Agri business managers activitiies field details

AGRI-BUSINESS MANAGER
HARYANA STATE AGRICULTURAL MARKETING BOARD
PANCHKULA
E-mail:hsambabm@gmail.com

Agriculture
AGRIBUSINESS MANAGEMENT Business
Management
Art of cultivating various categories of crops including animal
Agriculture
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 organization’s 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.

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3
12/17/2012

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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 - 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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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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Features of
Agribusiness

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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 Gov’t officers
Managers
Educators
PROCESSORS Researchers

FARMERS

FARM SUPPLIERS
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

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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- Owner - Manager -
operated 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. Owner

One Layer
Middle Manager (s)
Management

Worker (s)

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Fourth Stage
Multi-layer management

Chairman

Managing Director

Manager Manager Manger
Production Marketing Finance

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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 retailers
Agribusinesses are built around several millions of farm producers.
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.
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 other’s 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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India in World Agriculture
India’s position in world
Item
% share Rank Next to
Total area 2.5 7th Russia, Canada,
USA, China, Brazil
and Australia
Agrl. Population 23 2nd China

Arable land 11.9 2nd USA

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India in World Agriculture
(Contd)

India’s position in world
Item (Production)
% share Rank Next to
Wheat 11.7 2nd China
Rice 22.3 2nd China
Total pulses 21.2 1st
Fruits & 9.7 2nd China
Vegetables
Total milk 14.4 1st

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Agriculture Scenario in India

Details 1990 2010
Per capita food availability 198.00 159.87
(Kg / person / year)
Per capita availability land 0.50 0.14
(Ha)

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)
% yield
Crops India World
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
Supply (MT) Demand (MT)

Commodity
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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Agriculture
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

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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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Sericulture
• Silkworm Rearing
Technology
• Silk Yarn Production
• 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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Fishery
Integrated and Intensive Fish
Farming
Carp Hatchery
Ornamental Fish
Fish Feed
Frozen and canned products

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•
Processingprocessing,
Fruit and vegetable 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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Infrastructures • Establishing cold storage
and warehousing
• Increasing number of
Agri clinics
• 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)
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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Therefore Agribusiness is
very unique and requires
unique abilities and skills to
its managers.

Thank you

Agri-Business Manager

Agri business managers activitiies field details

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