Why Agribusiness is Always Needed
By Hazel Antiporta
Agriculture is a fundamental part of the world’s economy and accounts for over 26.5% of jobs worldwide, according to the world bank’s statistics in 2019. According to the Food and Agriculture Organization (FAO), small-scale producers account for more than 70% of the food production needed to feed the world.
However, with an increased population resulting in higher demand for food, and adverse changes in climatic conditions, the question of food security cannot be overlooked.
And with necessity being the mother of invention, there has been a need to develop policies and systems to champion food security and sustainability, and agribusiness is one of them.
So, what is agribusiness?
Agribusiness is the art of integrating business with agriculture. It includes carrying out activities such as producing farm products, processing them to add value, and distributing them through various defined market channels.
What is the importance of agribusiness?
Employment Opportunity
It is the chief source of employment and income for people living in rural areas, particularly in developing and third-world countries. This, in turn, promotes better living standards as the households get liquidity to help them have dignified lives.
Curbing post-harvest losses
Agribusiness also helps in minimizing post-harvest losses. When proper value addition is done at the processing stage, the products will get prolonged shelf life. This will, in turn, help the producers get more revenue as opposed to selling raw products.
It leads to a bigger harvest
Agribusiness focuses more on modern farming, which is entwined with digital farming. This involves consultations with experts and soil testing to determine the best farming practices, among other things.
It is, however, not limited to niche farming, as is a common trend. Through combined and concentrated efforts, farmers can thus reap bumper harvests.
Security in agriculture?
What is security in agriculture?
Agrosecurity (also known as On-farm security) addresses the intended and unintended introductions of disease pathogens to a farm, along with other security threats: Unauthorized individuals near or around livestock or facilities.
How does agricultural practice impact food security?
Unsustainable agricultural practices may also lead to direct environmental feed-backs, such as soil erosion and loss of pollinators (because of excessive pesticide application). Nutrient loading (mainly by phosphorus and nitrogen) is a significant and increasing cause of biodiversity loss and ecosystem dysfunction.
Does food insecurity affect national security?
Absolutely. Food insecurity can lead to the collapse of social trust, the devastation of local/international economies, displacement, and worsening conditions for refugees. See the war in Ukraine. Russia’s invasion of Ukraine on February 24 led to a de-facto blockade of the Black Sea, resulting in Ukraine’s exports dropping to one-sixth of their pre-war level. Both Kyiv and Moscow are among the largest exporters of grain in the world, and the blockade has caused grain prices to rise dramatically. Russia and Ukraine account for nearly a third of global wheat supplies. However, Ukrainian grain shipments from its Black Sea ports have stalled since Russia invaded, with some 20 million tonnes of grain stuck in Ukraine. The war and Western sanctions against Russia have sent the prices of grain, cooking oil, fertilizer and energy soaring. Besides, COVID-19-related food shortages and economic distress have generated social unrest.
Does agriculture lead to food security?
The livelihoods of most food-insecure households worldwide are still largely based on agricultural activities. Growth in the agricultural sector has a much greater effect on food security than growth in any other sector.
What are some factors affecting food security?
Several factors can affect food security, including population increase; climate change; urbanization and globalization; land use shifts and water availability; income growth and nutritional trends; and tendencies in global energy supply and food trading (Von Braun, 2007; Premanandh, 2011).
What are some causes of food security?
Food security largely depends upon three factors: availability, stability and accessibility of food supplies. To achieve national food security, a country must be able to grow sufficient food or have enough foreign exchange to enable it to import food. In Lebanon, where there is economic collapse, nearly 70% of the population lives in poverty with grave food insecurity.
What is the impact on food security?
Food insecurity is often rooted in poverty, and access to nutritious food is fundamental to human existence. Securing access to food can produce wide-ranging positive impacts, including Economic growth, job creation, and a healthier and more productive society.
Why is agriculture important in food security?
Agricultural development is critically important to improving food security and nutrition. Its roles include: increasing the quantity and diversity of food, driving economic transformation, and providing the primary source of income for many of the world’s poorest people.
Why is it important to invest in agriculture?
Growth in agriculture — from farm to fork — is at least twice as effective in reducing poverty as growth in other sectors. Investing in these smallholder farmers—many of whom are women (and immigrants)—and in the markets around them is more important than ever.
Easier access to funds
Being a focal point of sustainable development goals, sustainable agriculture attracts a lot of financiers, such as non-governmental organizations, governments, and other financial institutions.
These organizations offer packages such as training farmers in new farming practices and technology, farm inputs, and consultancy services.
Suppose you are in the food production industry or thinking about venturing into agribusiness. In that case, you must know that having good financial backing is one of the key factors to your success. That is why having a listening and caring partner like SZC for financial needs and advice is essential though our priority is for growing business.
How we help your agribusiness
At SZC, we have dedicated team members who are committed to helping you grow your business, acquire new ones and, in some cases, divest entities. By this, we create a partnership that helps us to walk with you every step of the way. We secure the best terms based on your unique needs:
- to grow
- Acquire new businesses
- Divest entities and more
If you are uncertain of how to start, we assist you by providing consulting services.
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