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The
Agribusiness Industry: Challenges and Opportunities in the 21st Century
Surendra
P. Singh
Cooperative
Agricultural Research Program
Seminar Series
Tennessee State University, Nashville, TN
November 6, 2002
The
term ‘agribusiness’ includes (1) businesses that provide inputs and
services to agricultural producers, (2) the agricultural producers, (3)
businesses that market and process commodities from producers of food
and fiber products, and at the other end of the chain, (4) consumers.
The role of agribusiness in agricultural economy continues to grow,
providing 16 percent of gross national product and employment for17
percent of the labor force. During the past two decades the agribusiness
sector has undergone overwhelming changes that have affected every phase
of the industry. This has forced changes in how businesses perform. But
where there is change there is opportunity as well. The paper presents
facts and issues to briefly describe changing face of American
agriculture, evolution of agribusiness industry and forces responsible
for continuing and rapid changes. In the end the presentation points out
challenges and opportunities in the context of preparing workforce for
teaching, research and the private sector to maintain competitiveness in
the global market.
The
dramatic changes and opportunities created by new technologies, the
ascendancy of environmental and nutritional awareness among consumers
and agricultural producers, demography and diversity of population, and
the influence of globalization, and agricultural trade and support
policies are having significant effect on the way all facets of the
industry conduct business. New technologies may create totally new
industries and destroy traditional ones. As a result of globalization of
agriculture, many nations that were once the United States’ best
customers have become fierce competitors, aggressively marketing their
commodities and farm supplies on an international scale. Instant
communication and new trading techniques have created complex but highly
effective international trade relationships, and international trading
companies and multinational supply firms have become major factors in
nearly every market. As new firms, new products, and new services
emerge, old ones will pass away. Product differentiation and management
intensity will demand new talents from agribusinesses. The ability of
the industry to respond to these changes and challenges will depend on
the knowledge, managerial expertise, leadership ability, and creativity
of its workers. We must avoid the temptation to rely on the old and
familiar and focus instead on preparing for what lies ahead. We must
envision and grasp the opportunities. In this context, colleges and
universities must make their curriculum relevant and attract more and
better students into the agriculture field, if the United States is to
remain competitive in the global agricultural market place.
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