What Are the Different Types of Agribusiness Companies?
In general, the term agribusiness is used to refer to privately held companies involved in food production. The scope of such a business can range from managing and owning farms where food is grown to producing farm machinery, seed supplying, and food processing, packaging or marketing. Since this type of company may incorporate many different areas, these businesses are often associated with corporate farming.
Corporate farms differ from small, private farms, which may grow food for their own use or for sale at a local market or to suppliers. Agribusiness companies generally employ modern business strategies with the aim of earning a profit on their goods. Some may control the entire food production process, from growing plants to food processing and packaging goods. These agribusiness companies are often criticized by worker advocacy and environmental groups, which may believe the businesses cause smaller farms to go out of business or cause environmental damage.
Some of the bigger agribusiness companies produce many different types of goods, such as livestock and agricultural products. For example, a company can sell different kinds of vegetables, which it grows on its own private farms. These foods may then be processed and packed in a plant that is run by the corporation.
Farm machinery producers are also agribusiness companies. These firms may manufacture any type of equipment that could be used in the agricultural process. This can include products such as tractors or equipment that is used in slaughterhouses.
Other agribusinesses companies may specialize in providing personnel. This means that they can find qualified workers, such as field laborers or production and processing plant employees. Many of these businesses also hire farm managers to supervise operations, while some firms provide management services and consultation.
The term agribusiness may also be used to refer to firms that deal exclusively in seafood. For example, some agribusiness companies specialize in providing the market with canned tuna or sardines. These generally have their own fishing vessels to harvest fish and their own processing plant where the catch is processed and packaged.
Some types of these companies may lease out part of their business to another business in order to increase profits. Examples of this include agribusinesses that rent packaging plant facilities to an outside company. This may mean that smaller companies can have their food packed and processed at the larger agribusiness' plant, sometimes using cans or other packaging materials that are used, or have been designed, by the corporation.
Written by Klaus Strasser
