Agribusiness models

  • View

  • Download

Embed Size (px)



2. Agribusiness Agribusiness is the sum of all operations involvedin the manufacture and distribution of farmsupplies, production activities on the farm and thestorage, processing and distribution of farmcommodities and items made from them. 3. Agribusiness - Objectives Commercialization of Agriculture Increase productivity Use of modern technologies Reducing cost of production Value addition Export agriculture Higher farm income 4. 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 5. Agribusiness Models Contract Farming Supply Chain Management Corporate Farming 6. Contract Farming Partnership between Agri -Business Firms & Farmers Coordination of Production & Marketing Reduces the Risk & Uncertainties for Farmers &Sponsors 7. Contract FarmingInvolves Identification of Suitable Area Easy Access for Transport Selection of Working Groups(For Extn. Service, Credit, Inputs etc.,) Price Based on Quality 8. Specifications Duration Cultivation practices Quality standards Farmers production quota Arrangements for delivery of the crop Price calculation 9. Advantages - Farmers Good seeds Technical guidance More reliable income Employment generation Better utilization of resources 10. Advantages for Sponsors No land constraints Production is more reliable More consistent quality 11. Success of the Project Loyal Farmers Farmer-Management Relations Coordinating Production Monitoring Quality Standard Transparent Administration 12. Supply Chain Management 13. Supply Chain Management It is a set of approaches used to efficientlyintegrate suppliers, manufacturers, warehousesand customers. 14. Contd.. Distributed the right quantities, to the rightlocations, and at the right time in order tominimize system wide costs while satisfyingservice-level requirements. 15. Why Supply Chain Management ? Excess Inventory costs Excess freight charges Lost sales / Stock out situation Extra staff Customer dissatisfaction 16. Case StudyKuppam Project 17. KUPPAM MODEL R&DField Service Farmers Forex Earner Agro Industry 18. Project Promoted : BHC Agro India & AP Focus : Irrigation Technology Drip & Sprinkler Fertigation Crop Planning 19. Study Area Kuppam -A P Low Rainfall Drought Prone Area Poor Soil Irrigated Area : 10% GCA Majority S & MF Lack of Irrigation Technology 20. Phase - I Compact Area: 182 acres Boundaries Removed, Levelled, S & MF : 167 Farmers Society Drip & Sprinkler New Crops & Hybrids Onfarm R & D Marketing Produce 21. Phase - II Area: 1600 acres Villages : 54 Farmers : 692 Drip & Sprinkler - Individual Basis Buyback Arrangement 22. Perceived BenefitsFarmers Assured employment Buyback arrangements Bonus at the end Extension services 23. DisadvantagesFarmers Ownership of land Foreign technology Officers domination Dependency of crops 24. General Impact Efficient Use of Resources Improved Technology Improved Knowledge & Skill Farmers Income Stabilized High Value Crops Grown Gherkin, Baby corn, Capsicum Appreciation of Land value Large-scale Adoption 25. Observations No Tree Cover Mixed Farming -? Society Meetings -Less Govt. Signed with Company Heavy Subsidy Component 26. Conclusion Project Assured : Price Better Technical Inputs Transferred Technology Linked Production & Marketing Definite Return & Employment Institutional Involvement 27. Super Spinning Mills,Coimbatore, T.Nadu It gives necessary inputs and training to the farmers in cotton cultivation This firm procures cotton from the growers 28. Rasi SeedsAttur, T.Nadu The firm identifies seed growers for cotton and supplies the required inputs apart from technical services. At the end of the season the seeds are procured at agreed rates. 29. Indian Tropical Agro ProductsTuticorin, T.Nadu This firm deals about ghergin. It identifies the farmers and gives necessary inputs like seeds, fertilizers and technical services. It procures ghergin at the farm level in the agreed price with quality specifications. 30. Suguna PoultryUdumalpet, T.Nadu The firm identifies the poultry growers and giveschicks, feeds It procures broilers from at agreed rates from thepoultry growers 31. ABT DairyPollachi, T.Nadu Potential farmers were identified and given 4-5 milch animals (Mini dairy) The firm gives technical inputs and services The firm procures milk from the milk producers. 32. Thank you3905/08/12