- big business connected to agriculture, either owning or operating large scale farms, or catering to those who do.
- Portmanteau of agriculture and business
In agriculture, agribusiness is a generic term that refers to the various businesses involved in food production, including farming, seed supply, agrichemicals, farm machinery, wholesale and distribution, processing, marketing, and retail sales. The term has two distinctly different connotations depending on context.
Within the agriculture industry, agribusiness is widely used simply as a convenient portmanteau of agriculture and business, referring to the range of activities and disciplines encompassed by modern food production. There are academic degrees in and departments of agribusiness, agribusiness trade associations, agribusiness publications, and so forth, worldwide. Here, the term is only descriptive, and is synonymous in the broadest sense with food industry.
Among critics of large-scale, industrialized, vertically integrated food production, the term agribusiness is used as a negative, synonymous with corporate farming. As such, it is often contrasted with family farm. Some negative connotation is also derived from the negative associations of "business" and "corporation" from critics of capitalism or corporate excess.
An example of an agribusiness is the Old North State Winegrowers Cooperative in North Carolina. Wine grape farmers come together to not only sell their grapes but to share a winery, winemaker and marketing brand together.
Many progressive agribusinesses are now operating online businesses. Rising fuel costs are increasingly adding financial burdens on the day to day running of agricultural companies. An example of an online agribusiness is FarmingPages.comhttp://www.farmingpages.com.
Individual industrial agriculture farmMajor challenges and issues faced by individual industrial agriculture farms include:
- integrated farming systems
- crop sequencing
- water use efficiency
- nutrient audits
- herbicide resistance
- financial instruments (such as futures and options)
- collect and understand own farm information;
- knowing your products
- knowing your markets
- knowing your customers
- satisfying customer needs
- securing an acceptable profit margin
- cost of servicing debt;
- ability to earn and access off-farm income;
- management of machinery and stewardship investments.
Integrated farming systemsAn integrated farming system is a progressive biologically integrated sustainable agriculture system such as Integrated Multi-Trophic Aquaculture or Zero waste agriculture whose implementation requires exacting knowledge of the interactions of numerous species and whose benefits include sustainability and increased profitability.
Elements of this integration can include:
- intentionally introducing flowering plants into agricultural ecosystems to increase pollen-and nectar-resources required by natural enemies of insect pests
- using crop rotation and cover crops to suppress nematodes in potatoes
Crop sequencingCrop rotation or crop sequencing is the practice of growing a series of dissimilar types of crops in the same space in sequential seasons for various benefits such as to avoid the build up of pathogens and pests that often occurs when one species is continuously cropped. Crop rotation also seeks to balance the fertility demands of various crops to avoid excessive depletion of soil nutrients. A traditional component of crop rotation is the replenishment of nitrogen through the use of green manure in sequence with cereals and other crops. It is one component of polyculture. Crop rotation can also improve soil structure and fertility by alternating deep-rooted and shallow-rooted plants.
Water use efficiencyCrop irrigation accounts for 70% of the world's fresh water use. The agricultural sector of most countries is important both economically and politically, and water subsidies are common. Conservation advocates have urged removal of all subsidies to force farmers to grow more water-efficient crops and adopt less wasteful irrigation techniques.
For crop irrigation and plant irrigation, optimal water efficiency means minimizing losses due to evaporation or runoff. An evaporation pan can be used to determine how much water is required to irrigate the land. Flood irrigation, the oldest and most common type, is often very uneven in distribution, as parts of a field may receive excess water in order to deliver sufficient quantities to other parts. Overhead irrigation, using center-pivot or lateral-moving sprinklers, gives a much more equal and controlled distribution pattern, but in extremely dry conditions much of the water may evaporate befare it reaches the ground. Drip irrigation is the most expensive and least-used type, but offers the best results in delivering water to plant roots with minimal losses.
As changing irrigation systems can be a costly undertaking, conservation efforts often concentrate on maximizing the efficiency of the existing system. This may include chiseling compacted soils, creating furrow dikes to prevent runoff, and using soil moisture and rainfall sensors to optimize irrigation schedules.
Water catchment management measures include recharge pits, which capture rainwater and runoff and use it to recharge ground water supplies. This helps in the formation of ground water wells etc. and eventually reduces soil erosion caused due to running water.
Nutrient auditsBetter nutrient audits allow farmers to spend less money on nutrients and to create less pollution since less nutrient is added to the soil and thus there is less to run off and pollute. Methodologies for assessing soil nutrient balances have been studied and used for farms and entire countries for decades. But at present "there is no standard methodology for calculating nutrient budgets and there are no accepted 'benchmarks' figures against which to assess farm nutrient use efficiency. [A standard methodology] for calculating nutrient budgets on farms [is hoped to help reduce] diffuse water and air pollution from agriculture [through] best management practices in the use of fertilisers and organic manures, as part of the continued development of economically and environmentally sustainable farming systems."
Herbicide resistanceIn agriculture large scale and systematic weeding is usually required, often by machines, such as liquid herbicide sprayers. Selective herbicides kill specific targets while leaving the desired crop relatively unharmed. Some of these act by interfering with the growth of the weed and are often based on plant hormones. Weed control through herbicide is made more difficult when the weeds become resistant to the herbicide. Solutions include:
- using a different herbicide
- using a different crop (e.g. genetically altered to be herbicide resistant; which ironically can create herbicide resistant weeds through horizontal gene transfer)
- ground cover such as mulch or plastic
- manual removal
Notes and references
agribusiness in German: Industrielle Landwirtschaft
agribusiness in Spanish: Agroindustria
agribusiness in French: Agribusiness
agribusiness in Indonesian: Agribisnis
agribusiness in Polish: Agrobiznes
agribusiness in Portuguese: Agronegócio