Agribusinesses can be divided into those that own and operate farms and those that supply goods and services. They focus on food production for human consumption, with some controlling the entire process. Niche manufacturers can have a significant market share, and seafood businesses can be large or small. Agricultural machinery manufacturers, packaging companies, staffing agencies, and chemical companies are also part of the agribusiness sector. Large farms contract directly with chemical manufacturers to create custom products, raising concerns about environmental and health impacts.
There are two broad categories of agribusinesses, namely those that operate and own farms and those that supply essential goods and services to those businesses. In general, “agribusiness” refers to companies that focus on food, be it meat or vegetable, intended for human consumption. Among agricultural businesses, most tend to be major operations that provide food growth and large-scale production. However, even smaller niche manufacturers can make up a significant market share in some places. These more focused operations often do only one thing, such as fish production, and may only serve a small customer base. On the product supply side, companies can often be categorized by what they supply. Some deal with machines for agricultural use, such as tractors and sorters; others deal with the preparation, slaughtering and packaging of food. Even more they are concerned with staffing and coordinating the needs of agricultural work. Pesticides and chemicals suitable for commercial farming is another possible supply niche.
Big Farms
Farms are different from small private farms, which may grow food for local use or for sale at nearby markets or vendors. Agribusiness companies generally employ modern business strategies with the aim of making a profit on their produce. Some control the entire food production process, from growing plants to food processing and product packaging. These agribusinesses are often criticized by worker advocacy and environmental groups, who sometimes argue that the companies force smaller farms out of business or cause environmental damage.
Some of the largest agribusiness companies produce many different types of goods, such as livestock and things like corn and wheat. Depending on the size of the company, the activities may also be split between several smaller farms. Each of these may appear to the outside observer to be a small, possibly family-owned company, and typically go by different names despite being owned and operated by the same parent company.
Niche markets
Corporations don’t have to be massive or far-reaching to participate in the agribusiness sector, and some are legitimately small operations. Most of these focus on regional supply and demand and often produce only one or two types of food. Some of the largest companies are national or even international in scope, while smaller operations are more likely to be strictly regional.
Seafood businesses are often considered businesses that have a more niche business and can be both large and small. Some specialize in supplying certain markets with things like fresh crab and lobster, or they may be engaged in creating canned tuna or sardines. This type of company generally has its own fishing vessels to harvest the fish and its own processing plant where the catch is processed and packaged.
Machinery manufacturers
Agricultural machinery manufacturers are also in the agribusiness sector. These companies can produce any type of equipment that could be used in the agricultural process. This can include products such as tractors or equipment used in slaughterhouses. Some of these companies are extremely profitable and maintain the market edge when it comes to supplying certain things. Their main focus is sales and in most cases they are not actually engaged in using the equipment.
Packing and processing
It is also essential that the food is packaged, and there are companies that focus precisely on this aspect of the production process. Some companies may lease part of their business to another similar business in order to increase profits. Examples of this include companies that rent packaging facilities to outside groups. This often means that smaller companies can have their foods packaged and processed in the larger facility, sometimes using cans or other packaging materials used or designed by the company.
Personnel specialists
Other agribusinesses may specialize in staffing. This means that they focus solely or almost exclusively on finding skilled workers, such as field laborers or manufacturing and processing plant employees. Many of these companies also hire farm managers to oversee operations, while some companies provide management and consulting services themselves. The leaders of these types of companies often come from a hands-on agricultural background which gives them a lot of experience when it comes to knowing what these types of operations need, but they can also just be human resource savvy.
AGROCHEMICAL
A number of chemical companies that create fertilizers and pesticides for conglomerate farms can also be classified in the agribusiness sector. Large farms often have different needs when it comes to chemicals than smaller farms and often contract directly with manufacturers to supply more or less “made to order” stuff. Researchers at these types of companies sometimes work directly with farm owners and managers to create chemicals designed specifically for certain uses. The widespread use of chemicals in commercial farms has raised many concerns among both environmentalists and human health lobbyists, but the efficiencies provided by these types of products make them highly attractive to farm owners.
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