The business sector encompassing farming and related commercial activities.
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Agribusiness refers to the entire commercial sector encompassing farming and the industries that support, supply, process, and distribute agricultural products. The term was coined in 1957 by Harvard economists John H. Davis and Ray A. Goldberg in their book 'A Concept of Agribusiness,' which defined it as the sum total of all operations involved in the manufacture and distribution of farm supplies, production on the farm, and the storage, processing, and distribution of farm commodities and their byproducts. The concept recognises that modern food production is not confined to farms but involves seed and chemical companies, machinery manufacturers, financiers, transporters, processors, wholesalers, retailers, and marketers. In developed economies, agribusiness giants such as Cargill, Archer-Daniels-Midland, Bayer, and John Deere operate across multiple stages of the value chain. Critics argue that consolidation in agribusiness has reduced farmer bargaining power, narrowed seed diversity, and contributed to environmental externalities, while proponents emphasise efficiency gains, food security, and technological innovation. The field is studied through agricultural economics and is increasingly shaped by global trade agreements, sustainability standards, and supply-chain digitisation.
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