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However, it does not terminate there. Inclusive are the product’s marketing aspect and its supply and retail channels (Bagwell, Kyle, and Staiger 112).
It will be appropriate then to term agribusiness a system. Since the system is a consolidation of various entities to form a working unit, similarly, agribusiness is a network of objects such as its input, processing, manufacturing, supply and retail entities. Currently, this sector is market-centered and is evolving on this basis. The consumer also wants to dictate the forces of demand and supply in this industry.
Agribusiness can be attributed to various traits that clearly distinguish it from family farming. A farm operated and owned by a family is a family farm. This is not the idea propagated by the concept o agribusiness. This brings us to the first characteristic of agribusiness that is the scale. The scale of agribusiness is large. This disqualifies it as a type of family farming that is most commonly than not small scale farming. The second trait is the considerable horizontal and vertical integration. This can be best explained by an instance where a company might own an industry that produces canned fish, along with a myriad of fish farms that produce the fish as well as an enterprise that provides employees. It may be even in possession of another company whose task is to supply and retail the finished products to the consumers (Bagwell, Kyle, and Staiger 112).
Of the consideration under the traits of agribusiness is how operations take place, is that Administrators are responsible for activities in an agribusiness who are preferable to having farmers running the organization. This clearly informs us that agribusiness is out to maximize profits like any other business. This gives it an extremely proficient system which is organized and streamlined which allows agribusiness to keep the costs of food low. This is achievable by minimizing the costs
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