Agriculture is undergoing a huge
transformation. In the past, agriculture was seen as a subsistence activity of
farmers involving crop and livestock production. For centuries agriculture was
the same as farming, and most people lived on farms or nearby and were largely
self-sufficient. This is, however, changing substantially in the recent years.
agriculture is rapidly turning into a technology and market oriented “industry”
which extends from agricultural production, to sophisticated agriscience, and
agribusiness. It now connects strongly to the national and global economy.
pioneers of the field of agribusiness at the Harvard Business School, Davis and
Goldberg (1957) defined agribusiness as the sum total of all operations
involved in the manufacture and distribution of farm supplies; production
operations on the farm; and the storage, processing, and distribution of the
resulting farm commodities and items .
definition describes it as consisting of profit-motivated enterprises involved
in providing agricultural supplies and/or in the processing, marketing,
transport, and distribution of agricultural materials and consumer products.
provides inputs to the production agriculturist (farmer), and the production
agricultural produce food, fiber and by products. Input agribusinesses provide
farmers with supplies and equipment needed to produce and protect their crops.
Many provide services to such as credit, insurance and information. The output
is taken by output agribusiness firms that process, market, and distribute the
agricultural products (see Figure 1).
traders and commodity organisations are engaged in buyingand selling as well as
coordination, promotion, advertising, and even lobbying for agricultural products.
Many are engaged in food marketing and services. Research, education and
extension help improve the performance of agriculture and agribusinesses.
Millions of people are employed in agribusinesses, and people throughout the
world depend on agribusinesses, some for production needs and others for food
and non-food requirements.
The transformation of
agribusiness in developing countries appears to be driven by significant
constraints, demands, and shifts that occur in the economy as development proceeds.
An effort is made here to identify some of the important shifts and constraints
that emerge, and the impact they generate and will continue to have on
agriculture and agribusiness development. This is important not only to
understand what the origins and causes of agribusiness growth are, but also the
likely direction of future changes (Gandhi, 2014).
drivers can be identified as:
• Scarcity of Land and the Need
to Improve Productivities
• Markets, Urbanisation and
Increasing Commercialisation of Agriculture
• Need for Change in Scale and
Reorganisation of Production and Marketing
• Economic Liberalisation,
Reducing Government Involvement, Income Growth, WTO and Trade
• Changing Food Consumption
Pattern and Demand for Quality and Convenience
• Development of the Rural
Economy, Infrastructure, Rural-Urban Migration, and Globalisation
• Information and Communication
paper aims to let the people that had read/ listen during the discussion that
had been done by the group 1 about the topic Growth and Development of
Agribusiness to understand where it started and how agribusiness come to engage
one which shows the Over view of the Agribusiness system, illustrates how
agriculture is being merge with agribusiness. It is merging in a way that the
Agribusiness is the one that helps to provide the Agriculturist (farmers) with
the materials, equipment’s and other stuff needed in farming activities. Also
Agribusiness helps the farmers to disseminate/ sell their products in a way
that it would be beneficial to the farmers and to the consumers buying their
The Line of Gandhi that says: “This is
important not only to understand what the origins and causes of agribusiness
growth are, but also the likely direction of future changes”. This very
important because of if we only thinks about today then we cannot predict nor
forecast what will happen to the future demand and whether if we are able to
cope up to the supply and demand gap by the logarithmic increasing population.
The inflation of price must be studied also in order to balance the economy and
for the sake of the people not only for their want but also for their daily
Davis, John H. and Ray A.
Goldberg (1957), A Concept of Agribusiness,
Harvard University. Retrived from: https://ageconsearch.umn.edu/bitstream/206364/2/G andhi69_1.pdf
Gandhi, Vasant P. (2014), Growth
and Transformation of the
Agribusiness Sector: Drivers, Models and Challenges.
Retrieved from: https://ageconsearch. umn.