Friday, August 29, 2014

The Financial Transformation of Agribusiness and Food Supply



What you find on the plate at your favorite restaurant is only the final step in the massive global food supply chain. While there are still some mom and pop farms that deliver fresh products directly to stores and restaurants, the reality of the food industry is that it has become an enormous, corporate business. Agribusiness has transformed from an individual-based system to one owned and controlled by investors and shareholders.

Part of what this means is that the system of food production and delivery, from tomatoes to steaks to hot pockets, is dedicated to profits and the bottom line. Depending on your point of view, this could be either a good or bad thing.

A focus on profits means that money triumphs people, with jobs being lost and farms being shut down. It also means that men and women in business suits in New York, London, or Dubai are more likely to be making decisions about what goes on your plate than your local farmer does.

Investors are the ones who drive any corporation, and it is no different with the agribusiness conglomerates. But that isn't necessarily bad, as that means that regular people can make money off these companies, and even off the price of corn or wheat, through investing on options sites such as ExcellenceBroker.com.


Furthermore, the positive effects of the agribusiness transformation may far outweigh the negative effects. The influx of investment money and business know-how has led to better business practices, increased workplace safety, and even better, more nutritious food products. While there will always be local farmer's markets, most of what you end up eating at restaurants or at home is the product of big agribusiness, so get used to it.

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