Agribusiness - What is it?

[andy87]

Hey all,
ive been hearing a lot about 'agribusiness' going to be a big mover like the tech stocks in the 90's bla bla bla. Id like to know what it acutally is and involves and whos involved. Im guessing CSL, AWB etc. are a part of these. Any propects for agrubusiness in the future?

 

[So_Cynical]

agribusiness is

Farming engaged in as a large-scale business operation embracing the production, processing, and distribution of agricultural products and the manufacture of farm machinery, equipment, and supplies.

http://www.answers.com/topic/agribusiness?cat=biz-fin

I doubt CSL is a agribusiness.

 

[Julia]

Agribusiness stocks became attractive to a wide market largely because of very advantageous tax deductions.

If you research the background to, e.g. Great Southern Plantations, you will get a good idea of the way this company (and other similar companies) function.

 

[wayneL]

Well I misread the title. I thought we were going to talk about puppets.

 

[So_Cynical]

Agribusiness stocks became attractive to a wide market largely because of very advantageous tax deductions.

If you research the background to, e.g. Great Southern Plantations, you will get a good idea of the way this company (and other similar companies) function.

Are plantation forestry investments considered an agribusiness?

I suppose there are a lot of crossovers with agribusiness.

 

[The Once-ler]

Are plantation forestry investments considered an agribusiness?
I suppose there are a lot of crossovers with agribusiness.

Plantation forestry investments aren't agribusiness.

I would say they're more financial services or fund management. These forestry businesses are more about making a tax loss for their dumb city investors. As no one will need a tax loss now for a while, it will be good to see these dodgy companies fold.

Agribusiness is difficult to invest into. Almost all farms in Australia are still owned by private people, mostly farmers. This is different to most other western nations where farms are more corporate owned. Agribusiness is also the companies who service the farmers. Fertilizer, grain handlers, milk companies, etc.

I think agribusiness in in for a good time for the next 100 years. Especially arable land. This time it's different.

 

[Julia]

OK. Happy to be corrected.

At the time I invested into Greath Southern it was described as agribusiness.