Agribusiness is the business of agricultural production which involves the production, protection, sales and marketing of the product to satisfy the customers need. The term is a portmanteau
of ''agriculture'' and ''business'' and was coined in 1957 by John Davis and Ray Goldberg.
It includes agrichemical
or contract farming
), distribution, farm machinery
, and seed
supply, as well as marketing
sales. All agents of the food and fiber value chain and those institutions that influence it are part of the agribusiness system.
Within the agriculture industry
, "agribusiness" refers to the range of activities and disciplines encompassed by modern food production
. There are academic degrees
specializing in agribusiness, departments of agribusiness, agribusiness trade associations
, and agribusiness publications
In the context of agribusiness management in academia, each individual element of agriculture production and distribution may be described as agribusinesses. However, the term "agribusiness" most often emphasizes the "interdependence" of these various sectors within the production chain.
Among critics of large-scale, industrialized, vertically integrated
food production, the term ''agribusiness'' is used negatively, synonymous with ''corporate farming
''. As such, it is often contrasted with smaller family-owned farms
Agribusinesses include seed and agrichemical producers like Dow AgroSciences
, and Syngenta
; AB Agri (part of Associated British Foods
) animal feeds, biofuels, and micro-ingredients, ADM
, grain transport and processing; John Deere
, farm machinery producer; Ocean Spray
, farmer's cooperative; and Purina Farms
As concern over global warming
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 fossil fuel
s, and support from government subsidies
. In Europe and in the US, increased research and production of biofuels
have been mandated by law.
Studies and reports
Studies of agribusiness often come from the academic fields of agricultural economics
and management studies
, sometimes called agribusiness management.
[ 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 the Foreign Agricultural Service (FAS) of the U.S. Department of Agriculture, Agriculture and Agri-Food Canada (AAFC), Austrade, and New 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.]
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 transaction costs.
* Agrarian law
* Agrarian reform
* Agricultural machinery industry
* Agricultural marketing
* Agricultural value chain
* Contract farming
* Energy crop
* Environmental impact of agriculture
* Factory farming
* Industrial agriculture
* Land banking
* Agribusiness in Kenya
Notes and references
*Gitta, Cosmas and South, David (2012).
Southern Innovator Magazine Issue 3: Agribusiness and Food Security
': United Nations Office for South-South Cooperation. ISSN 2222-9280