On entering the twenty-first century, the world agricultural and food syste
m is undergoing remarkable change. For agribusiness to engage successfully
in this emerging system, an understanding of the drivers of this change is
essential. Agricultural production and processing are resource-intensive. H
ence, societal desires for enhanced environmental quality, often through go
vernment regulations, constitute a key driver of change. A second key drive
r is the industrialization of agriculture as farming shifts from a rural li
festyle to an agribusiness sector with a supply chain mentality. Third, fir
ms that can effectively ' link ' the food chain and add value will benefit
economically. Historically, farmers produced bulk commodities, but increasi
ngly the market is demanding differentiated, specific-attribute products. B
iotechnology is accelerating this trend. Also, agriculture is becoming incr
easingly knowledge-intensive with the evolution of site-specific and inform
ation-based decision systems. Ultimately, consumer food demand and global m
arkets will determine the demand for products from livestock and crop produ
ction systems.