Abstract
On entering the twenty-first century, the world agricultural and food system is undergoing remarkable change. For agribusiness to engage successfully in this emerging system, an understanding of the drivers of this change is essential. Agricultural production and processing are resource-intensive. Hence, societal desires for enhanced environmental quality, often through government regulations, constitute a key driver of change. A second key driver is the industrialization of agriculture as farming shifts from a rural lifestyle to an agribusiness sector with a supply chain mentality. Third, firms that can effectively ‘link’ the food chain and add value will benefit economically. Historically, farmers produced bulk commodities, but increasingly the market is demanding differentiated, specific-attribute products. Biotechnology is accelerating this trend. Also, agriculture is becoming increasingly knowledgeintensive with the evolution of site-specific and information-based decision systems. Ultimately, consumer food demand and global markets will determine the demand for products from livestock and crop production systems.
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