Defining Agribusiness
Agriculture is the biggest sector of the economy where majority of the population in the world live in rural areas. The farming sector becomes the key participant in the agribusiness system worldwide. In the Philippines up to one-half of the country’s economy belongs to the agribusiness sector, of which farming comprises only 20 percent. Other portions belong to industrial and commercial sectors that support the whole agriculture sector.
Before we analyse what is the difference of agribusiness than agriculture and business and other discipline let me give you some misconception and fragment views about agribusiness.
Misconception of Agribusiness
Custodio explains different misconception on what Agribusiness is and what is not. Few people define agribusiness as just farming in the field, fishing in ocean and raising animals. Some of them are aware that it is an entity that engages with activities of processing of agri-products then being marketed to the consumers. But most of them believe that it is just for big companies like Universal Robina Corporation, San Miguel Corporation, Nestle, Cargill and Betagro. While other people think that it’s just a domain of private sector for profit objectives, or in academe it is just for making feasibility studies. All of these are misconceptions about what agribusiness.
To understand what Agribusiness is all about let us look at the definition, its system, concepts and dimensions, different scope and importance of agribusiness in the economy.
Definition of Agribusiness
Agriculture to most people is just farming, ranching and fishing then business in the farm is just about selling their crops until late 1960s when Prof. John H. Davis of Harvard University first used the word “agribusiness”. So agribusiness is not just about farming system that many people used to know. Despite the growth and interest in the agribusiness profession, what constitutes agribusiness management research continues to be a perennial debate
Before we analyse what is the difference of agribusiness than agriculture and business and other discipline let me give you some misconception and fragment views about agribusiness.
Misconception of Agribusiness
Custodio explains different misconception on what Agribusiness is and what is not. Few people define agribusiness as just farming in the field, fishing in ocean and raising animals. Some of them are aware that it is an entity that engages with activities of processing of agri-products then being marketed to the consumers. But most of them believe that it is just for big companies like Universal Robina Corporation, San Miguel Corporation, Nestle, Cargill and Betagro. While other people think that it’s just a domain of private sector for profit objectives, or in academe it is just for making feasibility studies. All of these are misconceptions about what agribusiness.
To understand what Agribusiness is all about let us look at the definition, its system, concepts and dimensions, different scope and importance of agribusiness in the economy.
Definition of Agribusiness
Agriculture to most people is just farming, ranching and fishing then business in the farm is just about selling their crops until late 1960s when Prof. John H. Davis of Harvard University first used the word “agribusiness”. So agribusiness is not just about farming system that many people used to know. Despite the growth and interest in the agribusiness profession, what constitutes agribusiness management research continues to be a perennial debate
References: Boehlje, M. “Structural Changes in the Agricultural Industries: How Do We Measure, Analyze and Understand Them?” American Journal of Agricultural Economics 81(1999):1028- 1041. Custodio,H.C. Jr. Agribusiness Concepts and Dimensions: some Application. From Velasco, 2003,Agribusiness Management Course Module. AB 710. Central Luzon State University. Dy, Rolando T. A Concept of Agribusiness. From Velasco, 2003,Agribusiness Management Course Module. AB 710. Central Luzon State University. Gallegos.J.G. The Concept of Agribusiness. From Velasco, 2003,Agribusiness Management Course Module. AB 710. Central Luzon State University.