Agri Business HSAMB

AGRI-BUSINESS MANAGERHARYANA STATE AGRICULTURAL MARKETING BOARD

PANCHKULAE-mail:[email protected]

AGRIBUSINESS MANAGEMENT Agriculture Business Management

Agriculture Art of cultivating various categories of crops including animal husbandry, forestry, fishery and other related activities.Business

An economic unit , Aims to sell goods and services to customers , At prices that will provide an adequate return to its owners, Commercialization of any enterpriseManagement ? A set of activities(planning & decision making,

organizing, leading / directing & controlling) directed at an organization’s resources (human, financial, physical, and information) with the aim of achieving organizational goals in an efficient and effective manner.



Management Henri Fayol : Father of Modern

Management

F.W.Taylor : Father of Scientific ManagementAGRIBUSINESS

Agribusiness as a concept was born in Harvard

University in 1957.

Book : A Conception of Agribusiness

Authors: John H. Davis & R.Goldberg.

AGRIBUSINESS

Agribusiness is the sum total of all operations involved in the manufacture and

distribution of farm supplies; production activities on the farm; and the storage, processing and distribution of farm

commodities and items made from them.



AGRIBUSINESS

Agribusiness encompasses all of the agricultural sector and that portion of the industrial sector which contains the sources of farm supplies or the processors of farm products.



Agribusiness sector Industrial sectorAgribusiness = Agri +Industry with Ag

Agricultural sector



AGRIBUSINESS Agribusiness is defined as all business

enterprises that buy from or sell to farmers.

Transaction may involve either an input or a produce or service and Encompasses items such as:

Productive resourcesAgricultural commoditiesFacilitative services



AGRIBUSINESS Productive resources

Seed, Fertilizer Pesticides, Equipment & machineryEnergy, Feed, etc.



AGRIBUSINESS

Agricultural commodities Raw & processed commodities of food

Eg. Paddy

Rice, Ricebran & Ricebran oil



AGRIBUSINESS Facilitative services

Credit & insurance, Storage, processing & marketing, Transportation, Packing & distribution, Consultancy



Important Features of Agribusiness

Agribusiness is a multifaceted point of view, complex vertical structure, largely depend and partly independent.

Successful decision making at firm level is the basis for development in future.

Viability of the an industry is traceable to theviability of the firms.

Agribusiness is market oriented



CONSUMERS

RETAILERS

WHOLESALERS

PROCESSORS

FARMERS

FARM SUPPLIERS

Gov’t officersManagersEducatorsResearchers

vertical structure & coordinators of agribusiness



Viability of the firms

Depends on Ability of the decision makers

Behaviour of the structure itself



Major areas of Agribusiness Farm supplies Production Processing Marketing Research & Extension Govt. Policies & Programmes



Scope for Agribusiness in India India is endowed with varied ago-climate (Facilitates production of temperate, sub- tropical and tropical agricultural

commodities) Growing demand for agricultural inputs (Feed and fodder, inorganic fertilizers, bio- fertilizers) Biotechnology applications

(Production of seed, bio-control agents, industrial harnessing of microbes for bakery products)



…contd Biotechnology applications

(Production of seed, bio-control agents, industrial

harnessing of microbes for bakery products)

In World trade, India has vast potential Cereals, pulses, oilseeds,

Fruits, vegetables, flower, medicinal plants, Meat, and milk products, Agricultural advisory services



…contd Scope for secondary and tertiary

processing of agricultural commodities.

Scope for production of marine and inland fish and ornamental fish culture.

Scope for production of meat, milk and milk products, poultry products etc



…contd Beekeeping and apiary

Mushroom production for domestic consumption and export

Organic farming



…contd Production and promotion of bio-

pesticides and bio-control agents

Seeds-hybrid and genetically modified crops

Micro-irrigation systems and labor saving farm equipments



…contd Production of vegetables and flowers

(Export market)

Trained human resources in agriculture and allied sciences

Opportunities for employment in marketing, credit, insurance and logistic support services.





Small BusinessesImportanceContributes 7% of the GDP. 32.25 lakhs small-scale industrial units / businessesEmployment generation 177.30 lakh persons. Output of this sector is around Rs.5,78,470 crores. Export amounted to Rs.53, 975 crores. Contribute 40 % of gross turnover in

manufacturing sector, 45% of the manufacturing exports and 35% of the

total exports.



Small Businesses

Involves in Production Distribution Retailing Franchising Professional services Financial services

22



Objectives ServiceProfitCommunity participationGrowthSubsidiaries



Characteristics Characterized by smallnessInvolves lesser capitalMostly one man ventureThey are highly diversified

wide range of productsWide dispersal geographically



TypesSmall Scale Industry (SSI) Ancillary IndustryTiny EnterprisesExport Oriented UnitsWomen EnterprisesVillage &Small Scale Industries



Advantages Less capital outlay but more employment

generation Does not require sophisticated technology Facilitates decentralization and dispersal of

business units They offer a wide range of choices to

consumers Can serve specialized needs Utilizes the resources in full without

wastage



Disadvantages Inadequate management ability Inadequate finance Poor competitive position Uncertain business continuity



Stages of Growth First Stage – Owner managed Second Stage – Early Growth Third Stage – Middle management Fourth Stage – Multilayer Stage



First Stage

One person operation Owner does all the activities

Director-Founder- operated

Owner - Manager - Worker



Second stageSeparation of management and non-management functions

Hired subordinates to do some of the manual and / or

mental activities while owner manages the business

Early Growth Owner- Manager

Workers



Third stageSeparation of ownership and management functions Owner begins to relinquish the responsibilities for the day-to-day running of the business activities to a professional manager.

One Layer Middle Management

Owner

Manager (s)

Worker (s)



Fourth StageMulti-layer management

Chairman

Managing Director

Manager Marketing

Manger Finance

Manager Production





Agribusiness Opportunities

India in World Agriculture

Item India’s position in world

% share Rank Next to Total area 2.5 7th Russia, Canada,

USA, China, Brazil and Australia

Agrl. Population 23 2nd China

Arable land 11.9 2nd USA



India in World Agriculture (Contd)

Item India’s position in world

(Production)% share Rank Next to

Wheat 11.7 2nd China Rice 22.3 2nd China Total pulses 21.2 1st Fruits & Vegetables

9.7 2nd China

Total milk 14.4 1st



Agriculture Scenario in India

Details 1990 2010Per capita food availability(Kg / person / year)

198.00 159.87

Per capita availability land (Ha)

0.50 0.14

Agrl.growth rate (%)

3.8 2.0



7.5 lakhs ha of Agrl. land diverted to other uses every year.

Cost of inputs increased >50 times but farm produce price increased <10 times only.

40% of farmers want to take up other occupation if given a chance.



Productivity of Crops (Kg/Ha)

Crops India World % yield obtaine

dRice 1913 3970 48.19Wheat 2770 4123 67.18Maize 1792 4279 41.88Cotton 198 1027 19.28Groundnut 977 1367 71.47Sugarcane

(t)68 165 41.21

Banana (t) 34 113 30.09



Demand of Horticultural Crops

Commodity

Supply (MT) Demand (MT)

2003-2004 2011-12 2020-2021

Fruits 44.04 81 98Vegetables 87.53 185 220Spices 2.91 5.5 6.5

Total (All) 146.82 300 360



04/28/23 40



Agribusiness Refers to the various businesses involved

in food production, including farming, seed supply, agrichemicals, farm machinery, wholesale and distribution, processing, marketing, and retail sales.



Agribusiness - Objectives Commercialization of Agriculture Increase productivity Use of modern technologies Reducing cost of production Value addition Export agriculture Higher farm income





Quality Seed / Planting Material Production and Marketing Quality Input Production Food Grain Marketing and Export Grain based alcohol, malted foods, starch glucose Pulse and Oilseeds Post harvest and Processing Organic Farming

Agro based Industry Vermicomposting Quality Certification Farm Mechanization

Agriculture



Horticulture Contract Farming

Organic Farming

Quality Seed / Planting Material Production

Juices and concentrates

Micro & mass propagation of planting material

Off-Season Vegetable Production

Commercial Flower Production Tissue culture



Silkworm Rearing Technology

Silk Yarn Production Value addition &

export Handloom & Textile /

Garment Designing

Sericulture



Livestock Dairy Processing and Chilling

Meat Processing

Broiler and Egg Production and marketing

Livestock Feed

Livestock vaccine / drug production /

diagnosis / clinics

Whole and Skimmed milk powder

(WMP & SMP)



Integrated and Intensive Fish Farming Carp Hatchery Ornamental Fish Fish Feed Frozen and canned products

Fishery



Processing Fruit and vegetable processing, including

dehydration, canning, packaging, processing of fruits.

Processing of maize for starch and feed through improved mini/small mills and dry milling plants.

Processing of millets for various purposes and RTE (Ready to Eat) products.

Processing of sugarcane for various jaggery products like spiced jaggery, powdered jaggery, and jaggery cubes.

Processing of herbal and medicinal plants.



Establishing cold storage and warehousing

Increasing number of Agri clinics

Commodity markets

Infrastructures



Agribusiness Organizations in India

Domestic Agribusiness Firms Britannia India LtdDabur India Indian Tobacco CorporationMaricoMother DairyReliance



Foreign Agribusiness Firms

Cadbury Ltd Monsanto Cargill Coco Cola Hindustan Lever Ltd Pepsi Co



Better Agribusiness-Needs Co-operative farming (AMUL) Contract farming (ITC) Precision farming (Dharmapuri / Krishnagiri) Farm Mechanisation Domestic and export market information centers Crop federations / Growers organizations. Credit delivery at lower interest rates. Establishment of agri export zones and Markets Establishment of agro based industries and modern cold

storage, ware houses Export management through E-commerces / E-trading





Features of Agribusiness

How agribusiness differs from other business There are variations in the kinds of

business in agribusiness sector : basic producers, wholesalers, transporters, processors, manufacturers storage firms, packagers, food chains, retailers etc.,



Large number of agribusinesses : Large number of different businesses are evolved to handle the routes from the producer to retailers.

Agribusinesses are built around several millions of farm producers.



No other business is built principally around the basic producer of its raw product as agribusiness and these businesses deal with farmers directly or indirectly.

Agribusinesses vary in their sizes right from one person or one family organisation to large giants like Reliance fresh, PepsiCo , Amul and Heritage etc.,



Agribusiness firms are small and compete in a relatively free market in which there are many sellers and many buyers and these firms do not allow monopoly like enterprises in the industry.

Product differentiation is common because of the brand and composition of the products.



Agribusiness are traditional oriented and are more conservative , when compared to other businesses.

Most of the agribusiness are community oriented in the sense most of them are located in small towns and rural areas where relationships are important and associations are long term .

People know each other’s families for a several generations.



Agribusinesses are highly seasonal in their nature due to the fact that they depend on farm production.

These businesses are affected by vagaries (unpredictable change) of nature.

Natural calamities like drought, floods, insects and pests and diseases are constant threats to agribusiness.



Agribusiness is vertically structured. The Government programmes and policies

have direct impact on agribusiness.

Each of these features of the agribusiness world requires the agribusiness managers use the principles of management in a very special way.



Therefore Agribusiness is very unique and requires unique abilities and skills to its managers.



Thank you

Agri-Business Manager

Documents

Agri Business HSAMB