There are a lot of agribusiness enterprises out there. Some people may even be dealing with agribusiness without even knowing it. Every country depends on agriculture to feed its people and in some, it is also the backbone of their economies.

Agribusiness commerce has been practiced for thousands of years. In the bible, produce was sold at market places as it is of today. It is therefore a whole world of transactions, dealings, and profits that you should join today to earn some income and make a living.

what is agribusiness

Agribusiness is a term used to refer to businesses that deal with agriculture and related business activities. Agribusiness encompasses everything and everyone along the agriculture value chain right from production at the farm and all activities involved up to the final consumer of the end product.

For example; Seth a vertical urban farmer produces fruits and vegetables which he sells to people, processors and suppliers right from his farm. The supplier might have a storage facility from where whole sellers can buy and these sell to retailers like market places, grocery stores and supermarkets who in turn sell to the final consumers.

The supplier might also sell to processing factories that turn the fruits and vegetables into products like; tomato sauce, food dressings and juice which are sold to retailers.

Seth buys seeds and other inputs from input dealers at the farmer’s mall in town. He also uses equipment and machinery he bought from a John deere outlet in town. 

Seth, the suppliers, whole sellers and retailers all have business bank accounts where they store their money. They also receive some input and business information from a local NGO and a government body.

The most major advantage of agribusiness is that it involves food production and people have to eat. So you’ll never go out of business if you follow this line because of the ready market.

Losses are minimal and can be avoided with proper business knowledge and guidance. In the case of profuse production, value addition can be done to make different products and avoid losses.

Urban farming also involves less risk and ensures high yields since most of it can be carried out in a controlled environment like a greenhouse or an indoor farm. This results in high profits for the business owners.

Examples of agribusinesses

These include; feed producers, chemical and seed sellers, transportation services, agriculture machinery sellers, co-operatives, wholesalers and retailers, grocery stores, farms, marketing agencies, and food processors.

Agribusiness types and products

1.Farms

These are the epitome of the whole franchise. They produce food that goes up the chain up to the final consumer. They can sell their farm-fresh produce directly to consumers or sell it to suppliers and processors.

Examples include; vertical farms, greenhouses, Indoor farms, hydroponics, and traditional farms producing bird and animal products 

2.Agricultural inputs

These provide inputs needed for the smooth running of agricultural activities e.g.

1. Farm machinery; tractors, harvesters, weeders.
2. Chemicals; herbicides, pesticides, fertilizers.
3. Seeds
4.  Farm and garden equipment; rakes, spades, lights, racks, pipes  

3. Food processing factories

These add value to raw produce to make new products which are in turn sold to whole sellers and retailers before they can reach the final consumer. A lot of value addition is done and the end product is always of better quality, taste, and high value.

Food processing includes processes like; pasteurization, smoking, drying, flavouring, vacuum sealing and frying. The products are also branded and well packaged to ease transportation and packaging. Such products include;

1. Dairy products: pasteurized milk, cheese, yoghurt, chocolate, powdered milk.
2. Fruit and vegetable products: dressings, tomato sauces, juices, smoothies, salads.
3. Meat products: canned meat, sausages, minced meat.
4. Dried foodstuffs: herbs, dried fruits and meats.
5. Other crop products: flour, cooking oil, pasta, fried food.

4.Storage facilities

 These are warehouses owned by suppliers who can be the farms themselves or private individuals who buy from the producers and distribute to other people.

They are usually large and organized infrastructures that can handle a large amount of produce. The products can be stacked in sacks or boxes on crates and or trays organized in the first in first out manner.

Perishable produce is stored in cold rooms or large refrigerators. Meat and bird carcases can be hung on hooks on the roof above the ground.

Some individuals just deal in providing storage facilities and these charges a fee to store goods at a specific rate for a specific time.

5.Marketing and sales

Major business dealings involving most of the money transactions in the franchise are carried out here. The top performers are;

1.  Wholesalers; these buy and sell farm-related products in bulk.
2.  Retailers; these sell small, item per item.
3.  Marketing agencies; they promote goods to people

6.Farm services

These are provided by professionals in the agricultural field to farms; veterinary officers, agronomists, soil scientists, aquaculturists,  and biologists

7.Financial services

These are provided by financial and lending institutions like banks, SACCOs, and cooperatives. They mainly offer financial advice and loans to agribusiness people at a substantial interest.

8.Government bodies and NGOs in agriculture.

These offer a variety of services to help out majorly to farmers and small agribusinesses to improve their income or standards of living depending on their project goals, themes, or interests. Their services are usually interest-free and tend to cover a large number of target people. Many NGOs are providing such services for example; IFAD, CIP, and send a cow.

Agribusiness is practised by millions of people around the world. it has helped improve the economic situation and standards of living for many people around the world who are diectly or indirectly involved in the trade especially in Africa.

It is one of the ways we can reach one of the UN sustainable development goals by eliminating poverty worldwide.