
Agribusiness refers to the business of farming, although, oddly, the term is not often used in correlation with actual farms. Instead, agribusiness most commonly means an agriculturally related business that supplies farm inputs, such as farm machinery and seed supply.
Agribusiness also is used to describe businesses that are involved in the marketing of farm products, such as warehouses, wholesalers, processors, retailers, and more. The use of the term agribusiness by critics of corporate farming has created an atmosphere of negativity around the term, although the true definition provides a nice shorthand way of saying business is related to agriculture.
Agribusiness has come to be synonymous with large corporations and companies that produce environmentally questionable, non-organic products while ensuring that smaller, potentially sustainable farms fail to turn a profit.
Understanding Agribusiness

Agribusiness treats the different aspects of raising agricultural products as an integrated system. Farmers raise animals and harvest fruits and vegetables with the help of sophisticated harvesting techniques, including the use of GPS to direct harvesting operations. Manufacturers develop increasingly efficient machines that can drive themselves. Processing plants determine the best way to clean and package livestock for shipping. While each subset of the industry is unlikely to interact directly with the consumer, each is focused on operating efficiently to keep prices reasonable.
Market forces have a significant impact on the agribusiness sector. Changes in consumer taste alter what products are grown and raised. For example, a shift in consumer tastes away from red meat may cause demand — and therefore prices — for beef to fall, while increased demand for products may shift the mix of fruits and vegetables that farmers raise. Businesses unable to rapidly change by domestic demand may look to export their products abroad, but if that fails they may not be able to compete and remain in business.
KEY TAKEAWAYS
Agribusiness is a combination of the words “agriculture” and “business” and refers to any business related to agricultural production
Companies in this industry encompass all aspects of food production
Climate change has placed intensifying pressure on many companies in the agribusiness industry
Countries with farming industries face consistent pressures from global competition. Products such as wheat, corn, and soybeans tend to be similar in different locations, making them commodities. Remaining competitive requires agribusinesses to operate more efficiently, which can require investments in new technologies, new ways of fertilizing and watering crops and new ways of connecting to the global market. Global prices of agricultural products may change rapidly, making production planning a complicated activity. Farmers may also face a reduction in usable land as suburban and urban areas expand into their regions.
Use of New Technology in Agribusiness

The use of new technology is vital to remain competitive in the global agribusiness sector. Farmers need to reduce crop costs and increase yield per square acre to remain competitive. New drone technology is at the cutting edge of the industry. These techniques, including soil and field analysis, planting and crop monitoring, will be key to improving crop yields and moving the agribusiness sector forward. Key areas of concern for the use of drone technology remain the safety of drone operations, privacy issues, and insurance-coverage questions.
Agribusiness Companies Example

Monsanto Company, which manufactures the herbicide Roundup (glyphosate) and various Roundup Ready genetically modified seeds, is another example of an agribusiness company.
Dow AgroSciences LLC (a wholly-owned subsidiary of the Dow Chemical Company), makes pesticides, herbicides, and fungicides, in addition to marketing seeds.
Deere & Company, which makes John Deere equipment, maybe one of the best-known examples of a classic agribusiness company. The firm doesn’t own farms or produce food products, but nearly every farmer owns a John Deere tractor, baler, or some other piece of the quintessential green and gold farm equipment.
Archer Daniels Midland Company, or ADM, processes oil seeds like canola and soy, processes corn into ingredients such as corn syrup, dextrose, and starch, and transports crops both nationally and internationally.
The term agribusiness generally isn’t used to refer to actual farms, although Smithfield Foods Inc., the largest U.S. producer of pork, owns and runs its farms. Smithfield is owned by Chinese company WH Group (formerly Shuanghui International), which now is the largest pork producer in the world and the largest meat producer in China.
It’s possible to major in agribusiness in a variety of different colleges and universities across the U.S., ranging from Cornell University in Ithaca, N.Y., to Iowa State University. Degrees focus on the economics of farm management and the science of agricultural management.
Agribusiness Versus Organic Farming

In the United States, you’ll normally hear the term agribusiness used in contrast to organic agricultural businesses. For example, many people when talking about large-scale commercial agricultural operations will use the term agribusiness, but you won’t hear the term used concerning small-scale, organic farms.
Small family farms, smaller organic agriculture companies, and organic farmers often feel they have to compete with giant agribusiness companies when looking to gain a place in the agricultural marketplace. There’s a persistent feeling among family farmers that they’re an endangered species, due to the impact of agribusiness and corporate farms.
However, small organic farms often use agribusiness products like John Deere tractors. Also, small organic farms aren’t necessarily competing with larger, corporate-owned farms for the same market. For example, a customer who prefers to buy pastured pork (perhaps because it’s humanely produced and because it has a higher level of beneficial nutrients) is unlikely to view conventionally produced, store-bought pork as an acceptable substitute.















































