Agri Business HSAMB

AGRI-BUSINESS MANAGER
HARYANA STATE AGRICULTURAL MARKETING BOARD

PANCHKULA
E-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 enterprise
Management ?
A set of activities(planning & decision making, organizing,
leading / directing & controlling) directed at an organizations
resources (human, financial, physical, and information) with
the aim of achieving organizational goals in an efficient and
effective manner.
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Management
Henri Fayol : Father of Modern Management

F.W.Taylor : Father of Scientific Management
AGRIBUSINESS
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.
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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
Industrial sector
Agribusiness
= Agri +
Industry with Ag
Agricultural sector
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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
Agricultural commodities
Raw & processed commodities of food

Eg. Paddy

Rice, Ricebran & Ricebran oil

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AGRIBUSINESS
Facilitative services
Credit & insurance,
Storage, processing & marketing,
Transportation,
Packing & distribution,
Consultancy
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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 the
viability of the firms.
Agribusiness is market oriented
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CONSUMERS
RETAILERS
WHOLESALERS
PROCESSORS
FARMERS
FARM SUPPLIERS
Govt officers
Managers
Educators
Researchers
vertical structure & coordinators of agribusiness
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Viability of the firms

Depends on
Ability of the decision makers

Behaviour of the structure itself
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Major areas of Agribusiness
Farm supplies
Production
Processing
Marketing
Research & Extension
Govt. Policies & Programmes

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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)
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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
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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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Small Businesses
Importance
Contributes 7% of the GDP.
32.25 lakhs small-scale industrial units / businesses
Employment 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.

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Small Businesses

Involves in
Production
Distribution
Retailing
Franchising
Professional services
Financial services
22
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Objectives
Service
Profit
Community participation
Growth
Subsidiaries
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Characteristics
Characterized by smallness
Involves lesser capital
Mostly one man venture
They are highly diversified
wide range of products
Wide dispersal geographically

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Types
Small Scale Industry (SSI)
Ancillary Industry
Tiny Enterprises
Export Oriented Units
Women Enterprises
Village &Small Scale Industries
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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
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Disadvantages
Inadequate management ability
Inadequate finance
Poor competitive position
Uncertain business continuity

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Stages of Growth
First Stage Owner managed
Second Stage Early Growth
Third Stage Middle management
Fourth Stage Multilayer Stage
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First Stage
One person operation
Owner does all the activities

Director-Founder-
operated
Owner - Manager -
Worker
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Second stage
Separation 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
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Third stage
Separation 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)
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Fourth Stage
Multi-layer management

Chairman
Managing Director
Manager
Marketing
Manger
Finance
Manager
Production
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Agribusiness
Opportunities
India in World Agriculture
Item
Indias position in world
% share Rank Next to
Total area 2.5 7
th
Russia, Canada,
USA, China, Brazil
and Australia
Agrl. Population 23 2
nd
China
Arable land 11.9 2
nd
USA
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India in World Agriculture
(Contd)
Item
Indias position in world
(Production)
% share Rank Next to
Wheat 11.7 2
nd
China
Rice 22.3 2
nd
China
Total pulses 21.2 1
st

Fruits &
Vegetables
9.7 2
nd
China
Total milk 14.4 1
st

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Agriculture Scenario in India
Details 1990 2010
Per 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
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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.
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Productivity of Crops (Kg/Ha)
Crops India

World
% yield
obtained
Rice 1913 3970 48.19
Wheat 2770 4123 67.18
Maize 1792 4279 41.88
Cotton 198 1027 19.28
Groundnut 977 1367 71.47
Sugarcane
(t)
68 165 41.21
Banana (t) 34 113 30.09
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Demand of Horticultural Crops

Commodity
Supply (MT)

Demand (MT)
2003-2004 2011-12 2020-2021
Fruits 44.04 81 98
Vegetables 87.53 185 220
Spices 2.91 5.5 6.5
Total (All) 146.82

300 360
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7/11/2014
40
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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.
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Agribusiness - Objectives
Commercialization of Agriculture
Increase productivity
Use of modern technologies
Reducing cost of production
Value addition
Export agriculture
Higher farm income
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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
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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
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Silkworm Rearing
Technology
Silk Yarn Production
Value addition &
export
Handloom & Textile /
Garment Designing
Sericulture
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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)
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Integrated and Intensive Fish
Farming
Carp Hatchery
Ornamental Fish
Fish Feed
Frozen and canned products
Fishery
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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.
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Establishing cold storage
and warehousing
Increasing number of
Agri clinics
Commodity markets
Infrastructures
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Agribusiness Organizations in India
Domestic Agribusiness Firms
Britannia India Ltd
Dabur India
Indian Tobacco Corporation
Marico
Mother Dairy
Reliance

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Foreign Agribusiness Firms

Cadbury Ltd
Monsanto
Cargill
Coco Cola
Hindustan Lever Ltd
Pepsi Co
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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

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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.,
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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.
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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.,
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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.
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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 others families for a several
generations.

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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.

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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.
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Therefore Agribusiness is
very unique and requires
unique abilities and skills to
its managers.
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Thank you
Agri-Business Manager

Agri Business HSAMB

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Agri Business HSAMB

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AGRI-BUSINESS MANAGER

HARYANA STATE AGRICULTURAL MARKETING BOARD

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