Agribusiness Transformation In Improving Production Efficiency And Farmers' Income In Developing Countries

Abstract

This study aims to explore how agribusiness transformation can improve production efficiency and increase farmers’ income in developing countries. The research addresses the pressing need for sustainable agricultural development amidst rapid technological, institutional, and market dynamics, particularly in low- and middle-income regions. The study employs a qualitative research approach using a systematic literature review methodology. A total of 42 peer-reviewed journal articles, institutional reports (e.g., FAO, IFAD, World Bank), and case studies published between 2019 and 2024 were analyzed. The selection focused on evidence-based practices, outcomes of digital agriculture adoption, and agribusiness models in Africa, Asia, and Latin America. Key findings reveal that the adoption of digital technologies—such as precision agriculture, IoT-based irrigation, drone surveillance, and mobile advisory services—has led to 20–35% yield improvements and 15–25% input cost reduction. Agribusiness models incorporating contract farming, digital marketplaces, and farmer cooperatives showed an 18–40% increase in farm-gate prices and up to 60% growth in household income. Institutional factors like land tenure reform and government-private sector collaboration played a crucial role in scaling innovations. This study contributes original insights by synthesizing multi-regional evidence on agribusiness transformation and presenting a comprehensive framework that integrates digital innovation, institutional support, and inclusive value chain development. It highlights the strategic link between agribusiness modernization and rural economic empowerment, offering policy-oriented recommendations that align with the UN SDGs, especially Goals 1 (No Poverty) and 2 (Zero Hunger).