Agribusiness management

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Agribusiness management

  1. 1. 1 AGRIBUSINESS MANAGEMENT05/08/12 AEC & RI, KUMULUR, TNAU - 621712
  2. 2. AGRIBUSINESS MANAGEMENT2  Agriculture  Business  Management 05/08/12
  3. 3. Agriculture3  Art of cultivating various categories of crops including animal husbandry, forestry, fishery and other related activities. 05/08/12
  4. 4. Business4  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 05/08/12
  5. 5. Management ?5 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. 05/08/12
  6. 6. Management6  Henri Fayol : Father of Modern Management  F.W.Taylor : Father of Scientific Management 05/08/12
  7. 7. AGRIBUSINESS7  Agribusiness as a concept was born in Harvard University in 1957.  Book : A Conception of Agribusiness  Authors: John H. Davis & R.Goldberg. 05/08/12
  8. 8. Traditional agriculture & Technological revolution TR RetailingTechnological revolution F Wholesalingdisperses production and TR Processingmarketing functions Transportation Production Farm supply TR F Production Traditional agriculture is characteristics by functionally self-contained farms Marketing8 05/08/12
  9. 9. 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.9 05/08/12
  10. 10. 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.10 05/08/12
  11. 11. Agribusiness sector Agribusiness Industrial sector = Agri + Industry with Ag Agricultural sector11 05/08/12
  12. 12. 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 services12 05/08/12
  13. 13. AGRIBUSINESS  Productive resources Seed, Fertilizer Pesticides, Equipment & machinery Energy, Feed, etc.13 05/08/12
  14. 14. AGRIBUSINESS14  Agricultural commodities Raw & processed commodities of food Eg. Paddy Rice, Ricebran & Ricebran oil 05/08/12
  15. 15. AGRIBUSINESS15  Facilitative services Credit & insurance, Storage, processing & marketing, Transportation, Packing & distribution, Consultancy 05/08/12
  16. 16. Important Features of Agribusiness16  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 05/08/12
  17. 17. CONSUMERS RETAILERS Gov’t officers WHOLESALERS Managers Educators Researchers PROCESSORS FARMERS FARM SUPPLIERS vertical structure & coordinators of agribusiness17 05/08/12
  18. 18. Viability of the firms18  Depends on  Ability of the decision makers  Behaviour of the structure itself 05/08/12
  19. 19. Major areas of Agribusiness19  Farm supplies  Production  Processing  Marketing  Research & Extension  Govt. Policies & Programmes 05/08/12
  20. 20. Scope for Agribusiness in India20  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) 05/08/12
  21. 21. …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 services21 05/08/12
  22. 22. …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 etc22 05/08/12
  23. 23. …contd Beekeeping and apiary Mushroom production for domestic consumption and export Organic farming23 05/08/12
  24. 24. …contd  Production and promotion of bio-pesticides and bio-control agents  Seeds-hybrid and genetically modified crops  Micro-irrigation systems and labor saving farm equipments24 05/08/12
  25. 25. …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.25 05/08/12
  26. 26. 26 05/08/12
  27. 27. Small Businesses27 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. 05/08/12
  28. 28. Small Businesses28 Involves in  Production  Distribution  Retailing  Franchising  Professional services  Financial services 05/08/12
  29. 29. Objectives29  Service  Profit  Community participation  Growth  Subsidiaries 05/08/12
  30. 30. Characteristics30  Characterized by smallness  Involves lesser capital  Mostly one man venture  They are highly diversified  wide range of products  Wide dispersal geographically 05/08/12
  31. 31. Types31  Small Scale Industry (SSI)  Ancillary Industry  Tiny Enterprises  Export Oriented Units  Women Enterprises  Village &Small Scale Industries 05/08/12
  32. 32. Advantages32  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 05/08/12
  33. 33. Disadvantages33  Inadequate management ability  Inadequate finance  Poor competitive position  Uncertain business continuity 05/08/12
  34. 34. Stages of Growth34  First Stage – Owner managed  Second Stage – Early Growth  Third Stage – Middle management  Fourth Stage – Multilayer Stage 05/08/12
  35. 35. First Stage One person operation Owner does all the activities Director-Founder- Owner - Manager - operated Worker35 05/08/12
  36. 36. 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 Workers36 05/08/12
  37. 37. 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. Owner One Layer Middle Manager (s) Management Worker (s)37 05/08/12
  38. 38. Fourth Stage Multi-layer management Chairman Managing Director Manager Manager Manger Production Marketing Finance38 05/08/12
  39. 39. Thank you39 05/08/12

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