• The daily requirements of food and fiber products at desired place at required form and time come from the activities such as input supplies, farm and food production and marketing of the products. This entire system in brief is called agribusiness.
• Agribusiness provides crucial backward and forward linkages.

(Backward linkage—supply of inputs, credit, production technologies and farm services etc.)

(Forward linkage—storage, processing, transportation and marketing of farm products and items made from them)

• Agribusiness promotion leads to the strengthening of industrial facilities in certain area, expansion of credit, raw materials, supply agencies, adoption of modern technology in production and marketing of agricultural products.
• It adds value to the product and thereby increases net profits.
• It generates potential employment opportunities.
• It contributes significant part of national economy as in developing and least developed nations.
• Agribusiness focuses on commercialization, diversification, economies of scale, optimum utilization of resources, minimum wastage etc.
• It focuses on creation of utility ( form, place, time, possession)
• Agribusiness is related demand driven business approach focusing on market aspects of products.