ABM 121: AGRIBUSINESS MANAGEMENT

MS. EDNA M. VALDEZ, MSABM

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 CHAPTER 1:
INTRODUCTION OF
AGRIBUSINESS
NATURE, CONCEPTS,
DIMENSIONS AND
DYNAMICS

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 BACKGROUND OF AGRIBUSINESS
Agribusiness is a global industry driving food security and economic growth through
international collaboration, technological innovation, sustainable practices, and efficient supply
chains. The term "agribusiness" combines "agriculture" and "business," reflecting the integration
of economic principles into agricultural practices. Its background involves the evolution of
agriculture from small-scale subsistence farming to large-scale, market-oriented operations.

Global Collaboration Technological Economic Impact Sustainable Practices

International partnerships Innovation Agribusiness creates jobs, Eco-friendly farming methods
boost efficiency and market Precision agriculture stimulates investment, and minimize environmental
access, fostering sustainable optimizes yields, reduces drives economic growth damage while maintaining
growth. resource use, and improves globally. productivity.
decision-making.

Improved logistics and

reduced waste enhance the
agricultural value chain.
Supply Chain Efficiency ISUR-SAA-InM-065
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 Historical Evolution of Agribusiness

Traditional Agriculture Industrial Revolution Green Revolution Modern Agribusiness

Subsistence farming Mechanization transformed The Green Revolution Modern agribusiness is characterized
dominated, primarily agriculture, leading to increased witnessed the widespread by the rise of multinational
focused on meeting local efficiency and production. adoption of high-yielding crop corporations, the integration of
food needs. Agricultural Innovations in transportation varieties, coupled with advanced technologies, and
practices were largely enabled access to broader markets, advancements in irrigation, increasingly complex global trade
passed down through creating the potential for larger- fertilizers, and pest control. networks. Precision agriculture, data
generations, with limited use scale operations. The development This period led to a dramatic analytics, and genetic engineering
of external inputs or of factories to produce agricultural increase in food production, play significant roles in optimizing
technologies. Communities equipment and the increase in use helping to alleviate widespread yields, reducing costs, and improving
were largely self-sufficient, of fertilizers and pesticides marked hunger in many parts of the the efficiency of agricultural
producing enough food to a significant shift towards more world. However, it also raised operations. This era presents both
support themselves with intensive agricultural systems. The concerns regarding opportunities and challenges relating
little or no surplus for trade demand for agricultural products environmental sustainability to food security, environmental
or sale. This period grew considerably as the industrial and equitable access to sustainability, and the economic well-
encompassed a wide range workforce expanded in urban resources, highlighting the being of farmers and consumers
of practices depending on centers. need for more nuanced around the globe.
geography and culture. agricultural practices.
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 Components of Agribusiness

Upstream Industries Farm Production Downstream Industries

Supplies inputs to farms, encompassing a This core component involves the This sector encompasses the complex
wide range of essential goods and cultivation of a variety of agricultural processes involved in transforming raw
services. This includes the production commodities, ranging from traditional crops agricultural products into marketable goods.
and distribution of seeds with diverse like grains and vegetables to livestock It begins with processing activities, such as
genetic traits, tailored to specific crops farming (cattle, poultry, pigs) and milling grains, slaughtering livestock, or
and growing conditions. Fertilizers aquaculture (fish and shellfish farming). canning fruits and vegetables. This is
provide crucial nutrients for optimal Modern farm production often incorporates followed by packaging, which focuses on
plant growth, while advanced machinery, advanced technologies like precision preserving product quality, safety, and
from tractors to harvesters, optimizes agriculture techniques (GPS-guided appeal. Finally, effective marketing and
efficiency and yield. Furthermore, this machinery, variable rate fertilization) for distribution strategies play a crucial role in
sector encompasses the provision of increased efficiency and sustainability. getting these products to consumers
crucial financial services to support Sustainable farming practices, focused on worldwide, often involving sophisticated
agricultural operations, including farm minimizing environmental impact and supply chain management and logistics.
insurance and credit facilities. preserving soil health, also plays an preencoded.png

increasingly important role. ISUR-SAA-InM-065

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Key Features of Agribusiness

Global Scope Technological Integration Environmental and Social

Impact
Agribusiness spans national borders. Agribusiness uses technology for
Products travel globally, highlighting efficiency and sustainability. Precision Agribusiness impacts the environment
interconnected food systems. This agriculture, drones, IoT, AI, and genetic and society. Sustainable practices and
requires international cooperation on engineering improve yields and disease fair labor practices are needed to
trade, food safety, and sustainability. resistance. minimize negative effects and promote
responsible growth.
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Challenges in Agribusiness

Climate Change Sustainability Market Fluctuations Food Security

Unpredictable weather Balancing food production Agricultural product prices Ensuring equitable access
patterns threaten with environmental are volatile due to supply to sufficient, safe, and
agricultural productivity. conservation is a major and demand, trade policies, nutritious food is critical.
Changes in rainfall disrupt challenge. Sustainable and economic downturns. Food security is affected by
schedules, leading to crop practices are essential for production, distribution,
failures. long-term viability. and economic factors.

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The Importance of Agribusiness

Food Security Economic Contribution Employment Technological

Ensuring global food A significant driver of national Creates diverse jobs across Advancement
availability, access, and and global economies, the entire agricultural value Drives innovation and
affordability for all. contributing to GDP and chain, from farm to table. efficiency in agriculture,
trade. leading to improved yields
and sustainability.

Sustainability Nutritional Health Global Trade &

Cooperation
Promotes environmentally Contributes significantly to Facilitates international trade
sustainable practices and global nutritional health and and cooperation in food
responsible resource well-being through diverse systems, promoting global preencoded.png

management. food production. food security. ISUR-SAA-InM-065

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Scope of Agribusiness

Production Activities Agricultural Inputs Processing and

Covers primary Includes the
Value Addition
agriculture such as crop production and supply Refers to the
cultivation, animal of seeds, fertilizers, transformation of raw
husbandry, fisheries, pesticides, machinery, agricultural products
and forestry. and irrigation systems. into finished or semi-
finished goods.

Marketing and Distribution

Involves supply chain
management, logistics,
warehousing, and
retailing of agricultural
commodities. ISUR-SAA-InM-065
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Agribusiness Sector
Input Supply
Businesses that provide seeds, fertilizers, pesticides, irrigation systems, machinery, and other tools necessary for farming.
This sector plays a crucial role in ensuring farmers have access to the resources they need for efficient and productive
agriculture. Innovation in input supply, such as the development of drought-resistant seeds or precision farming
technologies, is constantly driving improvements in agricultural output and sustainability.
Farm Production
Primary agriculture such as crop cultivation, livestock farming, aquaculture, and forestry. This sector encompasses the
actual cultivation and raising of agricultural products. Factors such as land management, water usage, and animal welfare
are increasingly important considerations within this segment, impacting both the efficiency and ethical dimensions of
food production.
Processing and Manufacturing
Transformation of raw agricultural products into consumer-ready or semi-finished goods. This vital stage involves
converting raw materials into products suitable for sale and consumption. It includes activities like food processing,
packaging, and preservation, contributing significantly to value addition and the creation of diverse agricultural products.
Distribution and Marketing
Storage, logistics, and distribution of agricultural products to retailers and consumers. Efficient distribution is paramount
in ensuring timely access to food. This encompasses warehousing, transportation, and retail networks, connecting
farmers and producers directly with consumers or food manufacturers.
Support Services
Agricultural financing, insurance, consulting, and education. These support systems are critical in facilitating effective
agricultural practices and sustainable growth. They provide essential resources and expertise, assisting farmers and
businesses in managing risk, making informed decisions, and adapting to changing market conditions.
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New Developments and Trends in Agribusiness

The agribusiness sector is undergoing significant transformation due to advancements in

technology, changing consumer preferences, and the growing need for sustainable practices.
Precision agriculture, exemplified by the use of drones for targeted fertilizer application and
tablets for real-time crop monitoring, is optimizing resource use and increasing yields. Vertical
farming techniques are revolutionizing urban food production, maximizing space and minimizing
environmental impact, offering fresh produce closer to consumers. Simultaneously, the
exploration of alternative protein sources, such as lab-grown meat, addresses growing concerns
about animal welfare and the environmental footprint of traditional livestock farming. These
innovations, along with evolving consumer demand for transparency, traceability, and
sustainability, are reshaping the entire agribusiness landscape, driving efficiency and creating new
opportunities for growth.
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 New Developments and Trends in Agribusiness

Precision Agriculture Digitalization of Sustainable and Biotechnology and

Agriculture Regenerative Genetic Engineering
uses technology like GPS, Agriculture
revolutionizes agribusiness, • Biotech innovations
drones, and sensors to
enabling farmers to access real- • Sustainable practices, like CRISPR and genetically
optimize farming practices. It such as crop rotation,
time data, online marketplaces, modified organisms (GMOs)
helps monitor crop health, agroforestry, and minimal
and financial services. E- are enhancing crop yields,
manage water usage, and tillage, are gaining traction to
commerce platforms are pest resistance, and
improve yields with minimal address environmental
connecting farmers directly with nutritional value.
resource waste. challenges.
consumers, reducing • Lab-grown meat and
intermediaries and increasing • Regenerative plant-based protein
profitability. Blockchain is being agriculture focuses on alternatives are emerging as
used to improve transparency and restoring soil health, sustainable food sources,
traceability in supply chains, increasing biodiversity, and reducing the environmental
ensuring the quality and origin of reducing carbon emissions. footprint of livestock farming.
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 New Developments and Trends in Agribusiness

Vertical and Urban Climate-Smart Agriculture Automation and

Farming Climate-smart practices aim to Robotics Agribusiness Startups
Vertical farming, using make agriculture more resilient to Robotics is being used in A surge in agritech startups is
stacked layers and controlled climate change by promoting harvesting, planting, and driving innovation in the
environments, is growing in drought-resistant crops, water weeding, reducing labor sector. These startups focus
popularity in urban areas conservation techniques, and dependency and increasing on areas like AI-based farm
where space is limited. Urban renewable energy use. efficiency. monitoring, drone
farming initiatives help cities Farmers are adopting methods to Autonomous tractors and technology, and sustainable
reduce reliance on imports, reduce greenhouse gas emissions drones are transforming farming solutions.
lower food miles, and ensure and mitigate the impact of extreme traditional farming Venture capital funding for
fresh produce availability weather. operations. agritech is increasing,
year-round.
reflecting investor confidence
in this growing field.
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New Developments and Trends in Agribusiness

Focus on Food Safety and

Alternative Protein Traceability
Sources With increasing consumer
Growing demand for awareness, companies are
alternative proteins, such as investing in technologies that
plant-based, insect-based, ensure food safety and traceability.
and cultured meats, is Blockchain and IoT-enabled
reshaping the food industry. sensors are used to track food
Companies like Beyond Meat products from farm to fork,
and Impossible Foods are enhancing trust and transparency.
leading this movement.

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 References
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