ABSTRACT
The majority of larger agribusinesses uses agricultural commodities as inputs and produces either or both of consumer products or products for further processing. A large agribusiness will of course have a whole number of different bank debts, of different maturities and probably with a range of different financial institutions, so any estimate of the cost of bank debt will always be an approximation. Economies of scale dominate major segments of the global agribusiness industry, in particular trading and supermarkets, but also some areas of production. The global soybean economy is shaped by a relatively small number of countries and international business conglomerates, although the market remains highly competitive despite high levels of market concentration, and expected consolidation. The creation of premium and consumer-facing products still gives a business some additional pricing power from vertical integration and brand recognition. The Compass Group focuses predominantly on food service in businesses and school.
