agribusiness

The word "agribusiness" is a portmanteau of the words agriculture and business. The earliest known use of the word was in the Volume 155 of the Canadian Almanac & Directory published in 1847.{{Cite book|url=https://books.google.com/books?id=NEgbAQAAMAAJ&q=%22agribusiness%22|title=Canadian Almanac & Directory|date=1847|publisher=Copp Clark Publishing Company|isbn=978-1-895021-81-3|language=en}} Although most practitioners recognize that it was coined in 1957 by two Harvard Business School professors, John Davis and Ray Goldberg after they published the book "A Concept of Agribusiness."{{cite book|last1=Davis|first1=John H.|title=A Concept of Agribusiness|last2=Goldberg|first2=Ray A.|url=https://books.google.com/books?id=EJMzzgEACAAJ|publisher=Division of Research, Graduate School of Business Administration, Harvard University|year=1957|isbn=9781684225248}}

{{blockquote|"Agribusiness is 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 farm commodities and items made from them." (Davis and Goldberg, 1956)}}

Their book argued against the New Deal programs of then U.S. President Franklin Roosevelt as it led to the increase in agricultural prices. Davis and Goldberg favored corporate-driven agriculture or large-scale farming to revolutionize the agriculture sector, lessening the dependency on state power and politics.{{Cite journal|last=Hamilton|first=Shane|title=Revisiting the History of Agribusiness|journal=Business History Review|year=2016|language=en|volume=90|issue=3|pages=541–545|doi=10.1017/S000768051600074X|s2cid=157756414|issn=0007-6805|doi-access=free}} They explained in the book that vertically integrated firms within the agricultural value chains have the ability to control prices and where they are distributed. Goldberg then assisted in the establishment of the first undergraduate program in agribusiness in 1966 at the UP College of Agriculture in Los Baños, Philippines as Bachelor of Science in Agriculture major in Agribusiness.{{Cite web|date=2015-05-03|title=Academic Programs|url=http://cem.uplb.edu.ph/index.php/academic-programs|access-date=2021-05-02|archive-url=https://web.archive.org/web/20150503071947/http://cem.uplb.edu.ph/index.php/academic-programs|archive-date=2015-05-03}}{{Cite journal|last=Desai|first=D.K.|date=October 1974|title=Evolution of a Concept of Agribusiness and its Application|url=http://ageconsearch.umn.edu/record/268096/files/04%20Evolution%20of%20a%20Concept%20of%20Agribusiness%20and%20its%20Application.pdf|journal=Indian Journal of Agricultural Economics|volume= XXIX| issue = 4|pages=32–43}}{{Cite web|title=Department of Agribusiness Management and Entrepreneurship|url=https://cem.uplb.edu.ph/cem-units/department-of-agribusiness-management-and-entrepreneurship/|access-date=2021-05-02|website=College of Economics and Management|date=14 November 2019 |language=en-US}} The program was initially a joint undertaking with the UP College of Business Administration in Diliman, Quezon City until 1975. Jose D. Drilon of the University of the Philippines then published the book "Agribusiness Management Resource Materials" (1971) which would be the foundation of current agribusiness programs around the world.{{Cite book|last=Drilon|first=Jose D.|url=https://books.google.com/books?id=5z9DAAAAYAAJ|title=Agribusiness Management Resource Materials: Introduction to agribusiness management|date=1971|publisher=Asian Productivity Organization|isbn=978-92-833-1009-9|language=en}} In 1973, Drilon and Goldberg further expanded the concept of agribusiness to include support organizations such as governments, research institutions, schools, financial institutions, and cooperatives within the integrated Agribusiness System.{{Cite journal|last=Desai|first=D. K.|date=August 1973|title=Planning a Progressive Agricultural Infrastructure|journal=1973 Conference, August 19–30, 1973, São Paulo, Brazil |url=https://ideas.repec.org/p/ags/iaae73/181420.html|language=en}}

Mark R. Edwards and Clifford J. Shultz II (2005) of Loyola University Chicago reframed the definition of agribusiness to emphasize its lack of focus on farm production but towards market centricity and innovative approach to serve consumers worldwide.{{Cite journal|last1=Shultz |first1=Clifford J. |last2=Edwards |first2=Mark R. |title=Reframing Agribusiness: Moving from Farm to Market Centric |url=https://ecommons.luc.edu/cgi/viewcontent.cgi?article=1028&context=business_facpubs |journal=Journal of Agribusiness |volume=23 |issue=1 |pages=57–73 |language=en}}

{{blockquote|"Agribusiness is a dynamic and systemic endeavor that serves consumers globally and locally through innovation and management of multiple value chains that deliver valued goods and services derived from sustainable orchestration of food, fiber and natural resources." (Edwards and Shultz, 2005)}}In 2012, Thomas L. Sporleder and Michael A. Boland defined the unique economic characteristics of agribusiness supply chains from industrial manufacturing and service supply chains.{{Cite journal|last1=Sporleder|first1=Thomas L.|last2=Boland|first2=Michael A.|date=2011|title=Exclusivity of Agrifood Supply Chains: Seven Fundamental Economic Characteristics|url=https://www.ifama.org/resources/Documents/v14i5/Sporleder-Boland.pdf|journal=International Food and Agribusiness Management Review|volume=14|pages=27–52}} They have identified seven main characteristics:

1. Risks emanating from the biological nature of agrifood supply chains
2. The role of buffer stocks within the supply chain
3. The scientific foundation of innovation in production agriculture having shifted from chemistry to biology
4. Cyberspace and information technology influences on agrifood supply chains
5. The prevalent market structure at the farm gate remains oligopsony
6. Relative market power shifts in agrifood supply chains away from food manufacturers downstream to food retailers
7. Globalization of agriculture and agrifood supply chains

In 2017, noting the rise of genetic engineering and biotechnology in agriculture, Goldberg further expanded the definition of agribusiness which covers all the interdependent aspects of the food system including medicine, nutrition, and health.{{Cite web|last=Ward|first=Natalee|date=2017-05-25|title=Ray Goldberg: The man that coined the term "agribusiness"|url=https://www.weeklytimesnow.com.au/agribusiness/decisionag/ray-goldberg-the-man-that-coined-the-term-agribusiness/news-story/51e013827b75b6e648cd73341dd26ad4?nk=e78d895d1c1c3c261a3d90d52dee74c6-1619988588|url-status=live|access-date=2021-05-02|website=www.weeklytimesnow.com.au|language=en|archive-url=https://web.archive.org/web/20210502205557/https://www.weeklytimesnow.com.au/agribusiness/decisionag/ray-goldberg-the-man-that-coined-the-term-agribusiness/news-story/51e013827b75b6e648cd73341dd26ad4?nk=e78d895d1c1c3c261a3d90d52dee74c6-1619988588 |archive-date=2021-05-02 }} He also emphasized the responsibility of agribusiness to be environmentally and socially conscious towards sustainability.{{Citation|title=HBS Professor Ray Goldberg on the History of Sustainable Agribusiness| date=11 May 2015 |url=https://www.youtube.com/watch?v=NQNUbWgjrfY |archive-url=https://ghostarchive.org/varchive/youtube/20211212/NQNUbWgjrfY| archive-date=2021-12-12 |url-status=live|language=en|access-date=2021-05-02}}{{cbignore}}

{{blockquote|"Agribusiness is the interrelated and interdependent industries in agriculture that supply, process, distribute, and support the products of agriculture." (Goldberg, 2017)}}

Some agribusinesses have adopted the triple bottom line framework such as aligning for fair trade, organic, good agricultural practices, and B-corporation certifications towards the concept of social entrepreneurship.

{{Excerpt|Agricultural value chain#Background}}

An agricultural supply store or agrocenter is an agriculturally-oriented shop where one sells agricultural supplies — inputs required for agricultural production such as pesticides, feed and fertilizers . Sometimes these stores are organized as cooperatives, where store customers aggregate their resources to purchase agricultural inputs. Agricultural supply and the stores that provide it are part of the larger Agribusiness industry.

{{Excerpt|Farmworker}}

{{Excerpt|irrigation}}

{{Excerpt|Seed company}}

{{Excerpt|Fertilizer}}

{{Excerpt|Farm}}

{{Excerpt|Agricultural engineering}}

{{Excerpt|Food processing|fragment=Primary food processing}}

{{Excerpt|Food processing|fragment=Secondary food processing}}

{{Excerpt|Agricultural marketing}}

{{Excerpt|Farmers' market}}

{{Excerpt|Agricultural extension|hat=no}}

{{Excerpt|Agricultural_cooperative}}

{{Excerpt|Food and Agriculture Organization}}

{{Excerpt|Agriculturist}}

Studies of agribusiness often come from the academic fields of agricultural economics and management studies, sometimes called agribusiness management. To promote more development of food economies, many government agencies support the research and publication of economic studies and reports exploring agribusiness and agribusiness practices. Some of these studies are on foods produced for export and are derived from agencies focused on food exports. These agencies include the Foreign Agricultural Service (FAS) of the U.S. Department of Agriculture, Agriculture and Agri-Food Canada (AAFC), Austrade, and New Zealand Trade and Enterprise (NZTE).

The Federation of International Trade Associations publishes studies and reports by FAS and AAFC, as well as other non-governmental organizations on its website.{{cite web|url=http://www.fita.org|title=What is Agribusiness in 2023|publisher=farmingagri.com|access-date=2013-05-02|archive-date=2018-06-27|archive-url=https://web.archive.org/web/20180627235542/https://farmingagri.com/what-is-agribusiness-in-2023/}}

In their book A Concept of Agribusiness, Ray Goldberg and John Davis provided a rigorous economic framework for the field. They traced a complex value-added chain that begins with the farmer's purchase of seed and livestock and ends with a product fit for the consumer's table. Agribusiness boundary expansion is driven by a variety of transaction costs.{{citation needed|date=April 2015}}

As concern over global warming intensifies, biofuels derived from crops are gaining increased public and scientific attention. This is driven by factors such as oil price spikes, the need for increased energy security, concern over greenhouse gas emissions from fossil fuels, and support from government subsidies. In Europe and in the US, increased research and production of biofuels have been mandated by law.{{cite web|date=2008-08-01|title=Backpedaling on Biofuels|url=http://www.wild.org/blog/backpedaling-on-biofuels/|url-status=dead|archive-url=https://archive.today/20120919065908/http://www.wild.org/blog/backpedaling-on-biofuels/|archive-date=2012-09-19|access-date=2013-05-02|publisher=Wild.org}}

{{portal|Agriculture and Agronomy|Business and economics}}

• Agrarian law
• Agrarian reform
• Agribusiness in Kenya
• Agricultural machinery industry
• Agricultural marketing
• Agricultural value chain
• Agroecology
• Biofuel
• Contract farming
• Energy crop
• Energy law
• Environmental impact of agriculture
• Factory farming
• Industrial agriculture
• Land banking
• Pharming (genetics)

{{Reflist|2}}

• {{cite book|year=2019|first1=Cheikh|last1=Mbow|last2=Rosenzweig|first3=Luis .G.|last3=Barioni|first4=Tim .G.|last4=Benton|title=Climate Change and Land: an IPCC special report on climate change, desertification, land degradation, sustainable land management, food security, and greenhouse gas fluxes in terrestrial ecosystems|editor1-first=P.R.|editor1-last=Shukla|editor2-first=J.|editor2-last=Skea|editor3-first=E. Calvo|editor3-last=Buendia|editor4-first=V.|editor4-last=Masson-Delmotte|chapter=Food security|publisher=IPCC|url=https://ntrs.nasa.gov/citations/20200001724}}

{{Wiktionary}}

• {{cite news|url=http://monthlyreview.org/090907wilkinson.php |title=The Globalization of Agribusiness and Developing World Food Systems|first= John|last= Wilkinson|work=Monthly Review}}
• Gitta, Cosmas and South, David (2012). [https://books.google.com/books?id=AQNt4YmhZagC&dq=southern+innovator+issue+3&pg=PA55 Southern Innovator Magazine Issue 3: Agribusiness and Food Security]: United Nations Office for South-South Cooperation. ISSN 2222-9280
• https://web.archive.org/web/20160304034828/http://www.ifama.org/files/IS_Ledesma_Formatted.pdf

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Category:Agricultural economics

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Category:Agriculture