels derived from crops are gaining increased public and scientific attention. This is driven by factors such as oil price spikes, the need for increased energy security, concern over greenhouse gas emissions from , and support from government subsidies. In Europe and in the US, increased research and production of biofuels have been mandated by law.
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