1. Agribusiness, Commodity Chains & Technology
Miss McDonald Unit V

2. Agribusiness: Any business related to commercial agriculture – but generally involved with the production processing and distribution of agricultural products.

3. Commodity Chain: The process used to gather resources, transform them into goods (commodities), & distribute them to consumers. This process is often globalized, connecting many places of production/distribution and the products is often sold on the world market.

4. The POULTRY & PORK Commodity Chains

5. Green Revolution ( Review )
**Began partially due to Malthus’ Theory of population growth
Crop Modification
Genetically modified seeds & selective breeding
Resistant to chemicals/pesticides
Higher yield per plant
Technology Developments
Irrigation practices
Mechanization (using machines to process food)
Feed/water animals
Process seeds meats
“assembly line”
Fertilizer
Pesticides

6. Green Revolution in Meat commodity chains

7. Green Revolution in King Corn

8. Who Benefitted the most?
Mexico
India
2-4 times greater yield
Shorter growing season
Increased farming incomes
Fewer hungry people
Local infrastructure has been upgraded (roads, taxes, politics, etc)
Increased employment in farm- support/related industries

11. Government Agriculture Subsidies
What is a “Subsidy”?
Money granted from the government, to an industry to control prices or production on the market
What is a “Direct Subsidy”:
Money payed directly to the farmer with a few key elements…
Government sets a “target price” (what the product should be worth)
Farmer produces product and sells at market price (usually below target price)
Government pays the price difference in the form of a direct subsidy

12. Problems With Subsidies
Iraqi case study
Saddam Hussein’s government subsidized Iraqi farmers
Seeds
Fertilizer
Chemicals
Below-market prices
No incentive to produce quality grain
Gummed up flour mills
U.S. continued subsidy but
Fed Iraqi grain to animals
Or burned it
More product = more government money…which leads to a suplus (extra) & lower market prices
The more food a farmer produces, the more the government subsidizes his operation.
Interferes with globalized trade
Reduces imports
Leads to more competition in export markets
Potentially reduces crop quality

13. A 1992 UN report found that even in countries where food intake had risen, diseases associated with vitamin &mineral deficiencies had increased.
linked to consumption of Green Revolution crops, which can be low in vitamins & minerals.
High amounts of fertilizers and pesticides are needed to maximize production. This is very costly
New varieties require more weed control & fertilizers
Income gap is widening
Middle & high-income farmers have benefited more
low-income farmers- struggle with affording 3rd agricultural revolution products/technologies
Mechanization of farming has increased rural unemployment (directly farm-based)
Some new varieties have inferior taste & nutrients
Concerns!

14. Conditions needed for commercial Ag. & Green rev. Success
Financially stable (available credit/banks)
Political stability
Middle class, independent farmers (with desire for growth)
Market economy (competition)
Effective transportation systems
Cultural acceptance of modified crops/technology
Education

15. Conditions that may limit success of commercial Ag. & Green rev.
Increased costs of products
GMO Seeds
Herbicides
Fertilizers
Decline in Soil Quality
Water Pollution/Decline
Drought
Aquifers
Availability of funds (bank loans)
Climactic factors
Erosion, desertification, etc.