AGRI-BUSINESS ITS SCOPE AND

OPPORTUNITIES

COMPILED BY

Abhishek Nandan
Email- abhirau@gmail.com

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AGRIBUSINESS

Agribusiness is the job of processing,

transporting, and delivering food to
domestic and foreign consumers; and
providing services to the people who
produce the food.
●„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 IN
Food Production
Farming
Seed Supply
Agro-chemicals
Farm Machinery
Wholesale & Distribution
Processing
Marketing and
Retail Sales

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 Definition

The making of business decisions that

tend to maximize net income consistent
with the operators objectives.
 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?
 Farm Operator
 Spouse
 Landlords
 Farm managers
 Farm Advisors
 Government
 Financers
 Planning
 Organizing
 Directing (leading)
 Staffing
 Controlling
 1. Define the problem
 2. List Alternatives
 3. Analyze alternatives
 4. Select best alternatives
 5. Act on decision
 6. Evaluate
 Sole Proprietorship
 Partnership
 Corporation
 Cooperative
 One owner makes all decisions
 owner responsible for all liabilities
 can have multiple employees
 Owned by two or more people
 Owners are responsible for their share of
liabilities
 Written agreements usually specify percent of
ownership, responsibilities, and decision
making process.
 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
 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
 AGRI-BUSINESS SCOPE IN INDIA
 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
 Cont……
Huge Domastic Market
@ An average India spends around 53% of
his / her income on food
@ ITC, HLL, Nestle inter in Indian markets long time
ago
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 17
AGRIBUSINESS

The Agribusiness industry accounts for

nearly one-fifth of the U.S. gross
national product and it employs close
to one-fourth of the U.S. labor force.
 Major Agri-Business Activities
Crop-production Animal Husbandry Allied Sector Value addition
(Farming) (Livestock Production) & Export

1.Growing crops 1.Dairy 1.Mashroom

2.Apiary 1.Quality
2.Marketing 2.Poutry Improvement
3.Production of 3.Goatry 3.sericulture(silk)
4.agro-forestry 2.Grading &
Vital inputs(eg. Seed, 4.Piggery packing
Fertilizer,ago-chemicals etc 5.Duckery 5.Food processing
6.Wood Industry 3.Processing into
6.Fishery Innovative
7.Rubber Industry
8.Lac Industry products

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 (A) Production Sectors
1.Cropproduction
¶ Cereal
¶ pulses
¶ Oilseeds
¶ Vegetables
¶ Fruits
¶ Flowers/ornamentals
¶ Spices
¶ Medicinal & Aromatic plants
¶ sugarcane
¶ Tea/coffee/coca
¶ Any other crops
 ¶ Whole sale or retail distribution
¶ Regulation supplies to hostel or hospital, educational
institutes or armed services, chain stores, supermarkets etc

3.Manufacture and/ or merchandising of material and supplied

essential to the production of agricultural products

¶ Seed production
¶ Plant nursery
¶ Organic fertilizer industry(vermi-compost, bio-
fertilizers
¶ Pesticide industry
¶ Agro-chemical industry( PGR, weedicide , micro-
nutrients etc
¶ Irrigation equipments and systems
¶ Farm machinery
• Fruit & vegetable processing ( e.g. canning, drying,
making preserves, jam, jelly and fruit beaverarases
includes 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.

• 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
Each stakeholder in the supply chain need to play a crucial role.

Farmer Farm V

Primary Assembler A
L
Kacha Aarthia
U
Pakka Aarthia E

Primary Wholesaler A
D
Secondary Wholesaler
D
Consumer I
T
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 Cool-chain transport

 Cold storage facilities

 Crop – insurance

 Financing crop production (soft loan)

Repairing and maintenance of irrigation

equipments/ farm machineries

 Providing training for developing skill or expertise

in a particular field/subjects.
 COOL CHAIN

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 quality

commodity 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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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

Cooling of
Banana

Cooling of
Grapes

Cooling of
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Watermelons
 Consultancy services for advice on new technique , plant
protection measures , procurement of farm machinery
,major inputs , quality seeds etc

Providing training for developing skill or expertise in a

particular field/subjects.

 Maintenance of public park/ gardens/avenues

 Research and development organization

/institutes/colleges

 Agricultural progessionals/consultants/plant health/clinics

 Certification agency
 Community, social and personal services

 Health & education

Trade hotels restaurants, transport, storage,

communication

 Financing , insurance, real estate, and business

services
 OPPORTUNITES IN AGRIBUSINESS

(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) .

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• Punjab is a land of boundless opportunities for
Agri-based industry

 4.2 million hectare sown area with 186% cropping

intensity & 100% assured irrigation makes Punjab
granary of India.

• Punjab is most suitable for Agribusiness

due to:

• 24.46 million tones of good grain

production.
• 9.85 million live stock
• 15.3 million poultry population
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  WAL MART

• The worlds biggest corporate in green

. faming 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 soon
coming to India

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 INDO-
GERMAN
USAID’s
(ACE)Progrmme

VOTAS

VIDEOCON, BPL ,
GODREJ ,PEPSI NABARD

HUDCO
INVESTMENT IN AGRIBUSINESS

INVESTORS
FOR
AGRIBUSINESS

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 SUPPLY

C
U
S
T
O
M
FRESH
E
PLUS
R
S CPC/
DISTRIBUTION
CENTER

DEMAND
 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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