Agribusiness is any practice related to food production, from the farm to the market to the consumer

The enclosure movement changed farming in England during the 18th century by consolidating the many small farms into fewer large farms

Carl Sauer mapped the agriculture origins (or hearths) of domestic plants and animals. He identified Central America, northwest South America, western Africa, and Southeast Asia as the primary hearths of domestication

The Fertile Crescent is one of the regions where sedentary farming first started. Sedentary farming led to the development of cities and cultures

Chronologically, pastoralism, which arose in the Neolithic period, most closely followed hunting and gathering

Early crop rotation systems were mentioned in ancient Roman literature Early crop rotation systems were mentioned in ancient Roman literature. George Washington Carver helped popularize the use of peanuts in crop rotation in the United States. Most crop rotation systems involve planting three or four crops in an area in succession to preserve yields and nutrient levels.

The four-field crop rotation system was a key to the 18th-century British Agricultural Revolution. One of the benefits of crop rotation is that the need for artificial fertilizers is reduced by the planting of complementary crops

Feedlots, in which large numbers of animals are raised in a small area, are an example of intensive cultivation

The lack of synthetic pesticides on organic farms produces more diverse ecosystems than can be found on conventional farms

The Green Revolution was able to increase crop yields and food production in many locations throughout the world, but its impact on the environment, geopolitics, and the world economy has yet to be fully understood

The British Agricultural Revolution displaced a number of agricultural workers as a result of enclosure and mechanization, which led to a ready labor force for the growing factory system during the Industrial Revolution

The British Agricultural Revolution also featured the invention of mechanical farm implements like Jethro Tull’s seed drill, the development of four-field crop rotation, an enclosure movement for livestock, and the use of technology and advancements from other areas of Europe and America

Intensive cultivation at the subsistence level is practiced in many area of high population density, particularly in Asia

There is ample evidence that fruit trees were grown alongside cereal crops from the Neolithic era, just as agriculture was beginning. Evidence for domestication of the founder crops of agriculture has been dated to about 9500 BCE in the Fertile Crescent.

Agriculture grew up in many areas of the world between 9500 BCE and about 7000 BCE. By the Bronze Age, agriculture was being practiced on a fairly large scale in many parts of the world. Early animal domestication arose at nearly the same time as the earliest evidence of plant domestication

Transhumance is the seasonal movement of livestock for grazing, usually from summer pastures at higher elevation to winter pastures at lower elevation

The First Agricultural Revolution is known as the Neolithic Revolution and represents the transition from hunting and gathering to the farming of domesticated plants. The domestication of plants and animals allowed permanent settlements to form in place of nomadic groups. Sedentary societies led to more complex economies and allowed the development of arts, sciences, and culture

The Second Agricultural Revolution occurred between 1750 and 1900 in the developed world. New machinery, such as Eli Whitney’s cotton gin, helped farmers work more land with the same amount of labor. Food production increased as a result. New crop rotations were implemented to produce better yields, and new plant hybrids were developed based on breeding experiments. As transportation improved, crops and other goods were more easily transported to markets before spoiling. As a result of the increase in machinery on the farms, more people left the farms to work in urban areas that needed factory workers

The Third Agricultural Revolution represents modern commercial agriculture starting around the 1960s. Primary, secondary, and tertiary farming activities blended during the Third Revolution. Mechanization also increased, as well as the development of biotechnologies to increase crop yields. The Green Revolution, an example of new biotechnology, developed high-yielding seeds that require synthetic fertilizers and pesticides. New biotechnology has resulted in increased food yields but also impacted traditional and social and economic systems as well as the environment

Some factors leading to desertification are overuse of water, thereby reducing water tables and draining aquifers; salinization of soils; erosion of topsoil through floods or natural disasters; tree blight, such as oak wilt disease, changing river systems due to human consumption of water; overuse of cropland, leaving it sterile and susceptible to insect infestation and drought conditions brought on by changing global weather patterns, such as El Niño

Salinization begins when salts and chemicals from fertilizers and factory wastes build up in the soil, gradually causing it to become sterile and leading to desertification

Soil conservation can preserve and actually renew the viability of cropland. This in turn can support the animals who feed on the crops, leading to increased production of food sources, not only for humans but for all the creatures in the food web. When soils are healthy and not overused, they can sustain crops that could not grow in poorer soils, thereby leading to sustainable agriculture

Genetically engineered crops can benefit humans by increasing production of such staples as corn, soybeans, and orange juice and by decreasing the amount of produce lost to bacteria and insects

Possible drawbacks to genetic modification of food crops unforeseen effects on wildlife who feed on the crops, possible alienation of pollinator insects like bees and butterflies (bee colony collapse may be due in part to ignorance of the effects of modifying genetic codes), and destruction of said food crops because the balance of nature is out of sync, and nature cannot rebound against human manipulations on the genetic level

The future of biotechnology in relation to food crops is uncertain The future of biotechnology in relation to food crops is uncertain. While genetic engineering is widely in place already, a backlash has begun to take hold in the consciences of many people. Farmers can benefit from robust crops for a few years, then begin to see production fall off because of ecological changes caused by the manipulations they espoused. Genetically modified plants may be resistant to some blights, only to be struck down by new predators let in by the vacuum created. There is no doubt that humans will continue to manipulate gene coding. However, organic farming is gaining in popularity as a result of increased awareness among consumers of the uncertain effects of genetic modification

All of the regions listed except northern Africa were engaged in heavy industry following the Industrial Revolution

Mining is a resource-based economic activity

Most, but not all, export-processing zones are located in underdeveloped regions of developing nations. Mexico’s system of maquiladoras on the United States-Mexico border is an example of export-processing zones

When companies engaged in heavy industry began to move operations to locations with lower production costs, Great Britain experienced deindustrialization

Rostow’s stages of development assume that all countries will eventually pass through each of the five stages of economic development in a linear manner

South Africa is not included in the periphery

The Rust Belt is an industrial area that runs through the northeastern United States, dipping down into the Mid-Atlantic states and part of the Midwest, Buffalo, Detroit, and Cleveland are located in the Rust Belt

Maquiladoras are towns in Mexico where U. S Maquiladoras are towns in Mexico where U.S. companies have factories, taking advantage of lower production costs. These towns are located close to the United States-Mexico border

The demographic transition model represents the transition of a country from high birth and death rates as the country moves through stages of economic development. China’s one-child policy has greatly slowed the birth rate, so China is far ahead of other newly industrialized countries in terms of demographic transition

Tourism brings cash into a country when individuals from foreign countries come in and spend money on goods and services within the country

Fifth-world countries are characterized by a lack of a formal government. Somalia is an example of a fifth-world country

Offshore financial centers, such as those located in the Bahamas and Switzerland, are designed to promote business interactions and offer lower taxes and tariffs. This is attractive to companies and individuals who deal in large sums of money

Gentrification is the process of wealthy people moving into formerly poor neighborhoods, renovating the areas, and making them more modern

Second-world countries like Cuba are characterized by a hard-line Communist government

The Development Stage Developing countries characterized by a high degree of subsistence production Agricultural sector is paramount and important While industrialization does not insure development it does have some healthy implications It implies: technology application It implies: raising productivity per worker It implies: releasing labor for other tasks But all sectors must move forward and some balance is desirable Primary-that part of the economy that specializes in the production of agricultural products and the extraction of raw materials. Major industries include mining, agriculture, forestry, and fishing

Industrialization As A Panacea? Industrialization is not a panacea or cure all but it does carry with it some important attributes 1. Employment for deepening labor market 2. Allows improvement in standard and quality of living 3. Improves balance of payments 4. Provides certain element of national prestige

Industrial Sectors Primary-that part of the economy that specializes in the production of agricultural products and the extraction of raw materials. Major industries include mining, agriculture, forestry, and fishing. Secondary: manufacturing portion of the economy that uses raw materials and intermediate products. Industries include: motor vehicle assembly, textiles, and building and construction activities. Tertiary sector- the services and commerce portion of an economy. Includes both consumer (individuals) and producer (firms) services. Repair of capital goods (e.g. ships), haircuts, medical care, and transport (e.g. taxis and air cargo—consumer and producer respectively. Quaternary- that portion of a region's economy devoted to informational and idea-generating activities (e.g., basic research, universities and colleges, and news media) and includes the production, processing, and consumption of information. Quinary activities involve high level decision making or control functions that manipulate the vast resources of private businesses and governments.

Comparing Industry versus Agriculture Farmer has little control over his environment: pests, drought Agricultural production is generally slower and product cannot be quality controlled as in manufacturing Agricultural commodities are susceptible to wide price swings in the global market Relative inelasticity of demand for agricultural products, i.e. if prices fall more purchases are not assured Technology has had a much greater impact on industry than agriculture Increased specialization of labor in manufacturing results in higher productivity Therefore manufacturing offers a stronger base for raising the level

Nature of Industry in Development Heavy industry- large scale production of capital goods: iron, steel, machine tools, car production, ship building Location determined by access to and availability of raw materials Requires well developed transport infrastructure and power supply Heavy capital investment High proportion of relatively skilled workers Large scale to achieve economies of scale

Nature of Industry in Development Light industries- generally refer to consumer goods: paints, tools, etc Relies on semi-processed as opposed to raw materials Less energy per laborer required Less complex machinery and lower capital investment – operations in simpler buildings Scale of operations more suited to small, limited markets

Progression of Industry as Development Matures Processing of low value, locally available materials or resources Examples: vegetable oil and sugar milling, pineapple and fish canning, jute and cotton spinning, timber, pulp Processing materials previously exported as raw to increase earnings from export of finished products Example: rubber Industries which produce goods for agricultural sector: tools, insecticides, pesticides Manufacturing of cheap consumer goods: cigarettes, soft drinks, sauces, batteries, bicycles, food products Industries using local skills and traditions: rattan and textile (batik)

Strategies for Industry Import Substitution Industry (ISI)- produce locally more goods previously imported Manufacturing done behind high tariff walls or quota policies Too often results in production of non-essential consumer goods for a limited segment of the urban market ignoring rural areas Contributes little to a diversified and significant export structure since investments are absorbed by inefficient production firms Usually discouraged in structural adjustment programs (SAPs)

Structural Adjustment Programs Used to describe generically the activities of the World Bank and International Monetary Fund in packages of policy reform Central aims of these programs are to: Reduce debt that has accumulated Introduce policy and institutional change necessary to modify structure of economy Move from agrarian dominance to industrialization Instruments: currency devaluation, monetary discipline, reduction of pubic spending, trade liberalization, privatization of public enterprises, wage restraints, subsidy removal, institutional reform-especially financial

Principal Instruments of Structural Adjustment Currency devaluation-encourage trade Monetary discipline- interest rate control Reduction of public spending- lower expenses on “grandiose” projects Price reforms- price commodities to sell and reward producers Trade liberalization- remove tariff barriers to ease flows of trade Reduction and/or removal of subsidies- especially gasoline Privatization of public enterprises- sell SOEs to private firms Wage restraints- control wage levels Institutional reforms- improve credit and especially banking sector

Cottage and Small Scale Industries: Textile, Batik and Handicrafts

Cottage and Small Scale Industries Often outside scope of modern manufacturing organization Carried on in rural areas, family and local labor which is unskilled- full or part time Batik- complex, low productivity per worker absence of power-often high import content (higher quality cotton) But provide a good for export markets Provide employment opportunities for largely illiterate workforce Too often unimaginative design, crude workmanship, tend to withdraw into areas where few alternative opportunities

Strategies for Industry Export Oriented Industry (EOI) State is producing goods for export and engaged in trade as a means of expanding national revenues Protection is decreased while diversified exports, often with subsidies, are promoted through an aggressive trade policy Increasing demanded under SAPs so manufacturing becomes secure

Constraints on Industrializing Progress Legacy of colonial rule when industry was suppressed Deficient infrastructure especially transport Capital shortage to invest in new opportunities Low educational levels Lack of entrepreneurial skills Limited size of market Corruption, weak legal system and lack of transparency reduces appeal of foreign investors