AGRIBUSINESS PROJECTS

CRITICAL DESIGN ISSUES

FOR

AGRIBUSINESS PROFESSIONALS

Ashok C. Khosla
Agribusiness Consultancy agrioils@gmail.com
ROLE OF THE AGRIBUSINESS PROFESSIONAL

A HANDS-ON MANAGER OF COMMERCIAL AGRIBUSINESSES

COMMERCIAL AGRIBUSINESSES NEED:

PROJECT DESIGN

PROJECT ESTABLISHMENT

PROJECT OPERATIONS

THE BUSINESS PLAN IS A KEY CHECKLIST FOR PLANNED SUCCESS

 THE BASICS OF BUSINESS PLANS

EACH BUSINESS UNIT MUST FUNCTION TO A STATED PLAN

A BUSINESS PLAN IS A GUIDE TO A COMMERCIAL COMMITMENT

A BUSINESS PLAN IDENTIFIES PERFORMANCE BENCHMARKS

A BUSINESS PLAN ATTRACTS FUNDING SUPPORT

A BUSINESS PLAN UNITES THE TEAM IN A COMMON DIRECTION

A BUSINESS PLAN MUST FULLY ANSWER ALL KEY PROJECT QUESTIONS

THE AGRIBUSINESS PROJECT ROADMAP

THE FOUR PROJECT FUNDAMENTALS ARE:

MARKETING

PROCUREMENT

PROCESSING

FINANCING
 THE MARKET FACTOR

CONSUMER ANALYSIS

ANALYSIS OF THE COMPETITIVE ENVIRONMENT

THE STRATEGIC MARKETING PLAN

BUSINESS DEMAND FORECASTING

THE PROCUREMENT FACTOR

ADEQUATE QUANTITY

ACCEPTABLE QUALITY

APPROPRIATE TIMING

REASONABLE COST

ORGANIZED PROCUREMENT SYSTEM

 THE PROCESSING FACTOR

SELECTION OF PROCESSING TECHNOLOGY

PLANT LOCATION

INVENTORY MANAGEMENT

PROCESSING & OTHER PROCESSING INPUTS

PROGRAMMING AND CONTROL

BY-PRODUCTS
 THE FINANCING FACTOR

THE FOUR SUPPORT PILLARS FOR PROJECT FINANCE

EQUITY – SEED, PROMOTER & VENTURE CAPITAL, CAPITAL MARKETS

GRANTS & INCENTIVES – INVESTMENT RELATED, ACTIVITY RELATED

LONG TERM LOANS – FINANCIAL INSTITUTIONS, DONOR AGENCIES

WORKING CAPITAL LOAN – COMMERCIAL BANKS, PRIVATE

BORROWING
 TYPES OF PROJECTS

GREENFIELD PROJECTS

JOINT VENTURE PROJECTS

BUSINESS DIVERSIFICATION

ACQUISITION OF ONGOING BUSINESSES

FINANCIAL INVESTMENT IN ONGOING COMPANIES

STRATEGIC EVALUATION OF COMPETING COMPANIES

PARASTATAL FARM & RURAL DEVELOPMENT INITIATIVES

CORPORATE SOCIAL RESPONSIBILITY, NGO INTERVENTIONS

THE AGRIBUSINESS PROFESSIONAL

AGRICULTURE IS INHERENTLY VOLATILE

BUSINESSES DEMAND PREDICTABILITY

AGRIBUSINESS PROJECT MANAGEMENT IS DYNAMIC

KNOWLEDGE CAN & WILL GET OUTDATED

STRUCTURED PROJECT SYSTEMS WILL NEVER FAIL