INTRODUCTION TO

AGRIBUSINESSS
 Agriculture
AGRICULTURE: The word agriculture indicates
 Ploughing a field
 Planting seeds
 Harvesting crop
 Milking cows
 Feeding livestock
 Definition of Agribusiness
• Agribusiness: It includes not only those that
farm the land but also the people and firms
that provide the inputs e.g.
 Seed
 Chemicals
 Credit
 To be continued…….
Process the output e.g.
 Milk
 Grain
 Meat
Manufacture the food products e.g.
 Ice-cream
 Bread
 Breakfast cereals
 To be continued…….
Sell the food products to consumers e.g.
 Restaurants
 Supermarkets
 Agribusiness system:
• Agribusiness system has undergone a rapid
transformation as a new industries have
evolved and traditional farming operations
have grown larger and more specialized
 To be continued…….
• The transformation did not happen overnight
but happen as a response to a variety of
forces.
• Agriculture is the main venture it was easy to
become farmer but the productivity was low
• Average farmers produced enough food to
feed just few people
• Most farmers are self sufficient
 To be continued…….
• Farmers produced most of the inputs they
needed for productions such as
• Seed
• Draft animals
• Feed and simple farm equipments
 To be continued…….
• Farm families used everything they produce
e.g food and clothing and the rest of small
amount which produced by farmer used in
villages and cities
• Few agricultural products made their way into
export market and were sold to buyers in
other countries.
 Agricultural input sector
• Farmers concentrate on the production
because it is more profitable and purchase the
inputs made by themselves so this trend
focused on meeting the need for inputs used
in agriculture productions such as:
 Seeds
 Fencing
 Machinery
 Agricultural Input Sector
Agricultural input sector was
 Evolving
 Processing commodity
 Manufacture food
 Agricultural Input Sector
The most commodities like
 Wheat
 Rice
 Milk
 Livestock
These commodities must be changed to make
more useful for their consumer
 Agricultural Input Sector
• Example:
consumer would rather buy flour than grind
the wheat themselves before baking a cake
.They are willing to pay extra for the
convenience of buying the processed
commodity (flour) instead of the raw
agriculture commodity (wheat).
 Food preservation method
• Technologies advance method was used in the food preservation method
• Freezing. (meat,pizza dough,K&n products nuggest )
• Sugaring.(jams,honey
• Salting.(pickle,sugar syrup ,chocalaote syrup,carmel srup,fruit punch
syrup)
• Canning. (canned pineapple ,mushroom,olives ,baby corns)
• Vacuum Packing.(chips,cured meat,nuts etc)

• This method help people to get the agriculture commodities throughout

the year which were available only at harvest e.g yogurt, canned food,
juices pickle,butter cheese etc.
 Food And Fiber System
• It is apparent that the definition of agriculture had to be expanded
to include more than production.
Farmers rely on :
 Products and services they need to produce agricultural
commodities
 Commodity processors
 Food manufactures
 Food distributors
 Retailers to purchase their raw agricultural commodities A retailer,
or merchant, is an entity that sells goods such as clothing, groceries,
or cars directly to consumers through various distribution channels
with the goal of earning a prof
 Food And Fiber System
• To process and deliver them to the consumer
for final sale this system is know as food and
fiber system
 Three part system f agribusiness
The term agribusiness represents 3 part system are as
follow:
 The agricultural input sector
 The production sector Agricultural production is the
use of cultivated plants or animals
to produce products for sustaining or enhancing
human life.  food and beverage stores; food services
and eating and drinking places; textiles, apparel, and
leather products; and forestry and fishing.
 The processing –manufacturing sector