What is Agribusiness and Why it is Important

In Nigeria, agribusiness operations need adequate planning, production management, and marketing, beyond those of conventional farming systems. To properly manage an agribusiness, it is imperative to be acquainted with what constitutes an agribusiness.

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Perspectives on the Concept of Agribusiness

Many authors provide different perspectives on the definition of agribusiness. Some of these perspectives are restricted. For instance, Ezike et al. (2009) defined agribusiness as the process by which corporate business organizations supply inputs or purchase farm outputs and process them for eventual distribution.

Other definitions, however, are more far-reaching. David and Goldberg (1987), for example, in their definition, perceived agribusiness as the sum total of all operations involved in the production of enterprises on the farm, the manufacturing and distribution of farm supplies, and the equalization as well as dispersion services (such as storage, processing, standardization, grading, pricking, transportation, and distribution) of farm products.

This last definition covers all aspects of agriculture in which a business idea may subsist and is more accommodating than other definitions. However, it does not touch on the output transformation aspect.

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An Encompassing Definition of Agribusiness

Agribusiness describes all economic activities that involve the distribution and transformation of raw materials from the agricultural and non-agricultural sectors, whose final products could be used for agricultural purposes and agro-allied enterprises.

Agricultural business refers to a set of farm business and management activities that involve the production of food and the provision of agricultural products within and outside a country. Agricultural business also embodies wood and plant production, as well as all other forestry activities, including fisheries.

Agribusiness can be operated at formal and non-formal levels, depending on the desired goals of its originator. The characteristic of this economic sector in Nigeria is fast-changing, especially with the current move towards more certification in some of the component fields of agriculture.

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Frequently Asked Questions

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