3 Categories of Agribusiness Explained
Agribusiness is a trillion-dollar industry that employs millions of people across the globe. But what exactly makes this vast industry? If you’re interested in entering agribusiness there are many avenues to do so and it can become hard to decide.
Here are three main categories of agribusiness explained to consider.
Crop production is the cultivation of crops for commercial purposes. It involves the use of land, labor, and capital to produce crops such as wheat, corn, soybeans, groundnuts, jute, maize, and rice.
There are many things needed to start a crop production business.
For example, you need land on which to grow your crops with the acres depending on the type of crop you want to grow and the scale of operations. Next, you’ll need labor to plant, tend, and harvest your crops. While you can depend entirely on human labor for this purpose, it’s more efficient and sometimes even cheaper to supplement this with smart farming technology for things like irrigation. Also, you’ll definitely need capital to finance operations. You can finance your operation through loans, grants, or private investment.
Common in countries with large expanses of grassland pastoral farming is the raising of livestock for commercial purposes.
There are many things needed to start a pastoral farming business.
For example, a piece of land where you can graze your animals. Then, you’ll need to purchase the animals themselves. Some farmers focus on raising cattle for beef and dairy products(milk, butter, cheese) while others prefer raising sheep for wool. There are also farmers who raise both cattle and sheep, as well as chickens, pigs, goats, etc. Pastoral farming can be a very profitable business but keep in mind that this type of farming requires a lot of hard work. Farmers must be able to care for their animals properly and ensure that they have enough food and water.
Aquaculture is the farming of aquatic animals or plants, usually in enclosed bodies of water. The three main types of aquaculture environments are freshwater, marine water, and brackish water. There are many things needed to start an aquaculture business.
For example, a body of water – man-made or natural, that supports the growth of your chosen aquatic species. You’ll also need the necessary permits from state and local authorities. Then, although you can hire people for it, having personal knowledge about the biology and husbandry of the species you’re hoping to farm will be beneficial.
Keep in mind that an aquaculture business can be capital intensive so you’ll also need financing. In conclusion, these are only three of many categories in the agribusiness industry. Each type of agribusiness requires different knowledge, resources, and permissions. But all three offer the opportunity to produce food and other products for sale in the agricultural marketplace.