Research Essay

3350 WordsNov 26, 201414 Pages
The Agribusiness System Agribusiness: Evolution • Agribusiness system has undergone a rapid transformation as new industries have evolve and traditional farming operations have grown larger and more specialized. • The transformation did not happen over night, but came slowly as a response to a variety of forces. • Knowing something about how agribusiness came about makes it easier to understand how this system operates today and how it is likely to change in the future. Agribusiness: Evolution • Initially agriculture being the major venture, it was easy to become a farmer, but productivity was low. • Average farmer produced enough food to feed just four people. • As a consequence most farmers were nearly totally self-sufficient. • They produced most of the inputs they needed for production, such as seed, draft animals, feed and simple farm equipment. Agribusiness: Evolution • Farm families processed the commodities they grew to make their own food (and clothing). • The small amount of output not consumed on the farm was sold for cash. • These items were used to feed and cloth the minor portion of the country’s population that lived in villages and cities. • A few agricultural products made their way into the export market and were sold to buyers of other countries. Agribusiness: Evolution • Farmers found it increasingly profitable to concentrate on production and began to purchase inputs they formerly made themselves. • This trend enabled others to build business that focused on meeting the need for inputs used in production agriculture such as seed, fencing, machinery and so on. Agribusiness: Evolution • These firms are the industries that make up the “agricultural inputs sector”. • Input firms are major part of agribusiness and produce variety of technologically based products that account for approximately 75 per cent of all the

More about Research Essay

Open Document