Agribusiness is a term used to describe industries that engage in agriculture or produce inputs for farms. Examples of agribusiness are farm machinery production and seed supply as well as Agrichemicals.
In common sense, the word “agribusiness” typically refers to large agricultural businesses when compared to smaller independent farms. Agribusiness firms could be small or large either independent or corporate. Find out more about agribusiness so that you know more about the business of food production processing, distribution, and distribution.
What Is Agribusiness?
Agribusiness is the term used for denoting companies and businesses which are involved in the cultivation and processing of food products and various other products of agriculture.
Agribusiness is also the term used to describe companies that are involved in the distribution and marketing of farm-based products. These include warehouse processors, wholesalers and retailers, and many others. Any business that is involved in the production and marketing, as well as the distribution, and safety of food is part of agriculture.
The use of “agribusiness” by those who criticize corporate agriculture has created a semblance of negative perceptions about the concept and has led to it being associated with big companies and those that manufacture organic, non-organic and environmentally harmful products while making sure that smaller, possibly environmentally sustainable farms are unable to make a profit. However, the sector encompasses small- and medium-sized companies and global corporations.
It is an option to pursue agribusiness majors or minors at a range of universities and colleges all over the U.S., including Cornell University in Ithaca, NY, and Iowa State University. The degrees focus on the business aspects of farming management as well as the study of management in agriculture. Students can pursue careers in finance for agriculture supply, merchandising, or farm management, as well as other fields of study.
Types of Agribusiness Companies
Some agribusiness businesses aren’t involved in the production of food directly. Take Deere & Company, which manufactures John Deere-branded equipment, and is possibly one of the most well-known examples of an Agribusiness firm.
Bayer has bought The Monsanto Company in 2018 and makes Roundup, an herbicide (glyphosate), as well as other Roundup Ready genetically modified seeds, are another example of a business that is involved in the agriculture-related business. 4 Another agricultural business, Corteva Agriscience, an independent business that was once an entirely-owned subsidiary of Dow AgroSciences LLC, makes pesticides as well as herbicides and fungicides as well as selling seeds. 5
The Archer-Daniels-Midland Company, or ADM, processes oilseeds like canola and soy; processes corn into ingredients such as corn syrup, dextrose, and starch; and transports crops both nationally and internationally.6
The term”agribusiness” generally isn’t employed to describe individual farms, but Smithfield Foods Inc., the largest U.S. producer of pork is the owner and operator of its farms. Smithfield is owned by the Chinese firm WH Group (formerly Shuanghui International) which is the biggest producer of pork worldwide and the biggest meat processor in China.
Agriculture vs. Organic Farming
Within the United States, you’ll often hear the word agribusiness used to refer to organic farms. For instance, many people who are discussing large-scale commercial agricultural operations use the term agribusiness. agribusiness, but you’ll never hear the term employed in connection with small-scale organic farms.
But, small-scale farms are also business issues. For instance, the U.S. Department of Agriculture (USDA) recommends that new farmers start with a business plan. The USDA also suggests that new farmers establish the business structure for their farms, e.g., a limited liability company (LLC) or cooperative, corporation, etc.
The smallest organic farm usually uses agribusiness items such as the John Deere tractor. Additionally, smaller organic farms don’t have to compete with large, corporate-owned farms in the same market. For instance, a consumer who would prefer to purchase pastured pork since it’s produced humanely isn’t likely to see the conventionally produced pork in a store as a viable alternative.