Why is there a trend towards agribusiness?

When a farm is run like a large industrial business, they are known as an agribusiness. They are large-scale, money-intensive commercial activities. This has led to the size of farms increasing significantly by:

• increasing field sizes
• removing hedgerows
• increased mechanisation (more machinery)
• combining small family farms
• using hi-tech solutions, improved seeds and greater use of pesticides and fertilisers

Crop Irrigation using large-scale technology

Many large agribusinesses now own processing factories, transport and shops where the product is sold. This is known as ‘farm to fork’. Supermarkets and food-processing companies buy crops before they are even planted.

Agribusiness has harmed the environment through the increased use of chemical fertilisers and pesticides. Also, as farms have become more mechanised, agricultural employment has declined as fewer people are needed to work on farms. Also, smaller family farms struggle to compete with large farms.

Agribusiness faces risks every growing season. Numerous influences can shape profits, from the weather to insect infestations to unexpected livestock death from disease. Simple climate changes, like having too much rain, can create risk.

The positives of agribusiness include food security and lower consumer prices as overheads are lower. Research and development in modern agricultural practices, including the use of technology, is providing jobs to skilled workers.