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Biological Manufacturing And Industrialization Of Production Agriculture

Author

Listed:
  • Michael Boehlje
  • Allan Gray

    (Purdue University,Dept. of Agricultural Economics)

Abstract

Farming is in the midst of a major transformation—not only in technology and production practices, but also in size of business, resource control and operation, business model and linkages with buyers and suppliers. Both the livestock and grain sectors are changing from an industry dominated by family-based, small and modest size, relatively independent firms to one of generally larger businesses following an industrial business model that are more tightly aligned across the value chain. We describe some of the fundamental concepts and characteristics of biological manufacturing and then illustrate these characteristics with a brief description of three modern farming businesses. The characteristics include: attribute driven or differentiated products, a total systems and process control approach to production, a purchasing agent approach to sourcing inputs, more precise technology, sustainable closed loop systems, merger and acquisition growth strategies, and contracting and new business models.

Suggested Citation

  • Michael Boehlje & Allan Gray, 2009. "Biological Manufacturing And Industrialization Of Production Agriculture," Working Papers 09-12, Purdue University, College of Agriculture, Department of Agricultural Economics.
    • Handle: RePEc:pae:wpaper:09-12
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    File URL: http://ageconsearch.umn.edu/bitstream/54025/2/09-12.pdf
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    Citations

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    Cited by:

    1. Anna GERELES & László SZŐLLŐSI, 2020. "Strategic Management And Modern Corporate Principles In Ukrainian Integrated Agribusiness," CrossCultural Management Journal, Fundația Română pentru Inteligența Afacerii, Editorial Department, issue 1, pages 47-51, July.
    2. MacDonald, James M. & Korb, Penni & Hoppe, Robert A., 2013. "Farm Size and the Organization of U.S. Crop Farming," Economic Research Report 262221, United States Department of Agriculture, Economic Research Service.
    3. MacDonald, James M. & Hoppe, Robert A. & Newton, Doris, 2018. "Three Decades of Consolidation in U.S. Agriculture," Economic Information Bulletin 276247, United States Department of Agriculture, Economic Research Service.
    4. Petrick, Martin & Götz, Linde, 2019. "Herd growth, farm organisation and subsidies in the dairy sector of Russia and Kazakhstan," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 70(3), pages 789-811.

    More about this item

    Keywords

    biological manufacturing; closed loop systems; process control; precision technology.;
    All these keywords.

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

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