Вы находитесь на странице: 1из 29

1

AGRIBUSINESS
MANAGEMENT
27-Sep-18 Dr.V.Sakthirama, Dept. of ARM, CARDS
AGRIBUSINESS MANAGEMENT
2

 Agriculture
 Business
 Management
Agriculture

 Art of cultivating various categories of crops


including animal husbandry, forestry, fishery and
other related activities.
Business
4

 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 enterprise


Management ?
5

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 Management


AGRIBUSINESS
7

 Agribusiness as a concept was born in Harvard


University in 1957.

 Book : A Conception of Agribusiness

 Authors: John H. Davis & R.Goldberg.


Traditional agriculture & Technological revolution
TR

Retailing
Technological revolution F Wholesaling
disperses production and TR Processing
marketing functions Transportation
Production
Farm supply

TR

F
Production Traditional agriculture is characterised
by functionally self-contained farms
Marketing

8
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.

9
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.

10
Agribusiness sector
Agribusiness Industrial sector
= Agri +
Industry with Ag

Agricultural sector

11
The Agribusiness System

Processing-
Agriculture Production Manufactoring
Input Sector Sector Sector

Agribusiness System

Note: the success of each part depends upon the proper functioning
of the other two!
Agri-business involves three sectors

 Input sector: It deals with the supply of inputs required by the


farmers for raising crops, livestock and other allied enterprises.
• Eg: seeds, fertilizers, chemicals, machinery and fuel.

 Farm sector: It aims at producing crops, livestock and other


products.

 Product sector: It deals with various aspects like storage,


processing and marketing the finished products so as to meet the
dynamic needs of consumers.
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 resources
Agricultural commodities
Facilitative services

14
AGRIBUSINESS
 Productive resources
Seed,
Fertilizer
Pesticides,
Equipment & machinery
Energy,
Feed, etc.

15
AGRIBUSINESS
16

 Agricultural commodities
Raw & processed commodities of food

Eg. Paddy

Rice, Ricebran & Ricebran oil


AGRIBUSINESS
17

 Facilitative services
Credit & insurance,
Storage, processing & marketing,
Transportation,
Packing & distribution,
Consultancy
Important Features of Agribusiness
18

 Agribusiness in a multifaceted point of view, has a


complex vertical structure, largely dependent and
partly independent.
 Successful decision making at firm level is the
basis for development in future.
 Viability of the an industry is traceable to the
viability of the firms.
 Agribusiness is market oriented
Distinctive Features of Agri-business
Management

• Management varies from business to business depending on the


kind and type of business.
• It varies from basic producer to brokers, wholesalers,
processors, packagers, manufacturers, storage proprietors,
transporters, retailers etc.,
• Agri-business is very large and evolved to handle the
products through various marketing channels from
producers to consumers.
Cont..

 There is large variation in the size of agri-business; some are


very large, while many other are one person or one family
organization.
 The production of Agri-business is seasonal and depends
on farm production. They deal with vagaries of nature.
 There is direct impact of govt. programmes on the
production and performance of Agribusiness.
Importance of Agri-business

• It deals with agricultural sector and also with the portion


of industrial sector, which is the major source of farm
inputs like fertilizers, pesticides, machines, processing and
post harvest technologies

• It suggests and directs the government and private sectors


for development of sub sectors

• It contributes a good part of the national economy


CONSUMERS

RETAILERS

Gov’t officers
WHOLESALERS
Managers
Educators
Researchers
PROCESSORS

FARMERS

FARM SUPPLIERS

vertical structure & coordinators of agribusiness


22
Major areas of Agribusiness
23

 Farm supplies
 Production
 Processing
 Marketing
 Research & Extension
 Govt. Policies & Programmes
Scope for Agribusiness in India
24

 India is endowed with varied agro-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
 In World trade, India has vast potential
Cereals, pulses, oilseeds,
Fruits, vegetables, flower, medicinal plants, Meat,
and milk products,
Agricultural advisory services

25
…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

26
…contd
 Beekeeping and apiary

 Mushroom production for domestic consumption


and export

 Organic farming

27
…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

28
…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.

29

Оценить