Features of agribusiness

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how agribusiness differ from other businesses

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Features of agribusiness

  1. 1. Features of Agribusiness
  2. 2. How agribusiness differs from other business <ul><li>There are variations in the kinds of business in agribusiness sector : basic producers, wholesalers, transporters, processors, manufacturers storage firms, packagers, food chains, retailers etc., </li></ul>
  3. 3. <ul><li>Large number of agribusinesses : Large number of different businesses are evolved to handle the routes from the producer to retailers. </li></ul><ul><li>Agribusinesses are built around several millions of farm producers. </li></ul>
  4. 4. <ul><li>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. </li></ul><ul><li>Agribusinesses vary in their sizes right from one person or one family organisation to large giants like Reliance fresh, PepsiCo , Amul and Heritage etc., </li></ul>
  5. 5. <ul><li>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. </li></ul><ul><li>Product differentiation is common because of the brand and composition of the products. </li></ul>
  6. 6. <ul><li>Agribusiness are traditional oriented and are more conservative , when compared to other businesses. </li></ul><ul><li>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 . </li></ul><ul><li>People know each other’s families for a several generations. </li></ul>
  7. 7. <ul><li>Agribusinesses are highly seasonal in their nature due to the fact that they depend on farm production. </li></ul><ul><li>These businesses are affected by vagaries (unpredictable change) of nature. </li></ul><ul><li>Natural calamities like drought, floods, insects and pests and diseases are constant threats to agribusiness. </li></ul>
  8. 8. <ul><li>Agribusiness is vertically structured. </li></ul><ul><li>The Government programmes and policies have direct impact on agribusiness. </li></ul><ul><ul><ul><ul><li> Each of these features of the agribusiness world requires the agribusiness managers use the principles of management in a very special way. </li></ul></ul></ul></ul>
  9. 9. <ul><li>Therefore Agribusiness is very unique and requires unique abilities and skills to its managers. </li></ul>

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