Post on 08-Apr-2018
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AGRI-BUSINESS ITS SCOPE AND
OPPORTUNITIES
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COMPILED BY
Abhishek Nandan
Email- abhirau@gmail.com
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AGRIBUSINESS
Agribusiness is the job of processing,
transporting, and delivering food todomestic and foreign consumers; andproviding services to the people who
produce the food.
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●„Agri-Business‟ is define as all business
enterprises or sell to farmers / trades/consumers.
●The transaction may involve either an
input or a produce or service and
encompasses items such as……..
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1.Productive resoures (feed, seed, fertilizer,Equipments, energy ,Pesticides ,machineries etc.
2.Agricultural commodities (raw and processed
commodities of food and fibers )
3.Facilitative services (credit, insurance,marketing, storage, processing, transportation,packing, distribution, consultancy soiltesting etc)
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AGRIBUSINESS
BUSINESS INVOLVED INFood Production
Farming
Seed Supply
Agro-chemicalsFarm Machinery
Wholesale & Distribution
Processing
Marketing andRetail Sales
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Definition
The making of business decisions that
tend to maximize net income consistent
with the operators objectives.
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What do produce?
How much to produce?
What kinds and amounts of resources to use?
What technology to use? When to buy and sell?
How to finance?
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Farm Operator
Spouse
Landlords
Farm managers Farm Advisors
Government
Financers
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Planning
Organizing
Directing (leading)
Staffing Controlling
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1. Define the problem
2. List Alternatives
3. Analyze alternatives
4. Select best alternatives 5. Act on decision
6. Evaluate
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Sole Proprietorship
Partnership
Corporation
Cooperative
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One owner makes all decisions
owner responsible for all liabilities
can have multiple employees
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Owned by two or more people
Owners are responsible for their share ofliabilities
Written agreements usually specify percent ofownership, responsibilities, and decisionmaking process.
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Owned by stockholders
Business is treated as a single entity
Stockholders not personally responsible for
liabilities of the business Returns profits in form of “dividends” to
stockholders
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Owned by the users of the business
Elected board of directors
Profits are returned in the form of “patronage
refunds” to users of the coop
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AGRO INDUSRIES
1) Village industries-@ Owned and run by rural
household
@ Little capital investment
@ High level of manual labor involve
2)Small scale industries@ Medium investment
@ Semi-automation 3)Large scale industries
@ Large investment
@ High level of automation 16
AGRI-BUSINESS SCOPE IN INDIA
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Huge Domastic Market
@ An average India spends around 53% of
his / her income on food
@ ITC, HLL, Nestle inter in Indian markets long timeago
Procssed Food
@Level are…
1.Manual 2. mechanical 3.Chamiacal or Combination
¤ Multiple Benefits
@Creates jobs, @ Demand for agri raw materials@Leads to diversification & commercialiazation
of agriculture
@ Enhace the income of farmers & creating
Surpluses for export of agro foods
Cont……
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AGRIBUSINESS
The Agribusiness industry accounts for
nearly one-fifth of the U.S. grossnational product and it employs close
to one-fourth of the U.S. labor force.
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Major Agri-Business Activities
Crop-production(Farming)
Animal Husbandry(Livestock Production)
Allied Sector Value addition& Export
1.Growing crops2.Marketing3.Production of Vital inputs(eg. Seed,Fertilizer,ago-chemicals etc
1.Dairy2.Poutry3.Goatry4.Piggery5.Duckery6.Fishery
1.Mashroom2.Apiary3.sericulture(silk)
4.agro-forestry5.Food processing6.Wood Industry7.Rubber Industry8.Lac Industry
1.QualityImprovement
2.Grading & packing3.Processing intoInnovativeproducts
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(A) Production Sectors
1.Crop production¶ Cereal
¶ pulses¶ Oilseeds¶ Vegetables
¶ Fruits¶ Flowers/ornamentals¶ Spices¶ Medicinal & Aromatic plants
¶ sugarcane¶ Tea/coffee/coca¶ Any other crops
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• Fruit & vegetable processing ( e.g. canning, drying,making preserves, jam, jelly and fruit beaverarasesincludes RTS
• Processing of cereals, pulses and oilseeds (rice mills,four mill, oil extraction and pulse processing units etc.
• Processed foods (e.g. biscuits, snacks, cakes , ice –
creams, bhujia, papad etc)
• Dairy products (e.g. milk, ghee, cheese, paniar , khoa
etc)
• Meat (e.g. mutton; beef; pork; chicken-flesh etc
• Tea , coffee, cocoa processing.
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• Commercial production
• Carp hatchery
• Fish feed
• Fish processing- dried fish products
• Manufacturing fishing nets and gadgets
6.Animal products• Milk • Egg• Meat• Cattle feed production• Poultry feed production
7. Domestics marketing & export
8. Value addition
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Farmer Farm
Primary Assembler
Kacha Aarthia
Pakka Aarthia
Primary Wholesaler
Secondary Wholesaler
Consumer
Each stakeholder in the supply chain need to play a crucial role.
V
A
L
U
E
A
D
D
I
T
I
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The cool chain encompasses all the critical steps and
processes that fruits and other perishable products must
undergo in order to maintain their quality.
It is essential during the transport of export qualitycommodity all the way from the farm to the customer. It helps
in maintaining the temperature inside the box at the same low
level as in the cold storage.
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COOL CHAIN
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The various stages of the cool chain are:
Coldstore at the farm. Refrigerated truck from farm to the airport
Coldstore at the airport. Loading the aircrafts directly from the coldstore in a short time. Cargo aircraft maintains coldstore temperature in hold.
Off loading direct into a coldstore in the receiving country.
Refrigerated truck to the customers.
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Precooling
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Cooling of
Banana
Cooling of
Grapes
Cooling of Watermelons
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Consultancy services for advice on new technique , plantprotection measures , procurement of farm machinery
,major inputs , quality seeds etc
Providing training for developing skill or expertise in aparticular field/subjects.
Maintenance of public park/ gardens/avenues
Research and development organization/institutes/colleges
Agricultural progessionals/consultants/plant health/clinics
Certification agency
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Community, social and personal services
Health & education
Trade hotels restaurants, transport, storage,communication
Financing , insurance, real estate, and businessservices
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(By Finance Minister P.Chidambram’s in Budget 2005 )
• Developing Food Processing industries
• that is generating 250,000 Job every year.
(By R.K.Bansal , Director in the Ministry
for Food Processing industries. ) Creating a separate
window with a corpus of Rs. 1,000 crore for
refinancing loans for infrastructure development
(in which 25% subsidy on machines and building) .
OPPORTUNITES IN AGRIBUSINESS
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• Punjab is a land of boundless opportunities forAgri-based industry
4.2 million hectare sown area with 186% croppingintensity & 100% assured irrigation makes Punjabgranary of India.
• Punjab is most suitable for Agribusinessdue to:
• 24.46 million tones of good grain
production.
• 9.85 million live stock
• 15.3 million poultry population32
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.
WAL MART
• The worlds biggest corporate in greenfaming practices.
• The biggest seller of organic milk in the
world.• The biggest buyer of organic cotton in
the world.
• Wal Mart goes green and is sooncoming to India
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USAID’s
(ACE)Progrmme
VIDEOCON, BPL ,
GODREJ ,PEPSI
INDO-
GERMAN
VOTAS
NABARD
HUDCO
INVESTMENT IN AGRIBUSINESS
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,
INVESTORS
FOR
AGRIBUSINESS
INVESTMENT IN AGRIBUSINESS
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C
U
S
T
O
M
E
RS
SUPPLY
FRESH
PLUS
CPC/DISTRIBUTIONCENTER
DEMAND
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GOALS & OBJECTIVE
Farmers will earn higher profit
consumers will get food at cheaper prices
The economy at large will gain form an increase
in agriculture productivity
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