Agri Businessmanagersactivitiiesfielddetails 121217003441 Phpapp01 (3)

8/17/2019 Agri Businessmanagersactivitiiesfielddetails 121217003441 Phpapp01 (3)

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Management

Henri Fayol : Father of Modern Management

F.W.Taylor : Father of Scientific Management

AGRI-BUSINESS MANAGER

HARYANA STATE AGRICULTURAL MARKETING BOARDPANCHKULA

E-mail:[email protected]

AGRIBUSINESS

Agribusiness as a concept was born in Harvard University in 1957.

Book : A Conception of Agribusiness

Authors: John H. Davis & R.Goldberg.


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HARYANA STATE AGRICULTURAL MARKETING BOARD

PANCHKULAE-mail:[email protected]

12/17/20123


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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

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

Agribusiness encompasses all of the agricultural sector and




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.




an input or a produce or service and

Encompasses items such as:

Productive resourcesAgricultural commodities

Facilitative services


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AGRIBUSINESS

Productive resources

Seed,




er zerPesticides,

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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Features of

gr us ness


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Important Features of Agribusiness

Agribusiness is a multifaceted point of view,complex vertical structure, largely depend andpartly independent.




uccess u ec s on ma ng a rm eve s ebasis 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 Gov’t officers




PROCESSORS

FARMERS

FARM SUPPLIERS

EducatorsResearchers

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




rocess ng Marketing

Research & Extension

Govt. Policies & Programmes


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Scope for Agribusiness in IndiaScope 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




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 fishand ornamental fish culture.

Scope for production of meat, milk and milkproducts, poultry products etc


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…contd

Beekeeping and apiary




consumption and export

Organic farming


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…contd

Production and promotion of bio-pesticides andbio-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 andallied sciences

Opportunities for employment in marketing,credit, insurance and logistic support services.


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Small BusinessesImportance

• Contributes 7% of the GDP.

• 32.25 lakhs small-scale industrial units / businesses

•




. .

• 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 totalexports.


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Small Businesses

Involves in

• Production




• str ut on• Retailing

• Franchising

• Professional services

• Financial services


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Objectives

• Service

• Profit




• Community participation

• Growth

• Subsidiaries


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Characteristics

• Characterized by smallness

•




• 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 employmentgeneration

• 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




• na equa e nance

• Poor competitive position

• Uncertain business continuity


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Stages of Growth

• First Stage – Owner managed




• econ age – ar y row

• 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




men a ac v es w e owner manages e us ness

Early Growth Owner- Mana er

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

MiddleManagement

Owner

Mana er s

Worker s


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Fourth StageMulti-layer management

Chairman




Managing Director

ManagerMarketing

MangerFinance

ManagerProduction


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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 retailerAgribusinesses are built around several millions of farm producers.

No other business is built principally around the basic producer of its

raw pro uc as agr us ness an ese us nesses ea w armers

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.,

AG S SS A AG


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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.

,

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 other’s families for a several generations.

AGRI BUSINESS MANAGER


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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 agribusinessmanagers use the principles of management in a very special way.



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India in World Agriculture

Item India’s position in world% share Rank Next to

Total area 2.5 7th Russia, Canada,




, ,

and AustraliaAgrl. Population 23 2nd China

Arable land 11.9 2nd USA



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India in World Agriculture(Contd)

Item

India’s position in world

(Production)




% share Rank Next toWheat 11.7 2nd China

Rice 22.3 2nd China

Total pulses 21.2 1st

Fruits &

Vegetables

9.7 2nd China

Total milk 14.4 1st



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Agriculture Scenario in India

Details 1990 2010

Per capita food availability

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 otheruses every year.




Cost of inputs increased >50 times but farm

produce price increased


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Productivity of Crops (Kg/Ha)

Crops India World % yieldobtained

Rice 1913 3970 48.19

G US N SS N G



Wheat 2770 4123 67.18Maize 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 98Vegetables 87.53 185 220

Spices 2.91 5.5 6.5

Total (All) 146.82 300 360



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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

Agriculture



Pulse and Oilseeds Post harvest and Processing

Organic Farming

Agro based Industry

Vermicomposting

Quality Certification

Farm Mechanization



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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

Sericulture



• Value addition & export

• Handloom & Textile /

Garment Designing



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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 FishFarming

Fishery



arp a c ery

Ornamental Fish

Fish Feed

Frozen and canned products




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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 toEat) 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

Infrastructures



• Commodity markets




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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)



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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Therefore Agribusiness isvery unique and requires



unique abilities and skills toits managers.


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Thank you

Agri-Business Manager

Documents

Agri Businessmanagersactivitiiesfielddetails 121217003441 Phpapp01 (3)