The agricultural industry plays a huge role all over the world. After all, it provides people with food, industry - with raw materials, provides a significant number of jobs and is a source of currency.
Agricultural products are the main source of food for humans and raw materials for industry. Food, its production, distribution, exchange and consumption is a significant component of the life of the world system. The food market is controlled by the internal politics of all countries, since it is a determining criterion for the state of the economy and the stability of society. Therefore, agriculture as an industry occupies a special place in the world economy and politics.
Industry specifics
Agriculture as an industry has its own specifics. The distinguishing feature is that the land is used as the main means of production. This is both the base for the location of the economy, and the resource itself, where the fertility of the land is of great importance. Agricultural production is often dependent on natural conditions. Therefore, it is impossible to say in advance what, for example, the wheat harvest will be. Various unfavorable natural conditions make the agricultural sector risky.
It should also be noted such a specific feature of agriculture as the seasonality of the agricultural sector. Due to this, a huge part of the equipment and labor force is out of work for a considerable time.
Plants and animals are used in agriculture as a means of production, and this makes it necessary to take into account the natural laws of nature. This implies a temporary stretch. In addition, one should not forget about spatial extension, because agricultural production is carried out on large areas.
Agro-industrial complex
In the process of functioning, agriculture naturally integrates with the sectors serving it, as a result of which an agro-industrial complex (AIC) appears. The agro-industrial complex consists of 4 sectors: branches directly serving agriculture (mechanical engineering, chemical, etc.); plant growing and animal husbandry; industries for processing, storage, transportation and marketing of products (food industry, warehousing, trade, etc.); organizations that ensure the normal functioning of the agro-industrial complex (investment companies, intermediaries, road enterprises, etc.).
The exclusive role of the agricultural industry
The role of agriculture as an industry is exceptional. There are well-grounded explanations for this: the need for food throughout the world; the need for raw materials for the industrial sector; the agricultural industry is a supplier of labor and money for other sectors of the economy; agriculture is a source of currency.
