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2001) note that industrialization of agro-processing not only creates a new (and often enhanced) stream of waste, but also distributes this waste away from the point of raw material production to other locations. The scope for the utilization of waste changes over time and can be context-specific. For example, new technologies and markets can evolve that enable waste materials to be used productively. The recent development of biofuel technologies and new ways in which materials can be transformed for use as animal feed provide good examples.

Out-grower schemes) or new entrants (either from within the country or multinationals). It is often the case that expanded scale of operation brings about the adoption of new technologies, organizational forms and management approaches, which can carry with them positive environmental effects. These positive effects can be offset, however, by the degradation of the natural resource base and the production of environmental externalities that prevailing control capacities are unable to manage. More broadly, it is important to recognize that the impacts of processes of agro-industrialization as a whole reflect interconnected processes of change at various levels of agro-industry from production through to distribution.

Thus, accompanying processes of agro-industrialization is the emergence of providers of managerial and other business services. , 2000). In other cases non-governmental organizations provide such services, acting as an implicit subsidy supporting processes of agro-industrialization, for example, by acting as an ‘honest broker’ in establishing supply relations between agroprocessing enterprises and primary producers. Development of the agro-industrial sector and related changes in the structure and conduct of markets for food and non-food products can induce considerable changes in vertical relations along supply chains, most notably with primary producers.