WHAT DOES THE TERM AGRIBUSINESS MEAN? LEARN IT HERE – AACE Foods

The AACE Stories

We are happy you are here, we provide trending information, events and news on food, health, agriculture, entrepreneur, work culture, values chain and economy growth in Nigeria and cross the world.

Enjoy every bit of our stories!

THE STORIES

WHAT DOES THE TERM AGRIBUSINESS MEAN? LEARN IT HERE

What is agribusiness? Various people define this term using different words but they all try to explain the same thing. Agribusiness is simply the business sector of farming or the business sector of agricultural production; it encompasses different aspects such as production (human labor allocation, crop production, livestock production, etc.), breeding, distribution and marketing, agrichemicals and farm machinery as well. It involves all the necessary steps required to take an agricultural good to the market.

Breaking down agribusiness: The term agribusiness is not always correlated with the actual farms/ farms activities. Instead, it is used to commonly mean an agriculturally-related business that is involved in the supply of farm inputs such as machinery, seeds, agrichemicals, etc. The term is also used to describe firms/ businesses that are involved majorly in the marketing activities of agriculture-related products such as processors, wholesalers, warehouses, retailers, etc. Agribusiness takes the different aspects of agricultural production as an integrated system. Example, farmers produce fruits and vegetables and also rear livestock using sophisticated techniques including the use of GPS to direct harvest operations. The processing plants ensure they use best methods to clean and package processed food and livestock, while the manufacturers continue to make machinery that increases efficiency in the farm. Agribusiness performance is also largely affected by market forces. The prevailing market forces determine the price of the products as well as the demand and supply of the same. Example a negative shift of the consumer taste and preference in taking red meat will affect negatively the price and supply of it. This is because there will be a fall in demand hence causing a fall in the prices of the product. Hence agribusiness firms may be forced to sell their products abroad to ensure that they remain in business but if they fail to overcome the various challenges they may soon be out of business.

Organic farming vs. Agribusiness: Many people use the term agribusiness in relation to the large-scale commercial agricultural operations but they will rarely use the term in contrast to the small-scale, organic farms. In fact, small-scale family farmers feel that they are in a huge competition business with the large-scale corporations and this makes them feel endangered and less competitive in the market. However, the case is not true, small organic firms often use agribusiness products e.g. tractors and are not necessarily competing with the large corporate-owned farms in the market. For example, a consumer may decide to buy pastured pork from a small organic farmer (because it has a higher nutrient content) compared to the conventionally produced pork.

Finally, agribusiness is a dynamic and ever-changing environment and people who wish to venture in this field should be willing to learn new ways to overcome the ever prevailing challenges in order to see the success in their business. Agribusiness is a dynamic and ever-changing environment and people who wish to venture in this field should be willing to learn new ways to overcome the ever prevailing challenges in order to see the success in their business. Want to get more articles on agribusiness? I am here to do that for you.

By Lawrence T. Muniu

Article Source: http://EzineArticles.com/9952387

Read More:

2018 WORLD FOOD DAY: THE BUSINESS OF SOLVING POVERTY AND HUNGER‚Äč

What you should know about Complementary Food

HOW TO STOP WORRYING AND GO TO SLEEP AT NIGHT

Spread the word and Connect with us!