AGRIBUSINESS AND ITS CHALLANGES

 

Agro culture business

Introduction

The economy isn’t fair enough to the society and poor masses are suffering the bill. Inflation has increased a lot of crime and its affecting the country and its citizens.  I brought up an idea of solving some of the problems in food by means of agriculture. Agriculture as the name implies is the act of using land to produce food for human consumption. It comprises of cultivating and harvesting, breeding and hatchery. Through this means I stand that it helps to retain the economy in a gradual process. .

What is agribusiness?

Agribusiness is a term used to describe the sector that encompasses all economic activities that are related to farming.i.e, chemicals, breeding, crop production/farming, farm machinery, distribution, marketing, and sales.

Components of agriculture business

Ø Agrichemicals

Agrichemicals or agrochemicals are the pesticides, fertilizers, and growth chemicals used in the agricultural process. Nowadays many company supplies the agriculture industry with chemicals and other innovative solutions.

Ø Breeding

Breeding refers to the branch of agriculture that focuses on raising animals for food products and or the breeding of plant species to produce a genetically-enhanced crop seed.

Ø Machinery and equipment

The machinery and equipment segment of agribusiness is one of the biggest. It is refers to all types of farm machinery ranging from hand tools, such as shovels to tractors.

Importance of agribusiness

v Supports agricultural industry growth        

Agribusiness is a sector that supports the growth of the agricultural industry, which is pivotal to economic growth. It also continues to play a crucial role in the growth of developing countries.

v Improve agricultural productivity

Agribusiness can potentially improve agricultural productivity, which is why governments often offer subsides to agricultural businesses.

v Increase food availability

Agricultural activities also contribute to an improved system of food security and sustainable food production as well as income for a majority of the poor in developing countries.

Agribusiness challenges

·        Countries with farming industries face consistent pressures from global competition. Products such as wheat, corn, and soya beans tend to be similar in different locations making them commodities.

·        Global prices of agricultural products may change rapidly, making production planning complicated activity.

·        Farmers may also face a reduction in usable land as suburban and urban areas expand into their regions.