What is Agribusiness?
In Kenya, Agribusiness is used to describe the engagement in farming purely as a money-making venture. It may also include other supporting industries in the value chain such as suppliers of chemicals, irrigation equipment, Machinery, breeding, distribution, marketing, and sales.
Importance of Agribusiness
Agriculture as a business has traditionally been done in large farms and ranches. But with dwindling openings within the formal employment, many people, young and old have been tossed into the business of making farming a business.
This has tremendously opened up the market for exotic foods, lowered the cost of food while making citizens busy.
Some Areas of Agribusiness
Supporting Sectors in Agribusiness
Agrichemicals or agrochemicals are the pesticides, fertilizers, and growth chemicals used in the agricultural process. Today, many agrochemical companies, such as Corteva Agriscience and DuPont, work to supply the agriculture industry with chemicals and other innovative solutions.
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.
3. Machinery and Equipment
The machinery and equipment segment of agribusiness is one of the biggest, and it refers to all types of farm machinery – ranging from hand tools, such as shovels, to tractors. One of the largest agricultural machinery companies is John Deere, which specializes in providing farming and gardening equipment.
Innovation in Agribusiness
Innovation is key in agribusiness as the industry seeks improved efficiency in production and processing. For example, many companies now offer CCTV and drone surveillance of farms, which gives the farmer/owner insights on the health of crops and helps them to create stock projections and plan for the future.
In addition, new and improved types of machinery are being engineered and manufactured on a large scale, such as robotic harvesters, automated pesticide sprayers, and driverless tractors.
Ultimately, the aim of innovation in agribusiness is to improve agricultural productivity and make agricultural activities easier for farmers. It aims to lower the costs of production and increase profitability for farmers, who often endure volatile market conditions as crop prices fluctuate with changing economic conditions.