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The document discusses agribusiness and small businesses. It defines agribusiness as the sum of all operations involved in farm supplies production, storage, processing, distribution and items made from farm commodities. It includes agriculture, industry supplying farm inputs and processing farm outputs. Small businesses make important contributions to the Indian economy through employment, exports and manufacturing. They experience stages of growth from owner-managed to professional middle management. Both agribusiness and small businesses provide significant opportunities for economic development and employment in India.
The document discusses agribusiness and small businesses. It defines agribusiness as the sum of all operations involved in farm supplies production, storage, processing, distribution and items made from farm commodities. It includes agriculture, industry supplying farm inputs and processing farm outputs. Small businesses make important contributions to the Indian economy through employment, exports and manufacturing. They experience stages of growth from owner-managed to professional middle management. Both agribusiness and small businesses provide significant opportunities for economic development and employment in India.
The document discusses agribusiness and small businesses. It defines agribusiness as the sum of all operations involved in farm supplies production, storage, processing, distribution and items made from farm commodities. It includes agriculture, industry supplying farm inputs and processing farm outputs. Small businesses make important contributions to the Indian economy through employment, exports and manufacturing. They experience stages of growth from owner-managed to professional middle management. Both agribusiness and small businesses provide significant opportunities for economic development and employment in India.
PANCHKULA E-mail:hsambabm@gmail.com 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 enterprise Management ? A set of activities(planning & decision making, organizing, leading / directing & controlling) directed at an organizations resources (human, financial, physical, and information) with the aim of achieving organizational goals in an efficient and effective manner. AGRI-BUSINESS MANAGER HARYANA STATE AGRICULTURAL MARKETING BOARD PANCHKULA E-mail:hsambabm@gmail.com Management Henri Fayol : Father of Modern Management
F.W.Taylor : Father of Scientific Management AGRIBUSINESS 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. AGRI-BUSINESS MANAGER HARYANA STATE AGRICULTURAL MARKETING BOARD PANCHKULA E-mail:hsambabm@gmail.com 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. AGRI-BUSINESS MANAGER HARYANA STATE AGRICULTURAL MARKETING BOARD PANCHKULA E-mail:hsambabm@gmail.com Agribusiness sector Industrial sector Agribusiness = Agri + Industry with Ag Agricultural sector AGRI-BUSINESS MANAGER HARYANA STATE AGRICULTURAL MARKETING BOARD PANCHKULA E-mail:hsambabm@gmail.com 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
AGRI-BUSINESS MANAGER HARYANA STATE AGRICULTURAL MARKETING BOARD PANCHKULA E-mail:hsambabm@gmail.com AGRIBUSINESS Productive resources Seed, Fertilizer Pesticides, Equipment & machinery Energy, Feed, etc. AGRI-BUSINESS MANAGER HARYANA STATE AGRICULTURAL MARKETING BOARD PANCHKULA E-mail:hsambabm@gmail.com AGRIBUSINESS Agricultural commodities Raw & processed commodities of food
Eg. Paddy
Rice, Ricebran & Ricebran oil
AGRI-BUSINESS MANAGER HARYANA STATE AGRICULTURAL MARKETING BOARD PANCHKULA E-mail:hsambabm@gmail.com AGRIBUSINESS Facilitative services Credit & insurance, Storage, processing & marketing, Transportation, Packing & distribution, Consultancy AGRI-BUSINESS MANAGER HARYANA STATE AGRICULTURAL MARKETING BOARD PANCHKULA E-mail:hsambabm@gmail.com 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 the viability of the firms. Agribusiness is market oriented AGRI-BUSINESS MANAGER HARYANA STATE AGRICULTURAL MARKETING BOARD PANCHKULA E-mail:hsambabm@gmail.com CONSUMERS RETAILERS WHOLESALERS PROCESSORS FARMERS FARM SUPPLIERS Govt officers Managers Educators Researchers vertical structure & coordinators of agribusiness AGRI-BUSINESS MANAGER HARYANA STATE AGRICULTURAL MARKETING BOARD PANCHKULA E-mail:hsambabm@gmail.com Viability of the firms
Depends on Ability of the decision makers
Behaviour of the structure itself AGRI-BUSINESS MANAGER HARYANA STATE AGRICULTURAL MARKETING BOARD PANCHKULA E-mail:hsambabm@gmail.com Major areas of Agribusiness Farm supplies Production Processing Marketing Research & Extension Govt. Policies & Programmes
AGRI-BUSINESS MANAGER HARYANA STATE AGRICULTURAL MARKETING BOARD PANCHKULA E-mail:hsambabm@gmail.com 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) AGRI-BUSINESS MANAGER HARYANA STATE AGRICULTURAL MARKETING BOARD PANCHKULA E-mail:hsambabm@gmail.com 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 AGRI-BUSINESS MANAGER HARYANA STATE AGRICULTURAL MARKETING BOARD PANCHKULA E-mail:hsambabm@gmail.com 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 AGRI-BUSINESS MANAGER HARYANA STATE AGRICULTURAL MARKETING BOARD PANCHKULA E-mail:hsambabm@gmail.com contd Beekeeping and apiary
Mushroom production for domestic consumption and export
Organic farming
AGRI-BUSINESS MANAGER HARYANA STATE AGRICULTURAL MARKETING BOARD PANCHKULA E-mail:hsambabm@gmail.com 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
AGRI-BUSINESS MANAGER HARYANA STATE AGRICULTURAL MARKETING BOARD PANCHKULA E-mail:hsambabm@gmail.com 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. AGRI-BUSINESS MANAGER HARYANA STATE AGRICULTURAL MARKETING BOARD PANCHKULA E-mail:hsambabm@gmail.com AGRI-BUSINESS MANAGER HARYANA STATE AGRICULTURAL MARKETING BOARD PANCHKULA E-mail:hsambabm@gmail.com Small Businesses Importance Contributes 7% of the GDP. 32.25 lakhs small-scale industrial units / businesses Employment 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.
AGRI-BUSINESS MANAGER HARYANA STATE AGRICULTURAL MARKETING BOARD PANCHKULA E-mail:hsambabm@gmail.com Small Businesses
Involves in Production Distribution Retailing Franchising Professional services Financial services 22 AGRI-BUSINESS MANAGER HARYANA STATE AGRICULTURAL MARKETING BOARD PANCHKULA E-mail:hsambabm@gmail.com Objectives Service Profit Community participation Growth Subsidiaries AGRI-BUSINESS MANAGER HARYANA STATE AGRICULTURAL MARKETING BOARD PANCHKULA E-mail:hsambabm@gmail.com Characteristics Characterized by smallness Involves lesser capital Mostly one man venture They are highly diversified wide range of products Wide dispersal geographically
AGRI-BUSINESS MANAGER HARYANA STATE AGRICULTURAL MARKETING BOARD PANCHKULA E-mail:hsambabm@gmail.com Types Small Scale Industry (SSI) Ancillary Industry Tiny Enterprises Export Oriented Units Women Enterprises Village &Small Scale Industries AGRI-BUSINESS MANAGER HARYANA STATE AGRICULTURAL MARKETING BOARD PANCHKULA E-mail:hsambabm@gmail.com 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 AGRI-BUSINESS MANAGER HARYANA STATE AGRICULTURAL MARKETING BOARD PANCHKULA E-mail:hsambabm@gmail.com Disadvantages Inadequate management ability Inadequate finance Poor competitive position Uncertain business continuity
AGRI-BUSINESS MANAGER HARYANA STATE AGRICULTURAL MARKETING BOARD PANCHKULA E-mail:hsambabm@gmail.com Stages of Growth First Stage Owner managed Second Stage Early Growth Third Stage Middle management Fourth Stage Multilayer Stage AGRI-BUSINESS MANAGER HARYANA STATE AGRICULTURAL MARKETING BOARD PANCHKULA E-mail:hsambabm@gmail.com First Stage One person operation Owner does all the activities
Director-Founder- operated Owner - Manager - Worker AGRI-BUSINESS MANAGER HARYANA STATE AGRICULTURAL MARKETING BOARD PANCHKULA E-mail:hsambabm@gmail.com Second stage Separation 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 AGRI-BUSINESS MANAGER HARYANA STATE AGRICULTURAL MARKETING BOARD PANCHKULA E-mail:hsambabm@gmail.com Third stage Separation 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) AGRI-BUSINESS MANAGER HARYANA STATE AGRICULTURAL MARKETING BOARD PANCHKULA E-mail:hsambabm@gmail.com Fourth Stage Multi-layer management
Chairman Managing Director Manager Marketing Manger Finance Manager Production AGRI-BUSINESS MANAGER HARYANA STATE AGRICULTURAL MARKETING BOARD PANCHKULA E-mail:hsambabm@gmail.com AGRI-BUSINESS MANAGER HARYANA STATE AGRICULTURAL MARKETING BOARD PANCHKULA E-mail:hsambabm@gmail.com Agribusiness Opportunities India in World Agriculture Item Indias position in world % share Rank Next to Total area 2.5 7 th Russia, Canada, USA, China, Brazil and Australia Agrl. Population 23 2 nd China Arable land 11.9 2 nd USA AGRI-BUSINESS MANAGER HARYANA STATE AGRICULTURAL MARKETING BOARD PANCHKULA E-mail:hsambabm@gmail.com
India in World Agriculture (Contd) Item Indias position in world (Production) % share Rank Next to Wheat 11.7 2 nd China Rice 22.3 2 nd China Total pulses 21.2 1 st
Fruits & Vegetables 9.7 2 nd China Total milk 14.4 1 st
AGRI-BUSINESS MANAGER HARYANA STATE AGRICULTURAL MARKETING BOARD PANCHKULA E-mail:hsambabm@gmail.com Agriculture Scenario in India Details 1990 2010 Per capita food availability (Kg / person / year) 198.00 159.87 Per capita availability land (Ha)
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. AGRI-BUSINESS MANAGER HARYANA STATE AGRICULTURAL MARKETING BOARD PANCHKULA E-mail:hsambabm@gmail.com Productivity of Crops (Kg/Ha) Crops India
300 360 AGRI-BUSINESS MANAGER HARYANA STATE AGRICULTURAL MARKETING BOARD PANCHKULA E-mail:hsambabm@gmail.com 7/11/2014 40 AGRI-BUSINESS MANAGER HARYANA STATE AGRICULTURAL MARKETING BOARD PANCHKULA E-mail:hsambabm@gmail.com 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. AGRI-BUSINESS MANAGER HARYANA STATE AGRICULTURAL MARKETING BOARD PANCHKULA E-mail:hsambabm@gmail.com Agribusiness - Objectives Commercialization of Agriculture Increase productivity Use of modern technologies Reducing cost of production Value addition Export agriculture Higher farm income AGRI-BUSINESS MANAGER HARYANA STATE AGRICULTURAL MARKETING BOARD PANCHKULA E-mail:hsambabm@gmail.com AGRI-BUSINESS MANAGER HARYANA STATE AGRICULTURAL MARKETING BOARD PANCHKULA E-mail:hsambabm@gmail.com 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 AGRI-BUSINESS MANAGER HARYANA STATE AGRICULTURAL MARKETING BOARD PANCHKULA E-mail:hsambabm@gmail.com 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 AGRI-BUSINESS MANAGER HARYANA STATE AGRICULTURAL MARKETING BOARD PANCHKULA E-mail:hsambabm@gmail.com Silkworm Rearing Technology Silk Yarn Production Value addition & export Handloom & Textile / Garment Designing Sericulture AGRI-BUSINESS MANAGER HARYANA STATE AGRICULTURAL MARKETING BOARD PANCHKULA E-mail:hsambabm@gmail.com 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) AGRI-BUSINESS MANAGER HARYANA STATE AGRICULTURAL MARKETING BOARD PANCHKULA E-mail:hsambabm@gmail.com Integrated and Intensive Fish Farming Carp Hatchery Ornamental Fish Fish Feed Frozen and canned products Fishery AGRI-BUSINESS MANAGER HARYANA STATE AGRICULTURAL MARKETING BOARD PANCHKULA E-mail:hsambabm@gmail.com 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. AGRI-BUSINESS MANAGER HARYANA STATE AGRICULTURAL MARKETING BOARD PANCHKULA E-mail:hsambabm@gmail.com Establishing cold storage and warehousing Increasing number of Agri clinics Commodity markets Infrastructures AGRI-BUSINESS MANAGER HARYANA STATE AGRICULTURAL MARKETING BOARD PANCHKULA E-mail:hsambabm@gmail.com Agribusiness Organizations in India Domestic Agribusiness Firms Britannia India Ltd Dabur India Indian Tobacco Corporation Marico Mother Dairy Reliance
Cadbury Ltd Monsanto Cargill Coco Cola Hindustan Lever Ltd Pepsi Co AGRI-BUSINESS MANAGER HARYANA STATE AGRICULTURAL MARKETING BOARD PANCHKULA E-mail:hsambabm@gmail.com 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
AGRI-BUSINESS MANAGER HARYANA STATE AGRICULTURAL MARKETING BOARD PANCHKULA E-mail:hsambabm@gmail.com AGRI-BUSINESS MANAGER HARYANA STATE AGRICULTURAL MARKETING BOARD PANCHKULA E-mail:hsambabm@gmail.com 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., AGRI-BUSINESS MANAGER HARYANA STATE AGRICULTURAL MARKETING BOARD PANCHKULA E-mail:hsambabm@gmail.com
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. AGRI-BUSINESS MANAGER HARYANA STATE AGRICULTURAL MARKETING BOARD PANCHKULA E-mail:hsambabm@gmail.com 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., AGRI-BUSINESS MANAGER HARYANA STATE AGRICULTURAL MARKETING BOARD PANCHKULA E-mail:hsambabm@gmail.com 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. AGRI-BUSINESS MANAGER HARYANA STATE AGRICULTURAL MARKETING BOARD PANCHKULA E-mail:hsambabm@gmail.com 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 others families for a several generations.
AGRI-BUSINESS MANAGER HARYANA STATE AGRICULTURAL MARKETING BOARD PANCHKULA E-mail:hsambabm@gmail.com 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.
AGRI-BUSINESS MANAGER HARYANA STATE AGRICULTURAL MARKETING BOARD PANCHKULA E-mail:hsambabm@gmail.com 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. AGRI-BUSINESS MANAGER HARYANA STATE AGRICULTURAL MARKETING BOARD PANCHKULA E-mail:hsambabm@gmail.com Therefore Agribusiness is very unique and requires unique abilities and skills to its managers. AGRI-BUSINESS MANAGER HARYANA STATE AGRICULTURAL MARKETING BOARD PANCHKULA E-mail:hsambabm@gmail.com Thank you Agri-Business Manager