1

AGRIBUSINESS
MODELS

05/07/17 AEC & RI, KUMULUR, TNAU - 62172

Agribusiness
Agribusiness is the sum 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 - Objectives
Commercialization of Agriculture
Increase productivity
Use of modern technologies
Reducing cost of production
Value addition
Export agriculture
Higher farm income
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
Agribusiness Models
Contract Farming
Supply Chain Management
Corporate Farming
Contract Farming

Partnership between
Agri -Business Firms & Farmers
Coordination of Production &
Marketing
Reduces the Risk & Uncertainties
for Farmers & Sponsors
Contract Farming

Involves
Identification of Suitable Area

Easy Access for Transport

Selection of Working Groups

(For Extn. Service, Credit, Inputs etc.,)

Price Based on Quality
Specifications
Duration
Cultivation practices
Quality standards
Farmers production quota
Arrangements for delivery of the crop
Price calculation
Advantages - Farmers
Good seeds
Technical guidance
More reliable income
Employment generation
Better utilization of resources
Advantages for Sponsors
No land constraints
Production is more reliable
More consistent quality
Success of the Project
Loyal Farmers
Farmer-Management Relations
Coordinating Production
Monitoring Quality Standard
Transparent Administration
Supply Chain Management
Supply Chain Management
It is a set of approaches used to
efficiently integrate suppliers,
manufacturers, warehouses and
customers.
 Contd..
Distributed the right quantities, to
the right locations, and at the right
time in order to minimize system
wide costs while satisfying service-
level requirements.
Why Supply Chain
Management ?
Excess Inventory costs
Excess freight charges
Lost sales / Stock out situation
Extra staf
Customer dissatisfaction
 Case Study
Kuppam Project
 KUPPAM MODEL

R&D Field Service

Farmers

Forex Earner Agro Industry

Project
Promoted : BHC Agro India & AP
Focus : Irrigation Technology
Drip & Sprinkler
Fertigation
Crop Planning
Study Area
Kuppam -A P
Low Rainfall
Drought Prone Area
Poor Soil
Irrigated Area : 10% GCA
Majority S & MF
Lack of Irrigation Technology
Phase - I
Compact Area : 182 acres
Boundaries Removed, Levelled,
S & MF : 167
Farmers Society
Drip & Sprinkler
New Crops & Hybrids
Onfarm R & D
Marketing Produce
Phase - II
Area : 1600 acres
Villages : 54
Farmers : 692
Drip & Sprinkler - Individual Basis
Buyback Arrangement
Perceived Benefits
Farmers
Assured employment

Buyback arrangements

Bonus at the end

Extension services
Disadvantages
Farmers
Ownership of land

Foreign technology

Officers domination

Dependency of crops
General Impact
Efficient Use of Resources
Improved Technology
Improved Knowledge & Skill
Farmers Income Stabilized
High Value Crops Grown
Gherkin, Baby corn, Capsicum
Appreciation of Land value
Large-scale Adoption
Observations
No Tree Cover
Mixed Farming -?
Society Meetings -Less
Govt. Signed with Company
Heavy Subsidy Component
Conclusion
Project Assured : Price
Better Technical Inputs
Transferred Technology
Linked Production & Marketing
Definite Return & Employment
Institutional Involvement
Super Spinning Mills,
Coimbatore, T.Nadu

It gives necessary inputs and

training to the farmers in cotton
cultivation
This firm procures cotton from the
growers
Rasi Seeds
Attur, T.Nadu

The firm identifies seed growers for

cotton and supplies the required
inputs apart from technical services.
At the end of the season the seeds
are procured at agreed rates.
Indian Tropical Agro Products
Tuticorin, T.Nadu
This firm deals about ghergin.
It identifies the farmers and gives
necessary inputs like seeds,
fertilizers and technical services.
It procures ghergin at the farm level
in the agreed price with quality
specifications.
Suguna Poultry
Udumalpet, T.Nadu

The firm identifies the poultry

growers and gives chicks, feeds
It procures broilers from at agreed
rates from the poultry growers
ABT Dairy
Pollachi, T.Nadu

Potential farmers were identified

and given 4-5 milch animals (Mini
dairy)
The firm gives technical inputs and
services
The firm procures milk from the milk
producers.
 Thank you
39 05/07/17