Agribusiness Development

Agribusiness denotes the collective business activities that are performed from farm to fork. It covers the supply of agricultural inputs, the production and transformation of agricultural products and their distribution to final consumers. As an economic sector, agribusiness is one of the main generators of employment and income worldwide.

Managing agribusiness firms is challenging. It is characterized by raw materials that are mostly perishable, variable in quality and not regularly available. The sector tends to be subject to stringent regulatory controls on consumer safety, product quality and environmental protection. In addition, agribusiness is facing unprecedented changes in its business environment, fuelled by developments in technology, urbanization, consumer preferences and the globalization of markets. Traditional production and distribution methods are being replaced by more closely coordinated and better planned linkages between agribusiness firms, farmers, retailers and others in the supply chains.

In this changing environment, agribusiness managers must not only possess the traditional management skills in areas such as operations, finance and marketing, but they must also understand the peculiar nature of their business, anticipate the changes in their unique business environment and master the tools and techniques to cope with them. There is an increased understanding that production-support activities must be linked to market demand and that farm-level activities must be looked at within the context of the whole value chain and the linkages within that chain.

These are the central issues addressed by FAO's Agribusiness Management Programme, with a strong emphasis on capacity building and human resources development at different levels. The program produces training materials, in particular for small farmers and managers of agro-processing enterprises who need technical and managerial training: comprehensive of stronger capacity for business planning. It also advises on policies and strategies to improve agribusiness competitiveness, including fostering better coordination and linkages among business partners.