What Is the Agribusiness Industry?

An agricultural enterprise refers to a profitable economic organization that obtains products through production, operations, such as planting, breeding, gathering, fishing and hunting. There are broad and narrow senses. The former includes enterprises engaged in production and operation activities such as crop cultivation, forestry, animal husbandry, fishery, and sideline operations; the latter refers only to plantation, or to enterprises engaged in crop cultivation. China's agricultural enterprises at this stage are mainly state-owned farms and collective-owned agriculture. State-owned farms take the ownership of the whole people as the main body and have various economic forms. Internally, according to the principle of adapting to local conditions and voluntarily and mutually benefiting, state-owned, collective management, or individual family or employee management, or joint management. ^[1]

Agribusiness

An agricultural enterprise refers to a profitable economic organization that obtains products through production, operations, such as planting, breeding, gathering, fishing and hunting. There are broad and narrow senses. The former includes enterprises engaged in production and operation activities such as crop cultivation, forestry, animal husbandry, fishery, and sideline operations; the latter refers only to plantation, or to enterprises engaged in crop cultivation. China's agricultural enterprises at this stage are mainly state-owned farms and collective-owned agriculture. State-owned farms take the ownership of the whole people as the main body and have various economic forms. Internally, according to the principle of adapting to local conditions and voluntarily and mutually benefiting, state-owned, collective management, or individual family or employee management, or joint management. ^[1]

Agricultural enterprises have achieved greater development in terms of agricultural productivity and commodity economy. Capitalism

(1) Divided according to the nature of ownership:

1. State-owned agricultural enterprises

2. Collective-owned enterprises

3. Joint-stock enterprises

4. Associates

5.Private enterprises

6.Sino-foreign joint ventures

7. Sino-foreign cooperative enterprises.

(2) According to different business contents:

1. Crop planting enterprises

2. Forestry enterprises

3. Animal husbandry enterprises

4. Sideline enterprises

5. Fishery enterprises

6. A joint enterprise with close integration of production, processing and sales. ^[2]

1. Land is important for agricultural production

Agribusiness and SMEs

Agricultural enterprises are not all SMEs, and financing problems for SMEs cannot represent agricultural enterprises. First of all, SME financing can only be achieved through capital investment and bank borrowing. The large agricultural enterprises can meet the financing requirements by issuing stocks and bonds, and can be listed for trading.