Agriculture and Industry

Agriculture and industry are interrelated subjects that have a great impact on society. Agriculture is the art, science and practice of growing plants and animals for consumption. Agriculture was instrumental in the development of urbanized sedentary society, through which farming of domestic animals made possible the foundation of townships. Agriculture has had a profound effect on world markets, giving rise to the phenomenon of globalisation. The immense scope of agriculture has given it an eminent place in the social structure of nations.

Agriculture has been the principal driver behind economic growth in almost all advanced countries. Agriculture has been the primary provider of employment, both in rural and in urban areas. Agriculture has become one of the most lucrative branches in all the education curriculums. Agriculture has been instrumental in shaping the modern economy of countries like Australia, China, India, Pakistan, Taiwan, South Africa, USA, and Thailand. Agriculture is now one of the fastest growing sectors in the world.

Agriculture and industry combine to provide employment to millions of people. Agriculture directly employs people and indirectly uses raw materials like water, fuel, wood and sunlight to produce farm products. Agriculture produces agricultural, forestry and fishing products. In developed countries, agriculture contributes to more employment than any other sector, besides manufacturing, commercial & service activities, and waste management.

Agriculture has two sectors: retail or primary production, and food processing and distribution. Agriculture provides crops for consumption; cattle for milk, meat and processed animal products; fruits and vegetables for the direct consumption and indirectly for the industrial, institutional, and consumer goods industries. The primary production of agriculture is vegetables and fruits. Meat and dairy products are produced in large quantities, as animal protein and dairy are essential elements in the diet. Oftentimes, food processing and distribution are considered ancillary activities of agriculture.

Agriculture and industry have a hand in industrial development. Agriculture is a major driver behind industrial developments. Agriculture helps to improve soil quality, produce food, increase productivity, reduce labor cost, and promote the economic well-being of the nation. Agriculture helps in industrialization by creating new business opportunities. With the advent of information technology and sophisticated techniques, the tasks related to agricultural production have become much easier and effective. The rise in urbanization, enhanced transportation and communication facilities, and liberalization policies have made agriculture much more competitive in international markets.

Agriculture is an important but relatively minor component of the economy of many developing countries. It provides employment and income to the people, but overall, it does not contribute to the overall economic development of the nation. Agriculture is one of the sectors which has the potential to drive the economy of a country towards greater heights of prosperity. Agriculture contributes approximately 0.7 percent to the Gross Domestic Product (GDP) of a country. Therefore, if a country has adequate agricultural production, its per capita income would increase correspondingly.

Agriculture is a productive but non-profitable sector of the economy. Agriculture is a market-oriented service sector, which is generally characterized by inter-related stages of growth, propagation, harvest and utilization. Agriculture is one of the sectors which are not inter-related and if one stage of the process is disrupted, the rest would also not be affected. This implies that, despite the fact that the agricultural production may not be high, if the other stages of the process are also not at their optimum state of performance, then the effect would not be felt.

Agriculture and industry co-exist with one another, but they are inter-related in the sense that agriculture has a direct impact on the economic growth of the nation. Agriculture has been one of the drivers of the economic growth in the nation. There are multiple drivers of agricultural production and these include climate, land management, infrastructure, fertilizers, pesticides, inputs, and market orientation. Agriculture is an essential part of the economic base, but it has not always been so. As agricultural productivity rises, it helps to boost the industrial sectors and therefore, the gross domestic product (GDP) of the nation will increase.