AGRI BUSINESS MANAGEMENT

Definition
All the activities concerned with agriculture
including farming. Management, financing,
processing, marketing, growing of seeds and nursery
stocks, manufacturing of all agri inputs, processing
industry, transportation etc
Unlike earlier as subsistence level when farmers
being self contained functionally consumption and
production at farmers level
Functions includes - supply, production,
transportation, storage, processing, marketing
Sum total of all activities involved in production to
marketing

Meaning Activity refers to production, processing and marketing of farm

products.
It covers farm input suppliers, farmers, traders, processors,
retailers and also institutions like govt. agencies, cooperatives,
financial institutions etc
Management is the art and science which deals with organizing
and operating series of activities which culminates in to a
coordinated productive whole output.
Agribusiness management is interdisciplinary as it requires
not only the specific concepts and techniques of professional
management but also support of agro-economics, development
approach etc
Agribusiness is the sum total of all operations involved in the
manufacture and distribution of farm input supplies,
production activity on the farm, and the storage, processing,
selling and distribution of farm commodities and products
made from them.
It also encompasses the entire sector like fishery, animal
husbandry, and forestry.

Features of agri business1-Depends on climates and uncontrollable factors

2-Highly seasonal
3-large time gaps field preparation to sowing to
final produce and its marketing
4- Perish-ability
5-Variability
6- production only as per agro climatic zones and
consumption all over
7-millions of small ,large producers
8-needs , cleaning processing before consumption
9-Bulky
10- no control of farmers unlike industrial

Agro is different from mfd products mainly

because special characteristics related to supply
and demand (feature of agro sector), however in
detail major differences r1-perishability,
2-seasonality of production,
3-bulkiness,
4-large variations in quality,
5-irregular supply,
6-small size of holdings and scattered production,
7-processing-,
8-unorganised mkts

Constraints ,
1- perish ability varies from few hrs to few months-solutionprocessing, but can't b made non-perishable,
2-irregularity in supply makes prices fluctuate during the year
and also Y 2 Y, solution-green houses, multi zones farming,
cold storages,
3-seasonality-harvest time warehousing,
4-bulki nature makes transport ,handling and storage
expensive so restricted to locations close to consumption
centers.
5-quality variations makes grading and standardization more
difficult, solution-use of mechanized process,
6- small holdings-uneconomical to produce commercially and
make it viable for marketing- solution-contract /cooperative
farming ,organized SCM,
7-farm products to b made food products before consumption
resulting increase in prices to C, solution-large scale
processing industries.
8-Unorganised-O.R. a solution