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AGRIBUSINESS
MANAGEMENT
27-Sep-18 Dr.V.Sakthirama, Dept. of ARM, CARDS
 AGRIBUSINESS MANAGEMENT
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 Agriculture
 Business
 Management
 Agriculture

 Art of cultivating various categories of crops

including animal husbandry, forestry, fishery and
other related activities.
 Business
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 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 ?
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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.
 Management

 Henri Fayol : Father of Modern Management

 F.W.Taylor : Father of Scientific Management

 AGRIBUSINESS
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 Agribusiness as a concept was born in Harvard

University in 1957.

 Book : A Conception of Agribusiness

 Authors: John H. Davis & R.Goldberg.

 Traditional agriculture & Technological revolution
TR

Retailing
Technological revolution F Wholesaling
disperses production and TR Processing
marketing functions Transportation
Production
Farm supply

TR

F
Production Traditional agriculture is characterised
by functionally self-contained farms
Marketing

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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.

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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.

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Agribusiness sector
Agribusiness Industrial sector
= Agri +
Industry with Ag

Agricultural sector

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The Agribusiness System

Processing-
Agriculture Production Manufactoring
Input Sector Sector Sector

Agribusiness System

Note: the success of each part depends upon the proper functioning
of the other two!
Agri-business involves three sectors

 Input sector: It deals with the supply of inputs required by the

farmers for raising crops, livestock and other allied enterprises.
• Eg: seeds, fertilizers, chemicals, machinery and fuel.

 Farm sector: It aims at producing crops, livestock and other

products.

 Product sector: It deals with various aspects like storage,

processing and marketing the finished products so as to meet the
dynamic needs of consumers.
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

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AGRIBUSINESS
 Productive resources
Seed,
Fertilizer
Pesticides,
Equipment & machinery
Energy,
Feed, etc.

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 AGRIBUSINESS
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 Agricultural commodities
Raw & processed commodities of food

Eg. Paddy

Rice, Ricebran & Ricebran oil

 AGRIBUSINESS
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 Facilitative services
Credit & insurance,
Storage, processing & marketing,
Transportation,
Packing & distribution,
Consultancy
 Important Features of Agribusiness
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 Agribusiness in a multifaceted point of view, has a

complex vertical structure, largely dependent 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
Distinctive Features of Agri-business
Management

• Management varies from business to business depending on the

kind and type of business.
• It varies from basic producer to brokers, wholesalers,
processors, packagers, manufacturers, storage proprietors,
transporters, retailers etc.,
• Agri-business is very large and evolved to handle the
products through various marketing channels from
producers to consumers.
Cont..

 There is large variation in the size of agri-business; some are

very large, while many other are one person or one family
organization.
 The production of Agri-business is seasonal and depends
on farm production. They deal with vagaries of nature.
 There is direct impact of govt. programmes on the
production and performance of Agribusiness.
Importance of Agri-business

• It deals with agricultural sector and also with the portion

of industrial sector, which is the major source of farm
inputs like fertilizers, pesticides, machines, processing and
post harvest technologies

• It suggests and directs the government and private sectors

for development of sub sectors

• It contributes a good part of the national economy

 CONSUMERS

RETAILERS

Gov’t officers
WHOLESALERS
Managers
Educators
Researchers
PROCESSORS

FARMERS

FARM SUPPLIERS

vertical structure & coordinators of agribusiness

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 Major areas of Agribusiness
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 Farm supplies
 Production
 Processing
 Marketing
 Research & Extension
 Govt. Policies & Programmes
 Scope for Agribusiness in India
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 India is endowed with varied agro-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)
 …contd
 In World trade, India has vast potential
Cereals, pulses, oilseeds,
Fruits, vegetables, flower, medicinal plants, Meat,
and milk products,
Agricultural advisory services

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 …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

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 …contd
 Beekeeping and apiary

 Mushroom production for domestic consumption

and export

 Organic farming

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 …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

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 …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.

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