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AGRI-BUSINESS MANAGERHARYANA STATE AGRICULTURAL MARKETING BOARD
PANCHKULAE-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 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.
AGRI-BUSINESS MANAGERHARYANA STATE AGRICULTURAL MARKETING BOARD
PANCHKULAE-mail:hsambabm@gmail.com
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.
AGRI-BUSINESS MANAGERHARYANA STATE AGRICULTURAL MARKETING BOARD
PANCHKULAE-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 MANAGERHARYANA STATE AGRICULTURAL MARKETING BOARD
PANCHKULAE-mail:hsambabm@gmail.com
Agribusiness sector Industrial sectorAgribusiness = Agri +Industry with Ag
Agricultural sector
AGRI-BUSINESS MANAGERHARYANA STATE AGRICULTURAL MARKETING BOARD
PANCHKULAE-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 resourcesAgricultural commoditiesFacilitative services
AGRI-BUSINESS MANAGERHARYANA STATE AGRICULTURAL MARKETING BOARD
PANCHKULAE-mail:hsambabm@gmail.com
AGRIBUSINESS Productive resources
Seed, Fertilizer Pesticides, Equipment & machineryEnergy, Feed, etc.
AGRI-BUSINESS MANAGERHARYANA STATE AGRICULTURAL MARKETING BOARD
PANCHKULAE-mail:hsambabm@gmail.com
AGRIBUSINESS
Agricultural commodities Raw & processed commodities of food
Eg. Paddy
Rice, Ricebran & Ricebran oil
AGRI-BUSINESS MANAGERHARYANA STATE AGRICULTURAL MARKETING BOARD
PANCHKULAE-mail:hsambabm@gmail.com
AGRIBUSINESS Facilitative services
Credit & insurance, Storage, processing & marketing, Transportation, Packing & distribution, Consultancy
AGRI-BUSINESS MANAGERHARYANA STATE AGRICULTURAL MARKETING BOARD
PANCHKULAE-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 theviability of the firms.
Agribusiness is market oriented
AGRI-BUSINESS MANAGERHARYANA STATE AGRICULTURAL MARKETING BOARD
PANCHKULAE-mail:hsambabm@gmail.com
CONSUMERS
RETAILERS
WHOLESALERS
PROCESSORS
FARMERS
FARM SUPPLIERS
Gov’t officersManagersEducatorsResearchers
vertical structure & coordinators of agribusiness
AGRI-BUSINESS MANAGERHARYANA STATE AGRICULTURAL MARKETING BOARD
PANCHKULAE-mail:hsambabm@gmail.com
Viability of the firms
Depends on Ability of the decision makers
Behaviour of the structure itself
AGRI-BUSINESS MANAGERHARYANA STATE AGRICULTURAL MARKETING BOARD
PANCHKULAE-mail:hsambabm@gmail.com
Major areas of Agribusiness Farm supplies Production Processing Marketing Research & Extension Govt. Policies & Programmes
AGRI-BUSINESS MANAGERHARYANA STATE AGRICULTURAL MARKETING BOARD
PANCHKULAE-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 MANAGERHARYANA STATE AGRICULTURAL MARKETING BOARD
PANCHKULAE-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 MANAGERHARYANA STATE AGRICULTURAL MARKETING BOARD
PANCHKULAE-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 MANAGERHARYANA STATE AGRICULTURAL MARKETING BOARD
PANCHKULAE-mail:hsambabm@gmail.com
…contd Beekeeping and apiary
Mushroom production for domestic consumption and export
Organic farming
AGRI-BUSINESS MANAGERHARYANA STATE AGRICULTURAL MARKETING BOARD
PANCHKULAE-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 MANAGERHARYANA STATE AGRICULTURAL MARKETING BOARD
PANCHKULAE-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 MANAGERHARYANA STATE AGRICULTURAL MARKETING BOARD
PANCHKULAE-mail:hsambabm@gmail.com
AGRI-BUSINESS MANAGERHARYANA STATE AGRICULTURAL MARKETING BOARD
PANCHKULAE-mail:hsambabm@gmail.com
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.
AGRI-BUSINESS MANAGERHARYANA STATE AGRICULTURAL MARKETING BOARD
PANCHKULAE-mail:hsambabm@gmail.com
Small Businesses
Involves in Production Distribution Retailing Franchising Professional services Financial services
22
AGRI-BUSINESS MANAGERHARYANA STATE AGRICULTURAL MARKETING BOARD
PANCHKULAE-mail:hsambabm@gmail.com
Objectives ServiceProfitCommunity participationGrowthSubsidiaries
AGRI-BUSINESS MANAGERHARYANA STATE AGRICULTURAL MARKETING BOARD
PANCHKULAE-mail:hsambabm@gmail.com
Characteristics Characterized by smallnessInvolves lesser capitalMostly one man ventureThey are highly diversified
wide range of productsWide dispersal geographically
AGRI-BUSINESS MANAGERHARYANA STATE AGRICULTURAL MARKETING BOARD
PANCHKULAE-mail:hsambabm@gmail.com
TypesSmall Scale Industry (SSI) Ancillary IndustryTiny EnterprisesExport Oriented UnitsWomen EnterprisesVillage &Small Scale Industries
AGRI-BUSINESS MANAGERHARYANA STATE AGRICULTURAL MARKETING BOARD
PANCHKULAE-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 MANAGERHARYANA STATE AGRICULTURAL MARKETING BOARD
PANCHKULAE-mail:hsambabm@gmail.com
Disadvantages Inadequate management ability Inadequate finance Poor competitive position Uncertain business continuity
AGRI-BUSINESS MANAGERHARYANA STATE AGRICULTURAL MARKETING BOARD
PANCHKULAE-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 MANAGERHARYANA STATE AGRICULTURAL MARKETING BOARD
PANCHKULAE-mail:hsambabm@gmail.com
First Stage
One person operation Owner does all the activities
Director-Founder- operated
Owner - Manager - Worker
AGRI-BUSINESS MANAGERHARYANA STATE AGRICULTURAL MARKETING BOARD
PANCHKULAE-mail:hsambabm@gmail.com
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
AGRI-BUSINESS MANAGERHARYANA STATE AGRICULTURAL MARKETING BOARD
PANCHKULAE-mail:hsambabm@gmail.com
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)
AGRI-BUSINESS MANAGERHARYANA STATE AGRICULTURAL MARKETING BOARD
PANCHKULAE-mail:hsambabm@gmail.com
Fourth StageMulti-layer management
Chairman
Managing Director
Manager Marketing
Manger Finance
Manager Production
AGRI-BUSINESS MANAGERHARYANA STATE AGRICULTURAL MARKETING BOARD
PANCHKULAE-mail:hsambabm@gmail.com
AGRI-BUSINESS MANAGERHARYANA STATE AGRICULTURAL MARKETING BOARD
PANCHKULAE-mail:hsambabm@gmail.com
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
AGRI-BUSINESS MANAGERHARYANA STATE AGRICULTURAL MARKETING BOARD
PANCHKULAE-mail:hsambabm@gmail.com
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
AGRI-BUSINESS MANAGERHARYANA STATE AGRICULTURAL MARKETING BOARD
PANCHKULAE-mail:hsambabm@gmail.com
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
AGRI-BUSINESS MANAGERHARYANA STATE AGRICULTURAL MARKETING BOARD
PANCHKULAE-mail:hsambabm@gmail.com
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 MANAGERHARYANA STATE AGRICULTURAL MARKETING BOARD
PANCHKULAE-mail:hsambabm@gmail.com
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
AGRI-BUSINESS MANAGERHARYANA STATE AGRICULTURAL MARKETING BOARD
PANCHKULAE-mail:hsambabm@gmail.com
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
AGRI-BUSINESS MANAGERHARYANA STATE AGRICULTURAL MARKETING BOARD
PANCHKULAE-mail:hsambabm@gmail.com
04/28/23 40
AGRI-BUSINESS MANAGERHARYANA STATE AGRICULTURAL MARKETING BOARD
PANCHKULAE-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 MANAGERHARYANA STATE AGRICULTURAL MARKETING BOARD
PANCHKULAE-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 MANAGERHARYANA STATE AGRICULTURAL MARKETING BOARD
PANCHKULAE-mail:hsambabm@gmail.com
AGRI-BUSINESS MANAGERHARYANA STATE AGRICULTURAL MARKETING BOARD
PANCHKULAE-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 MANAGERHARYANA STATE AGRICULTURAL MARKETING BOARD
PANCHKULAE-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 MANAGERHARYANA STATE AGRICULTURAL MARKETING BOARD
PANCHKULAE-mail:hsambabm@gmail.com
Silkworm Rearing Technology
Silk Yarn Production Value addition &
export Handloom & Textile /
Garment Designing
Sericulture
AGRI-BUSINESS MANAGERHARYANA STATE AGRICULTURAL MARKETING BOARD
PANCHKULAE-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 MANAGERHARYANA STATE AGRICULTURAL MARKETING BOARD
PANCHKULAE-mail:hsambabm@gmail.com
Integrated and Intensive Fish Farming Carp Hatchery Ornamental Fish Fish Feed Frozen and canned products
Fishery
AGRI-BUSINESS MANAGERHARYANA STATE AGRICULTURAL MARKETING BOARD
PANCHKULAE-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 MANAGERHARYANA STATE AGRICULTURAL MARKETING BOARD
PANCHKULAE-mail:hsambabm@gmail.com
Establishing cold storage and warehousing
Increasing number of Agri clinics
Commodity markets
Infrastructures
AGRI-BUSINESS MANAGERHARYANA STATE AGRICULTURAL MARKETING BOARD
PANCHKULAE-mail:hsambabm@gmail.com
Agribusiness Organizations in India
Domestic Agribusiness Firms Britannia India LtdDabur India Indian Tobacco CorporationMaricoMother DairyReliance
AGRI-BUSINESS MANAGERHARYANA STATE AGRICULTURAL MARKETING BOARD
PANCHKULAE-mail:hsambabm@gmail.com
Foreign Agribusiness Firms
Cadbury Ltd Monsanto Cargill Coco Cola Hindustan Lever Ltd Pepsi Co
AGRI-BUSINESS MANAGERHARYANA STATE AGRICULTURAL MARKETING BOARD
PANCHKULAE-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 MANAGERHARYANA STATE AGRICULTURAL MARKETING BOARD
PANCHKULAE-mail:hsambabm@gmail.com
AGRI-BUSINESS MANAGERHARYANA STATE AGRICULTURAL MARKETING BOARD
PANCHKULAE-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 MANAGERHARYANA STATE AGRICULTURAL MARKETING BOARD
PANCHKULAE-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 MANAGERHARYANA STATE AGRICULTURAL MARKETING BOARD
PANCHKULAE-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 MANAGERHARYANA STATE AGRICULTURAL MARKETING BOARD
PANCHKULAE-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 MANAGERHARYANA STATE AGRICULTURAL MARKETING BOARD
PANCHKULAE-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 other’s families for a several generations.
AGRI-BUSINESS MANAGERHARYANA STATE AGRICULTURAL MARKETING BOARD
PANCHKULAE-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 MANAGERHARYANA STATE AGRICULTURAL MARKETING BOARD
PANCHKULAE-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 MANAGERHARYANA STATE AGRICULTURAL MARKETING BOARD
PANCHKULAE-mail:hsambabm@gmail.com
Therefore Agribusiness is very unique and requires unique abilities and skills to its managers.
AGRI-BUSINESS MANAGERHARYANA STATE AGRICULTURAL MARKETING BOARD
PANCHKULAE-mail:hsambabm@gmail.com
Thank you
Agri-Business Manager