Agro-allied industries also called Agrobased industries are industries which depend on agriculture for their raw materials in order to operate successfully.
In other words, agro-based industries require the supply of agricultural raw materials in order to provide some finished products that are essential for human and animal consumption.
SUMMARY OF AGRO-BASED INDUSTRIES AND RAW MATERIALS USED IN EACH INDUSTRY
RELATIONSHIP BETWEEN AGRICULTURE AND INDUSTRIES
There is a positive and wide range of relationships between agriculture and industries. These relationships include the following:
- Provision of Market: Agriculture provides market for industrial products such as farm machinery, chemicals and fertilizer.
- Provision of Food: Agriculture also provides food for industrial workers.
- Provision of Raw Materials: Agriculture provides raw materials such as cocoa, cotton, palm produce and groundnut for industries.
- Shifting of Factors of Production: Agricultural development allows for a shift of factors of production like land, labour and capital to industry.
- Competition for Labour: Both agriculture and industry compete for labour.
- Development of Industrial Sector: Rise in agricultural income due to efficient and economic factor combination brings about development of industrial sector of the economy.
- Provision of Essential Goods: Industries provide a large range of desirable goods that farmers want to buy.
- Provision of Agro-chemicals: Industries produce agro-chemicals for agricultural uses. Examples are: pesticides, fertilizers, vaccines and herbicides.
- Provision of Storage Facilities: Industries provide storage facilities for agricultural produce, e.g. milk, fruit, vegetables, meat, fish, etc.
- Provision of Processing Facilities: Industries also provide processing facilities such as grinders, millers, etc for agriculture.
- Provision of Agricultural Tools and Machinery: Industries produce machinery and equipment for agricultural uses. Examples include tractors, ploughs, cutlasses and hoes.