Agribusiness

Definition:

- Business of agricultural production.

-  Combination of agriculture and business.
- Includes agrichemicals, breeding, crop production, distribution, farm machinery, processing and seed supply.

- Business that are involved in the marketing of farm products, such as warehouses, wholesalers, processors, retailers and more.

Example of Agribusiness Companies 

Malaysia:

Yoon Fatt Industries (M) Sdn Bhd.

- Located at Kluang, City Of Johore and State of Malaysia

- specialized in producing agriculture sprayers which was set up in late forties  

-  Main products : Knapsack Sprayer,Repair Sprayer,Sales Spare-part, Nozzle,Sprayer Spare-Part
Highland Resource Trading

- have three big agriculture farm in Cameron Highland that produce lots of vegetable, fruit and flower        

-  High quality of tomato, capsicium, strawberry and vegetable we export and sold locally. 

- We are interested to import fresh strawberry fruit to Malaysia.

Overseas:

Deere & Company

Ø  Makes John Deere equipment

Ø  Doesn’t own farms or produce food products, but nearly every farmer owns a John Deere tractor (equipment).

Monsanto Company

Ø  Manufactures the herbicide Roundup (glyphosate) and genetically modified seeds.

Dow AgroSciences LLC

Ø  Makes pesticides, herbicides and fungicides and markets seeds.

Archer Daniels Midland Company

Ø  Processes oilseeds such as canola and soy.

Ø  Processes corn into ingredients such as corn syrup, dextrose and starch.

Ø  Transport crops both nationally and internationally

Agribusiness Evolution

- In late 1800’s: self-sufficient farms

- Wars increased the products’ prices but it stimulate more production. Then, the war was profitable again.

- Mechanization was developed largely due to labour shortages.

- Crop production became a focus of farmers.

(They started purchasing inputs and appear aquaculture in today)

- There are much of the manufacturing and processing was relocated off the farm to become businesses themselves.

- The improvement of the preservation of raw products is needed.

- Food becomes more convenient to the consumers.

-Agribusiness is occurred and the agricultural activities not just planting but now there are a business for agriculture.

Agribusiness VS Organic Farming

Agribusiness	Organic farming
Large-scale commercial agricultural	Small-scale farming
Owned by the giant agribusiness companies	Owned by small family farms
Focus on the profitability	Focus on the quality of the agricultural products

Successful Agribusness in New Zealand: