Top 3 common misconceptions about the agribusiness industry

agribusiness misconceptions and traditional market

Agribusiness, also called agribiz or agricorps, is the business of agricultural production. Agribusiness is responsible for many economic aspects of food production, including seed and fertilizers, pesticides and herbicides, livestock feed, processing plants, and machinery used to harvest grain crops. Agribusiness can be considered a subset of the "business industry" that deals with food and fiber products produced by agriculture. Agribusiness is a big business, especially in some Southeast Asia countries, such as Indonesia, Vietnam, Cambodia. To illustrate, Indonesia has become one of the nation's biggest agricultural producers and exporters, providing vital commodities such as palm oil, natural rubber, cocoa, coffee, rice, and spices to the rest of the world. Reports say in 2020, Indonesia's Gross Domestic Product (GDP) from plantation crops reached 560 trillion Indonesian rupiahs. Indeed, the agribusiness sector has been rapid, and its prospects look bright. 


Agribusiness misconceptions

Nonetheless, as a prospective business, agribusiness leads to many interpretations. Without a doubt, people have misconceptions about agribusiness. Few people think of agribusiness as simply cultivation in the field, boating in the sea, or domesticating livestock. Some of them are aware that it is an organization that takes part in the growing and processing before advertising them to consumers. However, most of them believe that it is only for large corporations. Let's analyze three common misconceptions about the agribusiness industry to dive in.


# 1 Agribusiness is old fashion and left behind

People, especially the young generation, see agriculture or farming as boring. They see it as just plowing land, planting, watering, and cropping. They might think that farming is old-fashioned and low technology because they only see a tractor, disinfectant sprayer, etc. Compared with another job that involves sophisticated technology. After reading this article, you will be surprised that agribusiness is more modern than you think in this era. Industry 4.0 has changed. You will find mapping and spraying on the plantation or land is much easier. One of the technologies that can better assist you is remote sensing and GIS application. 


Remote sensing and GIS application 

The technology of measuring the earth using sensors on airplanes or satellites is known as remote sensing. These sensors gather photographs and offer core competencies for manipulating, analyzing, and visualizing those pictures. Meanwhile, GIS (Geographic Information System) is a computer-based tool for mapping and monitoring highlight activities on earth. Remote sensing and GIS are merged and have evolved into a powerful tools for mapping the natural environment at the macro and micro levels. Today, this advanced technology improves the innovative farming method to support efficient, sustainable, and profitable crop production. And so, it can improve yield, increase profits, cost-saving, reduce crop failure with accurate data analysis, and human resources tackle limitation solutions. 


You can find the application of remote sensing and GIS technology on a drone. Drone images can capture visual information with a high spatial resolution of the input graphical images. It is beneficial for micro-level agricultural analysis for crop loss due to hailstorms, horticulture tree counting, epidemics, and many other applications. Farmers and businesses have improved their decision-making capabilities for planning their crop production by using data generated from remote sensors and detectors assembled directly on farm machinery. Soil matter content, pH, moisture, and nutrient levels aid in proper preparation for precise farming.


In smart farming, remote drone sensing also plays an essential role in overcoming pest infestation. It monitors chlorosis, yellowing of leaves, pest points. That is what the Avirtech Aviro D16 drone does. It is equipped with a gimbal spraying nozzle and an extension rod for spraying, making it easier to reach pest points on trees that are not visible or accessible to humans. When the sensor detects a pest point, the drone will splash pesticide liquid rapidly and effectively. 


#2 Agribusiness won't make you be a rich guy

Agribusiness is unique, yet it has a few fans, especially the Z generation. The misconceptions about the agribusiness industry make this generation think that this is not a long-term business and can't be beneficial. It is somewhat different from other businesses that can profit quickly and more income. Don't be surprised if you can buy a luxury vehicle from this business. Here are some successful local farmer stories. 


Local Indonesian farmer

Bernadus is a farmer who lives in a small Bijaepasu village, East Nusa Tenggara, Indonesia. He and his wife planted vegetables such as eggplant and chili. At that time, they only sell the harvest to their neighbor. The profit is enough for their daily needs. Later on, they spread out the business after borrowing a loan. They started planting various vegetables and sold them in other villages to gain more customers. As a result, they can earn 400.000 Indonesian Rupiah or 28.19 USD per day. 


Indian king's banana farmer 

Vinod is now well known as a king banana farmer after successfully producing 430 varieties from India and throughout the world for over 30 years. He retired as a Web Designer, decided to be a farmer, and took care of his father. In 2015, Vinod got ICAR-National Research Centre for Banana's Best Farmer Award for his hard work. He markets his various type of bananas in the wholesale market, and he earns up to 1 Lakh India Rupees or 1326.35 USD per month. 


Assuring future with the precision agriculture business 

A couple from Ohio, Lora, and Dave decided to buy a 500-acre farm more than 25 years ago and built it from the ground up. It is to pursue their passion for farming. Over the years, this family produces corn, soybeans, wheat, and alfalfa and raises various livestock. They adopt technology and precision agriculture to keep their children in love and enjoy farming and operational survival. As a result of their work, they receive 25.000 USD from an agriculture leader equipment. 


#3 Agribusiness is only planting vegetables and fruits

Most people believe that agricultural production is solely concerned with crop cultivation. But that is incorrect. Agribusiness is so giant that it is impossible to be involved in every aspect. Planting crops, trees, shrubs, herbs, animal rearing or livestock, and so on are all examples. Are you interested in agribusiness, but you don't know where to start? Check these some profitable agribusiness ideas here. 


To conclude, agribusiness brings advantages if you find and develop the opportunity. You can join the local and global farmer or agribusiness discussion to broaden and share your knowledge about agriculture. 

Posted by : Nuhayati

Published At : 26/12/2021 22:15:59


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Nice info!

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